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The Thrift Savings Plan (TSP) is a retirement savings plan that is available to military members as well as federal government employees. It offers a way to save for retirement with the added benefit of employer contributions. However, there are common mistakes that people make when it comes to managing their TSP that can potentially hinder their retirement savings goals. Here are some of the most common TSP mistakes that you should avoid:

1. Not contributing enough: One of the biggest mistakes that people make with their TSP is not contributing enough. It’s important to contribute as much as you can afford to maximize your retirement savings. The more you contribute, the more you will have saved for retirement in the long run. If possible, try to contribute at least the maximum annual limit to take advantage of the full benefit of employer contributions.

2. Having the wrong asset allocation: Another common mistake is having the wrong asset allocation within your TSP. It’s important to diversify your investments and choose a mix of stocks and bonds that align with your risk tolerance and retirement goals. Be sure to regularly review and adjust your asset allocation as needed to ensure that your investments are performing well and are in line with your retirement goals.

3. Not taking advantage of employer contributions: Many military members and federal employees are eligible for employer contributions to their TSP. This is essentially free money that can help boost your retirement savings. Be sure to take advantage of employer contributions by contributing enough to maximize the match offered by your employer. Failing to do so means leaving money on the table that could have helped grow your retirement savings.

4. Taking out loans from your TSP: While the TSP does allow for loans in certain circumstances, it’s generally not a good idea to take out a loan from your TSP. This can hinder the growth of your retirement savings and potentially lead to penalties and taxes if the loan is not repaid in a timely manner. If you find yourself in need of funds, explore other options before resorting to taking out a loan from your TSP.

5. Not staying informed: Finally, one common mistake is not staying informed about your TSP and retirement savings in general. Be sure to regularly review your TSP account statements, keep up with any changes to the TSP program, and seek advice from a financial advisor if needed. Staying informed can help you make better decisions about your TSP and ensure that you are on track to meet your retirement goals.

In conclusion, avoiding these common TSP mistakes can help you maximize your retirement savings and ensure a more comfortable retirement. By contributing enough, maintaining the right asset allocation, taking advantage of employer contributions, avoiding loans, and staying informed, you can set yourself up for a more secure financial future in retirement.