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Ever wondered how you can double the amount in your TSP? Here are three steps to increasing the amount substantially!
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Cooper Mitchell helps federal employees better understand their benefits and helps them retire on their terms. Using financial planning and investment management through Cooper is able to tackle the issues that are unique to federal employees.
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As a member of the military, you have access to one of the most powerful investment tools available, the Thrift Savings Plan (TSP). The TSP is a retirement savings plan that allows you to invest a portion of your income pre-tax, meaning that you don’t have to pay taxes on it until withdrawal in retirement. If utilized correctly, the TSP can help you double your retirement savings. Here are three steps to make it happen.
1. Start Early and Contribute Regularly
Time is your greatest ally when it comes to investing. The earlier you start, the more time your money has to grow. The power of compound interest can turn small contributions into significant savings over time. For example, if you start contributing $200 per month at age 20 and continue until age 65, you could have over $700,000 in your TSP account, assuming a 7% return on investment. On the other hand, if you wait until age 30 to start contributing, you would have to contribute over $500 per month to reach the same amount.
2. Maximize Your Contributions
The maximum contribution for 2021 is $19,500 for those age 50 and under. Individuals age 50 and over can also make catch-up contributions of up to $6,500. By maxing out your contributions, you are taking full advantage of the pre-tax benefits of the TSP, and you are ensuring that you are on track to a comfortable retirement. Keep in mind that contributions to the TSP are not subject to income tax until you withdraw the funds.
3. Diversify Your Investments
The TSP offers five investment funds: the G Fund, F Fund, C Fund, S Fund, and I Fund. Each fund has a different risk and reward profile, so it’s essential to diversify your investments to take advantage of each fund’s benefits. Diversification spreads your money across different investments, reducing your portfolio’s overall risk. The goal is to have a portfolio that is diversified enough to weather market volatility while still achieving significant returns.
In conclusion, by following the three steps outlined above, you can vastly increase your retirement savings. Start early, max out your contributions, and diversify your investments to make the most of the TSP. With careful planning and a little discipline, you can double your TSP and have a comfortable retirement. Remember, your future self will thank you for taking action today.
This information is fantastic.Thank you very much!
TSPCalc website!!
Is this still relevant today due to the changes to the TSP?
Aren’t you the home gym guy too?
TSP matches your firs 3% dollar for dollar. Next 2% is matched 50cents to the dollar.
Hello sir,
I’m lost, I thought the Roth TSP was better so you saying doing traditional TSP keep you in low tax bracket but u have to pay tax on when u withdraw the traditional TSP. How to figure out what tax bracket I’m in ? Thanks again sir
How do I accept the 5% match? I thought it was automatic.
Hi how to roll over to Roth IRA from tsp ?
Thank you, fan of Garage Gym Review and unknowingly stumbled across this while looking for TSP info
So random but is this the same guy that does garage gym reviews?
You say by putting money in the traditional you save taxes when you do your income tax. Well I did my income taxes last year but I don’t see anywhere on the tax form how much was deducted from my gross yearly pay. My accountant says it was deducted already from the gross pay or you would of made more money for the year. Well I taught whatever I put in for traditional was supposed to be taken out from the yearly total but he says it was already taken out. I would like to know where in the tax form does it say that cause I don’t trust this dirty politicians.
I thought the only double it up to 3% and then percents four and five is 50% match. So it's not exactly doubling your 5% is it?
You do pay no taxes with Traditional, but You still get taxed in the end. Roth allows you to get taxed immediately, so You can obtain the whole retirement without paying the taxes in the end.
why are the doors behind you different finishes?
Good info, BUT younger folks with lower incomes should be in ROTH TSP, not traditional. They’re gonna be wealthier in retirement, and won’t want to pay those kinda taxes later on.
Is he also going to help you build out your garage gym?
Wish there was matching for service members!
I'm about 3 years out and have very little in TSP. I've only contributed 5 percent in the G fund. What would be a good move for me to gain more in my TSP?
Holy it’s Coop from GGR
We get 100% match on 3% the additional 2% is 50% match
Not everyone gets a 5% match. You didn't factor in paying taxes when you pull the money out of TSP
better off investing in the ROTH TSP vs Traditional. No worries of taxes, ever.
Great vid man!
Is it wrong if I don’t invest anything in Roth ?
The match is not a total 5%. The first 3% is an equal match/100%. The last 2% are a 50% match.
I have a question he said by investing more you lower your taxes but don't that money just get tax later on down the road when you go to with draw
Garage gym reviews coop?
It is cool to see how simple it is to have a huge TSP balance. It basically comes down to consistency and discipline over time.
Hood video, but the music is annoying !!
What don’t you charge for this type of information? Do you have business handle?
1:30 INVEST in the TSP; 02:03 Accept the 5% match; 03:03 Pay fewer taxes (with traditional)