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LEARN MORE ABOUT: Thrift Savings Plans
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The Thrift Savings Plan (TSP) is a great tool for military and civil service employees to save for retirement, but many people are unaware of how to maximize its potential. Whether you are just starting your career or nearing retirement, there are steps you can take to double your TSP.
1. Increase your contributions.
The easiest way to double your TSP is to increase your contributions. Even if you are close to retirement, you can still benefit from increasing your contributions. The TSP has a catch-up provision that allows employees over the age of 50 to make additional contributions. You can contribute up to $19,500 in 2021, and an additional $6,500 for catch-up contributions. If you can afford to increase your contributions, you should do so as soon as possible.
2. Take advantage of matching contributions.
If you are a military or civil service employee, you may be eligible for matching contributions from your employer. This means that for every dollar you contribute, your employer will match a percentage of it. For example, if your employer matches 5% of your contributions and you contribute $1,000, your employer will contribute $50. If you are not taking advantage of matching contributions, you are leaving money on the table. Be sure to contribute enough to receive the full matching contribution.
3. Consider a Roth TSP.
The TSP offers a Roth option, which allows you to contribute after-tax dollars instead of pre-tax dollars. This means that you will not be taxed on the money when you withdraw it in retirement. If you are in a lower tax bracket now than you expect to be in retirement, a Roth TSP may be a good option for you. By contributing after-tax dollars, you can potentially double your TSP by avoiding taxes on your contributions and earnings.
4. Invest in low-cost index funds.
The TSP offers a variety of investment options, including index funds that have low fees. Low-cost index funds are a great way to maximize your TSP because they have low fees and track the performance of the market. They also have the potential to outperform actively managed funds over the long term. By investing in low-cost index funds, you can potentially double your TSP by keeping more of your earnings and avoiding high fees.
5. Stay diversified.
It is important to stay diversified in your TSP investments to minimize risk. The TSP offers a variety of investment options, including stocks, bonds, and real estate. By diversifying your investments, you can potentially double your TSP by reducing your risk and maximizing your returns.
In conclusion, doubling your TSP requires discipline and planning. By increasing your contributions, taking advantage of matching contributions, considering a Roth TSP, investing in low-cost index funds, and staying diversified, you can potentially double your TSP and achieve a comfortable retirement. Start planning today and take advantage of the great benefits offered by the TSP.
3 years to go.
Probably my favorite of your videos –thanks for the advice! 6 years to go!
Where should we move our TSP because the guy at the White House now has resulted in substantial losses in our TSP.
When the market goes down it takes more to go up. 100K down 25% is 75K in order for it to go back to 100K it will need to go up by 33%. It will go down more at least until the Fed quits raising rates. Better to be patient right now.
I’m 37 years old and I’m going to max it out! Thanks for the encouragement
Market is down 25% 2022.
Does agency contribution count towards the annual contribution limit?
So I'm thinking there's a rule that makes sure traditional TSP taxes are paid if you retire and move to a tax free state?
If you wanted to do some good, you could do a video explaining what a mess the new TSP web site is. For example, where will 1099s be posted in the new site so that members can print them out and prepare their tax returns? Why isn't there some secure message capability so a member can pose a question to the TSP? The TSP cannot be reached by phone, so the sole way to contact the TSP is by postal mail.
That's all fine and well. However, we are now living in a manulipated Market!
What about now?
So in this down market should we move G fund to C or F fund ?
please talk about those who retired and still have money
invested in TSP. what is the best strategy and how to increase the investment. Thank you!!
Down markets are a fire sale
I am new subscriber. I maxed out my contribution– contributed 30% for about a year or so. Then the extreme down-market, and I lowered contribution to only 6%, and started putting money in bank account. Mentally, I could not allow my hard earned money to be snatched away. I understand the market goes down, but when one is getting ready to retire next year, well, it is hard to seeing money slipping away knowing time is not on my side to see a rebound.
Than you for all of the great information! Does the maximum contribution to TSP include the 5% match or is that just the maximum I can contribute? Thank you!
Great tips. I am already doing all 7. I'm 60 and have been maxing out for 5 years. I've had my money in the C & S funds since I started in civil service and it has grown a lot. It's frustrating not being able to put more in. So I opened a brokerage account and also a ROTH IRA. Looking forward to retiring in 1-4 years depending on how things are going. I enjoy your videos. Thanks!
I like your videos. Still have 12 years to retire but learning a little at a time. Thanks
I’m 29 and I have about eight years service in I just this past year started moving my money into the other funds based off the Dave Ramsey stuff I read and I’ve lost a little money my question is with this economy should I move everything back into the G fun or leave it where it’s at and let it sit in not touch it being that I’m young have a while?
Hey Dallen.
I'm a fed, my wife is a nurse are we earn around $240K a year. I have in the Traditional TSP my whole 30 plus year career. Can I still push a few hundred a paycheck to a Roth TSP? Or do the regular Roth income restrictions forbid that?
Thanks!
What funds do you recommend ?
You can withdraw all your money when you turn 59 1/2 .. No matter what happen to the Market you have your money Already 🙂 Plus you still have Money in.. becoz you are still working..you continue deducting money from your Pay Check .. Bottom line is you have all your MONEY!! got it?
I wonder if t is a good strategy is to reduce the amount of taxes out and put that difference into the TSP
With each WIGI and COLA just add to TSP – live on less to save more. Get to max ASAP!!
You cant put $20k a year into Roth
Does this guy think every Federal employee is making 6 figures???? Try maxing out your TSP at GS 8 or 9 or 11. People at these pay grades are lucky to meet the matching contributions, particularly with inflation. Yeah, its easy to max out if you are living in your parents basement and have no bills. This is obviously geared toward the six figure crowd. Ohband ask those Federal workers close to retirement who lost their shirts trying to double their money before the 2008 crash. This guy is dangerous. Stick with the TSP Lifecycle funds. Get the matching and try to add extra whenever you can. In the meantime consider paying down your mortgage before doubling down on the TSP. At least your house can keep you from living under a bridge.
Im five years out and I appreciate this channel.
Do you lose the match if you don’t stay in federal service for 5 years?
How can I convert my TSP to crypto or Bitcoin the federal reserve note is dying
I am grateful for the TSP, but…I've been pretty nimble moving money. Trying to catch the dips in the market with TSP is like taking a dump truck through an obstacle course…that moves. Because the orders have to go in by noon & are not executed till close; too much happens during the trading day.
Mr. Haws, I have two TSP's one with the military and one with my employer (DOD). I have 23 yrs with the National Guard and am cosidering retiring from that. My question is if I were to rollover my miitary TSP to the work TSP, will my employer match that?
I don’t understand how to put more money into TSP. It seems like I’m only allowed to put 5% in every paycheck and that’s it. I’ve been searching for months and none of my co workers know. I have more money to put in all the time. It just doesn’t seem possible.
Great advice. I just put our annual raise into TSP.
Regarding the Roth TSP, if you put money into it while working, the taxes are not deferred and you will be paying more taxes during your working years. Also add-in paying state taxes. That money you pay in taxes is not going to compound and grow like it is in the regular TSP. I guess it depends on each person's situation. But it seems to me that if your retirement income will be less that your working income, it makes more sense to put your money into the regular TSP. Especially if you plan on moving to a state that doesn't tax retirement income.
I spent the first 11 yrs contributing to traditional tsp. I've got $357K. 14 years to go till retirement eligibility, max contributions going toward Roth TSP all the way. I wish I had known, and would have done Roth TSP from day 1.
Being ok w the basis, like planting a tree. Great analogy !