The Thrift Savings Plan is one of the most misunderstood, and underutilized, ways to build wealth in the military. This video will walk you through the basic concepts you need to understand when investing in the TSP. AT the end of this video you will understand why you should utilize the TSP as an investment vessel, and how to maximize your benefits from it in your first four-year enlistment! Understanding how to get rich with the TSP can be a life-changer!
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My name is David Pere, I am an active duty Marine, and have realized that service members and the working class use the phrase “I don’t get paid enough” entirely too often. The reality is that most often our financial situation is self-inflicted. After having success with real estate investing, I started From Military to Millionaire to teach personal finance and real estate investing to service members and the working class. As a result, I have helped many of my readers increase their savings gap, and increase their chances of achieving financial freedom!
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LEARN MORE ABOUT: Thrift Savings Plans
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Download the FREE Ebook "First Term Wealth" here to learn more about the TSP, and other wealth-building strategies! https://mailchi.mp/8430a7c6d07a/first-term-wealth-free-book
Here is the full article if you would like to give it a read:
https://www.frommilitarytomillionaire.com/tsp-for-military/
Great video
Good day, i have a question, i am prior military and was wondering how can i verify if i took part in any TSP program while i was enlisted
Seeing that now the economy is taking a turn for the worst. Should I continue to put my contribution in the L option? I have recently commissioned and will not retire for a long tim.
Thanks for the information but to me the real question is what funds do you specifically put your money into?
I wish someone would have told me this when I first joined!! I will definitely start this process
Damn why I’m just learning this. Thank you so much I have now a better understanding about TSP. Would definitely put more percentage whenever I get promoted!
So from what I understand, the more you contribute to TSP during your first term the better it is for you. I was going to start contributing 30% but someone told me to keep in mind that the annual limit that you can contribute to an IRA is $6000 a year or you'll get a 6% penalty fee when you file your taxes. Is this true?
How much should an O-3 who isn't enrolled in the BRS contribute to the TSP?
Horrible advice! I would never recommend anyone participate in the TSP/401k especially military members. Heres why, taxes are going up, market crashes will kill the account (why put your serious money in an account that will lose money), more often than not people are retiring in a higher tax bracket, very limited access to the money, penalties when early access just to name a few reasons. Just look up the average account balance in a 401k at age 65 and you tell me if that's enough to last in retirement. Im in the industry and see this all the time.
Just wondering when do I start to actually do tsp? In Basic, AIT, or first ship day??
How long would take to reach 100k I’m currently investing 25% on c and s fund
Sorry if I missed this, but can I still get the "Employee Match" if I'm only contributing to Roth TSP?
Thank you so much. My daughter is a new Marine and wanted my help in deciding which plan. The is all so overwhelming but your video was helpful.
Do you mean by the time exit the service I will receive 1200 a month for ever every month even if I am working in the civil world
I have the chance to work as truck driver I am 29 years old and I can make 8 k a month working 5 days 14 hours a day
Which one sounds better to go as enlisted or do trucking in civil life any advice
Thank you
But you didn’t explain the pay for E-1
Hey boss I hope you get notified but I have a question(I tried doing this by my own but I feel like the numbers are too low). I'm a E3 and plan to pursue the military as my career. By the time I reach 60 how much money would I have if i invest for 40 years at a 10% return rate. I'm currently putting 25% every month into my Roth tsp with 7.6k accumulated. 2 year mark is in JAN22. If I left anything out please let me know.
Very Respectfully,
LSSN CERAS
Damn, I wish I cared about all of this when I was an E-1. I'm a 23-year-old E-4 now but wish I had started this process so much sooner! Good information to know. I appreciate you pushing all of your knowledge out there for us.
I don’t think anyone did the right thing when they went in. I’m just glad I avoided financing a car or getting married, and saved almost every dollar I made except for maybe $50 a month for beer. My regret is that I didn’t contribute to TSP up to the max amount they’d match me, or I would have put everything in the S fund.
Thanks for the info bro
I thought the matching for TSP wasn't until after 24 months of service.
Already done the last part of what you said. I started investing a couple years after i enlisted in tbe military. Gradually increased it to 10% with 5% matching with the Brs, currently at $340.00 a month. Once the debt from the social security deferral in 2020 is paid off im gonna start investing in savings. Thank you so much for your wisdom!
I got out of active duty in 2018 with 7.8 years. I have under 20k in my TSP and since my departure from the military, it hasn't grown much. How will it continue to grow? Should I take it out and transfer it to my civilian 401k or should I leave it as is? I've been on the L fund the whole time
Can you contribute to your tsp even when you do get out of the service?
I had $3400 invested in 2010 when I got out of the AF. I have my funds in the C and S funds and have $14,110 in 2021. The growth is crazy – they are more than doubling every 5 years but I should probably look into L funds just to have more security as I get older. So thankful 23 year old Sarah put away a little every month even when it didn't make sense on paper.
I've always liked the TSP vs ROTH question: Do you expect you will earn more or less income when you retire. Or, rephrasing the question, do you plan on investing 100% in the C fund or in the G fund for the next 40 years. LOL
Clint Eastwood once asked, "You you feel lucky, punk?" My answer is, no sir, I believe in dollar cost averaging,
Awesome, I’m a civilian fed now that does a flat dollar rate of $400 a month but plan to max it out when my VA rating goes up. My minimum retirement age is in 30 years. This gives me hope that I could actually be a millionaire one day.
When matching the 5%, can it be towards the Roth or does it have to be in the regular tsp? Could I put in 5% into the Roth and the matching would still be 5% even if it’s in the regular? I hope that makes sonce
My friend joined the military first since i got caught up getting a tattoo waiver that has taken time, but after hearing him tell me about 5% of his money going somewhere i decided to look it up and research it, coming across this video and I’m looking into really maxing out my amounts i can invest. When i join here shortly ill make sure to invest 30% into the roth
Great video! We need more financial information available for these new recruits.
If I had access to this stuff when I first enlisted, my TSP would be worth soooo much more!
I learned the hard way and didn’t start till I was in my mid 20’s. Im a recruiter now and I teach all of my new recruits how to set up their TSP contributions to help them the way I wish my NCOs would have helped me when I was young and dumb.
I want to add in my experience. I started civil service when I was 23, then became an officer when I was 27. During those years I contributed 5% (civ) and 10% base (25% bonuses) to TSP. I stopped civil service when I was 27, and was medically discharged when I was 31 back in 2012. When I left, I had roughly $50k in my TSP. Now, after being a stay at home mom for years and not contributing another penny, I have almost $90K! THANK GOD I LISTENED TO MY DAD AND STARTED MY TSP WHEN I WAS YOUNG!! I have a good nest egg to go with my VA disability payments – if something were ever to happen to my husband, I can still take care of myself and my kids, thanks in great part to my TSP.
I have a question: I worked for the govt for six years but no longer due. However, I expect to earn more in retirement because i am starting other ventures. I don't expect to earn more in retirement from my government pension and retirement account. Should I still switch to a Roth IRA. I am currently 31 years old. @frommilitarytomillionare
Thanks for the incite, very helpful
I set up my TSP recently and I’m not sure if it’s going into the L fund. Where can I check that at?
does this apply to national guard too? L fund and %10?
Hi! I'm enjoying the video, and I'm trying to follow the simplicity of the math. I was good up to the $128,078 and you stated this is based on, by example, 7% return over a 40 year period. Can you please give me the calculation as to where the $128,078 came from. I thought it was going to be straight calculated from the @2,138.28 over 40 yrs, which would be way more then the 128K…Help 🙂
Wouldn’t 5% matching be around 80/90$? I don’t understand where the 180 came from can you explain that? sorry! Thank you!
I'm starting a little late. Let's say I already did 12 years and haven't even started my TSP. Planning on a full 20, maybe even more. Any recommendations?
please tell me you worked in finance
Does my TSP go with me when I ETS?
I learned that I should have put started putting in 5% back when the ladies came to basic training three years ago… ouch. Better late than never though. Thanks for the help
I 100% support ROTH as the absolute default entity to invest in. Here is why: If people are just modestly investing, over a 30-40 year govt career, They are likely to have a military or civilian pension, TSP, IRA and possibly social security. You cannot defer three of these income streams: pension, IRA if Traditional and social security. This will likely place them into a taxable bracket that is very close to what they are earning during their earning years. For example, I will remain in the 22% tax bracket upon retirement, due to the above scenario! My Traditional IRA is what is putting me over that threshold. Plus, my Traditional (vs my Roth) IRA, where the bulk of my retirement monies are, appreciated substantially over the past two years!
So you need to be on TSP for a minimal of 4 years?
I heard that they match 5% after two years of contract, is that true?