Military Benefits: Exploring 401(K) Investment Options For Servicemen

The Thrift Savings Plan (TSP) is a federal government-offered retirement plan that is similar to a 401(k). Only 29% of soldiers in the United States Army participate in the Thrift Savings Plan, which is much lower than the participation rate in other branches of the service. Many members of the military believe that they do not need to invest in the Thrift Savings Plan because they will receive a pension when they reach a minimum of twenty years of service. However, relying on a military pension is not enough to survive and thrive in your Golden Years. The TSP offers low-cost investments and special tax breaks that civilians don't have.

Thrift Savings Plan (TSP)

The Thrift Savings Plan (TSP) is a defined-contribution retirement savings and investment plan that offers Federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans. By participating in the TSP, Federal employees and uniformed service members can save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.

Employees who are new to federal employment can roll over 401(k) and individual retirement account (IRA) assets into a TSP. Rollovers can also go in the opposite direction if federal employees move to the private sector.

The TSP offers a choice of six funds and a mutual fund option. The F, S, C, and I funds in the TSP are index funds currently managed by the BlackRock Institutional Trust Company under contract by the Federal Retirement Thrift Investment Board (FRTIB).

Only 29% of Soldiers in the United States Army participate in the Thrift Savings Plan (TSP), federal government’s version of a 401k retirement plan. The numbers are not much better for the other branches of service either. According to recent statistics published by the Federal Retirement Thrift Investment Board (FRTIB), the board that administers the government’s defined contribution retirement plan, 38% of the Air Force, 33% of Marines, and 57% of the Navy participate in the program.

Many members of the military believe that they do not need to invest in TSP in order to save for retirement because they will receive a pension when they reach a minimum of twenty years of service. The vast majority of people who have served in the military get out and find other employment. If you had money invested in the federal Thrift Savings Plan, you can roll that money into a traditional IRA or your new company’s 401k retirement plan. You can take your retirement nest egg with you after you leave the military instead of starting over from scratch. Many members of the military think that they cannot afford to save for retirement. Many are living paycheck to paycheck and feel that they cannot squeeze another dime from their budget. The problem is that you cannot afford NOT to save for retirement.

Military members have numerous options for saving and investing money for retirement. The federal government offers two retirement plans to service members, depending on when they enlisted. Military members can save through the Savings Deposit Program while serving in eligible combat zones. The federal government offers two retirement plan options for military service members. These are the Legacy Retirement System and the Blended Retirement System. The plan depends on when members enlist in the armed services. The Legacy Retirement System, the Uniformed Services Retirement System, applies to service members who enlisted on or before Dec. 31, 2017. This is a defined-benefit plan that pays a lifetime monthly annuity to service members at retirement. To qualify, individuals need to have served for 20 years or longer.

The TSP is like a 401(k) for federal employees and members of the military, but the fees tend to be much lower than civilian retirement-savings plans (the TSP charges an annual expense ratio of just 0.029% of assets). The TSP lets you choose among five index mutual funds or a target-date fund, which automatically becomes more conservative as your retirement date gets closer. You can generally invest up to $18,000 in the TSP in 2016 (or $24,000 if you’re 50 or older).

There are many investment options available to members of the military for retirement such as the federal Thrift Savings Plan, but they have to take advantage of them if they want to close the gap between a pension and their needs during retirement. Relying on a military pension is not enough in order to survive and thrive in your Golden Years. Excuses as to why such a low percentage of members of the military are saving for retirement are nothing but that…excuses. During open enrollment, you can change or add plans. Under-inflated tires lower your gas mileage so keep an eye on your tire pressure.

Military retirement plans

The Thrift Savings Plan (TSP) is a federal government-offered retirement plan that is similar to a 401(k) for federal employees and members of the military. The TSP charges an annual expense ratio of just 0.029% of assets and allows you to choose among five index mutual funds or a target-date fund, which automatically becomes more conservative as your retirement date gets closer. You can generally invest up to $18,000 in the TSP in 2016 (or $24,000 if you’re 50 or older).

Only 29% of Soldiers in the United States Army participate in the Thrift Savings Plan. The numbers are not much better for the other branches of service either. According to recent statistics published by the Federal Retirement Thrift Investment Board (FRTIB), the board that administers the government’s defined contribution retirement plan, 38% of the Air Force, 33% of Marines, and 57% of the Navy participate in the program.

Many members of the military believe that they do not need to invest in TSP in order to save for retirement because they will receive a pension when they reach a minimum of twenty years of service. The problem is that you cannot afford NOT to save for retirement. Many are living paycheck to paycheck and feel that they cannot squeeze another dime from their budget.

Military members have numerous options for saving and investing money for retirement. The federal government offers two retirement plans to service members, depending on when they enlisted. Military members can save through the Savings Deposit Program while serving in eligible combat zones. The federal government offers two retirement plan options for military service members. These are the Legacy Retirement System and the Blended Retirement System. The plan depends on when members enlist in the armed services. The Legacy Retirement System, the Uniformed Services Retirement System, applies to service members who enlisted on or before Dec. 31, 2017. This is a defined-benefit plan that pays a lifetime monthly annuity to service members at retirement. To qualify, individuals need to have served for 20 years or longer.

If you had money invested in the federal Thrift Savings Plan, you can roll that money into a traditional IRA or your new company’s 401k retirement plan. You can take your retirement nest egg with you after you leave the military instead of starting over from scratch.

Low-cost investments

The federal government offers two retirement plans to service members, depending on when they enlisted. Military members can save through the Savings Deposit Program while serving in eligible combat zones. The federal government offers two retirement plan options for military service members. These are the Legacy Retirement System and the Blended Retirement System. The Thrift Savings Plan (TSP) is like a 401(k) for federal employees and members of the military, but the fees tend to be much lower than civilian retirement-savings plans. The TSP charges an annual expense ratio of just 0.029% of assets. The TSP lets you choose among five index mutual funds or a target-date fund, which automatically becomes more conservative as your retirement date gets closer. You can generally invest up to $18,000 in the TSP in 2016 (or $24,000 if you’re 50 or older).

Only 29% of Soldiers in the United States Army participate in the Thrift Savings Plan. The numbers are not much better for the other branches of service either. According to recent statistics published by the Federal Retirement Thrift Investment Board (FRTIB), the board that administers the government’s defined contribution retirement plan, 38% of the Air Force, 33% of Marines, and 57% of the Navy participate in the program. Many members of the military believe that they do not need to invest in TSP in order to save for retirement because they will receive a pension when they reach a minimum of twenty years of service. The vast majority of people who have served in the military get out and find other employment. If you had money invested in the federal Thrift Savings Plan, you can roll that money into a traditional IRA or your new company’s 401k retirement plan. You can take your retirement nest egg with you after you leave the military instead of starting over from scratch. Many members of the military think that they cannot afford to save for retirement. Many are living paycheck to paycheck and feel that they cannot squeeze another dime from their budget. The problem is that you cannot afford NOT to save for retirement.

Relying on a military pension is not enough in order to survive and thrive in your Golden Years. Excuses as to why such a low percentage of members of the military are saving for retirement are nothing but that…excuses. During open enrollment you can change or add plans. Under-inflated tires lowers your gas mileage so keep an eye on your tire pressure.

Special tax breaks

The Thrift Savings Plan (TSP) is a federal government-offered retirement plan that is similar to a 401(k). The TSP offers special tax breaks that civilians do not have and low-cost investments. The TSP charges an annual expense ratio of just 0.029% of assets and lets you choose among five index mutual funds or a target-date fund, which automatically becomes more conservative as your retirement date gets closer. You can generally invest up to $18,000 in the TSP in 2016 (or $24,000 if you’re 50 or older).

The Legacy Retirement System and the Blended Retirement System are two retirement plan options for military service members. The Legacy Retirement System applies to service members who enlisted on or before Dec. 31, 2017. This is a defined-benefit plan that pays a lifetime monthly annuity to service members at retirement. To qualify, individuals need to have served for 20 years or longer.

Military members have numerous options for saving and investing money for retirement and have to take advantage of them if they want to close the gap between a pension and their needs during retirement. Relying on a military pension is not enough in order to survive and thrive in your Golden Years. The vast majority of people who have served in the military get out and find other employment. If you had money invested in the federal Thrift Savings Plan, you can roll that money into a traditional IRA or your new company’s 401k retirement plan. You can take your retirement nest egg with you after you leave the military instead of starting over from scratch.

Pension and retirement needs

The vast majority of people who have served in the military get out and find other employment. If you had money invested in the federal Thrift Savings Plan, you can roll that money into a traditional IRA or your new company’s 401k retirement plan. You can take your retirement nest egg with you after you leave the military instead of starting over from scratch.

The Thrift Savings Plan (TSP) is like a 401(k) for federal employees and members of the military, but the fees tend to be much lower than civilian retirement-savings plans. The TSP charges an annual expense ratio of just 0.029% of assets. The TSP lets you choose among five index mutual funds or a target-date fund, which automatically becomes more conservative as your retirement date gets closer. You can generally invest up to $18,000 in the TSP in 2016 (or $24,000 if you’re 50 or older).

Only 29% of Soldiers in the United States Army participate in the Thrift Savings Plan. The numbers are not much better for the other branches of service either. According to recent statistics published by the Federal Retirement Thrift Investment Board (FRTIB), the board that administers the government’s defined contribution retirement plan, 38% of the Air Force, 33% of Marines, and 57% of the Navy participate in the program.

Many members of the military believe that they do not need to invest in TSP in order to save for retirement because they will receive a pension when they reach a minimum of twenty years of service. However, relying on a military pension is not enough in order to survive and thrive in your Golden Years. Excuses as to why such a low percentage of members of the military are saving for retirement are nothing but that…excuses.

Military members have numerous options for saving and investing money for retirement. The federal government offers two retirement plans to service members, depending on when they enlisted. Military members can save through the Savings Deposit Program while serving in eligible combat zones. The federal government offers two retirement plan options for military service members. These are the Legacy Retirement System and the Blended Retirement System. The plan depends on when members enlist in the armed services. The Legacy Retirement System, the Uniformed Services Retirement System, applies to service members who enlisted on or before Dec. 31, 2017. This is a defined-benefit plan that pays a lifetime monthly annuity to service members at retirement. To qualify, individuals need to have served for 20 years or longer.

Frequently asked questions