Dave's Thoughts on Thrift Savings Plan

Question: Kayla on Twitter wants to know the views on Dave's Government's Savings Savings Plan (TSP) account

Dave's answer: What you need to do first, before you start long-term investment, that you have no debt outside your home, and that you have three to six months of emergency funds It is to have.

Then, if your thrift savings plan matches, we will start with TSP until match. If not, start with Ross IRA. Because we need a mismatched Roth IRA to raise tax-free growth tax rather than mismatched TSP. Tax exemption is better than tax reduction

Either way, if you are over your Ross Ireland Republican Army and you want to save some savings savings plan, or if you have games, you look forward to playing the match I want to get it. It is recommended to set the ratio to 80 - 10 - 10 or 60 - 20 - 20. In other words, 80% will be invested in C fund (common stock fund), 10% will be invested in S fund (small stock) and 10% will be in I fund (foreign).

S funds and I funds invest 10% individually or 20% individually before investing 80% or 60% of C funds. Put most of it in the C fund

Savings Saving Program As a federal employee or member of military service, you have the opportunity to participate in the Savings Savings Plan (TSP). This is a retirement savings plan similar to the 401K program offered to private sector employees. The purpose of TSP is to make it possible to participate in long-term retirement savings and investment planning. TSP retirement savings have many advantages, including the following: In the case of a FERS employee (or a rehired FERS or CSRS employee) that you were hired after July 31, 2010, your agency or service will automatically transfer to your Register the TSP, 3% of your base salary will be deducted from your salary payment and deposited with you during each payment period. TSP account, unless you stop the election or change your contribution. If you are FERS or BRS, you can also receive donations from your agent or service.

Accrued tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

If you are a federal employee, you need to obtain information on the joint retirement savings plan (TSP) which is a retirement and savings plan for federal employees. The main goal of TSP is to provide retired income to federal employees. Under the "401K" program, TSP provides savings and tax incentives that are the same savings and tax incentives that many private companies provide to employees. If you receive TSP withdrawal before 59 years old, you may need to pay early withdrawal penalty in addition to normal tax. If you wish to withdraw TSP funds before the appropriate time, you are advised to make the best decision with the help of Buford's TSP financial adviser. There are two options for TSP withdrawal.