JOINT BASE CHARLESTON, S.C. –
If you're looking for a rewarding New Year's resolution, sign up for the Thrift Savings Plan.
Created in 1986 by Congress, TSP originally was only available to civilian federal government employees. In 2000 President Clinton signed the Floyd D. Spence National Defense Authorization Act for fiscal year 2001, making TSP available to all service members which made saving for retirement easier.
"TSP is a great plan to have to help you retire comfortably," said Melanie Branham, financial education specialist at the Military and Family Readiness Center on Joint Base Charleston-Weapons Station. "There is no way to determine what the future is going to hold. TSP is a good way to plan for an uncertain future."
TSP is considered as a 'defined contribution' retirement plan, meaning the money received for retirement will be based upon how much a member contributes to their account.
Experts recommend deducting up to 10 percent of a member's base pay and up to 100 percent of their incentive pay and bonuses, depending upon their current financial situation.
Upon enrolling, a member can decide how much they are willing to contribute and what type of fund they would like to invest their money in. If however, a member is indecisive, the contribution will automatically be placed into a G-fund which contains no-risk bonds.
"There are five different funds in which a member can invest in; choices range from low-risk bonds to higher-risk investments in the stock market," said Mrs. Branham. "The type of investment is completely up to the service member, and if they happen to change their mind down the road they can change the type of investment."
According to Yeoman 1st Class Yarkee Farrow, who is attached to Navy Support Activity at JB CHS - WS, it's never too early to begin saving for your retirement.
"Sixty-two percent of Navy E-4s are enrolled in the program," she said. "They are living proof that TSP is a great idea for every service member and everyone should take advantage of this opportunity."
While retirement may be a long ways off for some, to learn more about TSP, Mrs. Branham recommends seeking help.
"To get a better understanding of how much you should contribute to your TSP fund, seek out the help of a financial specialist," Mrs. Branham concluded.
To sign up for TSP or to get more information, Sailors and Airmen are encouraged to visit their command financial specialist or Military and Family Readiness Center.