UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev Thread | Next Thread
Author: YodaCo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 37660  
Subject: TSP Opens 9 Oct to Military Members Date: 3/26/2001 5:32 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 6
For one & all, from AFNews Service:

-YodaCo

****************************************

0415. Thrift Savings Plan opens to military Oct. 9

by Jim Garamone
American Forces Press Service

WASHINGTON (AFPN) -- Servicemembers can begin to sign up for the Thrift Savings Plan beginning Oct. 9, Defense Department officials said.

The Thrift Savings Plan is a retirement and investment plan that has been available to civilian government workers since 1987. Congress extended the plan to include servicemembers.

"It's in addition to your regular retirement," said Army Lt. Col. Tom Emswiler, a tax expert with DoD's Office of Military Compensation. "It's an optional program."

The open season for signing up will run from Oct. 9 to Dec. 8. Deductions will start in January 2002. In 2002, servicemembers can contribute up to 7
percent of their basic pay. That limit of 7 percent of basic pay will rise to 10 percent by 2005 and become unlimited in 2006.

Unlike civilians, who cannot make lump-sum payments into the program, servicemembers will be able to contribute all or a percentage of any special
pay, incentive pay, or bonus pay they receive.

"You can contribute from 1 percent to 100 percent of your special pays, incentives and bonuses into the thrift plan," Emswiler said.

The total amount generally cannot exceed $10,500 for the year. Contributions from pay earned in a combat zone will not count against the $10,500 ceiling.
Combat zone contributions will be subject to a different limitation, however, 25% of pay or $35,000, whichever is less.

Like civilian employees in the program, servicemembers will choose how they want their money invested. Right now, there are three funds civilians choose
from. The funds run the gamut from safe -- the G Fund invests in special government bonds -- to riskier investments -- the C Fund tied to the stock market. There is also an F Funds that invests in commercial bonds.

TSP will unveil two funds in May. S Fund investments go to a stock index fund that paces small businesses. I Fund investors will track international companies the same way.

Servicemembers will be able to start, change or reallocate their TSP contributions during two open seasons held each year, in November to January
and May to July.

"Because bonuses are hard to predict, if you are already participating in the plan and contributing from basic pay and you receive, for example, a
re-enlistment bonus, you can elect to contribute at any time," Emswiler said.

Contributions to the plan come from "pre-tax" dollars. Servicemembers will pay no federal or state income taxes on contributions or earnings until they're withdrawn.

The services will have teams visiting bases to explain the program. Until then, those who wish to can see the thrift plan's uniformed services Web page at www.tsp.gov/uniserv/index.html for more information.

********************************************

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: BinkleyBT Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7194 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 2:19 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
The total amount generally cannot exceed $10,500 for the year. Contributions from pay earned in a combat zone will not count against the $10,500 ceiling.
Combat zone contributions will be subject to a different limitation, however, 25% of pay or $35,000, whichever is less.

Contributions to the plan come from "pre-tax" dollars. Servicemembers will pay no federal or state income taxes on contributions or earnings until they're withdrawn.


This year I had less than 10,500 in taxable income thanks to thanks to 8 months of tax free CZTE pay. This will be a recurring pattern for me, so I could just put all my taxable income in the TSP (pre-taxes) and live off my income from the tax free months, and I don't pay taxes for the whole year. That would be fun to do just to say I did it.

Binkley

Print the post Back To Top
Author: TRGarner Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7195 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 5:47 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
YodaCO,

You are giving out GREAT NEWS, whats your secret? :)

----

First, Thanks, I've forwarded this email (yours actually) to work for print out and mandatory reading for the troops. THIS IS GREAT NEWS!

Second, The fun part, what would someone SUGGEST as a good plan for the different plans? Any suggestions?

----

Taken from Thrift Savings Plan: What is TSP?

A choice of investments in three funds:

Government Securities Investment (G) Fund
Common Stock Index Investment (C) Fund
Fixed Income Index Investment (F) Fund

What is the G Fund?

The G Fund consists exclusively of investments in short-term nonmarketable U.S. Treasury securities specially issued to the TSP. Currently, maturities range from 1 day (on business days) to 4 days (over holiday weekends). G Fund investments earn interest at a rate that is equal, by law, to the average of market rates of return on U.S. Treasury marketable securities that are outstanding with 4 or more years to maturity.

----

What is the C Fund?

The C Fund is invested primarily in the Barclays Equity Index Fund, a commingled stock index fund that tracks the Standard & Poor's 500 (S&P 500) stock index. A commingled fund is a fund in which the assets of many plans are combined and invested together.

**** Thus, the Equity Index Fund uses a "passive" investment strategy of duplicating the performance of the S&P 500 index... ****

----

The F Fund is invested primarily in the Barclays U.S. Debt Index Fund, a commingled bond index fund designed to track as closely as possible the Lehman Brothers U.S. Aggregate (LBA) index. The LBA represents U.S. Government, corporate, and mortgage-backed securities sectors of the fixed-income securities market. Fixed-income securities represent obligations of issuers (the borrowers) to repay the amount borrowed (the principal) to holders of the securities at maturity. These securities, which include bonds, notes, and debentures, usually pay interest semiannually until maturity.


If anything, I'm unsure of the choices (thus far), to me, it looks like the F Fund is the best choice, however, looking over the different rate of returns, one has to wonder.

Any suggestions?



Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: TRGarner Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7196 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 5:50 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
If anything, I'm unsure of the choices (thus far), to me, it looks like the F Fund is the best choice, however, looking over the different rate of returns, one has to wonder.

Ooops, I meant to say C Fund. Sorry had a bad eval day and I'm a little depressed.

Anyway, what does everyone think of our options thus far?

I'm looking at the C Fund b/c the SP500 is a good gage to use. However, the F Fund does look enticing, but for long term strategy?

Choices, choices, choices! :)

Print the post Back To Top
Author: KLAXONMan One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7198 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 8:35 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Two new funds are supposed to be opening soon. One is a small-cap and the other an international. Both opening before military eligibility starts.

http://www.govexec.com/dailyfed/0301/032701b1.htm

--Klaxon_Man

Print the post Back To Top
Author: YodaCo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7199 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 9:00 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
You are giving out GREAT NEWS, whats your secret? :) -- TRGarner

TRGarner,

I use The Force, naturally!!

Actually, I subscribe to the daily email compilation of news AF news stories from AFNews. Here's the "blurb" at the bottom of each email with contact/subscribe info:

Send this email to friends and colleagues so they can subscribe at: http://afproducts.ease.lsoft.com/archives/usafonlinenews.html


Notice: You are receiving this email as a subscriber. If you wish to cancel your subscription at anytime, simply complete the online form at http://afproducts.ease.lsoft.com/archives/USAFONLINENEWS.html.


Try these other U.S. Air Force news products:
Airman Magazine http://www.af.mil/news/airman -- a monthly magazine of indepth news and features showcasing America's Air Force. Subscribe at http://www.af.mil/news/airman/subscribe.htm
Air Force Television News -- http://www.af.mil/news/tv/ -- Air Force Television News produced bi-weekly
Air Force Radio News -- http://www.af.mil/news/radio -- Air Force Radio News produced Monday through Friday
Air Force Link Plus -- http://www.af.mil/aflinkplus -- a multimedia product of news and information. Find out more online.
Air Force Policy Letter Digest http://www.af.mil/lib/policy/. Subscribe at http://afproducts.ease.lsoft.com/archives/afpolicy.html.

**********************

It's a great way to stay up-to-date!

-YodaCo

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: gccbcarter One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7201 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 11:24 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Just to be the one to burst a couple of bubbles, the
military vs. civilian TSP has one item that is of 
most important.  The civilians in TSP get matching 
funds as listed.

Your contrubution         Percent matched
1,2,3%                    1,2,3% respectively
4%                        3.5%
5% to 10%                 4%

Now if your active duty military:

up to 7%                  nothing (unless you are in a 
                          designated carreer field by 
                          your branch of service)

Note that I have yet to find a list by any service as
to what jobs qualify for matching contributions.  if
the matching funds were there, I would jump in.  
Otherwise it is just a pre-tax dollar glorified 
savings/brokerage IRA type account.

Glenn


Print the post Back To Top
Author: YodaCo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7202 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 1:03 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 5
Note that I have yet to find a list by any service as to what jobs qualify for matching contributions.

As far as I know, there are none that the Services have so designated -- yet. The authority is there in the law, but it is a "Service discretion" call, as you point out.

**********

The civilians in TSP get matching funds as listed.

Correct. But, I for one don't want matching funds.

Why?

Because that will be the first sign that the traditional 50% retirement program is on it's way out (the "CSB at 15 yrs program" is a shot across the bow as it is). If we ever get matching funds, all it would take is some misinformed, overzealous, anti-military "CongressCritter" during a recession/economic downturn to say "Wait, we are giving these guys a TSP w/ matching funds AND 50% retirement?? Let's save some budget money.......eliminate the 50% and go with a whole new retirement paradigm!"

The current retirement plan works, and still we've messed with it 2X already since 1980 (Everyone who's "High 3" vs "Flat 50%" stand up!). If we get TSP matching funds I'm afraid someone will figure out a way to make that the ONLY retirement plan......just give us the civilian retirement plan and essentially make military service equal to DoD civilian work (not that our civilians don't bring something to the fight, but it's different wearing the uniform, IMHO). Matching funds is a "slippery slope" that I don't think we want to go down.................

.....Who knows, even being eligible for TSP w/out matching funds may come back to bite us one day.......

..........I don't want the civilian retirement program: Where age + years of service must = 85 or higher before you can collect significant benefits. Join the Civil Servive at 22, work 33 years so age (55) + 33 yrs service = 88, then collect benefits? I'd rather stick with "50% at 20," thank you very much....

Let's take the TSP, use it, and don't worry too much about what our civilian counterparts are getting.......or not getting, as the case may be.....

my .02 cents

-YodaCo








Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: gccbcarter One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7203 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 2:25 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
..........I don't want the civilian retirement program: Where age + years of service must = 85 or higher before you can collect significant benefits. Join the Civil Servive at 22, work 33 years so age (55) + 33 yrs service = 88, then collect benefits? I'd rather stick with "50% at 20," thank you very much....

I kind of get what your saying. Here at Travis AFB our civil service workers for aircraft maintenance are also reservists. They balance the reserve and civil schedules to be compatable. They have the availability to contribute to TSP as civilians and retire from the reserves within a few years apart. I don't know what kind of pay scale thier reserve retirement pay is like but I do know they get the full matching funds to the TSP. Double dipping you think? I don't know. Would you take matching contributions as the civilians over a basic pay increase? Just a thought.
Glenn



Print the post Back To Top
Author: YodaCo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7204 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 2:55 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Would you take matching contributions as the civilians over a basic pay increase?

Nope. Give a pay increase.

What I would take, though, is add the BAQ amount into basic pay. That would, unfortunately, make BAQ taxable but at the same time it would increase your salary amount when it came time to calculate your retired pay. The bigger your base pay (add BAQ, get a decent raise or both), the bigger your retirement check..............The closer I get to 20, the more these things seem to matter........

My basic point was that every retirement system (AD, Reserve, civilian, etc)is different. The fact that we aren't getting matching funds in the TSP is neither good nor bad.....it just "is." There are "good" things about our military retirement system, and "bad" things; there are also "good" and "bad" aspects about Civil Service retirement. You can't easily compare them head-to-head, and that's one reason I'm not upset about not getting matching funds......

-YodaCo

Print the post Back To Top
Author: TRGarner Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7205 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/27/2001 8:02 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
if the matching funds were there, I would jump in.
Otherwise it is just a pre-tax dollar glorified
savings/brokerage IRA type account.


Which, I do not have! :)


Print the post Back To Top
Author: deadeye63 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7265 of 37660
Subject: Re: TSP Opens 9 Oct to Military Members Date: 3/30/2001 11:14 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Depends on your risk and age as to which funds you use.
C = aggressive
F = moderate

Financial planners are ccommending a blend depending on your age and time to retirement more aggressive when younger, less when retiring.
I've seen some folks say as much as 40 % in stocks up to retirement. Then you have all the folks whining that they cant' rretire because of the market drops.
There are some good formulas out there and the plan I am following is 90% stocks (including mutuals which are 42% large cap) 10 % cash. Then at 42 I'm shifting gears to 3% a year in fixed investments. At age 55 that will put me at 49 % stocks 30% bonds and the rest in cash like securities. This is considered aggressive, but I would like to retire around 55 to 57.


Print the post Back To Top
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev Thread | Next Thread
Advertisement