MARINE CORPS AIR STATION IWAKUNI, Japan -- With today’s economy and the uncertainty of what your future has in store, it only makes sense to start saving for your retirement now.
The amount you need to save for retirement differs for everyone. Several factors could affect the need to save more or less. If you plan on exploring the world after retirement, you might want to plan on pocketing a few extra bucks to facilitate those dreams.
“A lot of times people think a military retirement paycheck will be enough for them to just get by, but it’s not,” said Bonnie Lewis, personal financial manager here. “They need to start setting up as early as possible, putting away money to be able to have access to funds whenever they actually retire.”
The sooner you begin to save, the less you’ll have to save each month in order to obtain your goal, and the more you save, the more comfortably you’ll live in retirement.
“The Thrift Savings Plan is an investment in your financial future,” said Lance Cpl. Juan Chaconvega, TSP contributor. “It puts money away I can’t touch until I need to touch it. It’s one of the many ways of ensuring financial security after retirement.”
The TSP is basically the Marine Corps’ 401K plan. It’s a tax-deferred federal government-sponsored retirement and savings plan designed to supplement your military retirement paycheck.
“A lot of times people say they can do better than what’s in the TSP, ‘I can invest my money and get a greater return’, but the problem is they don’t research it,” said Lewis. “They don’t actually do anything. They don’t start investing.”
The first step to investing is becoming informed, so below is the basic information pertaining to the Thrift Savings Plan. For additional information, contact your local personal financial management office at 253-6250 or visit the Thrift Savings Plan Web site at www.tsp.gov.
Benefits:
Voluntary participationYou select the percentage of your base pay you want to contributeAutomatic transfer of fundsTax-deferred, pay taxes when you withdraw
Things to keep in mind:
$16,500 contribution limit for 2010$49,000 contribution limit for 2010 in combat zone (won’t be taxed on withdrawals)Can begin receiving funds at 59 and a half without penalty, mandatory withdrawals start at 70 and a halfVarious calculators are available on the TSP Web site
What if I don’t want to stay in the military?
There are a couple different options if you plan on getting out of the military. You can either transfer the funds to another plan with no penalty or you can just leave it alone. You won’t be able to continue contributing money to it once you get out, but it will still accumulate interest until you decided to withdraw it.
Where can I get additional information?
For additional financial advice, contact your local personal financial management office at 253-6250 or stop by Building 411, room 201 to make an appointment.
How do I sign up?
Service members can sign up for the TSP by logging on to their myPay account at www.mypay.dfas.mil or by visiting their local Installation Personnel Administration Center pay and maintenance office.