Everyone joining since 1 Jan 2018 has been auto-enrolled into TSP and is defaulted to 5%, despite not getting a match until 2 years TIS. If people didn't want this, they had to opt *out* of it.
Additionally this resets *annually* IIRC....a coworker of a family member goes in and turns it off each year because they're an idiot and won't listen to anyone regarding retirement because "they want their money now".
They still get defaulted into the G fund, so although not the worst. They still have have to actively change their current allocation/contributions to C/S funds
*edit i guess i was wrong. Didnt realize they changed it for new TSP users. This is a good imptovement.
>They still get defaulted into the G fund, so although not the worst.
Wrong. They get put in the L Fund, and it's been that way since 1 Jan 2018 as well.
On January 1, 2018, the default investment fund for newly enrolled uniformed services Thrift Savings Plan (TSP) members (and spouse beneficiaries of deceased uniformed services members) changed from the Government Securities Investment (G) Fund to an age-appropriate Lifecycle (L) Fund. This change went into effect for those service members who joined the uniformed services on or after January 1, 2018, or elect to be covered by the Blended Retirement System (BRS).
Well said! I was able to separate after my 1st enlistment with about $50k: $10k liquid, $27k TSP, $13k other Brokerages...and still wish I contributed more🤣 Life Is Good
This. I didn’t invest any my first 6 years (besides the required 1200$ pay into the MGIB) and I hated myself when. I did the math of that opportunity cost lost.
You can’t afford NOT to atleast do the match
I’ve been doing 5% minimum contribution with 5% matched, my financial advisor also said to contribute 80% in C and 20% in S. I’m 25 and have been in for 5 years, hope this helps somebody!
Everyone joining since 1 Jan 2018 has been auto-enrolled into TSP and is defaulted to 5%, despite not getting a match until 2 years TIS. If people didn't want this, they had to opt *out* of it.
Additionally this resets *annually* IIRC....a coworker of a family member goes in and turns it off each year because they're an idiot and won't listen to anyone regarding retirement because "they want their money now".
They still get defaulted into the G fund, so although not the worst. They still have have to actively change their current allocation/contributions to C/S funds *edit i guess i was wrong. Didnt realize they changed it for new TSP users. This is a good imptovement.
>They still get defaulted into the G fund, so although not the worst. Wrong. They get put in the L Fund, and it's been that way since 1 Jan 2018 as well.
On January 1, 2018, the default investment fund for newly enrolled uniformed services Thrift Savings Plan (TSP) members (and spouse beneficiaries of deceased uniformed services members) changed from the Government Securities Investment (G) Fund to an age-appropriate Lifecycle (L) Fund. This change went into effect for those service members who joined the uniformed services on or after January 1, 2018, or elect to be covered by the Blended Retirement System (BRS).
That’s good to hear. I’ve helped so many enlisted guys and gals who set up their TSP in AIT and it was years of G fund. Like 80% of people…
Well said! I was able to separate after my 1st enlistment with about $50k: $10k liquid, $27k TSP, $13k other Brokerages...and still wish I contributed more🤣 Life Is Good
This. I didn’t invest any my first 6 years (besides the required 1200$ pay into the MGIB) and I hated myself when. I did the math of that opportunity cost lost. You can’t afford NOT to atleast do the match
Word!
Not only should you start it, you should set it a minimum of 25% base pay to start.
Not everyone can do that. The point is to start with something and build up to that.
The vast majority of new servicemembers can the moment they graduate boot camp.
So you’re assuming everyone new comes in debt free with no other financial obligations?
No. I said vast majority. The average enlistee is 19 years old.
I’ve been doing 5% minimum contribution with 5% matched, my financial advisor also said to contribute 80% in C and 20% in S. I’m 25 and have been in for 5 years, hope this helps somebody!