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Thrift Savings Program - Final Project

Thrift Savings Program - Final Project - The Thrift Savings...

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The Thrift Savings Program and the Military Final Project Darwin Quintuna The military which includes the Army, Marines Corps, Navy, Air Force and the Coast Guard is a great organization to be part of. It builds an individual’s confidence, courage, discipline, integrity and opportunity to become a successful leader. Among these attributes it also provides and offers its service member many benefits that can be utilized for personal gains, such as financial gains. One of these financial gains is the Thrift Savings Program (TSP). The Thrift Savings Program was established in 1986 by the Federal Employee’s Retirement Act and administered by the Federal Retirement Thrift Investment Board (Agency). The TSP is a federal government sponsored retirement savings and investment plan similar to a 401k. It gives several different investment options ranging from fixed income funds, safe with low returns, to stock options, which give high returns on investment, but also present higher risks. Since it was established in 1986, only Federal civilians were eligible to use TSP, but in October of 2001, the Thrift Savings Program was offered to all military service members. It has given its service members the ability to participate in a long-term savings and investment plan. The TSP is a good investment plan that is tax-deferred in pretax dollars savings, meaning that is comes out of service member’s income and will not get taxed on it until the money used at a later date, like when retirement has been reached. Service members can contribute as little as 1 percent to 100 percent of any incentive pay, special pay, or bonus pay and combat pay. Such TSP investment-fund programs include: Government Security Investment (G Fund), which consists of treasury bonds and other federal-backed investments. It is considered among the most stable of the five TSP investment choices; Common Stock Index Investment, which consists of stocks of major established corporations. This options, along with the Fixed Income
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