Photo By Monica Guthrie | Michelle Roper, accredited financial readiness specialist on Hunter Army Airfield,...... read more read more
HUNTER ARMY AIRFIELD, Ga., -- There are three common mistakes individuals make when it comes to their Thrift Savings Plan according to Michelle Roper, an accredited financial readiness specialist on Hunter Army Airfield. To help overcome these mistakes, Roper hosted a Thrift Savings Plan workshop, Oct. 24, at the Army Community Service office.
“The purpose of the TSP workshop is to educate all federal employees on their 401k plan options with the federal government,” Roper said. “There are several mistakes people make.”
Roper said three common mistakes are:
1. Neglecting to select beneficiaries for their TSP
2. Not selecting the appropriate funds for their risk tolerance.
3. Not contributing enough to obtain the full government match
The first piece of advice given by Roper was to ensure beneficiaries are designated within their TSP. She explained the order of recipients (if not designated otherwise), and reminded those who were married previously to ensure their former partners were not on the plan as the beneficiary.
From there, the workshop explained the tax treatment options, the difference between a traditional TSP and the Roth TSP, investment approaches and the different individual funds such as the C fund, S fund, and the Life Cycle Funds.
Finally, the workshop addressed potential returns on investment based on contribution. An individual contributing $30 a month will save approximately $13,860 in 20 years, $30,135 in 30 years and $59,745 in 40 years. Additionally, an individual contributing $120 per month may save $55,445 in 20 years, $120,540 in 30 years and $238,980 in 40 years. This figure does not reflect the matching funds from the government.
“Pension and social security may not be enough to sustain you through retirement,” Roper said. “It is important to start early. Even if you don’t use it, you can pass it on – create a legacy for your children.”
Anthony Green, a security guard at Hunter, and a retired Army first sergeant, said he felt he understood his finances well, but wanted to come to validate his plan and to learn more about the five individual funds used within the TSP.
“I’m 61 (years old) and my wife is 57,” said Green. “We came from an old school belief where you put money in the bank and let the bank take care of the money.”
Green said he would encourage everyone to attend a workshop, and for Soldiers especially to take control of their finances.
The training was open to all federal employees, to include active duty, retirees and Department of the Army civilians, however spouses were welcome to attend as well.
“I hope that all participants take away a clear understanding of the various funds within the TSP program,” Roper said. “My goal is to ensure students have the knowledge and understanding to make sound retirement decisions. The Thrift Savings Plan is instrumental in developing a solid retirement plan.”
| Date Taken: | 10.30.2024 |
| Date Posted: | 10.30.2024 08:23 |
| Story ID: | 484203 |
| Location: | HUNTER ARMY AIRFIELD, GEORGIA, US |
| Web Views: | 32 |
| Downloads: | 0 |
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