Military Nesties
Dear Community,
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
S/O LES 2: Like I'm 5, Thrift Savings Plan and Savings Deposit Program
Explain please? Are they both available to all branches? How does it work? Specifics? Easy to understand websites? And go!
ETA: I'm looking at the militarysaves.org site that Ojo mentioned in the other post now.
Re: S/O LES 2: Like I'm 5, Thrift Savings Plan and Savings Deposit Program
TSP: https://www.tsp.gov/planparticipation/benefits/benefitsSummary.shtml
Similar to a Roth IRA, except the contributions are made with the pre-taxed income.
SDP: http://www.dfas.mil/dfas/militarymembers/payentitlements/sdp.html
Members can contribute up to $10k during deployment to a hazard duty area and earn 10% on that money, which is huge compared to banks, and doesn't have the risk stocks do.
I'm not sure if I oversimplified that beyond what you were looking for.
That's just not possible. I don't know why, but trying to understand retirement crap is like trying to write with my left hand instead of my right. I'm taking a personal finance course at the local CC this semester so hopefully that will help.
SDP I knew about, I just didn't connect the name to the program. For the TSP, how does he set it up? Can he do it through MyPay or does he need to go to finance or something?
Huh. I've always thought of the TSP as more like a 401k with no company match... Now I'm wondering if I mistakenly thought that the 401k limit applies to the TSP contributions each year... I need to check that out one of these days. (yes, I know it's DH's pay, but I manage most of our family's finances)
Nooo, I just meant similar in that it's a retirement account (as opposed to SDP which is just a short term savings account).
Audette, it is just like a 401(k). We've also assumed the 401(k) limits apply. If it were like a Roth, the limit would be lower anyway.
OP-- for TSP, they just take out a percentage of your pre-tax income each paycheck, which you can select. It's a tax advantage, because it lowers your taxable burden and you can actually come out with more money (i.e. let's say you contribute $400, that knocks you into a lower tax bracket, so you end up with a check that is only $300 lower that normal, so you automatically make $100. does that make sense?) It's also nicer than a ROTH or traditional IRA because, since it's pretax income, it's more money. The money is invested, and keeps growing until you retire.
I would not say it's nicer than a ROTH, and while H contributes to his TSP, we make sure to max out our ROTHs first, because we only plan on increasing our income, and our tax rate is much lower now than I imagine it will be when we retire, when we will have to pay taxes on our withdrawals. What's so fantastic about a ROTH is that once you put it in, it just grows and grows, and you don't have to pay taxes on it ever again.
There's a TWSS joke for you v