All members of the military should understand what a Thrift Savings Plan or TSP is. This post will help you understand one of the most important funds that can set up your financial future. To be more specific, your TSP can be a great ally in your ability to enjoy retirement in the future.
What is a Thrift Savings Plan?
Simply put, the TSP is a retirement savings plan that is meant to be used by retired and current federal civil service employees. This was formed through the Federal Employee’s Retirement System Act of 1986. This is basically the same with what the private sector has in the form of a 401(k).
A TSP is considered to be more challenging because most military personnel and families do not understand it. To maximize the TSP, you need to grasp its basic concept including the type of funds available under the program.