TSP: start young and start wise

  • Published
  • By Senior Airman Ashley Nicole Taylor
  • 354th Fighter Wing Public Affairs
EIELSON AIR FORCE BASE, Alaska --  In return for advice that can drive a financial future into a comfortable retirement or pull an Airman out of a monetary crisis all that is requested is a postcard; a reminder that his guidance has worked and traveled around the globe.

After an hour-long appointment with Dick Hageman, a 354th Force Support Squadron community readiness consultant, customers clear up questions and walk away with a better understanding of the Thrift Savings Plan and all it entails, as well as their finances in general.

"Money doesn't guarantee happiness, but it does guarantee options and TSP rocks when you know what it offers you," said Hageman. "However, most people sign up for TSP then never do anything with their account. Understanding the different funds accounts to transfer your money to can give you the best financial gain in the long run."

An old rule of thumb has always been to have three to six months of personal income saved in case of an emergency, but equally important is saving for the future.

There are three rules Hageman recommends Airmen follow when holding their account - start young and start wise, put a little bit more money in when receiving a pay raise or deploying and watch for world events.

"There isn't a magic crystal ball that shows if there will be an event that disrupts the stock market," said Hageman. "What we can do is look at fund trends in the past and each member can stay on top of current events to responsibly transfer money to different funds if needed."

Every Airman can put up to $18,000 into their TSP account annually, and a catch-up option is available to those older than 50, but starting as young as possible can get the best results.

"I've been contributing for two years now and I find it very important because TSP is a good way to earn extra money, especially if I retire in the Air Force," said Senior Airman Sydney Awid, a 354th Comptroller Squadron financial services technician. "I recommend TSP to other people even if they don't want to stay in the military because long-term it is a good idea and the more you contribute the more you get back."

TSP offers many services such as loans, withdrawals and refunds, but understanding the risk of each will determine if it's worth doing.

"If you wanted to build or buy a house, you can take a loan up to $50,000 that allows you to borrow money from your own contributions and the amount of the loan is removed from your TSP account," explained Hageman. "People have come to me in times of financial crisis not knowing what they can do, but having a TSP account and being able to take a loan through it has been both a career and life-saver."

To set-up an appointment to learn more about TSP and what it offers, contact the Airman and Family Readiness Center at 377-2178. As an incentive to start young, first-term Airmen can receive a free credit check and a complimentary oil change with their appointment.