TSP which is better known as Thrift Savings Plan is a long-term retirement plan that helps you to retire in comfort. As a part of this scheme, you are allowed to invest a certain amount of money from your individual funds (F, G, I, C and S) and get it back when you retire. You also have the option of choosing whether you want to pay tax on the money you are investing now or you can choose to pay it when you finally withdraw it from the amount.
Choosing TSP at a Young Age – Wise or Foolish?
If you are wondering that why anyone should choose TSP at a young age, then here’s a list of reasons that may be useful.
- Saves You from Stress– The first reason is quite obvious. If you invest in a good investment plan now, you will not have to worry about your finances a lot. The money you are investing in this scheme would always be there to help you when you are old and need money for your day to day expenses.
- Career Liberty– When you invest in this plan, you would have the liberty to choose any career path you might like. There will be no restrictions on staying to only a single career path with this scheme. So, no pressure of keeping your job will be there. If keeping a job or straight career path has become tougher for you in the current global economic conditions, it’s the right time to think of an investment plan like this.
- Low Costs: This scheme is also very low cost. The TSP C fund charges only a fee of 29 cents per 1000 dollars invested by you. People who are not too fond of investment schemes that have an exorbitant fee should opt for this scheme. Young people should especially be fond of the low fee because when you are young, the fee may not matter much but when you get old, you will be proud of your decision of saving every penny.
To conclude, it can be said that TSP is really useful for young people as it provides many benefits with low risks. If you are willing to explore more about this plan, you should take help of an expert before deciding the amount of money you can invest so that your financial position stays comfortable. After all, it’s not wise to live too scarcely in exchange for enjoying the financial benefits at the time of retirement, is it?