Vesting
Vibes
Vibes
What does "vesting" mean in a retirement plan?
Ownership of employer contributions
What does TSP stand for?
Thrift Savings Plan
What does BRS stand for?
Blended Retirement System
What’s the first step in building a spending plan?
Know your current situation
Which fund is guaranteed not to lose money?
G Fund
At how many years of service do Sailors under BRS become vested?
2 years
Which two types of tax treatments does TSP offer?
Traditional and Roth
How many components make up the BRS?
Four: The match of contributions, Continuation Pay, Lump sum (boooo) and Pension
What is the recommended percentage of income to save/invest?
10–15% of pretax pay
Which fund tracks the S&P 500?
C Fund
True or False: You are always vested in your own TSP contributions.
True
Name one benefit of the TSP over a standard savings account.
Potentially higher rate of return, Tax benefits, employer contributions, Investment options with time horizons, professionally manages with LOW fee funds! Lifetime "member only club", high contribution limits.
What mid-career cash incentive is part of the BRS?
Continuation Pay
What tool helps visualize where your money should go monthly?
A spending plan worksheet
Which fund focuses on international companies?
I Fund
When does the 1% automatic contribution begin for those joining after Jan 1, 2018?
60 days after entering service + 1 day
What percentage should you contribute to get the full BRS match?
5%
What’s the name of the retirement component that pays after 20 years?
Defined benefit (or pension)
What’s one smart way to increase your TSP contribution without feeling the pinch in your monthly budget?
Increase your TSP contribution when you get a pay raise or special bonus—before you get used to spending the extra income. Possible tax adjustments.
What is a Lifecycle Fund designed to do?
Adjust investment risk over time toward your retirement date
What makes TSP vesting "portable"?
You can take your vested contributions with you when you separate or retire. (inactive status)
Under BRS, what’s the military’s automatic contribution percentage?
1% of basic pay
Why is inflation a concern for retirement?
It reduces purchasing power over time
What’s the minimum amount needed to invest in the Mutual Fund Window?
$10,000 (with $40,000 total TSP balance)