If I asked you exactly how much is in your bank account right now, would you know? What about if I asked how much you were spending each month? How is your budget broken up? What is your monthly savings plan?
The Thrift Savings Plan (TSP) is a great option for Federal government employees because they earn a matching contribution from the Federal government. But, for members of the military (e.g. Army), who do not earn a match, there may be better options for retirement investing depending on their tax situation. So before deciding to contribute to the Thrift Savings Plan, members of the military should consider other alternatives, such as a Roth IRA, and weigh their options carefully. First, let me explain exactly what the Thrift Savings Plan is, and then I'll go on to explain why it's not a great option for military members: