Decision Time after the TSP 5% Match
The military’s blended retirement system is an extremely beneficial program for active duty service members investing through the Thrift Savings Plan. The program’s cornerstone is a 5% contribution match for up to 5% of invested income. For instance, a military member making $50,000 before taxes can invest $2,500 and receive an additional $2,500 from the government. What a deal!
The question becomes, what to do with investment opportunities outside the 5% match?
Conventional wisdom tells us to keep on pumping income into the TSP. The ease of use, low administrative costs, and range of investment options make the TSP a great vehicle. Putting additional military income into the TSP is the right move for many military members.
But, the TSP is not the only option. We previously discussed how a military member can invest a maximum of $22,500 annually in tax-advantaged accounts. If active duty service members have more income to invest outside of the 5% match, then speaking with a professional may be a solid option to ensure their investment plan aligns with retirement goals.
Regardless of investment level in the TSP, we highly recommend speaking with a financial professional the moment a service member leaves the service. Once the 5% match is no longer realized, it is time to determine if rolling the TSP into a qualified civilian account is the best long-term option.
$50,000+ Raised for Veterans
VIP’s 3rd Annual Salute to Service Golf Outing
More than 110 golfers participated in the 3rd Annual Salute to Service Golf Outing at Red Tail Golf Course in Avon, Ohio, Aug 14. More than $20,000 was raised to support two great Veteran charities, the National Veterans Memorial and Museum and GallantFew. Since its inception, VIP’s Salute to Service Golf Outing has raised more than $50,000 to support military veteran initiatives such as employment, education, mental health, and recreational fitness.
The Second Lady of the State of Ohio, Tina Husted provided opening remarks and set the pace for the event with a long and straight honorary first tee shot. The Museum’s President and CEO, Lt. Gen. Ret. Michael Ferriter played the full course with his customary smile and Ranger grit.
If you want to get a leg up on participating or sponsoring next year’s event, please email or call our office at 216-226-4560.
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Rockport’s VIP Market Analysis:
Hard to believe that the dog days of summer are upon us and by the time you receive next month’s newsletter Labor Day will have come and gone. For those of us in the North, the summer months seem way too short.
The beat goes on as the S&P 500 was up 3.11% for the month. With yet another positive month the index now stands at +19.30% year to date. The story has not changed significantly in that a small handful of stocks are still driving performance year to date. However, for the first time in a long time the S&P 500 Equal Weight ETF did slightly outperform the standard S&P 500 index which is a sign that the market is trying to broaden out a bit.
Adam Stalnaker and Joe Kovach
Owners, Rockport Wealth Advisors
Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. Advisory products and services offered by Investment Advisory Representatives through Rockport Wealth LLC, a Registered Investment Advisor. Private Client Services and Rockport Wealth LLC are unaffiliated entities.
Investments in securities do not offer a fixed rate of return. Principal yield and/or share price will fluctuate with changes in market conditions, and when sold or rendered, you may receive more or less than originally invested. No system of financial planning strategy can guarantee future results. Investors cannot directly invest in indices. Past performance does not guarantee future results. The performance numbers we mention are indexes. If you’re a client, we manage a custom portfolio for your particular situation and the performance will be different.
1 Based on younger male or female non-smokers in a Preferred health rating. You should do your own comparison and analysis based on your specific circumstances before making any decisions or changes to your insurance.
*The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. Results can be found at slickcharts.com.
*Treasury yields can be found at finance.yahoo.com.
*Charts produced at yCharts.com
*Bonds can be found at https://www.bloomberg.com/markets/rates-bonds
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