thrift savings plan: financial planning for the future

4
no risk of loss. There are several additional funds members can allocate their monies to as well. These funds include the Lifecycle Fund (L) designated to members who may not have time, experience or interest in managing their retirement savings, the Fixed Income Index Fund (F), the Common Stock Index Fund (C), the Small Capitalization Stock Index Fund (S) and the International Stock Index Investment Fund (I). Each of these funds has associated benefits and risks. Sailors are advised to look at each closely and seek advice prior to choosing the fund that best suits them. According to Burton, when thinking about making investments you should consider how you want to invest your money and the TSP investments available to you. “Realize that when you retire, there are multiple options you have with TSP,” said Burton. “First, you can leave it where it is but make no more contributions to it. Second, you can transfer it to an IRA (either traditional or Roth depending on which accounts you have at the time) that you open at a bank or investment firm of your choice. Third, if your new company allows you to, you could transfer it to the retirement plan associated with that company. Remember these options are available whether you retire from the Navy or get out after four years.” Two tax treatment options for TSP are traditional (deductions are made before taxes are withheld) and Roth (deductions are made after taxes), however, both can be elected. After you determine your contributions, file a contribution allocation to tell TSP how to invest the money you put into your account in the future. Although Sailors can choose to invest their money in any of several funds, some funds may be risky and will require time and attention to ensure they get the best savings possible. Burton also points out that TSP is a savings option and, while important, should not be a Sailor’s first priority. “Pay yourself first,” said Burton. “Whether it is putting aside 3-6 months of living expenses for a rainy day, investing in your children’s college fund, or investing for your retirement, you must ensure that you are looking ahead to the future and setting yourself up for success.” USS ENTERPRISE, At Sea (NNS) – Sailors aboard aircraft carrier USS Enterprise (CVN 65) each have a way of saving money. Some of these methods are provided via the Navy and are designed to help service members prepare for retirement. One of these methods, the Thrift Savings Plan, is introduced to all new Sailors at the beginning of their careers. Despite this early introduction, not all Sailors are clear on the structure and benefits of the program. Essentially, TSP is a retirement savings plan similar to the 401(k) plans offered to those in the civilian sector. This plan entails automatic payroll deductions, tax treatments for contributions and a variety of withdrawal options. “I believe it gives all Sailors a convenient method to set aside money for retirement before it gets into their checking account to be spent on other things,” said Senior Chief Electronics Technician Anthony Burton, Enterprise’s command financial specialist. “It also gets them into investing for retirement. Investing is kind of like working out, it is hard to start, but once you start seeing the returns, you feel a lot better about it and want to continue.” Participating in TSP is easy. Once you enroll, an account is created in your name and you become a participant. “(The money you contribute) is invested in the stock market, the bond market, or both (depending on which funds you are investing in),” said Burton. “It will follow those markets, but remember that you only lose money if you sell the stocks while they are down. There is still risk involved and past performance is not a guarantee of what will happen in the future.” Contributions and sign up can be established by filling out a simple form (TSP-U-1, uniformed services) either hard copy or electronically through MyPay. When your account is completed, TSP will mail you a welcome package with your account number, TSP information, instructions, a web password for internet access to your account and a personal identification number (PIN). When first enrolling all contributions are deposited into the Government Securities Investment (G) Fund. The G Fund is a short-term fund invested in U.S. Treasury Securities. It gives members an opportunity to earn rates with Story by Mass Communication Specialist 3rd Class (SW) Britney Epps Thrift Savings Plan: Financial Planning for the Future October 9, 2012 Issue “We are Legend” Newsletter Edition USS Enterprise (CVN 65) The Shuttle

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USS ENTERPRISE, At Sea (NNS) – Sailors aboard aircraft carrier USS Enterprise (CVN 65) each have a way of saving money. Some of these methods are provided via the Navy and are designed to help service members prepare for retirement. One of these methods, the Thrift Savings Plan, is introduced to all new Sailors at the beginning of their careers. Despite this early introduction, not all Sailors are clear on the structure and benefits of the program.

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no risk of loss. There are several additional funds members can allocate their monies to as well. These funds include the Lifecycle Fund (L) designated to members who may not have time, experience or interest in managing their retirement savings, the Fixed Income Index Fund (F), the Common Stock Index Fund (C), the Small Capitalization Stock Index Fund (S) and the International Stock Index Investment Fund (I). Each of these funds has associated benefits and risks. Sailors are advised to look at each closely and seek advice prior to

choosing the fund that best suits them. According to Burton, when thinking about making investments you should consider how you want to invest your money and the TSP investments available to you. “Realize that when you retire, there are multiple options you have with TSP,” said Burton. “First, you can leave it where it is but make no more contributions to it. Second, you can transfer it to an IRA (either traditional or Roth depending on which accounts you have at the time) that you open at a bank or investment firm of your choice. Third, if your new company allows you to, you could transfer it to the retirement plan associated with that company. Remember these options are available whether you

retire from the Navy or get out after four years.” Two tax treatment options for TSP are traditional (deductions are made before taxes are withheld) and Roth (deductions are made after taxes), however, both can be elected. After you determine your contributions, file a contribution allocation to tell TSP how to invest the money you put into your account in the future. Although Sailors can choose to invest their money in any of several funds, some funds may be risky and will require time and attention to ensure they get the best savings possible. Burton also points out that TSP is a savings option and, while important, should not be a Sailor’s first priority. “Pay yourself first,” said Burton. “Whether it is putting aside 3-6 months of living expenses for a rainy day, investing in your children’s college fund, or investing for your retirement, you must ensure that you are looking ahead to the future and setting yourself up for success.”

USS ENTERPRISE, At Sea (NNS) – Sailors aboard aircraft carrier USS Enterprise (CVN 65) each have a way of saving money. Some of these methods are provided via the Navy and are designed to help service members prepare for retirement. One of these methods, the Thrift Savings Plan, is introduced to all new Sailors at the beginning of their careers. Despite this early introduction, not all Sailors are clear on the structure and benefits of the program. Essentially, TSP is a retirement savings plan similar to the 401(k) plans offered to those in the civilian sector. This plan entails automatic payroll deductions, tax treatments for contributions and a variety of withdrawal options. “I believe it gives all Sailors a convenient method to set aside money for retirement before it gets into their checking account to be spent on other things,” said Senior Chief Electronics Technician Anthony Burton, Enterprise’s command financial specialist. “It also gets them into investing for retirement. Investing is kind of like working out, it is hard to start, but once you start seeing the returns, you feel a lot better about it and want to continue.” Participating in TSP is easy. Once you enroll, an account is created in your name and you become a participant. “(The money you contribute) is invested in the stock market, the bond market, or both (depending on which funds you are investing in),” said Burton. “It will follow those markets, but remember that you only lose money if you sell the stocks while they are down. There is still risk involved and past performance is not a guarantee of what will happen in the future.” Contributions and sign up can be established by filling out a simple form (TSP-U-1, uniformed services) either hard copy or electronically through MyPay. When your account is completed, TSP will mail you a welcome package with your account number, TSP information, instructions, a web password for internet access to your account and a personal identification number (PIN). When first enrolling all contributions are deposited into the Government Securities Investment (G) Fund. The G Fund is a short-term fund invested in U.S. Treasury Securities. It gives members an opportunity to earn rates with

Story by Mass Communication Specialist 3rd Class (SW) Britney Epps

Thrift Savings Plan: Financial Planning for the FutureOctober 9, 2012 Issue“We are Legend”Newsletter Edition

USS Enterprise (CVN 65)

The Shuttle

Tuesday, October 9, 2012Page 2 The Shuttle

The Shuttle is published and printed daily underway and bi-weekly in port by the USS Enterprise (CVN 65) Media Department, FPO AE 09543-2810. This newspaper is an authorized publication for members of the Department of Defense. Please direct all story ideas, questions and comments to MC1 (SW) Steve Smith at [email protected].

Public Affairs OfficerLt. Cmdr. Sarah T. Self-Kyler

Executive OfficerCapt. G. C. Huffman

Commanding OfficerCapt. William C. Hamilton, Jr.

EditorMC3 Brian G. Reynolds

The Shuttle

USS Enterprise (CVN 65)

Command Master Chief CMDCM (AW/SW) Dwayne E. Huff

Big E Happenings

Sailors and Marines assigned to Aviation Intermediate Maintenance Department, IM-2 division, perform a major engine inspection on an F414 engine in the jet shop. (Photo by MC3 Jared King)

Aviation Structural Mechanic 2nd Class Todd M. Brown, from Williamsburg, Ky., performs a final inspection on an F/A-18E/F main landing gear shock strut in the hydraulics shop. (Photo by MC3 Jared King)

Aviation Boatswain’s Mate (Fuel) 3rd Class Lincoln Marti, from Gibson City, Ill., checks the integrity of aircraft fueling hoses on the flight deck. (Photo by MC3 Scott Pittman)

Aviation Electrician’s Mate 3rd Class Mitchell Holden, from New Palestine, Ind., assigned to the Rooks of Electronic Attack Squadron (VAQ) 137, performs corrosion prevention maintenance on an EA-6B Prowler. (Photo by MC3 Scott Pittman)

Lt. Patrick Lakusta, a pilot with the Red Rippers of VFA-11, peers at the Yemeni coast from the flight deck. (Photo by IT1 Stephen Wolff)

Aviation Ordnanceman Airman Terrance Sands, from West Point, Ga., and Aviation Machinist’s Mate Airman Marissa Schick, from Milford, Penn., both assigned to the Knighthawks of Strike Fighter Squadron (VFA) 136, stow a vacuum used to empty water out of padeyes. (Photo by MC3 Scott Pittman)

Barack Obama. During the meeting Barak disagreed with Netanyahu’s demand that a “clear red line” be set for Iran by the United States over Tehran’s disputed nuclear program, according to the reports. This demand by Netanyahu has raised tensions between Israel and the United States as Obama favors diplomacy and international sanctions against Iran to rein in its atomic program. Netanyahu has publicly aired his differences with the Obama administration over the Iran issue, criticizing Washington for failing to set its own “red lines” that would trigger military action against Tehran. For nearly four years, Netanyahu and Barak have presented a united front, but recently the Israeli premier has reportedly accused Barak of “maneuvring behind his back” with Washington in a bid to present himself as a “moderate” compared to Netanyahu’s “extremist” positions, local media have said.

Tuesday, October 9, 2012 Page 3The Shuttle

At-Odds Netanyahu and Barak ‘Agree’ on Iran, U.S. By AGENCE FRANCE-PRESSEJERUSALEM - Israeli Prime Minister Benjamin Netanyahu and Defense Minister Ehud Barak have “agreed” on fighting the Iranian threat in all its forms and on managing ties with the United States, a joint statement said. The defense minister had reportedly expressed views that conflicted with the prime minister’s over the Iran nuclear issue during a recent visit to the United States, which favors sanctions and diplomacy over military action. “The prime minister and the defense minister agreed on the fight against the Iranian threat in all its forms as well as on the management of relations with the United States under the leadership of the prime minister,” said the statement, published by Barak’s office late on Saturday. “The prime minister and the defense minister agreed to continue their cooperation in facing challenges that threaten the security of Israel.” Israeli media reported that Netanyahu was angry over a recent meeting between Barak and Chicago city mayor Rahm Emmanuel, a former chief of staff to U.S. President

In the News

PARFQ SCREENINGWalk-in hours will be on Oct. 9-11 from 1800-2000 each evening.The following Sailors will need to be screened:

-Any new ‘yes’ that has never been screened -Any old ‘yes’ that has changed significantly -Any sailor who has failed the BCA portion of the PRT for the 1st time in the last 4 years. -Any sailor without a current PHA -Any sailor 50 years of age or older who has not completed all portions of a PRT in the last 12 months.

Be sure to bring your to bring your PARFQ form with you and come early so you don’t have to wait.

forces. I urge again those countries providing arms to stop doing so,” he said. “Militarization only aggravates the situation,” he said. “I am calling on all concerned to abandon the use of violence, and move toward a political solution. That is the only way out of the crisis.” The armed uprising in Syria has increasingly sparked violence on the country’s border with NATO member Turkey, with the Turkish military returning fire on Sunday after a shell launched from Syria struck the border village of Akcakale.

Escalation on Syria-Turkey Border ‘Extremely Dangerous’ By AGENCE FRANCE-PRESSESTRASBOURG - UN Secretary General Ban Ki-moon warned on Monday that rising violence along the Syrian-Turkish border and the effect of the Syrian conflict on Lebanon were extremely dangerous. “The situation in Syria has dramatically worsened. It is posing serious risks to the stability of Syria’s neighbours and the entire region,” Ban said at the opening of the World Forum for Democracy in the French city of Strasbourg. “The escalation of the conflict along the Syrian-Turkish border and the impact of the crisis on Lebanon are extremely dangerous. They show that this is a regional calamity with global ramifications.” Ban also urged donors to provide more funding to help deal with the humanitarian disaster in Syria. “As winter approaches, we need donors to contribute more generously to address the growing needs of those inside Syria and over 300,000 refugees in neighbouring countries,” he said. The UN chief also raised concerns about arms supplies to both President Bashar al-Assad’s regime and rebel forces. “I am deeply concerned by the continued flow of arms to both the Syrian government and opposition

Tuesday, October 9, 2012The ShuttlePage 4

Big E Entertainment

ACROSS1. Plateau5. Eyebrow shape9. Plate13. Chooses14. Merchandise16. Doing nothing17. Dribble18. Habituate

19. Char20. Stitched22. Disparage24. Diva’s solo26. Rental agreement27. Whitish edible root30. Dung beetle33. Savior35. Parental brother

37. Fury38. Aquatic mammals41. Bird call42. Cheapskate45. Arduous48. Ancient ascetic51. Gleam52. Adolescents54. Retain55. Deceiver59. Preserves62. City in Peru63. Challenger65. Violent disturbance66. Utilized67. Range68. Beige69. Feudal worker70. At one time (archaic)71. Accomplishment DOWN 1. Nonvascular plant2. Type of sword3. Flight attendant4. Bad-mouth5. Reverence6. South African monetary unit7. Barbarous8. Shingles

9. Distinguish10. Bright thought11. Thin strip12. Not there15. A pinnacle of ice 21. Eat23. Brother of Jacob25. Goals27. Dainty28. Eagle’s nest29. P31. Assistant32. Hold responsible34. Rodent36. Pitcher39. Captain’s journal40. A lustrous fabric43. A dais 44. Bobbin46. Untruths47. Besmirched49. Approaches50. Inveigle53. Enjoy55. Hint56. Snake sound57. Ends a prayer58. Short sleeps60. Ripped61. An upright in a wall64. Permit