Flight Plan to Financial Freedom

Unless the Airman elects otherwise, Thrift Savings Plan (TSP) contributions are treated like those made to _____.

Traditional 401(k) accounts

When is the best time for an Airman to begin making regular investments?

As early in his or her career as possible.

How often should retirement goals and strategies be reviewed?

At least annually

Unless they request otherwise, voluntary Thrift Savings Plan (TSP) contributions are deducted from Airmen's earnings __________.

Before federal and state taxes have been paid

Why should an Airman who is vested in the Blended Retirement System (BRS) avoid "maxing out" Thrift Savings Plan (TSP) contributions as early in the year as possible?

Matching contributions cease when the maximum annual contribution limit has been reached.

Why are savings alone usually insufficient to meet retirement needs?

Savings accounts yield too little for compounding to work effectively to fund retirement.

Which of the following statements is true of Thrift Savings Plan (TSP) funds?

TSP investors can choose how their investments are allocated.

Which of the following is not true of compounding?

The sooner investors start investing, the higher their out-of-pocket costs.

Workers are considered "retired" when _______.

They no longer receive income from working.

For the first two years of service, you automatically receive 1% matching to your Thrift Savings Account. Once you reach the two year mark, the government will make an additional matching contribution to your Thrift Savings Account, for a total of up to ____ of basic pay.

5%