1. Wilma Broering, CFP Email: PFC.Cincinnati.USAR@zeiders.com Phone:
Personal Financial Counselor
Hamilton Armory   
Phone:  

2. Current Financial Snapshot
Few people achieve financial independence – defined as “not working unless you want to”
Millionaires are a “sliver of the population”
Increasing # of Americans are living paycheck to paycheck
Nearly half of you couldn’t come up with $2000 in the case of an emergency
Many of you have piles of debt and see no way out

3. How can Wilma help? I can show you how to:
become free of financial worries
start to build a retirement nest egg
become wealthy
The secret is to have a plan……..
Budget
Save Money
Get out of debt
Invest Wisely

4. What is your financial snapshot?
If you want to implement a change in your financial position, you must track it:
Budget
Net Worth

5. Decide to Get Wealthy Be motivated to save - Pay yourself first!
Motivation
Knowledge
Implementation
Be motivated to save - Pay yourself first!
Know where to save and how to invest accordingly
Implement your “Get Wealthy” Plan

6. Where should account be held? Appropriate Investment
Savings Goal
Definition / Examples
Where should account be held?
Appropriate Investment
Emergency
Fund
3-6 months of Living Expenses
Local Bank
Local Credit Union
Online Savings Account
Always Liquid
Checking
Savings
Money Market
Short Term Non Retirement Goal
Buy a Car
Down Payment for a House
College
Taxable Accounts
Non Retirement Accounts
529 Plans
When do you need the money?
Retirement
Assets to be used during non working years
Employer Sponsored Plans (Employer selects custodian)
Individual Retirement Accounts (Individual selects custodian)
Depends on Risk Tolerance

7. Websites Financial calculators www.calcxml.com Custodian Options
Robo Advisors
Where to put your emergency savings
Compare mortgage rates, personal loan rates, etc.
Pay down debt
Find a financial advisor

8. Types of Retirement Accounts
Employer Sponsored
Plans
TSP, 401(k), 403(b), etc
Individual Retirement Accounts
IRAs
2019 Contribution Limit
Under 50 - $19,000
50 or Older - $25,000
Under 50 - $6,000
50 or Older - $7,000
Types of Accounts
Traditional TSP
Traditional 401(k)
Traditional 403(b)
etc
Roth TSP
Roth 401(k)
Roth 403(b)
Traditional IRA
Roth IRA
Taxation of Contributions
Contributions are NOT taxed
Contributions are taxed
Taxation of Withdrawals
Withdrawals are taxed
Withdrawals are NOT taxed

10. Tax Brackets and Rates, 2019 10% $0 12% $9,700 $19,400 $13,850 22%
For Unmarried Individuals, Taxable Income Over
For Married Individuals Filing Joint Returns, Taxable Income Over
For Heads of Households, Taxable Income Over
10% $0
12%
$9,700
$19,400
$13,850
22%
$39,475
$78,950
$52,850
24%
$84,200
$168,400
32%
$160,725
$321,450
$160,700
35%
$204,100
$408,200
37%
$510,300
$612,350

11. “One of the finest retirement plans in the world!”
Thrift Savings Plan
“One of the finest retirement plans in the world!”
As of April 2015, these slides have been updated with current figures. Please review the content thoroughly if you have not presented it prior to the revision date.

12. What is the Thrift Savings Plan?
Government-sponsored retirement plan
Open to all uniformed service members
Similar to 401(k) plan
Defined contribution plan
All uniformed service members have the opportunity to participate in the Thrift Savings Plan. The TSP is a long-term, government-sponsored retirement savings plan which is similar to 401(k) plans offered to private sector employees.
TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account is dependent on the contributions you make to your account during your working years and the earnings your account accumulates over that time.

13. Why Sign Up? Pre-tax/after-tax contributions
Choose your investment options
Easy to contribute with automatic deductions
TSP participation is voluntary, not automatic. We highly recommend that you sign up. Here are a few reasons why:
First, you have a choice of tax treatments for your contributions:
Traditional (pre-tax) contributions and tax-deferred investment earnings
Roth (after-tax) contributions with tax-free earnings at retirement if IRS requirements are met
Also, you get to choose the funds to invest in. The TSP has a wide choice of investment options, including professionally designed lifecycle funds. I’ll tell you more about those funds shortly.
Another great feature of the TSP is automatic payroll deductions, which make it easy to contribute to your account.
Finally, TSP contributions and earnings are yours to keep, whether you leave the military or stay in until retirement.
Take your money with you if you transition…
…or keep it in TSP until you retire

14. Individual Funds Fund Description Volatility 10-Year Compound G
Government Securities
Low
Refer to recent returns F
Government, Corporate, and Mortgage-backed Bonds
Relatively Low C
Stocks of large and medium-sized
U. S. Companies
Moderate S
Stocks of small to medium-sized U. S. Companies not included in the C Fund
Moderate to High I
International Stocks of developed countries
The TSP has two ways for you to invest your money: L Funds or individual funds. We’ll talk about the individual funds first.
There are five individual funds:
The Government Securities Investment (G) Fund is invested in short-term U. S. Treasury securities which gives you the opportunity to earn rates of interest similar to those of long-term Government securities with no risk of loss.
The Fixed Income Index Investment (F) Fund is invested in a bond index fund representing the U. S. Government mortgage-backed, corporate, and foreign sectors of the U. S. bond market. It offers you the opportunity to earn rates of return that exceed money market fund rates over the long term, particularly during periods of declining interest rates. This fund follows the Barclay Capital Bond Index.
The Common Stock Index Investment (C) Fund is invested in a stock index made up of stocks of 500 large to medium-sized U. S. companies. It offers you the potential to ear the higher investment returns associated with equity investments. This fund is tied to the S and P 500.
The Small Capitalization Stock Index (S) Fund is invested in a stock index fund made up of small to medium-sized U. S. companies that are not included in the S&P 500 index. It offers you the opportunity to earn potentially higher investment returns that are associated with “small cap” investments, but with greater volatility. This fund is tied to the Down Jones industrial stocks.
The International Stock Index Investment (I) Fund is invested in a broad international market index of made up of primarily large companies in 22 developed countries. It gives you the opportunity to invest in international stock markets and to gain a global equity exposure in your portfolio. This fund follows the Morgan Stanley EAFE Index.
Resource used for this slide:

16. L Fund Allocation Targets
Approximate Lifecycle Fund Allocation
L Income
L 2020
For the most up-to-date L Fund asset allocations, visit the TSP website ( Investment Funds section, and choose Fund Options.
Each L Fund invests in a mix of the five individual TSP funds. The mix is chosen by experts based on each fund’s time horizon. The L Funds’ asset allocations are designed to achieve the higher expected rate of return for the amount of risk taken. It is also designed to preserve your account balance while protecting against inflation. Investing in the L Funds does not eliminate risk, and the funds are not guaranteed against loss. The L Funds are subject to the risks inherent in the underlying funds and can have periods of gain and loss.
L 2050, L 2040, L 2030, and L 2020 are for participants with time horizons that fall within the defined date ranges. The asset allocations of these funds are adjusted quarterly, moving to a more conservative mix, gradually approaching that of the L Income Fund. Between quarterly adjustments, the asset allocation of each fund is maintained through daily rebalancing to that fund’s target allocation. When a fund reaches its horizon, it will roll into the L Income Fund.
Over time, the L Funds (except for the L Income Fund) will “roll down” the Efficient Frontier. That means that as their allocations are adjusted each quarter, the funds shift left on the line, becoming less risky until they eventually merge into the L Income Fund.
L 2030
L 2040
L 2050

17. Which Investment Approach?
Professionally determined mix
Lifecycle Fund
Based on Time Horizon
Seeks best asset mix
Review on annual basis
Reallocate mix with age
Or…
You can either invest in the L Funds or you can choose your own investment mix from the G, F, C, S, and I Funds. If you go with the mix approach, keep the following points in mind:
Over a long period of time, the F Fund (bonds) and the C, S, and I Funds (stocks) have higher potential returns than the G Fund (Government Securities). However, stocks and bonds carry the risk of investment losses, which the G Fund does not. On the other hand, investing entirely in the G Fund may not give you the returns you need to keep up with inflation or meet your financial needs.
You need to be comfortable with the amount of risk you expect to take. Your investment comfort zone should allow you to use a long-term strategy so that you are not chasing market returns during upswing, or abandoning your investment strategy during downswings.
You can reduce your overall risk by diversifying your investments. The five individual TSP funds offer a broad range of investment options, including Government securities, bonds, and domestic and foreign stocks. Generally, it’s best not to put “all of your eggs in one basket.”
The amount of risk you can sustain depends upon your investment horizon. The more time you have before you need to withdraw your account, the more risk you may be able to take. This is because early losses can be offset by later gains.
Periodically review your investment choices. Check the distribution of your account balance among the funds to make sure that the mix you chose is still appropriate for your situation. If not, rebalance your account to get the allocation you want. You can rebalance your account by making an inter-fund transfer.
Self-Determined Fund Mix
L Fund

18. After Your Military Service
Funds can remain in TSP.
Funds can be transferred to an IRA or other eligible plan.
Contributions can be made via transfers.
Funds can be withdrawn.
If your vested account balance is $200 or more after you leave military service, you can leave your money in the TSP until later, or you can withdraw all or a portion of your account. If you leave your money in the TSP after you separate from military service, be sure to keep your address up-to-date so that the TSP can reach you.
Any withdrawal from your account will be made up of a proportional amount of traditional and Roth money.
If your vested account balance is less than $200 when you leave military service, the TSP will automatically send you a check for the amount in your account. The check will be mailed to the address in your TSP account record. You cannot leave this money in the TSP or make any other withdrawal elections.

19. 3 Secrets to Becoming a Millionaire You’ll get there sooner if:
You start saving early
You increase your rate of return
You save more

20. LET’S MAKE A DEAL Which door would you pick?1 2
Door #1
The value of a penny doubled every day for 30 days
Door # 2
A check for $250,000
Your Name
250,000
Two hundred fifty thousand
Let’s Make A Deal

21. On Day
$.01 doubles to 1
$0.02 2
$0.04 3
$0.08 4
$0.16 5
$0.32 6
$0.64 7
$1.28 8
$2.56 9
$5.12 10
$10.24 11
$20.48 12
$40.96 13
$81.92 14
$163.84 15
$327.68
On Day
$.01 doubles to 16
$655.36 17
$1,310.72 18
$2,621.44 19
$5,242.88 20
$10,485.76 21
$20,971.52 22
$41,943.04 23
$83,886.08 24
$167,772.16 25
$335,544.32 26
$671,088.64 27
$1,342,177.28 28
$2,684,354.56 29
$5,368,709.12 30
$10,737,418.24

22. It’s all about…..
The doubling
The doubling
The doubling
The doubling

23. Rule of 72 Annual Rate of Return x Years to Double = 72 Rate of Return1% 2% 36 3% 24 4% 18 6% 12 8% 9 9% 8
12% 6
18% 4
24% 3

24. Compound interest is the eighth wonder of the world
Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t pays it.”
Albert Einstein

25. The Dilemma?
How do I increase my rate of return without running the risk of losing all my money?

26. Solution to The Dilemma
Implement the 3 most important rules about investing!
Diversification
Never put all your eggs in one basket!

28. It’s not timing the market it’s time in the market

29. Enrollment and Your Account
mypay.dfas.mil Ensure DFAS has current mailing address!
Personnel Office: Form TSP-U-1
Account #
Web password
ThriftLine PIN
Access through:
ThriftLine
Designate Beneficiary: Form TSP-3
Distribute benefits: Form TSP-17
To participate in the TSP, you will need to enroll in the plan. The easiest way to enroll is through the myPay website at mypay.dfas.mil. Your account information will be mailed to you, so be sure DFAS has your current mailing address before you enroll! If your service does not use myPay, you can enroll through your installation's personnel office by completing the Uniformed Services Election Form TSP-U-1. Once you're enrolled, be sure to compare your TSP statement with your Leave and Earnings Statement (LES) to ensure the contribution amounts are correct.
When you establish a TSP account, you will get your account number, website password, and ThriftLine Personal Identification Number (PIN) in the mail so you can access your account online or by phone.
For website access at tsp.gov, you will need the Account Number and website password.
For ThriftLine (telephone) access, you will need the account number and PIN. You can also get a temporary password over the phone. I will give you the ThriftLine numbers at the end of this presentation.
If you wish, you can designate a person or persons, your estate, or a trust to receive your TSP account after your death. To designate a beneficiary or beneficiaries, you must use Form TSP-3, Designation of Beneficiary.
In order for beneficiaries to receive your account balance after your death, they (or their representatives) must complete Form TSP-17, Information Relating to Deceased Participant, and send it to the TSP along with a copy of the certified death certificate.
Account Access
Enrollment
Beneficiaries

30. Where to send TSP-U-1 Commissioned Corps Compensation/DCCPR
U.S. Public Health Services
U.S. Department of Health and Human Services
1101 Wootton Parkway, Plaza Level, Suite 100
Rockville, MD 20852
Contact:
Kenneth Drew, Military Pay Technician
Office: (240)
Fax: (240)
Drew, Kenneth (OS/OASH)

31. TSP Contact Information
Thrift Savings Plan Website:
TSP ThriftLines:
1-TSP-YOU-Frst ( )
1-TSP-Thrift5 ( ) TDD
Personal Financial Counselor at your Military Family Center
You have two ways to contact TSP representatives; online or by phone.
The TSP website is Here, you can set up and manage your TSP account, view fund information, download helpful forms and publications, and find free retirement planning tools and calculators.
2. You can also contact TSP by phone. The ThriftLine Automated Response System is available 24 hours a day, 7 days a week. You can use the ThriftLine to find out the latest information about the TSP (such as share prices and rates of return). You can also get information about your TSP account and request certain account transactions. You will need your TSP account number and your 4-digit TSP Personal Identification Number (PIN) in order to access your account through ThriftLine.
If you need live assistance, Participant Service Representatives are available on the ThriftLine Monday to Friday from 7:00 a.m. to 9:00 p.m. Eastern time. Press 3 to speak to a Participant Service Representative (PSR) when calling the ThriftLine. PSRs handle questions about loans, contribution allocations, inter-fund transfers, designations of beneficiaries, and withdrawals.
From the 50 States, including the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, and Canada, ThriftLine has these toll free numbers:
Telephone:
1-TSP-YOU-FRST
( )
TDD:
1-TSP-THRIFT5
( )
(for hearing-impaired participants)
International callers who cannot use the toll-free number should call (404) (not toll free).
You can also contact a Personal Financial Counselor at your Military Family Center for more information.
{Note to speaker: If you have handouts with you or at your table, briefly mention them here.}

32. Wilma Broering, CFP Email: PFC.Cincinnati.USAR@zeiders.com Phone:
Personal Financial Counselor
Hamilton Armory   
Phone: