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Respect and Discipline

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Submitted By CARESSE
Words 651
Pages 3
Preparation Outline 3: Visual Aids

By

Caresse Walden

Specific Purpose: I want the audience to understand how the military members can accumulate money for retirement with a tsp. Thesis Sentence: While in the military I realized how helpful a TSP savings plan really is when thinking about retiring from the military.

Introduction
While in the military not only can you retire by getting the same amount of pay you were getting before you retired but, you can also put money aside in a tsp (thrift savings plan). The Thrift Savings Plan (TSP) is a Federal Government-sponsored retirement savings and investment plan. Congress established the TSP in the Federal Employees' Retirement System Act of 1986. The TSP is a defined contribution plan. The retirement income that you receive from your TSP account will depend on how much you have contributed to your account during your working years and the earnings on those contributions. The TSP offers the same type of savings and tax benefits that many private corporations offer their employees under so - called "401(k)" plans.

Body 1. Some of the features of the TSP * Your TSP contributions are taken out of your pay before taxes are computed, so you pay less withholding tax now. * TSP earnings are tax - deferred. This means you don't pay Federal (and, in most cases, state) income taxes on your contributions or earnings until you withdraw the money - usually at retirement, when you are in a lower tax bracket. * You can diversify your TSP investment among five different investment funds: the Government Securities Investment (G) Fund, the Fixed Income Index Investment (F) Fund, the Common Stock Index Investment (C) Fund, the Small Capitalization Stock Index Investment (S) Fund, the International Stock Index Investment (I) Fund, and the new Lifecycle (L) Fund.

2. Think about the kind of life

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