Should I invest in the Thrift Savings Plan?  This is one of the questions I most often get from my junior Marines.  An easy question most definately, but an easy answer there is not.  The first thing I think is yes you should invest in the TSP, but the truth of the matter is I don’t know if it is always the best thing for those of us in the military.  There are definately plusses and not many negatives I can think of in the TSP. 

Benefits of Investing in the Thrift Savings Plan:

The most obvious pro is that you are saving. Second it reduces your income as far as taxes go for the time being and third the TSP has very low maintenance fees.  Another great thing about the TSP is that it is an automatic payroll deduction so it is very easy.

Cons of investing in the TSP:

What could be bad about investing in the TSP?  I wouldn’t necessarily say there is anything bad about investing but if you are a savy or disciplined investor there might be better vehicles for your money.  Since there is no matching contribution for the TSP with active duty military you may be better off investing after tax dollars into a Roth IRA vice the TSP.  What make a Roth better you ask, well the number one thing is that your money grows tax-free.  With a Roth you pay taxes on your money now and then when you withdraw it  it is tax-free.

Final Verdict:

I recommend that all Marines invest in the TSP.