Financial Wellness Workshop: Building a Solid Foundation for Your Future
Empower yourself with essential knowledge on basic finance, retirement planning, smart goal setting, and credit management. Take charge of your financial health and learn practical strategies to secure a prosperous future.
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Presentation Transcript
TC 4 Promotion
Agenda Basic Finance Saving for Retirement Career Investment Programs
Planning for Success S M A R T Specific Measurable Achievable Relevant Time-bound Determine how much it will cost and set milestones Understand why it s important to you State what you ll do Set a deadline to get it done Make sure it s possible to accomplish The second challenge
Spending Plan STEP 1: Understand your current situation Track inflows and outflows Review past financial statements STEP 1: Understand your current situation STEP 2: Know where your money should go Save and / or invest 10% 15%* Transportation less than 15% 20%* Housing Limit to BAH or 25% 30%* STEP 2: Know where your money should go STEP 4: Make adjustments 4-STEP BUDGETING PROCESS STEP 3: Create a plan Set SMART Goals Pay yourself first Automate saving Build an emergency fund STEP 3: Create a plan STEP 4: Make adjustments Update when life changes Review frequently * Pretax income Promotion Checklist and Spending Plan Worksheet Handout Available
Your Credit Reputation Check your credit at annualcreditreport.com Free credit monitoring for Coast Guard members Equifax: equifax.com/personal/credit-report-services Experian: experian.com/help TransUnion: transunion.com/credit-help Understanding Credit Handout Available
Who Wants to Be a Millionaire? $ 1M $ 800k $ 600k $408,000 $ 400k $243,000 $ 200k $139,200 $102,600 $ 0k Start at age 20 Start at age 25 Start at age 35 Start at age 45 $190/month for 45 years $290/month for 40 years $675/month for 30 years $1,700/month for 20 years Your investment: Cumulative compound interest: $899,563 Total: $1,002,163 Cumulative compound interest: $873,192 Total: $1,012,392 Cumulative compound interest: $762,993 Total: $1,005,993 Cumulative compound interest: $593,335 Total: $1,001,335 Assumes 8% return compounded annually to age 65
Thrift Savings Plan Defined Contribution Plan Open to all military members and federal employees Similar to a civilian 401(k) Professionally managed Benefits Minimal administrative fees Automatic deduction Automatic and matching contributions (BRS) Traditional and Roth options Many investment funds Thrift Savings Plan Handout Available
TSP Contributions Contribution limits Elective Deferral: $19,500 for 2021 Combat Zone: $58,000 for 2021 Catch-up (50+ years) = $6,500 Traditional vs. Roth contributions Matching contributions (BRS) Contribute 5% for full-matching benefit Taxes deferred Taxes paid up front Tradition al al Tradition Traditional Roth Tax-free when withdrawn Taxable when withdrawn
Managing Your TSP Direct Access Make your elections to include how much money you want to contribute and from which pay source (base, special, etc.) Roth vs. Traditional Maintain updated address Visit TSP.gov and log in with your username Misplaced account number Review and update beneficiaries Update contact information Review investment choices and future allocations
Career Investment Programs Invest in your future marketability DoD Career Ready Portal Apprenticeships o United Services Military Apprenticeship Program (USMAP) Certifications o Credentialing Opportunities On-Line (COOL) Tuition assistance
Summary Congratulations on reaching this important milestone! Let s recap what you ve learned to help you organize your finances and make the most of your recent promotion. Basic Finance Saving for Retirement Career Investment Programs
Resources Checklist and Handouts Financial Education and Support Command Financial Specialists (CFS) Personal Financial Managers (PFM) Health, Safety and Work-Life (HSWL) Regional Practice CG SUPRT Coast Guard Mutual Assistance (CGMA) Financial Literacy Mobile Apps Coast Guard Work-Life mobile app DoD FINRED Sen$e mobile app
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