THRIFT SAVINGS PLAN AVAILABLE FOR PERSONAL FINANCIAL READINESS

RAAUZYUW RUENAAA1482 0661518-UUUU--RHMFIUU.
ZNR UUUUU ZUI RUEWMCF2678 0661510
R 071518Z MAR 07 ZYB MIN ZYW
FM CNO WASHINGTON DC//N1//
TO NAVADMIN
INFO RHMFIUU/CNO WASHINGTON DC//N1//
RUENAAA/CNO WASHINGTON DC//N1//
BT
UNCLAS
NAVADMIN 058/07
MSGID/GENADMIN/CNO WASHINGTON DC/N1/MAR// 
SUBJ/THRIFT SAVINGS PLAN AVAILABLE FOR PERSONAL FINANCIAL READINESS// 
REF/A/ALNAV 011/07// 


GENTEXT/RMKS/1.  PER REF A, THE SECRETARY OF THE NAVY RECENTLY OUTLINED 
HIS VISION OF SOUND FINANCIAL MANAGEMENT FOR MEMBERS OF THE NAVY TEAM.  
EXPANDING ON SECRETARY WINTER_S VISION, EVERY SAILOR IS ENCOURAGED TO 
EMBARK ON A FINANCIAL READINESS PROGRAM THAT INCLUDES CASH SAVINGS, 
AVOIDING/REDUCING THEIR CREDIT CARD DEBT AND INVESTING TO PROMOTE THEIR 
FUTURE FINANCIAL STABILITY AND RETIREMENT.  ONE VALUABLE BENEFIT OF 
MILITARY SERVICE IS THE THRIFT SAVINGS PLAN (TSP); TSP IS A PERFECT FIT 
IN A PERSONAL FINANCIAL READINESS PROGRAM BECAUSE IT DELIVERS AN 
EXCEPTIONAL INVESTMENT OPPORTUNITY THAT BUILDS FUTURE FINANCIAL 
SECURITY AND RETIREMENT SAVINGS.
2.  TSP IS A VOLUNTARY PERSONAL SAVINGS INVESTMENT PLAN THAT OFFERS 
MILITARY SERVICE MEMBERS MANY OF THE SAME TYPE OF SAVINGS AND TAX 
BENEFITS THAT A NUMBER OF PRIVATE CORPORATIONS OFFER EMPLOYEES UNDER
401(K) PLANS.  TSP PARTICIPANTS SAVE A PORTION OF THEIR PRE-TAX PAY IN 
A SPECIAL RETIREMENT ACCOUNT ADMINISTERED BY THE FEDERAL RETIREMENT 
THRIFT INVESTMENT BOARD (FRTIB).  PARTICIPATION IN TSP REDUCES A 
SAILOR_S CURRENT TAX LIABILITY WHILE INVESTING TOWARD THEIR FUTURE 
FINANCIAL NEEDS.
3.  AS A NAVY MEMBER, YOU ARE ELIGIBLE TO JOIN TSP IF YOU ARE ON ACTIVE 
DUTY OR A NAVY RESERVIST IN A PAY STATUS.  BY PARTICIPATING IN TSP, 
YOUR INVESTMENT CAN GROW THROUGH THE AUTOMATIC REINVESTMENT OF THE 
EARNINGS GENERATED BY YOUR MONTHLY CONTRIBUTIONS TO THE PROGRAM, AND 
YOU CAN FURTHER SAVE BY DEFERRING INCOME TAX ON A PORTION OF YOUR 
YEARLY EARNINGS.  THE MONEY INVESTED (AND SUBSEQUENT EARNINGS ON IT) 
ARE NOT TAXED UNTIL IT IS WITHDRAWN FROM TSP.  THROUGH COMPOUNDING, THE 
LONGER YOUR MONEY IS IN YOUR TSP ACCOUNT, THE MORE YOU WILL SAVE; THE 
EARLIER YOU BEGIN INVESTING IN TSP, THE MORE YOU WILL HAVE AT 
RETIREMENT.
4.  TSP IS FLEXIBLE, PORTABLE, AND EASY TO USE.  SAILORS ENROLLED IN 
TSP CAN CONTRIBUTE FROM THEIR BASIC PAY, SPECIAL PAY(S), INCENTIVE
PAY(S) OR BONUSES UP TO THE ANNUAL INTERNAL REVENUE SERVICE (IRS) LIMIT 
(THE IRS LIMIT FOR 2007 IS $15,500).  SAILORS CAN ALSO CONTRIBUTE TAX-
EXEMPT COMBAT ZONE INCOME UP TO A SEPARATE IRS LIMIT OF $45,000 FOR 
2007.  IF YOU ARE ENROLLED IN TSP AND REACH AGE 50 OR OLDER DURING THIS 
CALENDAR YEAR, YOU ARE ALSO ALLOWED TO MAKE UP TO AN ADDITIONAL $5,000 
IN CATCH-UP CONTRIBUTIONS TO YOUR TSP ACCOUNT.
THESE SUPPLEMENTAL CATCH-UP CONTRIBUTIONS ARE ALSO TAX-DEFERRED; TO 
MAKE CATCH-UP CONTRIBUTIONS, YOU MUST HAVE ALREADY REACHED YOUR MAXIMUM 
ALLOWABLE CONTRIBUTION.
5.  TSP PUTS THE SAILOR IN CONTROL OF THEIR INVESTMENTS.  CHANGING THE 
AMOUNT ALLOCATED TO TSP EACH MONTH IS EASY BY USING THE DFAS MYPAY 
WEBSITE.  SAILORS ENROLLED IN TSP CAN CHANGE OR DIVERSIFY THEIR 
INVESTMENTS AMONG THE SIX DIFFERENT TSP FUNDS BY USING THE TSP WEB SITE 
(HTTP://WWW.TSP.GOV), BY CALLING THE THRIFT LINE (TSP INTERACTIVE VOICE 
RESPONSE SYSTEM AT 1-877-968-3778) OR BY MAILING A TSP ELECTION FORM TO 
THE TSP SERVICE OFFICE (SEE THE TSP WEBSITE FOR MORE DETAILS).  
DESCRIPTIONS OF THE FUNDS (ALONG WITH THEIR BENEFITS AND RISKS) ARE 
AVAILABLE AT THE TSP WEBSITE.  SAILORS ALSO HAVE THE OPTION TO TRANSFER 
THEIR TSP ACCOUNT BALANCE TO AN ELIGIBLE RETIREMENT PLAN (A ROLLOVER) 
WHEN LEAVING THE SERVICE.
6.  WHILE IT IS BENEFICIAL TO INVEST IN TSP AT ANYTIME DURING YOUR 
CAREER, BECAUSE OF COMPOUNDING, THE EARLIER YOU BEGIN SAVING, THE MORE 
YOUR ACCOUNT VALUE WILL GROW.  START PAYING YOURSELF NOW TO ENHANCE 
YOUR CURRENT FINANCIAL READINESS AND PROVIDE FOR YOUR FINANCIAL FUTURE!
7.  SAILORS ARE ENCOURAGED TO LEARN MORE ABOUT TSP AND OTHER PERSONAL 
FINANCIAL READINESS TOPICS FROM THEIR COMMAND FINANCIAL SPECIALISTS, 
FINANCIAL EDUCATORS AT FLEET AND FAMILY SERVICE CENTERS, AND FROM NAVY 
LIFELINES (WWW.LIFELINES.NAVY.MIL; CLICK ON THE PERSONAL FINANCE 
QUICKLINK).  MORE INFORMATION ABOUT TSP IS AVAILABLE AT THE TSP WEBSITE 
(WWW.TSP.GOV).
8.  RELEASED BY VADM J. C. HARVEY, JR., N1.//
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