As the title says, I'm trying to find a calculator I can use to compare projections of how my TSP would grow if I continue to contribute to it like normal vs what it might look like if I were to take out a loan.

    EDIT: I haven't been able to find a calculator, but there is an example of what I'm looking for under the "Withdrawals and Rollovers" tab in your TSP account. It showed the following example: "A 40-year-old with a $100,000 balance who withdraws $15,000 for college expenses could reduce her projected balance by $51,000 at retirement, if her portfolio has a rate of return of 5% every year." It then shows that at age 65 her projected balance would be $339,000 if she didn't withdraw and $288,000 if she did.

    As a data point I wanted to add the loans vs withdrawals info from the page as well:

    "How Withdrawals and Loans Differ

    Withdrawals and loans let you take money out of your account while you work for the US Government. However, they affect your account balance in different ways.

    Withdrawals

    When you take a withdrawal, you take money out of your account permanently. You may need to pay taxes on the amount you withdraw. You may also need to pay a penalty if the withdrawal is considered an early distribution from the plan.

    Loans

    When you take a loan, you borrow money from your account and pay your account back with interest. Your account isn't permanently reduced, and you won't pay taxes on your loan as long as you repay it."

    Is there a calculator to compare uninterrupted TSP compounding vs if you take out a TSP Loan?
    byu/rubenfdez31 inMilitaryFinance



    Posted by rubenfdez31

    1 Comment

    1. CommanderShrimp7 on

      I believe the TSP website has something like that, where it would show what your compounding will change if you took out a loan

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