However, this question is often asked to explore whether the candidate has long-term goals which cannot be met by the employer. It is also used as a reality check to see if the candidate has realistic goals. Finally, it is also used as a measure of the ambition of the candidate.
SBP Costs (Premiums). The SBP premiums for spouse coverage are: (1) 6.5% of your chosen base amount, or if less, (2) 2.5% of the first $595.00 of your elected base amount (referred to hereafter as the threshold amount), plus 10% of the remaining base amount. The threshold amount was $595.00 as of January 1, 2004.
For an employee earning $50,000 per year, 5% contributed towards the TSP is about $95 per paycheck. Assuming this employee earns an average annual rate of return of 6%, that small biweekly contribution could be worth as much as $418,000 after 30 years. But can you really earn 6%? This figure is actually quite modest given the average annual returns of the stock funds within the TSP. For example, over the last 10 years, the C fund has averaged a 7.44% return and the S fund has averaged 10.43%.