Posted on Aug 9, 2016
How much do you plan to have in your TSP by the time you retire/withdraw?
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Responses: 6
When the TSP came about in the Army all they offered was the Traditional. Since I had a Roth IRA with USAA at the time, which I was maxing, I only contributed to the TSP 10% for the 10 years.
I can always look back and say "could have" or "should have". I should have stopped contributing to the Traditional TSP an open a Roth TSP and max it out.
If I was to do it again, only Roth TSP and max it out.
I can always look back and say "could have" or "should have". I should have stopped contributing to the Traditional TSP an open a Roth TSP and max it out.
If I was to do it again, only Roth TSP and max it out.
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$6.03 million. 18000 per year contributions for 24 years, after military retirement at 46, 5500 per year. Let it sit until 66. Assume 7% historical interest rate of total market. Hopefully the same for my fiance. It is also important to remember there are different TSP funds that you should change depending on your outside investments. Also, when you retire, you can sweep the money into another investment vehicle: IRA, 401K ect. sweeping into a traditional IRA is especially useful if you make more than the 200K/year when you get out (that is the limit for being allowed roth IRA). Also, remember that while you are deployed, the yearly limit becomes 54k instead of 18k. IF you make more than 250k when you get out you should consider tax exempt investments like index Universal life insurance in your children's names. That's my 2 cents.
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ENS (Join to see)
2LT (Join to see) while you're deployed you can put in 54k a year?! I did not know that!
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I stopped contributing at 50k once I realized that the TSP (before the IRA) wasn't the best option for me. Its now worth about 80k now and the money I that would have been in the TSP had I not stopped contributions has a consistent 18% return (mutual funds, even through 2008) and doubled in my single stock investments (which of course is volatile and could go to nothing in a heartbeat).
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