I started at 5% and just added every raise I've ever received back into the TSP. I knew a PERS "millionaire" and that was his suggestion back in the day. If you can train yourself to live off your initial base income, invest the rest, and not increase you debt as your income raises over time (which is customary for most people. The more you make the more you spend); you'll be a millionaire when you retire.
I've done the exact same approach so far and it's working well so far (I've only been with VA for 5 years). However, making great profits from investing in the C and S funds... waited a year and a half in the Lifecyle fund intially (and now regret that). Thanks for the advise/validation!
Smart thinking. I tell this to all of my mentees and honestly anyone that will listen. I didn't have my awakening until a few years after I started but I'm on track. My motto is "I didn't need that money last year, so I don't need it this year either." It is OBE now because I've worked my way up to the max. Great minds things think alike!
I retired as a GS-3 (low man on the totem pole) and still had 82 k in my TSP. I started at 12k a year salary and retired at 35k a year salary. Do what you can with what you have.Most Americans cannot come up with 500 dollars in an emergency.Sad.
Coop!!! How did I not know you have this channel? I've been watching garage gym reviews for what feels like years! Got so excited when I searched TSP and saw you pop up in the results!
Ignore this advice................and you'll regret it!! I've been a federal employee for over 32 years and am just under one million in my TSP (a little over with my IRA). Put in as much as you can and then increase it by 1-2% every year. If you never see it, you won't miss it. I work with a person who started the same day I did and has never contributed to the TSP. One million vs. Zero. This person is nearly 60 years old and in panic mode. You're becoming adults, act like it. Thanks Coop.
Default option will put you in a lifecycle fund based on your date of birth. So please look at the 10 year rate of return for your lifecycle fund. As you get closer to retirement more money will be saved in the G fund which is returning closer to 2%.
The L Funds make things simple BUT, I encourage people to really understand the I Fund and its returns. I have done a lot of research (all available to anyone who asks), and the I Fund is consistently one of the worst performers. For example, over the last 12 years, it has lost to the G Fund. While it incurs substantially more risk and volatility. I don't believe it is a good investment. Which rules out the L Funds, for the most part. If you love the I Fund, I'm not arguing with you--sink all you want into it. But understand it has been hurting your portfolio over the long run. While providing you with large amounts of risk. When a government-guaranteed return beats an equity index, it's time to do some serious thinking.
@@Fedretirementplanning Agreed! But they didn't make the change for the military until 2018 when they changed to the BRS. So, if you've been in a few years and haven't bothered to get your TSP password and make choose your funds, you are likely going into your original default...which is the G Fund (a low interest gov't loan). Can't stress enough that people need to get their TSP password and manage their account.
The TSP/401k limit is $19,000 per year. Starting at age 50 you can contribute $6,000 additional per year (catch up plan) for a total of $25,000 pre tax contributions per year. Higher paid federal employees can afford saving this much, get major income tax reductions, and could reach $2 million after 30 years with the C fund. The catch up plan is meant to help older workers save more before retirement, but is a great loop hole for high paid federal workers to get more stock market returns.
Im glad. Started gov job at 18. Lots of people were retiring and talkin about tsp at that time. And i was single. So i started dumping tons of cash in there. Now ive got family and things are alittle tighter and had to drop down to the minimum for alittle while at least.
I once had a math professor that said "there are 2 variables in the exponent, and you can really only control one." referring to the time you start investing and the formula A=Pe^Rt. It's stuck with me ever since. Invest early and often!
Ive been doing between 0 and 15% for my first 11 years. Probably averaged 8 over that time. I just bumped it up to the max $730 a check. Its all in the 2050. Is that a smart enough strategy? Or in the next crash go 90-100% C fund?
Great to see you back, Cooper. I work with a few hundred feds a year, helping them with retirements and benefit questions. When I recommend a UA-cam channel, yours is the only one I recommend. I think you provide the best, simplest overview of FERS topics on UA-cam.
YO WTF Coop does Garage Gym AND financial advice content?! I hit the back button twice because I kept thinking I hit a GGR video by accident while looking for TSP videos and now I am far from disappointed.
C&S - 15% minimum when market is strong, when the market turns red, bump it up depending on how bad it is… I’ve done 20% to 30% when it was really bad (on sale) when it comes around, I bring it back down, eventually back to 15%… the trick is to contribute more when everything is on sale.
You can have both. They lie and say you can roll tsp i to a roth but it takes an act of god to get approved. They can just reject your request and not tell you why or that they even rejected it.
@@ShawnSwander doing a “back door ROTH” is the way to go! If you’ve been making contributions to a traditional account for tax write offs, you should look into this! It’s a great way to not pay taxes when you’re old a need to pull from your retirement accounts.
Going to my second year and I started with 30% as I ranked up I increase the percentage to 35% having a family but still manage it so yes it’s a good investment
So I have my FED TSP but I am also a reservist in the AF. I am currently investing 5% in my Civillian TSP and then about 1% in my reserve TSP. Since I am usually only working 1 weekend a month with a TDY here and there or a deployment every other year. Should I invest more in my military TSP? I used to invest more when I was on constant orders for a few years but since I’ve started my civillian job I throttled back because I was in traditional status. And my civillian TSP makes much much more.
Whenever you go on a deployment to a CZTE (Combat Zone Tax Exclusion) area, pump as much of that tax free pay as you can into your military TSP, and don't miss out on the civilian matching (for those not getting matching from BRS anyway) for your deployed military contributions (adjust the contributions to at least the dollar amount you would be contributing as a Federal employee while on Active Military Duty and LWOP-US). Tax Free TSP contributions are an added benefit that will pay off in retirement, and possibly sooner if you're in a pinch.
Ive been investing 10% since the beginning (10 years) and Im up to 147K. L2040, C and S fund. I may up my contribution but I'm hoping by the end ill have 1.5 to 2 mil.
I started at 5% then kept upping it. Now im at 10% and every time i get step increase or cola or any type of increase in pay i add more %. Next im going to start a roth this year. 35 years old.
Is that 1.5 mil after tax dollars with the TSP? I’m 17 and just enlisted and I really gotta know before boot!!! Great video, if I’m a millionaire by retirement I’m coming back here to thank you
i wish i would have paid more attention to my tsp well i was in the army. i just let it sit and now its all been in G fund this whole time 6 years later and im barley now trying to learn how to manage it because i almost pulled the whole thing out to buy a car but i thought hey i should look into it first before i cash it all out . well see what happens.... any advice would be appreciated :)
I am 19 and in my 1st year of the Air Force. I Just bumped up my contributions to 25%. i have no bills (yet), and no debt, just could do whatever i want with my pay since the military provides everything. Hopefully all works out, investing in L2050 fund in a roth tsp.
Well done Airman. Maybe throw some into a traditional TSP for the match (unless you get a match in Roth - not sure if you do)? Free money gotta grab that cash now! Could also elect to put some specialty pay in there too. Grab as much of that free training and education as you can.
Put in all in the C & S Funds. I used the L funds earlier in my career and I should of stayed aggressive. The difference you will see later in life. My gains over time would of been higher in the long hall just leaving 100% in the C Fund.
Something seems a little off about this math. Person A - 6% - $720,000 Person C - 15% - $1,500,000 Person C should have a lot more than double of what person A has. Not only is the contribution rate significantly more than double, but with over 30 years compound interest on those extra contributions, I’d expect person C to have significantly more. Maybe my math is off?
I enlisted in the army in 2014 and didnt know about the TSP until 2016. I set up my account but didnt know about the different funds, etc until January 2021. My money was on G fund for around 3.5 years 🤦♂️🤦♂️🤦♂️ Hopefully it was not too late for me to allocate in the C and S fund.
Don’t feel too bad. Nobody tells you that setting up your TSP is a 2 step process. Everybody just sets up their contributions through mypay thinking they’re good to go. When I’m reality they needed to set up their TSP account at TSP.gov and decide what funds they want their contributions to go into. Unfortunately if you don’t do step 2, they go straight into the G fund, which earns like half of a %! I did the same thing for the first 6 years of my military career. Now I help all of my new recruits set up their TSP accounts the way I wish my NCOs had helped me early on.
@@XxPinCushioN21xX did the same. Realize the G fund although secure sucks on growth overall. Put some into C and S funds so I’ll see how that works for me in the next 14 years
I'm in the Guard, and investing the entirety of my checks into my Roth TSP. I don't know how many years I plan on being in, but I can live without the drill checks so I figured I may as well invest them. Is this a good move?
If I were you I would save some of the money you get from drill pay and put it in different sectors of the market such as S and P 500 or mutual funds. Dont put all eggs in one basket. Diversity....
@@TheTyphoon365 Trust me being able to invest in the military and on the civilian side will help you a lot. What you choose to invest on the civilian side is completely up to you though
Reservist here! I drill every month, and do my AT every year. I selected 85% on MyPay, but they haven't been taking out contributions on a regular bases. They've only taken contributions gives times in the last 18 months! Both TSP and the reserve Center can't help...
I’m currently allocating 20% of my pay. 60% into C, 30% into S, and 10% into the I fund. I’ve changed it a few times over the past year, but I plan on sticking to that and raising the total allotment every pay raise. I’ve only been at it a year. Once I hit my two year mark in the Army, I’ll start getting that 5% match. Excited to see where it goes!
I took a distribution in 2019 on my Uniformed service TSP. My tax prepare says I owe the State of Michigan for the taxable income. Michigan doesn't take taxes out on military pay. Problem is my 1099 says "Thrift Saving plan", no reference to it being a "Uniformed Service" , or from military income. How do I prove to the State it was military income?
2012 and half of 2013 I was in G fund by default (I didn't know better). Switched to 50/50 C and S fund since. Fast forward to now, and while I've lost money in 2020, I'm dollar cost averaging right now and remaining the course. 8 Years in the navy and I'm sitting on 79k. TBH anything that isn't G or F is the best way to go because early on in your career, you can afford the risk and the red years. Look at the finish line. It's a marathon, not a sprint. Don't try and time the market with the highs and the lows.
C for majority of your time, G for when youre planning to use that money (use, as in to retire) start switching it at about ~10 years from 59.5 years (to avoid market crashes). If youre not planning to use the money yet, keep it in the C fund, if your getting close to the RMDs, roll it over into a ira.
Planning to retire from Fed in 15years (but not touching TSP for 5-10yrs after that) and have been contributing to Traditional TSP for 7 years now. I’ve been debating on starting to contribute to Roth now, but would that diminish the compounding ability? With my current write offs, I believe I’m in a lower bracket now than later and have been debating this move for awhile. I’m just not sure about the effect on the compounding, if any. Your thoughts?
As an E-4 and 23 yr old service member who has been in for 3 years, I’m contributing 10% of my paycheck into my Roth TSP. I also switched from the L fund to investing 70%(C fund) and 30% (S fund) Hoping I’m doing the right thing to retire as a TSP millionaire in the next 17 years 😅
Since I joined the army I decided to invest 10%. I really don't understand how everything works, but I know you get what you give, you give less, you get less, so I decided to give more, and learn to manage my money more responsibly. Watching these videos now, I feel like I did the right thing. Altough I feel theres more I could learn and do with my investings.
That’s probably one of the best decisions you made while serving in the army! Starting with 10% was great! That’s what I started at and every time I get promoted I bump it up by 3%.
I never cared about money so would it be possible to give 30-50%? I’ll live like a scrub so my family can live like kings later on. Is this possible? Will I survive?
What benefits does TSP have for me if I am high 3 since TSP wont match my money invested into the funds. If I were to invest into TSP i would choose the C fund. Which from my understanding is essentially S&P 500 ETF which I could invest into stocks on my own(which I am currently doing) with the choice of pulling my money out and adding money anytime i wanted versus the government holding my money until I retire. Please let me know if I am missing something here.
Please answer me this I am a tsp contributor so these 3 scenarios at $55,000 a year what fund are they all invested in we know it's a lot of different funds to invest what is the percentage out of 100% your example are they only in S -fund & C-fund because there is G,F,C,I,L fund which one to get your magic number so if 30yrs vesting 5% is 1millon then only 15yra should be 500k again what fund and percentage is going to what fund letter hope to here from anyone back if they know it 2022 now tho
Use roth tsp, individual fund (C fund), minimum 5% salary contribution (more the better), Once youre close to retiring (59.5 years) start moving it to the government fund (G fund). I would start moving it at around ~10 years before 59.5 to avoid market crashes. If youre still working and dont need the tsp money yet, just keep it in the C fund. If youre getting close to RMDs, rollover the roth tsp into a roth ira. Summary, C fund for growing (aka you dont need the money atm), G fund for safety (aka when you need the money soon, start switching it 10 years BEFORE you need it, to avoid market crashes)
What do you think about having both a TSP and IRA? (Both roth). I chose this route ~5% and ~7% to have more control over my investments and be more aggressive. Only 26 years old.
This really spoke to me. I just finished my first year in the feds and I started at 3 because I wanted to “enjoy my money”but literally today before I watched your vid I changed my allocations to 50-C 20-S 20-I 10-G and moved my contributions to 6% (to make up for this years difference in my head lol) you just earned a subscriber. Thanks !! looking forward to 30 years at 58 years old 😎
@@KParks - I agree to bump it up to a minimum of 15%… that should be ground zero that you never go below no matter what. But I always recommend bumping it up or down in 5% increments… that’s barely noticeable. I usually tell people that they should be investing as much money as they can to the point they can “just feel the pinch”… typically the pinch goes away after 2-3 paychecks… once the pinch goes away bump it up another 5% and repeat. You will eventually be able to reach the 15% minimum and be conditioned to bumping up to 20+ when everything goes on sale.
if $100 is 5% of your pay then they will match that, if 5% of your pay is $88 then they will match that, if $100 is 10% of your pay, they only match 5% of that which is only $50
Louis Diaz the issue is-i put a $ amount, not a %; i requested $100, it shows they match like $96 or $98, not even $100; what if 5% is $135? If they’re not even matching $100, I don’t see how they’ll match 5%. edit: just verified, my TSP is set at $100 and TSP matching is $93.03
I'm currently paying in 5% until I follow Dave Ramsey advise to get out of debt. I'm 39 yrs old and wondering if I should change from a traditional to Roth TSP since you don't pay taxes on it after retirement.
Can I roll part of my TSP Traditional Account to a Traditional IRA then gradually and subsequently roll that into a ROTH IRA?? The amount that I move would depend in how much in taxes I can afford to pay yearly. Thanks
The thing I realized after messing with this thing and looking at it is that my take home check really doesn’t change much because I get taxed so much. From messing with 3% to now having 15 percent in now in tsp
i am in the military as an E-2 making around 1950 $ per month i don't plan on spending any money for at least 2 of my 4 1/2 year contract what would you recomend
I’m investing 15% but I know there’s more option how aggressive in the investments I’m trying to learn more about it. I have been investing in to my TSP for about 4 years
TSP contributions are matched dollar for dollar on only the first 3%. The next 2% they only match 50 cents on the dollar. If you elect a 5% contribution, they’ll match 4%. 1+1+1+.5+.5
It's too much when you can't afford to live how you'd like. I need to make a video on this. The thing is, investing is all about balancing life today and tomorrow. You're trying to save for your future, but you don't want to not enjoy life today. However, people often spend much more than they should because they're buying things they think will make them happy, when they really don't.
If you get 26 pay periods a year the maximum you can contribute is 19,500 so you can make 750 a paycheck instead of doing percentages and that will max your tsp out
Hello Sir, so my situation is this - i am active duty soldier. I didn't know about blended retirement system, so i am in old system with no match. Can I change that ? What should be my strategy for investing ?
Sudden Strike sadly you can’t. There was a deadline for people to switch over to blended. It depends cause if you have been in long enough (like over 12 years) the old system is better.
Someone please answer. I’ve been in the sir force for 3 years no dependents. I’m thinking of investing 35% of my E4 pay. Is this a good idea? I’ll be scraping by with bills if I do so.
Having been an E4 at one time myself. 35 is a not yet if you are planning to stay in first get that emergency fund together then start at 15-20 then as you make E5 bump it up. E6 bump again then as your E7 make that decision again. But defiantly don't go less than 10-15 and go check out tspcalc.com look at the different options there. (keep in mind you may not always be in internet connection areas Navy myself not sure for your connectivity) With the new retirement plan you have the potential to get more than I will with the Hi-3 but you got to spend some time with it and take time to grow it. But don't forget you still have a life and E4 pay don't go far especially if life happens and it will.
@@BlazeCyborg Then it may not be a bad move it will all depend on if you will have enough to live on and ABSOLUTLY get that rainy day fund together you WILL need it(3months living expenses food/shelter/utilities/gas & car bill). Also now is the time to start networking and looking at what you are going to be doing outside. Don't do what I've seen a lot of junior guys do (my uncles cuzins son in law has this awesome job that don't really exsist) have a backup plan. does AF have the golden/silver ticket program (gold 1year backin same rank silver is 2year may drop one rank I know its a Navy thing but) too check on that you may find yourself wanting back in if economy tanks and there is no job. PS good luck were-ever life does take you after
Maybe I missed it, is the ten percent to be invested in G fund or C,L, or S fund? I have the ten% from my salary Taken out, then I split it half in G And C fund 5% each.
Stay away from G fund if you're young. It's minimum risk and minimum return; designed to protect someone's savings when they're close to retirement. From the available statistics it looks like C and S have the most potential.
Are you in the Blended Retirement System? If so starting out I want to say AWESOME! Never drop below 5% since they match up to that amount. I have 10% just because it looks pretty compared to 9% lol.. As far as Roth VS Traditional, the obvious is tax advantages in both. To start, us in the military have a tax advantage from the start with our taxable income at the 12% level..once you get BAH/BAS (unless you do already) your take home pay depending on the area will be around 50k and taxable will be around 25k. AMAZING! Roth IRA as in your Roth TSP, you Pay the tax now to not do it later. In our situation I believe this is better (opinion) BUT in Traditional IRA, you pay the tax later. The advantage to this is people making say $120k and the tax bracket is 30% (fake numbers) and if they just made $118k instead they would be at the 22%..by investing in traditional, your taxable income lowers, sometimes into a lower tax bracket..this is GREAT for those making a lot of taxable income. My piece of advice (I am not a financial advisor just a dude in the military like you thats been in a few years) our tax advantages for our taxable income is already off the charts and I do not see a reason why you shouldn't switch to a Roth rather than Traditional. For us: Roth over Traditional For those trying to lower their taxable income: Traditional over Roth
I have no clue abt how the tsp works or all those funds but i am logging in n changing it to 10%. I been with the feds for abt 2yrs so i guess i will still be ok
Kay assuming you are in your thirties or younger invest 100% in the TSP. Read up on it and educate yourself. This is what Warren Buffet recommends as well.
you have to roll it over, there is an important distinction on HOW you move the money. Taking it out of the roth tsp, putting it into your bank, then depositing it into your roth ira can be taxed/ fees in specific situations. Having your roth tsp rollover to your roth ira, is the best way to avoid taxes/ fees
@@MochaHammy I've been investing 42% in my TSP for 5 years now. I started with 39% and kept bumping it up to 42%. I was playing catch up as I started my TSP at age 33. I also wanted to get used to having less money coming in as my paycheck would be cutback during retirement. I opened it right before I went to Korea as I knew I'd be living in the dorms, and I would be having to eat at the chow hall. It was bumpy at first but was manageable....I kept thinking I'd switch it back to a more reasonable amount when I moved to Japan but I found I could still live off the 58%. Another thing of note I had paid off all my debt including my car before I started this. One final thought make sure to get access of your TSP account as soon as possible. Since I was overseas I kept having issues with them sending the account number, and then the pin to the correct address. I didn't actually get to look at the account to recently which showed I only had 1% going to the L2040 and the rest was all going into the G fund...for the last five years. I've lost sooo much money due to my own laziness and not following up.
I just became a federal employee, and glad I found this Chanel, anybody else have any suggestions as far as retirement, I’m 28 years old now and trying to make the right choice
I’ve been federal employee about 35 yrs....if I could go back in time to age 28, I would invest as much as possible , in 80% c fund 20% s fund.... even during recession.
Help! I'm 34. Starting government job at GS-5, 5% in TSP. I'll bump it up to 10% after looking at this video, but what fund should I put my 10% in where I can JuST leave it? I want to make the smartest choice!!!
TSP Rules. TSP Roth rules are like Roth 401(k) rules, not like Roth IRA rules. As such, the rules are set by the employer and the employer's plan. TSP will not allow it. There are also private companies that have both that will not allow it as well. Just up to the employer. TSP says no.
Love ya, love your advice, but that student loan program is utterly bogus. Around a thousand people across all government entities have been able to use it as imagined. Basically, by the time you meet the requirements, you will have paid off the loans yourself.
@@ineedhoez my understanding is that the income based payment plan will not qualify one for the 10 year loan forgiveness program associated with working in government service. The last I read, the number of people approved under the program was slightly under a thousand.
Your absolutely right I was that person didn’t start a investing into the c and s fund until 10 year mark - I had only invested in the g fund I would have made more than double if I knew better
@@ifrahali5667 C and S is what i went with , the one u have is for folks who are not sure what they want to if you earnInvest in u let tsp decide how your money On the year u want to pull that money out…
So, once the person realizes they have made a mistake early on in the Tsp by not getting the match, but they have 15 years until retirement what would you suggest they do to catch up to have a comfortable retirement? Do they have enough time ? What are some realistic actions they could take to meet the Million Dollar mark? Is it possible ? Thanks
They do have enough time. This is a great idea for a video, but I'd suggest putting as much in to catch up as possible. In my opinion, it's very hard to save TOO much.
I started at 5% and just added every raise I've ever received back into the TSP. I knew a PERS "millionaire" and that was his suggestion back in the day. If you can train yourself to live off your initial base income, invest the rest, and not increase you debt as your income raises over time (which is customary for most people. The more you make the more you spend); you'll be a millionaire when you retire.
I've done the exact same approach so far and it's working well so far (I've only been with VA for 5 years). However, making great profits from investing in the C and S funds... waited a year and a half in the Lifecyle fund intially (and now regret that). Thanks for the advise/validation!
GREAT ADVICE 👍👍👍👍
Yup I’ve done the same. And never missed the raise
Smart thinking. I tell this to all of my mentees and honestly anyone that will listen. I didn't have my awakening until a few years after I started but I'm on track. My motto is "I didn't need that money last year, so I don't need it this year either." It is OBE now because I've worked my way up to the max. Great minds things think alike!
Hope I can start doing that soon; raise my contributions to 10% or more. Just gotta pay off a debt first. Really tempted to take a loan from the tsp.
I retired as a GS-3 (low man on the totem pole) and still had 82 k in my TSP. I started at 12k a year salary and retired at 35k a year salary. Do what you can with what you have.Most Americans cannot come up with 500 dollars in an emergency.Sad.
Awesome lesson Robert! Good for you brother!
@@mojave1765 Being a good shopper and thritiness goes a long way. Plus it's fun.
You're an inspiration of those who can be disciplined!
Coop!!! How did I not know you have this channel? I've been watching garage gym reviews for what feels like years! Got so excited when I searched TSP and saw you pop up in the results!
Ignore this advice................and you'll regret it!!
I've been a federal employee for over 32 years and am just under one million in my TSP (a little over with my IRA).
Put in as much as you can and then increase it by 1-2% every year. If you never see it, you won't miss it. I work with a person who started the same day I did and has never contributed to the TSP. One million vs. Zero. This person is nearly 60 years old and in panic mode.
You're becoming adults, act like it.
Thanks Coop.
Yes!! Great advice, thank you!
Penny-wise and Pound-foolish.
Bam! to easy folks well said.
They won't have zero... but they also won't have much. Agency/Service Automatic (1%) Contributions.
Default option will put you in a lifecycle fund based on your date of birth. So please look at the 10 year rate of return for your lifecycle fund. As you get closer to retirement more money will be saved in the G fund which is returning closer to 2%.
The L Funds make things simple BUT, I encourage people to really understand the I Fund and its returns. I have done a lot of research (all available to anyone who asks), and the I Fund is consistently one of the worst performers. For example, over the last 12 years, it has lost to the G Fund. While it incurs substantially more risk and volatility. I don't believe it is a good investment. Which rules out the L Funds, for the most part. If you love the I Fund, I'm not arguing with you--sink all you want into it. But understand it has been hurting your portfolio over the long run. While providing you with large amounts of risk. When a government-guaranteed return beats an equity index, it's time to do some serious thinking.
Yep, I'm glad they made that change. Used to be the G-Fund was the default.
@@Fedretirementplanning Agreed! But they didn't make the change for the military until 2018 when they changed to the BRS. So, if you've been in a few years and haven't bothered to get your TSP password and make choose your funds, you are likely going into your original default...which is the G Fund (a low interest gov't loan). Can't stress enough that people need to get their TSP password and manage their account.
@@barfieldfinancial6718 which is why I have two L funds 2030 and 40. As I get closer to 2029, I'll continually evaluate and adjust.
welcome back, been like a year!
Recorded one last week, check it out!
The TSP/401k limit is $19,000 per year. Starting at age 50 you can contribute $6,000 additional per year (catch up plan) for a total of $25,000 pre tax contributions per year. Higher paid federal employees can afford saving this much, get major income tax reductions, and could reach $2 million after 30 years with the C fund. The catch up plan is meant to help older workers save more before retirement, but is a great loop hole for high paid federal workers to get more stock market returns.
I’ve been doing 15% since I joined the army back in 2010. Hopefully it’s gonna work out when I get out with the TSP.
As long as it’s not going straight into the G fund you should be good at 15 percent. *im not a financial expert* lol
Im glad. Started gov job at 18. Lots of people were retiring and talkin about tsp at that time. And i was single. So i started dumping tons of cash in there. Now ive got family and things are alittle tighter and had to drop down to the minimum for alittle while at least.
You’re one of the lucky ones to have started your contributions when you were young! You had good people influencing your decisions!
It's great to see you back Cooper! We appreciate you and your advice.
Thanks Mario! I'll keep on keeping on!
Spot on Cooper. Additional reminder for the young feds - Early Dollars = Powerful Dollars. That means Do It Now young fed !
Yep! Awesome advice. Compounding is INCREDIBLE!
Yep. Won't see me here past 57.
How young is young?
I once had a math professor that said "there are 2 variables in the exponent, and you can really only control one." referring to the time you start investing and the formula A=Pe^Rt. It's stuck with me ever since. Invest early and often!
Yep, that's a great way to look at it.
Been doing the max allowable every year for the last 8, 15% for the first years. I won’t have any worries once I retire.
Ive been doing between 0 and 15% for my first 11 years. Probably averaged 8 over that time. I just bumped it up to the max $730 a check. Its all in the 2050. Is that a smart enough strategy? Or in the next crash go 90-100% C fund?
michigan0207 id say don’t even look at the damn thing lol leave it in the 2050
@@michigan0207 I agree with KParks. Don't try and time the market. Time in the market is more important than timing the market.
Great to see you back, Cooper. I work with a few hundred feds a year, helping them with retirements and benefit questions. When I recommend a UA-cam channel, yours is the only one I recommend. I think you provide the best, simplest overview of FERS topics on UA-cam.
Awesome, very grateful for your kind words Chris. The basics will get people 95% of the way there. Working on a way to deliver more complex help soon!
YO WTF Coop does Garage Gym AND financial advice content?! I hit the back button twice because I kept thinking I hit a GGR video by accident while looking for TSP videos and now I am far from disappointed.
C&S - 15% minimum when market is strong, when the market turns red, bump it up depending on how bad it is… I’ve done 20% to 30% when it was really bad (on sale) when it comes around, I bring it back down, eventually back to 15%… the trick is to contribute more when everything is on sale.
Can you do a video over a Roth account vs a tsp Roth account? And can you have open both account? Or just have one or the other
Great idea!
I have done a video regarding TSP vs Roth IRA on my channel so please check it out.
You can have both. They lie and say you can roll tsp i to a roth but it takes an act of god to get approved. They can just reject your request and not tell you why or that they even rejected it.
@@ShawnSwander doing a “back door ROTH” is the way to go! If you’ve been making contributions to a traditional account for tax write offs, you should look into this! It’s a great way to not pay taxes when you’re old a need to pull from your retirement accounts.
@@AdultingShouldntSuck I got mine approved using emergency covid protocols. Literally took an act of God I suppose.
Going to my second year and I started with 30% as I ranked up I increase the percentage to 35% having a family but still manage it so yes it’s a good investment
Its always crazy to watch this video then go watch Garage Gym Reviews. Coop is different than Cooper lol
Nick I’ve been watching both channels for a long time and didn’t know Coop was Cooper for an embarrassing amount of time. 🤦♂️
@@shaunannaoliver 🤣🤣🤣 two very different Internet personalities
I was thinking the SAAAAME THING
So what I did???? 60% of my base pay lets see if I live.
@@TheeBeardedGuy not true
So I have my FED TSP but I am also a reservist in the AF. I am currently investing 5% in my Civillian TSP and then about 1% in my reserve TSP. Since I am usually only working 1 weekend a month with a TDY here and there or a deployment every other year. Should I invest more in my military TSP? I used to invest more when I was on constant orders for a few years but since I’ve started my civillian job I throttled back because I was in traditional status. And my civillian TSP makes much much more.
Whenever you go on a deployment to a CZTE (Combat Zone Tax Exclusion) area, pump as much of that tax free pay as you can into your military TSP, and don't miss out on the civilian matching (for those not getting matching from BRS anyway) for your deployed military contributions (adjust the contributions to at least the dollar amount you would be contributing as a Federal employee while on Active Military Duty and LWOP-US). Tax Free TSP contributions are an added benefit that will pay off in retirement, and possibly sooner if you're in a pinch.
@@anthonykaiser974 Thank you, but its really not often that i go to a CZTW zone.
@@mrs.i9176 you're not the only person reading this.
@@anthonykaiser974 yes, i understand that. But you responded to my thread. :) Have a nice weekend.
@@mrs.i9176 yes, because you asked the question.
Ive been investing 10% since the beginning (10 years) and Im up to 147K. L2040, C and S fund. I may up my contribution but I'm hoping by the end ill have 1.5 to 2 mil.
I started at 5% then kept upping it. Now im at 10% and every time i get step increase or cola or any type of increase in pay i add more %. Next im going to start a roth this year. 35 years old.
Is that 1.5 mil after tax dollars with the TSP? I’m 17 and just enlisted and I really gotta know before boot!!! Great video, if I’m a millionaire by retirement I’m coming back here to thank you
If you chose the Roth TSP then yes it's all after tax
i wish i would have paid more attention to my tsp well i was in the army. i just let it sit and now its all been in G fund this whole time 6 years later and im barley now trying to learn how to manage it because i almost pulled the whole thing out to buy a car but i thought hey i should look into it first before i cash it all out . well see what happens.... any advice would be appreciated :)
I got this advice from Suze Orman when I first started working. I started off with 5% and slowly increased it to 15% as I got pay increases.
This! I'm trying my best to get there.. Im at 10%and hope to get to 15% within the next two years. I retire in 25 years... 30 if I stay till 62
I am 19 and in my 1st year of the Air Force. I Just bumped up my contributions to 25%. i have no bills (yet), and no debt, just could do whatever i want with my pay since the military provides everything. Hopefully all works out, investing in L2050 fund in a roth tsp.
Angel Castillo hey man hows it going. Im in the same boat haha, joined a few months ago, planning on bumping mine up to 20%
Well done Airman. Maybe throw some into a traditional TSP for the match (unless you get a match in Roth - not sure if you do)? Free money gotta grab that cash now! Could also elect to put some specialty pay in there too. Grab as much of that free training and education as you can.
Put in all in the C & S Funds. I used the L funds earlier in my career and I should of stayed aggressive. The difference you will see later in life. My gains over time would of been higher in the long hall just leaving 100% in the C Fund.
Something seems a little off about this math.
Person A - 6% - $720,000
Person C - 15% - $1,500,000
Person C should have a lot more than double of what person A has. Not only is the contribution rate significantly more than double, but with over 30 years compound interest on those extra contributions, I’d expect person C to have significantly more. Maybe my math is off?
My mistake was investing 100% of my TSP in the damn G Fund for first 5 years of my career
My husband is in for 14 years and still has it in G fund! I just found that out. Going to change that asap.
I enlisted in the army in 2014 and didnt know about the TSP until 2016. I set up my account but didnt know about the different funds, etc until January 2021. My money was on G fund for around 3.5 years 🤦♂️🤦♂️🤦♂️ Hopefully it was not too late for me to allocate in the C and S fund.
Ouch
Don’t feel too bad. Nobody tells you that setting up your TSP is a 2 step process. Everybody just sets up their contributions through mypay thinking they’re good to go. When I’m reality they needed to set up their TSP account at TSP.gov and decide what funds they want their contributions to go into. Unfortunately if you don’t do step 2, they go straight into the G fund, which earns like half of a %!
I did the same thing for the first 6 years of my military career. Now I help all of my new recruits set up their TSP accounts the way I wish my NCOs had helped me early on.
@@XxPinCushioN21xX did the same. Realize the G fund although secure sucks on growth overall. Put some into C and S funds so I’ll see how that works for me in the next 14 years
I'm in the Guard, and investing the entirety of my checks into my Roth TSP. I don't know how many years I plan on being in, but I can live without the drill checks so I figured I may as well invest them. Is this a good move?
If I were you I would save some of the money you get from drill pay and put it in different sectors of the market such as S and P 500 or mutual funds. Dont put all eggs in one basket. Diversity....
@@bigp8871 well the portfolio is diverse, I could look into also investing into something on the civilian side too. Still new to the game
@@TheTyphoon365 Trust me being able to invest in the military and on the civilian side will help you a lot. What you choose to invest on the civilian side is completely up to you though
Reservist here! I drill every month, and do my AT every year. I selected 85% on MyPay, but they haven't been taking out contributions on a regular bases. They've only taken contributions gives times in the last 18 months!
Both TSP and the reserve Center can't help...
I’m currently allocating 20% of my pay. 60% into C, 30% into S, and 10% into the I fund. I’ve changed it a few times over the past year, but I plan on sticking to that and raising the total allotment every pay raise. I’ve only been at it a year. Once I hit my two year mark in the Army, I’ll start getting that 5% match. Excited to see where it goes!
I fund never performs as well as the C or S.
what about 25% for 15 years in the C and S fund?
I took a distribution in 2019 on my Uniformed service TSP. My tax prepare says I owe the State of Michigan for the taxable income. Michigan doesn't take taxes out on military pay. Problem is my 1099 says "Thrift Saving plan", no reference to it being a "Uniformed Service" , or from military income. How do I prove to the State it was military income?
What is the best fund? Which one has had a good history?
You really can't go wrong with an L fund set to convert within 5 years plus or minus of your expected retirement.
C fund
@Lovely_Day hell yeah! I spread mine out in 4 funds now according to what Dave Ramsey said and my TSP Is getting bigger and is balanced out
2012 and half of 2013 I was in G fund by default (I didn't know better). Switched to 50/50 C and S fund since. Fast forward to now, and while I've lost money in 2020, I'm dollar cost averaging right now and remaining the course. 8 Years in the navy and I'm sitting on 79k. TBH anything that isn't G or F is the best way to go because early on in your career, you can afford the risk and the red years. Look at the finish line. It's a marathon, not a sprint. Don't try and time the market with the highs and the lows.
C for majority of your time, G for when youre planning to use that money (use, as in to retire) start switching it at about ~10 years from 59.5 years (to avoid market crashes). If youre not planning to use the money yet, keep it in the C fund, if your getting close to the RMDs, roll it over into a ira.
is there any videos of showing what funds you should invest in?
TheSchlippsters one of the L target funds should be a solid choice
Depends on ur age....if in 20s/30s, go 100% C fund......I’m 45 and currently doing 40% C/60% G
Planning to retire from Fed in 15years (but not touching TSP for 5-10yrs after that) and have been contributing to Traditional TSP for 7 years now. I’ve been debating on starting to contribute to Roth now, but would that diminish the compounding ability?
With my current write offs, I believe I’m in a lower bracket now than later and have been debating this move for awhile. I’m just not sure about the effect on the compounding, if any.
Your thoughts?
I'd probably suggest the Roth at this point in your career. I'll make a video soon detailing the differences and who it's for.
Consider the tax advantages versus compounding effect.
As an E-4 and 23 yr old service member who has been in for 3 years, I’m contributing 10% of my paycheck into my Roth TSP.
I also switched from the L fund to investing 70%(C fund) and 30% (S fund)
Hoping I’m doing the right thing to retire as a TSP millionaire in the next 17 years 😅
Since I joined the army I decided to invest 10%. I really don't understand how everything works, but I know you get what you give, you give less, you get less, so I decided to give more, and learn to manage my money more responsibly. Watching these videos now, I feel like I did the right thing. Altough I feel theres more I could learn and do with my investings.
You definitely did the right thing.
That’s probably one of the best decisions you made while serving in the army! Starting with 10% was great! That’s what I started at and every time I get promoted I bump it up by 3%.
I never cared about money so would it be possible to give 30-50%? I’ll live like a scrub so my family can live like kings later on. Is this possible? Will I survive?
Much better to invest what will match and use a compound interest act with the 5%
What benefits does TSP have for me if I am high 3 since TSP wont match my money invested into the funds. If I were to invest into TSP i would choose the C fund. Which from my understanding is essentially S&P 500 ETF which I could invest into stocks on my own(which I am currently doing) with the choice of pulling my money out and adding money anytime i wanted versus the government holding my money until I retire. Please let me know if I am missing something here.
Is 10% a reasonable return? I'd been estimating 6%.
I've been putting in well over 10% for 21 years. I don't have anywhere near a million. C and S fund too.
Please answer me this I am a tsp contributor so these 3 scenarios at $55,000 a year what fund are they all invested in we know it's a lot of different funds to invest what is the percentage out of 100% your example are they only in S -fund & C-fund because there is G,F,C,I,L fund which one to get your magic number so if 30yrs vesting 5% is 1millon then only 15yra should be 500k again what fund and percentage is going to what fund letter hope to here from anyone back if they know it 2022 now tho
Use roth tsp, individual fund (C fund), minimum 5% salary contribution (more the better),
Once youre close to retiring (59.5 years) start moving it to the government fund (G fund).
I would start moving it at around ~10 years before 59.5 to avoid market crashes.
If youre still working and dont need the tsp money yet, just keep it in the C fund.
If youre getting close to RMDs, rollover the roth tsp into a roth ira.
Summary, C fund for growing (aka you dont need the money atm), G fund for safety (aka when you need the money soon, start switching it 10 years BEFORE you need it, to avoid market crashes)
What happens to your TSP when you get out of the military and you cant find a job right away?
I am a late bloomer and cannot get to the website you're advertising. Are you still active?
What do you think about having both a TSP and IRA? (Both roth). I chose this route ~5% and ~7% to have more control over my investments and be more aggressive. Only 26 years old.
Yep, great option. My wife and I have both a 401(k) and multiple IRA's. The more I can contribute, the better IMO.
This really spoke to me. I just finished my first year in the feds and I started at 3 because I wanted to “enjoy my money”but literally today before I watched your vid I changed my allocations to 50-C 20-S 20-I 10-G and moved my contributions to 6% (to make up for this years difference in my head lol) you just earned a subscriber. Thanks !! looking forward to 30 years at 58 years old 😎
CDM 127 try to bump it up as much as possible say you get a 3% raise, bump it up 2% till you get to a minimum of 15%
KParks that’s for the insight. I will note this in my plan. I will gradually do this. 15% for one portfolio is a great starting point.
@@KParks - I agree to bump it up to a minimum of 15%… that should be ground zero that you never go below no matter what.
But I always recommend bumping it up or down in 5% increments… that’s barely noticeable.
I usually tell people that they should be investing as much money as they can to the point they can “just feel the pinch”… typically the pinch goes away after 2-3 paychecks… once the pinch goes away bump it up another 5% and repeat.
You will eventually be able to reach the 15% minimum and be conditioned to bumping up to 20+ when everything goes on sale.
10 years ago the matching was up to $100, has that changed? I’m trying to find if they’ll really match 5% but I can’t find info on it so far...
if $100 is 5% of your pay then they will match that, if 5% of your pay is $88 then they will match that, if $100 is 10% of your pay, they only match 5% of that which is only $50
Louis Diaz the issue is-i put a $ amount, not a %; i requested $100, it shows they match like $96 or $98, not even $100; what if 5% is $135? If they’re not even matching $100, I don’t see how they’ll match 5%.
edit: just verified, my TSP is set at $100 and TSP matching is $93.03
I'm currently paying in 5% until I follow Dave Ramsey advise to get out of debt. I'm 39 yrs old and wondering if I should change from a traditional to Roth TSP since you don't pay taxes on it after retirement.
Wow you look just like that guy Coop from Garage Gym Reviews!
Can I roll part of my TSP Traditional Account to a Traditional IRA then gradually and subsequently roll that into a ROTH IRA?? The amount that I move would depend in how much in taxes I can afford to pay yearly. Thanks
Is this money going to be taxed yet again when its time for retirement or nah? And what do these different funds mean?
I get that the government only matches up to 5%, but can someone explain the benefit of investing more than 5% into the account?
Compounding interest. More you put in now the more you get latter.
Compounding interest. More now, more later.
The thing I realized after messing with this thing and looking at it is that my take home check really doesn’t change much because I get taxed so much. From messing with 3% to now having 15 percent in now in tsp
i am in the military as an E-2 making around 1950 $ per month i don't plan on spending any money for at least 2 of my 4 1/2 year contract what would you recomend
Hit the max contribution now!
I’m investing 15% but I know there’s more option how aggressive in the investments I’m trying to learn more about it. I have been investing in to my TSP for about 4 years
The last 2% are matched 50 cents on the dollar.
What ?
TSP contributions are matched dollar for dollar on only the first 3%. The next 2% they only match 50 cents on the dollar. If you elect a 5% contribution, they’ll match 4%. 1+1+1+.5+.5
What's a good percentage of your pay check? 10, 15, 20, 25?...when is it to much?
It's too much when you can't afford to live how you'd like. I need to make a video on this. The thing is, investing is all about balancing life today and tomorrow. You're trying to save for your future, but you don't want to not enjoy life today. However, people often spend much more than they should because they're buying things they think will make them happy, when they really don't.
@@Fedretirementplanning like spending too much on fireworks...something that I am guilty of
If you get 26 pay periods a year the maximum you can contribute is 19,500 so you can make 750 a paycheck instead of doing percentages and that will max your tsp out
Hello Sir, so my situation is this - i am active duty soldier. I didn't know about blended retirement system, so i am in old system with no match. Can I change that ? What should be my strategy for investing ?
Sudden Strike sadly you can’t. There was a deadline for people to switch over to blended. It depends cause if you have been in long enough (like over 12 years) the old system is better.
Someone please answer. I’ve been in the sir force for 3 years no dependents. I’m thinking of investing 35% of my E4 pay. Is this a good idea? I’ll be scraping by with bills if I do so.
Having been an E4 at one time myself. 35 is a not yet if you are planning to stay in first get that emergency fund together then start at 15-20 then as you make E5 bump it up. E6 bump again then as your E7 make that decision again. But defiantly don't go less than 10-15 and go check out tspcalc.com look at the different options there. (keep in mind you may not always be in internet connection areas Navy myself not sure for your connectivity) With the new retirement plan you have the potential to get more than I will with the Hi-3 but you got to spend some time with it and take time to grow it.
But don't forget you still have a life and E4 pay don't go far especially if life happens and it will.
Sprucanman I’m only staying in for 3 more years.
@@BlazeCyborg Then it may not be a bad move it will all depend on if you will have enough to live on and ABSOLUTLY get that rainy day fund together you WILL need it(3months living expenses food/shelter/utilities/gas & car bill). Also now is the time to start networking and looking at what you are going to be doing outside. Don't do what I've seen a lot of junior guys do (my uncles cuzins son in law has this awesome job that don't really exsist) have a backup plan. does AF have the golden/silver ticket program (gold 1year backin same rank silver is 2year may drop one rank I know its a Navy thing but) too check on that you may find yourself wanting back in if economy tanks and there is no job.
PS good luck were-ever life does take you after
I think 15% is enough, I have 15% with Roth no dependents.
hello sir, i am doing 5% in the traditional retirement TSP etc... and i also have 5% in my Roth retirement. do you think that's a good idea?
Whats your view on Combining accounts, i.e., a military and FERS?
Keep them separate as long as you are in the military. You can throw specialty pay into military retirement unlike FERS.
if I do not earn 55,000 a year what is the best thing to do and if you’re on your 50’s?
It automatically defaults at 5% now as of October 2020.. for USPS.
Does ur tsp still compound if i stop contribute. Example if i quit the fed job and just let my fund sit in there.
Maybe I missed it, is the ten percent to be invested in G fund or C,L, or S fund?
I have the ten% from my salary Taken out, then I split it half in G And C fund 5% each.
Stay away from G fund if you're young. It's minimum risk and minimum return; designed to protect someone's savings when they're close to retirement. From the available statistics it looks like C and S have the most potential.
@@kyev936 done....TY
Hope I am doing good at 6%. Some day I hope to increase.
Thanks for the educational videos
Those 30 years go by do fast. Faster than you think
Thanks!
I'm an E-3 and contribute 9% in traditional, should I switch that over to Roth?
Are you in the Blended Retirement System? If so starting out I want to say AWESOME! Never drop below 5% since they match up to that amount. I have 10% just because it looks pretty compared to 9% lol.. As far as Roth VS Traditional, the obvious is tax advantages in both. To start, us in the military have a tax advantage from the start with our taxable income at the 12% level..once you get BAH/BAS (unless you do already) your take home pay depending on the area will be around 50k and taxable will be around 25k. AMAZING! Roth IRA as in your Roth TSP, you Pay the tax now to not do it later. In our situation I believe this is better (opinion) BUT in Traditional IRA, you pay the tax later. The advantage to this is people making say $120k and the tax bracket is 30% (fake numbers) and if they just made $118k instead they would be at the 22%..by investing in traditional, your taxable income lowers, sometimes into a lower tax bracket..this is GREAT for those making a lot of taxable income. My piece of advice (I am not a financial advisor just a dude in the military like you thats been in a few years) our tax advantages for our taxable income is already off the charts and I do not see a reason why you shouldn't switch to a Roth rather than Traditional.
For us: Roth over Traditional
For those trying to lower their taxable income: Traditional over Roth
What are your thoughts on the new L funds they just made available . Do you have a video on them ?
Good stuff 👍 Coop. I am doing up to the match, and I also follow Dave Ramsey. I can't wait to pay off my truck, so that I can up my TSP percentages.
What funds are you contributing to?
I have no clue abt how the tsp works or all those funds but i am logging in n changing it to 10%. I been with the feds for abt 2yrs so i guess i will still be ok
Been in for 3 yrs and moved it to the C fund, at 10%
Kay assuming you are in your thirties or younger invest 100% in the TSP. Read up on it and educate yourself. This is what Warren Buffet recommends as well.
Sort I meant 100% in the C fund (S&P 500)
100% in the C fund (S&P 500)
If I have a Roth tsp and switch to Roth IRA to avoid RMD. Will I still have to pay taxes when I pull my money out?
Just a quick question if anyone can answer.
Roth is a Roth...post taxed money so no tax when you use it.
you have to roll it over, there is an important distinction on HOW you move the money.
Taking it out of the roth tsp, putting it into your bank, then depositing it into your roth ira can be taxed/ fees in specific situations.
Having your roth tsp rollover to your roth ira, is the best way to avoid taxes/ fees
hey guys what's the max u can contribute, and is it smart for me to contribute the max when I join( I have no major expenses and don't plan on it)
Then they take out the taxes and your not a millionaire anymore !
they don't take taxes out of a roth tsp since the money was already taxed going in
do you recommend traditional (pre tax) or roth (post tax)? i am 52 yrs old. thx.
Roth. Especially if you will have a higher income in retirement.
Remember in TSP the matched funds will be traditional even if you designate your contributions as Roth.
I am in the military earning about $54,000 a year and I have been investing 10% thinking that it wasn't enough. Now I feel a little better haha
10% is good! 15% is better and 20% is great! But ultimately do what your budget can afford.
I’ve been doing 10% this whole time almost a year in
Putting 40% wish me luck
How did that go?
@@MochaHammy I've been investing 42% in my TSP for 5 years now. I started with 39% and kept bumping it up to 42%. I was playing catch up as I started my TSP at age 33. I also wanted to get used to having less money coming in as my paycheck would be cutback during retirement. I opened it right before I went to Korea as I knew I'd be living in the dorms, and I would be having to eat at the chow hall. It was bumpy at first but was manageable....I kept thinking I'd switch it back to a more reasonable amount when I moved to Japan but I found I could still live off the 58%. Another thing of note I had paid off all my debt including my car before I started this.
One final thought make sure to get access of your TSP account as soon as possible. Since I was overseas I kept having issues with them sending the account number, and then the pin to the correct address. I didn't actually get to look at the account to recently which showed I only had 1% going to the L2040 and the rest was all going into the G fund...for the last five years. I've lost sooo much money due to my own laziness and not following up.
Garage Gym Reviews?
5% traditional and 5% Roth?
5 percent is the default for the DOD
I just became a federal employee, and glad I found this Chanel, anybody else have any suggestions as far as retirement, I’m 28 years old now and trying to make the right choice
I’ve been federal employee about 35 yrs....if I could go back in time to age 28, I would invest as much as possible , in 80% c fund 20% s fund.... even during recession.
In a ROTH
Thanks !!! I have always questioned this. Appreciate the clarity
Help! I'm 34. Starting government job at GS-5, 5% in TSP. I'll bump it up to 10% after looking at this video, but what fund should I put my 10% in where I can JuST leave it? I want to make the smartest choice!!!
I would look at the L Fund then. Probably an L 2050 which will play "higher" risk now but taper over the next 30 years.
@@neosuki Thank you for the response
Question sir if they already started you with 3% should I maximize too 5% by adding 2% on top of the 3% they gave me?
Why can't you convert TSP Traditional over to TSP Roth?
TSP Rules. TSP Roth rules are like Roth 401(k) rules, not like Roth IRA rules. As such, the rules are set by the employer and the employer's plan. TSP will not allow it. There are also private companies that have both that will not allow it as well. Just up to the employer. TSP says no.
No current calculation to tax your traditional investment to complete the transfer.
Love ya, love your advice, but that student loan program is utterly bogus. Around a thousand people across all government entities have been able to use it as imagined. Basically, by the time you meet the requirements, you will have paid off the loans yourself.
Not if you are on an income based repayment plan. Your payments are much lower than standard repayment.
@@ineedhoez my understanding is that the income based payment plan will not qualify one for the 10 year loan forgiveness program associated with working in government service. The last I read, the number of people approved under the program was slightly under a thousand.
I have 15% TSP
garage gym reviews??
i would love to see the math behind the calculations
Great job!! I have been following for years. Thanks for making a difference!!
You show the future contributions but you don't say what the current balance is.
Maxed out, always have been.
same
Your absolutely right I was that person didn’t start a investing into the c and s fund until 10 year mark - I had only invested in the g fund I would have made more than double if I knew better
I’m in the same boat. Never knew about the other funds. Just started to research the C S I Funds, earlier this year.
I am confuse these letters G LS C what heck I have 15% Roth L2040
@@ifrahali5667
ua-cam.com/video/KR_eIoIo2vU/v-deo.html
I thought my case was rare or unique but Im in the same boat you. Just allocated the money to the C and S fund, 80 and 20% respectively this january
@@ifrahali5667 C and S is what i went with , the one u have is for folks who are not sure what they want to if you earnInvest in u let tsp decide how your money On the year u want to pull that money out…
I put 20% is tht good???
Yeah that’s what I do.
20% is great!
It’s that calculation based on the funds in lifecycle? (L30)
So, once the person realizes they have made a mistake early on in the Tsp by not getting the match, but they have 15 years until retirement what would you suggest they do to catch up to have a comfortable retirement? Do they have enough time ? What are some realistic actions they could take to meet the Million Dollar mark? Is it possible ? Thanks
They do have enough time. This is a great idea for a video, but I'd suggest putting as much in to catch up as possible. In my opinion, it's very hard to save TOO much.