Instead of maxing out your TSP, you could open a Roth IRA and put $7k or $8k in a year. That way you can invest in whatever you want with using the expensive TSP "window". It would also give you more flexibility investing and withdrawals. Of course, do this after you've reached your 5% matching.
1. This video is talking about "Tax Diversification". These are NOT "instruments" (instruments are specific financial investment). 2. Generally the decision to "Roth" or not is mostly a factor of the present tax rate (including fees, IRMAA, etc.). 3. Generally, as people progress in careers their income (hence their tax bracket) goes up, making "Traditional" a more cost effective option. Roths are usually more effective when earlier in your career (i.e. earning less income). 4. Roth IRAs can also have beneficial estate planning aspects. Remember: "Money Doesn't Grow on Fees".
Taxes are low right now, so I'm investing in Roth TSP (not maxing) Roth IRA (maxing) and funding a brokerage account (bridge account).
Instead of maxing out your TSP, you could open a Roth IRA and put $7k or $8k in a year. That way you can invest in whatever you want with using the expensive TSP "window". It would also give you more flexibility investing and withdrawals.
Of course, do this after you've reached your 5% matching.
1. This video is talking about "Tax Diversification". These are NOT "instruments" (instruments are specific financial investment). 2. Generally the decision to "Roth" or not is mostly a factor of the present tax rate (including fees, IRMAA, etc.). 3. Generally, as people progress in careers their income (hence their tax bracket) goes up, making "Traditional" a more cost effective option. Roths are usually more effective when earlier in your career (i.e. earning less income). 4. Roth IRAs can also have beneficial estate planning aspects. Remember: "Money Doesn't Grow on Fees".