IRA vs. TSP: Which one is more beneficial towards retirement, especially if you are in the Reserves/National Guard?

SSG Private RallyPoint Member — Fri, 27 Apr 2018 18:23:02 -0400

Response by CW5 Jack Cardwell made Apr 27 at 2018 6:45 PM

CW5 Jack Cardwell — Fri, 27 Apr 2018 18:45:06 -0400

Have TSP taken from your Guard check, makes it easy. When you can start an IRA.

Response by SGT Eric Davis made Apr 27 at 2018 6:45 PM

SGT Eric Davis — Fri, 27 Apr 2018 18:45:36 -0400

Well if you plan on staying in and retiring then TSP but if you plan on getting out then IRA.

Response by Capt Brandon Charters made Apr 27 at 2018 6:56 PM

Capt Brandon Charters — Fri, 27 Apr 2018 18:56:22 -0400

LTC Steve Mannell & 1stLt Matthew Hicks might have some good advice here.

Response by CW5 Ranger Dave made Apr 27 at 2018 8:32 PM

CW5 Ranger Dave — Fri, 27 Apr 2018 20:32:28 -0400

TSP, TSP, TSP!!! Put every dime you legally can in the TSP C fund, never ever touch it, never ever change it. Leave it alone a let it grow. When you retire you will be a Millionaire. Seen it happen time and time again as a civil service guy after AD military retirement (Double Dipper) (now a Triple Dipper).

Response by MAJ Private RallyPoint Member made Apr 27 at 2018 8:43 PM

MAJ Private RallyPoint Member — Fri, 27 Apr 2018 20:43:01 -0400

http://www.yourewelcome.blog/2018/04/23/difference-between-tsp-funds/
Read this article is you want to know which fund to invest in, in the TSP.

WTF is a TSP: The Beginner's Guide to Crushing Military Retirement - You're Welcome.blog

If your money is sitting in the G Fund, go switch it RIGHT NOW. DO NOT make the mistake I did and leave your money stagnating the G Fund for 7 years because you didn’t know better. It never fails to amaze how many soldiers don't actually know the difference between TSP Funds or realize the TSP defaults to the G Fund.

Response by COL Private RallyPoint Member made Apr 27 at 2018 9:50 PM

COL Private RallyPoint Member — Fri, 27 Apr 2018 21:50:55 -0400

TSP is the cheapest. Start to ASAP. Word of caution though. They sell it by saying you don’t pay taxes now and when you take it out you will be retired and in a lower tax bracket but that may not actually be true. Your retirement pension may be so high you will still be in a high tax bracket but even with that the returns are really good and there is no cheaper IRA out there for what you get. I end up maxing out what I’m allergic to put in by my October pay check when I’m on ADOS/AGR. My advice to my kids is so it and do it now. I can’t say it enough! Do it. 10 to 15% of my check since they created for military. Also have used about $150k in loans too. Still a big chunk of change in there.

Response by LTC Steve Mannell made Apr 27 at 2018 10:02 PM

LTC Steve Mannell — Fri, 27 Apr 2018 22:02:08 -0400

Good comments here for the most part. For those that opted in to BRS, make sure you contribute enough to get the maximum match before opening an IRA. Beyond fairly obvious advice like that, general rules of thumb might not be the right answer for you. Be VERY skeptical of specific investment advice from people who don't know you.

Response by SMSgt Thor Merich made Apr 27 at 2018 10:58 PM

SMSgt Thor Merich — Fri, 27 Apr 2018 22:58:08 -0400

First it’s great that you are asking the question. Too many folks nowadays are not looking to the future.

TSP is your best bet.

Response by COL Private RallyPoint Member made Apr 27 at 2018 11:06 PM

COL Private RallyPoint Member — Fri, 27 Apr 2018 23:06:39 -0400

The new retirement plan- that is GOLD! If your thinking of rolling over to an IRA? You would still be better off keeping the TSP where it is because the cost is SOOOO much cheaper and the returns are just as good as a like fund. The TSP funds don't move around trying to find what's hot they are based on the index markets so that is how they keep the cost low but unless you have time to look and research the commercial funds you are best served by keeping it simple.

Response by MSgt John McGowan made Apr 28 at 2018 8:04 AM

MSgt John McGowan — Sat, 28 Apr 2018 08:04:49 -0400

SGT Derrick Branch Sorry but I can't advise you on that. However, I would offer encouragement to start something very soon. I didn't have it early enough but I still managed to put 6 figures in my 401K before I retired. So many doesn't trust and miss out of a lot of money,

Response by MAJ Raúl Rovira made May 2 at 2018 11:00 PM

MAJ Raúl Rovira — Wed, 02 May 2018 23:00:35 -0400

You can do both.

TSP is like an employer retirement plan. For this, my recommendation is the Roth TSP. Ask your financial advisor.
You can also contribute $5,500 annually to a Roth IRA under your financial institution (USAA, Charles Schwab...)
After retirement, you can "Transfer" the TSP into your Roth IRA.

Response by Fisher Nichols made Aug 10 at 2023 2:44 AM

Fisher Nichols — Thu, 10 Aug 2023 02:44:21 -0400

Hey there! As someone who's been in a similar boat, comparing IRA and TSP is a smart move. Both have perks, but for Reserves/National Guard, TSP's low fees and employer match can be golden. By the way, have you looked into the backdoor Roth IRA strategy? It's a neat way to boost retirement savings. Here's a helpful link: https://www.physicianonfire.com/backdoor/ . Keep planning for that secure future!

backdoor