Posted on Apr 27, 2018
IRA vs. TSP: Which one is more beneficial towards retirement, especially if you are in the Reserves/National Guard?
26.2K
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ETS/EAS
Retirement
NGB
Reserves
Posted 8 y ago
Responses: 11
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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).
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CW5 Ranger Dave
Here’s where I’m coming from...FG-1825-14 step 10 or GS-14 high as you can go in grade. Did not become a 15 due to pain in the BUTT baby sitting. Made more money in per diem traveling...eg. Brazil $165 per day M&IE.
1. TSP...Great stuff! Put your money there and forget about it until you retire!
2. Matching funds=FREE MONEY!!!
3. You CANNOT TIME THE MARKET! Go C Fund and forget it.
4. Put every red cent you can into it. Never borrow from it for anything. Regardless what the wife says! eg home, college, etc...
5. If over 50 years old go for additional catch up (used to be $5000 per year).
6. I was putting in 25% until I retired from FERS.
7. Rolled over to traditional IRA (no fees or taxes) on FERS retirement.
8. If your young this is a NO BRAINER,
9. Remember, if a Chief Warrant Officer has it! get some of it, because it must be GREAT!
1. TSP...Great stuff! Put your money there and forget about it until you retire!
2. Matching funds=FREE MONEY!!!
3. You CANNOT TIME THE MARKET! Go C Fund and forget it.
4. Put every red cent you can into it. Never borrow from it for anything. Regardless what the wife says! eg home, college, etc...
5. If over 50 years old go for additional catch up (used to be $5000 per year).
6. I was putting in 25% until I retired from FERS.
7. Rolled over to traditional IRA (no fees or taxes) on FERS retirement.
8. If your young this is a NO BRAINER,
9. Remember, if a Chief Warrant Officer has it! get some of it, because it must be GREAT!
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SPC (Join to see)
Never borrow from it for anything. Regardless what the wife says!
Hahahaha. That`s very true.
Hahahaha. That`s very true.
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CW5 Ranger Dave
MAJ (Join to see) - I was able to transfer between F, G, C, and I funds via the internet. Instruction should have been presented or updated via the TSP newsletter. The C Fund is essentially the SPY index fund.
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Have TSP taken from your Guard check, makes it easy. When you can start an IRA.
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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.
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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.
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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.
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.
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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.
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.
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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.
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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.
TSP is your best bet.
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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,
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