Best Retirement funds/plans?

SGT(P) Private RallyPoint Member — Wed, 26 Feb 2014 04:45:22 -0500

I've alway known about TSP through the Army, but I never really followed it or really understood it for that matter. I have some funds in it, nothing you could really retire on.

What would be a good direction to look towards for planning a retirement fund. TSP, Mutal Funds, IRAs, CD, bonds, etc?? Should I invest with USAA? I heard that was a good and easy way to go.

Response by SSG Private RallyPoint Member made Feb 26 at 2014 6:54 AM

SSG Private RallyPoint Member — Wed, 26 Feb 2014 06:54:15 -0500

I personally started using TSP right before my last deployment. My buddy's dad has worked for the FBI for 20 plus years and said the L20/40 fund was the best way to go for long term. Not much risk at all. This is incase you go this route, I havent tried any of the others, I have been looking into them as well.

Response by LTC Private RallyPoint Member made Feb 26 at 2014 7:30 AM

LTC Private RallyPoint Member — Wed, 26 Feb 2014 07:30:13 -0500

I've been with USAA for 24 years and I can tell you that they have been a great organization. I'm not a financial advisor but most literature you pick up will tell you that you have to decide what your acceptable risk level is. Mutual funds are riskier than CDs. An IRA is just a type of account that can contain a mutual fund or multiple mutual funds, or CDs, or bonds, or whatever. An IRA is basically an agreement between yourself, the IRS, and whatever institution you are investing with. It means you are telling the IRS you are saving for your own retirement and so they are "rewarding" you by giving you tax breaks.

Back to USAA, if you go with them, they do have financial advisors that can help you get started and at no extra cost.

Response by SSgt Gregory Guina made May 15 at 2014 1:15 PM

SSgt Gregory Guina — Thu, 15 May 2014 13:15:49 -0400

TSP is a great option with low fees. Do some research and figure out what risks are acceptable to you. A target date fund would probably be best while you do your research and get more savvy. The most important thing right now is to start saving or else you won't have anything when the time comes to retire.

Response by 1SG Private RallyPoint Member made May 15 at 2014 2:15 PM

1SG Private RallyPoint Member — Thu, 15 May 2014 14:15:44 -0400

I use TSP and have 100% of my money in the lifecycle fund. Basically you determine the year in which you will be able to start drawing money from it and choose the lifecycle fund that is closest to that. For me I could start drawing in 2039 so I chose the L2040. What that does is put your money in a somewhat risky level the further out you are from that year. The closer you get to your year the more they change it to be less risk. I have seen some great returns since I moved my money in 2010.

Response by LTC Stephen C. made Dec 15 at 2014 11:02 PM

LTC Stephen C. — Mon, 15 Dec 2014 23:02:57 -0500

SGT(P) Private RallyPoint Member, I suggest that you find a financial advisor in your area, and let him help you. Statistics show that people generally have better results when utilizing a professional. USAA certainly has a good reputation, but I would think you might also consider finding someone in your area that could actually meet with you.

Response by SPC(P) Jay Heenan made Dec 15 at 2014 11:49 PM

SPC(P) Jay Heenan — Mon, 15 Dec 2014 23:49:26 -0500

As a husband of a former Financial Advisor, I would recommend that go talk to more than one. Sit down with them and discuss YOUR desires, concerns and ideas. Some Financial Advisors will want to push to to the plans that draw a higher commission than others. Find one you are comfortable with make sure they take the time to explain everything so you can understand it and NEVER forget that they work for you, there are some really good ones out there...well, at least there used to be when my wife still did it! She always had her clients best interests in mind! Good luck and best wishes!

Response by CMSgt James Nolan made Dec 15 at 2014 11:55 PM

CMSgt James Nolan — Mon, 15 Dec 2014 23:55:57 -0500

SGT(P) Private RallyPoint Member Even though this is an old post, it got a response that put it back into the limelight.

TSP is great. As a federal employee, it is an integral part of our retirement system.

For the military, it is a great supplement to the pension. I talk with all of my new kids (that is what I call them, because some are not yet shaving-little humor) about TSP. Because if they would have had it when I was a PFC, I would be wealthy by now. I also talk to them about budgeting, something else that I wish someone would have talked to me about.......

If you want to be a great leader, set your troops up for success. Get them involved in their financial future, beyond the next happy hour. If you can, that will set them up for life.

As for yourself, USAA is a great institution, been with them 20 years and have not one bad thing to say about their services.

Good luck

Response by CPT Jack Durish made Dec 16 at 2014 5:06 PM

CPT Jack Durish — Tue, 16 Dec 2014 17:06:58 -0500

I had very good luck with Mutual Funds offered by USAA and also used them to broker my stock portfolio. Of course, I lost it all when the economy when bums-up and I wasn't able to get a new consulting contract for the life of me. I spent my IRA thinking that I would find some kind of employment. At least it held out until I reached full retirement age so I could draw the max on Social Security.

Fortunately, my wife inherited an interest in an apartment building and it provides a pretty good income, otherwise we'd be on the street.

My sister-in-law has a pretty good pension as a retired teacher, but the CA pension fund is underfunded and threatening to collapse.

My brother did pretty well investing for his retirement, but it appears that few are able to save enough inasmuch as we are living far beyond our productive years. However, he was fortunate to hook up with a widower who is better heeled than most. Ah, what greater goal has any man than to marry for money?

The bottom line? The best laid plans...

Response by Capt Andrew Pratt made Dec 7 at 2016 2:22 PM

Capt Andrew Pratt — Wed, 07 Dec 2016 14:22:50 -0500

Response by LTC Mark Overberg made Jan 12 at 2018 9:28 PM

LTC Mark Overberg — Fri, 12 Jan 2018 21:28:51 -0500

The TSP (a collection of index mutual funds) is the least expensive mutual fund family. Mutual funds provide great diversification. If you’re not sure how to balance stocks, bonds, etc. then select the Lifecycle fund that is closest to when you want to retire and start drawing from it (e. g. The L2050 Fund if you want to start drawing from it in 2050). The L funds have a diversified portfolio of stocks and bonds that is automatically adjusted every quarter to get more conservative as you age and should be more concerned about preserving capital that growing it. It’s like putting your investment on autopilot. Check out the TSP website. You can also put a lot more into the TSP than you can an IRA and the government will match up to 5%, but it’s only for income you earn from the military.

Response by SMSgt Bob Wilson made Nov 26 at 2021 1:15 PM

SMSgt Bob Wilson — Fri, 26 Nov 2021 13:15:17 -0500

Sgt. Use every means possible to plan for retirement. REMEMBER TSP is only a percentage of your pay going toward retirement. When you retire, you will need approximately $1.5million dollars available to you for 25 years of life when you retire at 65 years of age. I did not say $1.5 million saved. Start with TSP and Social Security first and then draw from your investments. $1.5 million for 25 years comes to $60,000 a year [$5,000 a month really not much money]. USAA is a good mutual funds company; however, don't forget Vanguard, Fidelity, and T. Rowe Price. They also offer good mutual funds. Should you elect to invest choose a Roth IRA [you are paying the taxes up front and withdrawing tax free]. Good luck with your retirement plans and good luck.

Response by SMSgt Bob Wilson made Nov 26 at 2021 1:35 PM

SMSgt Bob Wilson — Fri, 26 Nov 2021 13:35:48 -0500

The military should have advisers available for you to talk with. Don't let them sell you anything until you have researched it. The good LTC comments below are excellent. What RISK you are willing to take? For it may be, and you will read this in all prospectus, you can "...lose some or all of your investment..." Me, I spread my investments out. Some in an S&P500 type account and some in Lifecycle type fund. REMEMBER: The word DIVERSIFIED [Don't keep you eggs (money)all in one basket (fund)]. Two or three different funds are enough.

So far I have been pleased. Again, the very best.