TSP

gergsisdrawkcabeman

Is anybody else out there getting into diversification into the quantum tech category of the market? Outside of my mutual fund Roth, retirement target date TSP, and small crypto holding, I like to dabble on Robinhood. I have a mix of 28% Finance, 21% Consumer Goods, 15% Manufacturing, and 10% Medical. The other 26% is uncategorized. I just put an order in for 100 shares each of QBTS & RGTI to get into that area of investing. Been really happy with all of my '23 penny stocks and DRLL has been a solid U.S. based enrgy driven ETF from the drop.

bobatella

Thoughts on my (20M) portfolio? Brokerage: VOO 96.4% VXUS 3.6% Roth TSP: C Fund 80% S Fund 10% I fund 10%

WillNeighbor

Yeah, I fell into the "trap" of the hype, especially when the technology started getting de-risked and the company was hitting milestones (albeit after some delays) and kept adding to my position with extra money. Currently it's 100% of my portfolio that I actively trade. Again, I have an HSA that's straight SPY, and my TSP that I treated as the "safe" accounts. Hindsight is 20/20, but again it's at all time lows and I'm at my share goal, so any new investments in this account will go to blue chips. ​ I'm only 29 so I know there's plenty of time to recover, I'm just trying to gather any advice on holding through the tough times with companies that I believe in.

erskinebooth

Sounds like you're off to a great start with the TSP. For your Roth, pick a low-cost provider and put money in index funds you can hold for decades. Time in the market is your biggest advantage at your age.

MountainStoneMist

Side note about the TSP: Even if you leave federal employment one day, I would still keep the TSP plan. The TSP allows you to rollover 401k plans into the TSP, even if you have left federal employment.

ilikeitmark

Your approach to investing in a Roth IRA, alongside your employer's Thrift Savings Plan (TSP), is a solid strategy for building long-term wealth, especially considering your age and the benefits of starting early. Let's break down your investment choices and strategy: 1. **Roth IRA and TSP Combination**: Utilizing both a Roth IRA and a TSP is an excellent way to diversify your tax advantages. The Roth IRA contributions are made with after-tax dollars, meaning withdrawals in retirement are tax-free. On the other hand, contributions to the TSP (assuming it's the traditional version) are pre-tax and reduce your taxable income now, but withdrawals will be taxed in retirement. This combination allows you to hedge against future tax rate uncertainties. 2. **Contributing to Get Employer Match**: Adjusting your contributions to ensure you receive the full employer match in your TSP is a wise move. The employer match is essentially free money and an instant return on your investment. 3. **Investment Choices**: * **FXAIX (Fidelity 500 Index Fund)**: This fund invests in large-cap U.S. stocks, mirroring the S&P 500 index. It's a solid choice for core domestic equity exposure, offering diversification across the top U.S. companies. It's known for its low expense ratio, which is crucial for long-term growth, as lower costs mean more of your money stays invested. * **FSPSX (Fidelity International Index Fund)**: Adding international exposure to your portfolio is a good strategy for diversification. This fund provides access to large-cap stocks across developed and emerging markets outside of the U.S. International stocks can offer growth opportunities in different economic cycles and hedge against domestic market volatility. 4. **80/20 Allocation**: Your decision to allocate 80% to U.S. stocks and 20% to international stocks is a common and reasonable approach. It leans towards a growth-oriented portfolio, fitting for someone your age, given the long time horizon you have until retirement.

TinyTowel

US military here, "retiring" in 2027. The High 3 pension you mention is no longer available to new accessions. I am grandfathered in. It's based on your base pay and I am anticipating about $60k/year with cost-of-living increases. I also will get Social Security if it's still around. I also have a Roth TSP account and a Roth IRA. I can contribute to both totaling nearly $30K to Roth accounts annually.

nothingpositivetoadd

Federal Employees still get this, but it's not a very good deal. If you worked for 30 years and your highest 3 years averaged $80,000, your annual pension would be $24,000. And it costs you 4.4% each payday. To supplement the shitty pension, they also have TSP, which is like a 401k. They match the first 3% $ for $, and the next 2% at half.

karer3is

If you want to give yourself a boost for the future, get on board with BRS (which, by your age, I would assume you already are) and max it out to take advantage of the Army's matching incentives. Also, consider paying as much as you safely can into your TSP (IMO Roth TSP would be the better option). Unless you think you'll need it, consider having not just your base pay, but also your bonus pay routed to them. If you set the distributions on MyPay, it will automatically be taken out of your paycheck, thus eliminating the temptation to spend it. The investing will be managed for you, so you can focus on getting set in your career.

D1smaykay

So… does anyone know if they can do this to their TSP?

Dan-in-Va

Your TSP has only the IRS contribution limit based on your age. You get an employer match of up to 5% dollar-for-dollar in the TSP. At a minimum, take the match. Ideally, invest as much as you can, and don't focus on 5% or 10%. Most people will need to invest (at least) 10% plus their 5% employer match to acquire the retirement savings cushion they'll want.

PersimmonLeft6450

Put money into the TSP, it'll get sent straight there and never touch your bank account. Returns are pretty good and the army will match your donations to a certain percent after 1 year TIS.

GaylrdFocker

As other comments said. TSP is same as 401K, but you should roll your old 401Ks into your TSP to avoid fees. Keep your IRA, and contribute to that as well if you can afford to.

Quiet-Advantage8667

Basic newbie question: is a robo adviser a good option for me? Located in the US. If I don’t have a specific, unmet, long-term goal do I even need to invest beyond a HYSA? The internet consensus appears to be yes, but I don’t know where to start. I’ve been trying to improve my knowledge for months and still feel like I don’t know “enough” to start investing. I’m interested in a non-retirement investment account. Some basic info: 28 year old federal employee and max out my TSP (not interested in better-performing retirement options, I’m familiar with TSP and want to stick with it). 34 yo spouse maxes out their 457 with their employer. Household income too high for additional IRA (not looking to mess with back door). Me: 105,000/annual Spouse: 86,000/annual Combined 210,000 student loans, currently 4 years into PSLF with $400/month SAVE payment. No kids, none wanted. Happy as renters, not specifically saving for home but not opposed if we ever come across “the one.” Have an emergency fund in a HYSA and 15k in a CD. My plan was an initial investment of 3,000 with a monthly contribution of 100 with the goal to just be putting the money to work. Maybe for some big purchase in 5-10 years. Some options I’m researching include: Fidelity Go, SoFi, Vanguard, Wealthfront.

Clydesdale_Tri

Max out your TSP. I can’t stress that highly enough. Then, just don’t fuck with it. You won’t really have a lot of money to play with as an E-1 through E-3. Just get used to living with that as your budget. Your 7k bonus, if you need new tires, been putting off maintenance on your POV, do that. Buy all the uniform stuff you don’t have yet. Get your barracks TV, the new XBox or PS or gaming PC. Those are cost savings items over time. Get some nice bedding, maybe spring for some nicer boots. Don’t hang out with shitbags. Don’t hang out with drunks. Don’t hang out with dudes that do drugs. Invest in condoms.

kmraimo

TSP if in military, but also VOO (S&P500 Index Funds) on Vanguard, VTI (Total Stock Market ETF) on Vanguard, Roth IRA (Charles Schwab has a great IRA). You will do just fine on these.

wanderingmemory

If you're military, there's a possibility you have access to unique retirement plans e.g. TSP. Or other retirement plans. These also have the benefit of imposing penalties on early withdrawals (depending on the exact type of account) so that'll slow down your habit to spend.

Direct_Beat_1938

A TSP is just a 401k, it’s not like a 401k it just is a 401k. You can have both a TSP ( which is called the thrift savings plan ) and your personal roth IRA

GreenHotcakes

I'm new to investing. I have a TSP account and have invested the 5% to get the employer match. I have a stock account at Edward Jones that my father started that had $1000 in it but over the last two years has gone down to about $800. I would like to start putting about 2% into a Roth IRA in addition to the TSP. Is Edward Jones a good company for Roth IRAs (I've looked at several sites saying that the fees are high and that Fidelity or Vanguard might be better). If not, what's better? Should I have a stock account in addition to a Roth IRA and TSP? If I let it stay, I may see if I can put more into it but I'm afraid of losing more money. If not, I'd probably move the $800 into the IRA. What are some good sites to learn more about investing? There's a lot of investing sites but some are sponsored by brokerage companies so I'm not sure where to start.

strway2heaven77

Investing in a Roth and a TSP isn't an either/or scenario with stocks; both retirement accounts can invest in stocks among other assets. The key is to maximize contributions to both, starting with enough in the TSP to get any employer match (which is akin to free money), then potentially contributing to a Roth IRA for its tax-free growth benefits. The notion of not being able to do "all 3" is a bit of a misconception, as effectively managing both types of accounts can include stock investments within them. Diversification across both accounts is best.

Popematthias12199

Well, I won’t get a TSP until end of 2026. I know they match you so I think I will be able to max it no problem. Planning on starting 5% then every raise maybe up another percent. So, I’m wondering when that time comes should I continue doing my IRA or do other things instead.

KINGHOTNFLUFFY

Oh man. A TSP is hard to beat. The funds have such a low expense ratio. 2024 contribution limits on a TSP are $24k. Will you max it out or close?

Popematthias12199

Sorry, personal is IRA and work is a TSP which is like a 401k less taxed I guess

Popematthias12199

Also, in my post I should have been more clear. I work at USPS and my job gives TSP/ Thrift savings plan which is like a 401k, but thanks I’ll look into it.

Popematthias12199

Sorry I should have been more clear. I work at USPS and my job gives TSP/ Thrift savings plan which is like a 401k

Popematthias12199

Sorry I should have been more clear. I work at USPS and my job gives TSP/ Thrift savings plan which is like a 401k

Divinegenesis

My 401k is currently TSP - C Fund (pretty much S&P 500 as well) Opened a brokerage account same time as IRA last year but nothing it as of now, just focusing on 30k per year into 401k/IRA Still have 2-3k disposable income after expenses each month so taxable would be next consideration for this year Yes was just leaning towards dumping the 7k into VOO tomorrow, just wanted to see if any popular alternatives

lost_in_the_system

So you are putting 5% in and getting a 4% match? Why not put in 7% in and get the full 5% match? Don't leave free compensation on the table. A 5% match isn't terrible and is on par with what federal employees get for TSP (put in 10% to get 5% match).

bobatella

What else should I invest in? I’ve read stuff about bonds and real estate but I wasn’t sure. I am 20 y/o enlisted in the US Air Force. My take home money after taxes is around $2200. I then put 15% towards Roth TSP, $200 a month on savings, and $200 a month towards my brokerage account with Fidelity. My time horizon is probably around 20 years, if I decide to take a break after serving my full 20 years in the military. I think I can take a fair amount of risk as I do have a regular paying job, and I’m pretty young. I have 5 shares of VOO, and 2 shares of VXUS

GetThisDough

I talk to people about investing all the time. Response is always, "I don't have money for that". I started investing w $100 a paycheck and kept increasing contributions over 22 years. Now maxing out TSP and have side investments including $BRK.B.

gdo747

There are many good advice from people already. So I would just say, The time limit to put money for 2023's Roth IRA(and regular IRA) is April 15th 2024 (tax date). If you aren't sure, you can just put money in regular trading acct, and contribute to Roth later, before April 15th. Also, I dont think TSP have any matching, so might not be the best idea to put money there. But I am just base on a TSP from California, it might be the same as what you have.

thelumenn

Focus on TSP and look at the different fund choices. TSP will add the benefit of lowering you taxable income and allow you to put that into investments. Also don’t forget about backdoor IRA for additional investment avenues

bobatella

Hey! I’m (20M) an Active Duty Enlisted Airman who earns about $2100 a month (after deductions and 5% towards TSP). I currently hold 5 shares of VOO and 2 shares of VXUS in my brokerage account with Fidelity. I know my portfolio could be a lot better, and I finally have the time to focus more on my finances. I plan on continuing dollar cost averaging for my investments and was wondering if I should just switch my investments to a tax-advantaged account such as an IRA with Fidelity? Or should I be focusing on investing on other options for my brokerage account, and just increase my contributions towards my TSP?

_RAPTORMAN_

“TSP announces intention to delist from the Nasdaq” Autonomous EV trucking company. Makes sense.

bad_dog699

Yeah, I guess that's a good way to put it of what I want this investment money to be for: life's big expenses. This $100/month is not meant to be my retirement money. My TSP and pension will cover that. The $100/month is for if for example I want a pool in the future. Or if I want to put an addition on the house. Or if I want to take an expensive vacation. Whatever it may be, then I can just pull out some cash. ​ And yeah, I think $100/month may be too low. I may do about $300/month.

oberwolfach

It's generally a good idea to put money into a tax-advantaged retirement account up to the limits if you are able, since the tax advantages are substantial (in the case of a Roth IRA, any growth on your money is tax-free). The only downside is that you can't withdraw without a penalty until you're 59 1/2 years old, but you seem to have your short-term finances pretty well sorted since you're maxing out the TSP. Note that a Roth IRA isn't a separate "route", per se; you can open a Roth IRA with Etrade or most other brokers and buy VOO.

bad_dog699

Thank you. A comment in another post told me to instead put my money into a Roth IRA. That leads me to this quesiton: ​ This $100/mo isn't for retirement purposes really. My TSP and pension will cover that. This $100/mo I guess is more so just for future spending money. I don't have a plan for it yet. For example, if in 15 years I decide that I want a pool, then maybe I'll just pull out all the money that I had invested to pay for it. ​ So if this is the case, should I still go with VOO through etrade? Or should I go the Roth IRA route

bad_dog699

I already invest the max ($1,875) into my TSP every month. The biweekly $50 was just an idea for investing a little bit more. If I put in $100 every month for the next 20 years then that's $24,000. Even if that $24,000 grew to just $50,000 then I think that's a worthy investment, right?

OakleyPowerlifting

I am 27 years old and my wife and I work in the medical field. We both just recently graduated from graduate schools and began earning an income. We are wanting to get more into investing aggressively as soon as possible. My wife has a TSP through her job with the government and a 401k through her second job, and I work as an independent contractor, so no benefits. I have recently began contributing to a Roth IRA to max it out every year (trying to max out last year too here soon). But beyond that I'm wanting to look at investing strategies and options for accounts we can enjoy the benefits from before retirement age. I'm currently using a company that does 2% roth ira matching (and I believe an additional 2% matching up to $150 a week through their rewards points) so I'm going hard into that with 2/3 the limit with their automated investor set on aggressive, and 1/3 I'm investing myself into the S&P and dividend stocks. I'm also wanting to contribute to something to use before retirement and have been doing $50 or so a week into another robo broker set on agressive long term growth in a standard brokerage account and $100 a week into another standard brokerage account just into more of the S&P and dividend stocks. I'm wanting to learn as much about this as possible and get us on the right track. Any website, books, subreddit advice to learn more or get more advice? thank you.

Patatonicx

Looking for advice on Starting out 19M Hello, I am 19M in the military so I have a steady income and I’ve been managing my finances decently I believe. I’ve been an authorised user on my fathers’ cards since I was 15, I have 1 credit card the navy federal cash rewards which I’ve had for almost 2 years and I just recently got approved for the Amex gold since as military the annual fees are waived. I also have 750+ credit and it’s steady growing. I have a bout 4K of debt and that’s vehicle payments which I’m set to pay off in a year. And one savings account where I put in about 150 every 2 weeks or every paycheck adding to 300 a month and a Roth(TSP) with currently 1500 which is matched, so about 100 per paycheck going into it. But getting to the main point I’m setting aside 100 per paycheck which is 200 a month to start investing with I’m currently taking courses on financial analysis and intro to stock trading to make myself more knowledgeable. And I was looking to see if I could get advice on how to invest and grow my finances, I’m leaning towards stocks right now but I’m completely new and want to set myself up for success. I’m not expecting to make millions over night. I’m also about to get fasfa and financial aid for school. I’m willing to take decent risk

StaggeringMediocrity

If you're talking about rolling funds into a Roth IRA, then I would say roll the 403b money into that. The TSP is a great low-cost plan that I wouldn't be too quick to get out of. Like other employer retirement funds, once you leave fed employment you can no longer contribute to it, ***but*** it is the only employer plan where you can continue to roll funds from other qualified plans into it even after you leave fed employment. So if you find yourself in a place where you can't roll a former employer's 401k into an IRA without messing up backdoor Roth contributions, but your new employer doesn't have a plan (or has a lousy one) you can roll that 401k money into the TSP. As long as you didn't close it out. Also, if you stay in New York State withdrawals from a TSP for FERS retirees are completely exempt from state taxes. (But not for CSRS retirees.) You lose that if you roll it into an IRA. And conversions are taxable by the state.

manikwolf19

I tried doing this with my TSP. I couldn't roll anything out until I was 50ish, so I pulled money out with a penalty since my 401k was making weak returns and started investing myself. This was a very good decision, looking back.

all_these_moneys

I did a lot of research and reading into what was the right path to get started and came up with the following matrix: - Necessities (bills, groceries, gas, etc) - Emergency fund (6 months of expenses) - Wants (within reason) - Roth IRA (VFIFX) - 401k (my TSP... C/S/I split 70/15/15) - Brokerage (80% VTSAX, 20% VTIAX) That is the "flow chart" I use for saving; I can't go further down the list unless I've completed the first one. The "wants" is where our discipline is tested, obviously, but we've become pretty good at regulating ourselves. There's a lot of good reading material out there, along with podcasts, that provide excellent information. Discipline is the biggest factor though, even more than the money.

ClammyAF

My L 2050 returned 25% this year in my TSP.

all_these_moneys

It felt pretty crazy when I tallied up all the numbers at year's end. Both of the large years were post-deployment, but 2020 was extra because of the lockdown. While everyone was ordering Amazon packages, I was putting all of it into my brokerage / TSP. Pretty easy to save a lot when everything is closed; we didn't get takeout for over a year as well due to this, which of course only helped.

CrayComputerTech_85

Don't ever close out your TSP. I'm anti-annuity, but the TSP ones are actually decent. At least leave it as an option. I rolled about 80% of my TSP out after I retired into multiple TRPrice accounts that have been successful for the most part. You are doing great just keep it up.

dyl-will

As a 28 year old with 12 years of federal service (pathways program) this is so refreshing to see. I get FOMO knowing that I could be earning more going private but I’m really starting to see the effect of compound in the TSP (5% contribution + 5% match). I just opened a Roth IRA today and goal will be maxing that out this year

all_these_moneys

Set it and forget it. My TSP was in the G Fund until 10 years ago, when I switched it to the L2050 fund. Around a year ago I then switched that to a C/S/I mix (70/15/15 split) where it's been since then. VFIFX has just been maxed each year. My brokerage started with individual stocks (not day trading, just long hold) after my last deployment. After a few years of toying with that, I sold all of it (except Amazon) and broke even. Now my brokerage is a 80/20 split between VTSAX / VTIAX (for the dividends) in addition to my shares of Amazon.

Bourbon_Fishing

Invest. Assuming you have an emergency fund and are debt free (other than mortgage), max out TSP (C fund), then IRA and then put in a brokerage account. Depending on where you are, your home might appreciate and can help cover closing costs (capital gains tax "currently" is not a concern for active duty military as long as you live there 2yrs) Hopefully, your mortgage is less than BAH, so the extra savings will help cover the maintenance costs of homeownership. Don't rent. You did not plan on that and have no experience doing it. Not financial advice, just my opinion.

ilovebutts666

"A bigger question is why you're using a stock index fund to save for a bicycle, instead of staying invested - and adding regularly - for the long term. Save for your hobbies, toys, vacations etc. with earned income in a cash account of some kind." I'm almost maxed out in my TSP and I doubled what I'm putting into my kids 529. I'm using an index fund for a new bike because I knew I had a few years until I would be ready to buy (prices + availability coming out of the pandemic made it a good time to wait to make this purchase) and I figured I could use the proceeds to pay for the bike. Essentially I bet that I could get a "free" bicycle if I put that cash into an index fund instead of a money market, CD or high yield savings account. Turned out I was right!

Remission

What are you investing for? Traditional advice is to max out retirement accounts before you invest in anything else. Traditional advice also says not to withdraw retirement dollars until retirement. Since you have a TSP you presumably have a pension so maxing out retirement may not be as important to you as it would be for others. Personal opinion, I don't think you should try to go balls deep on property at the moment. You appear to have a very rosy picture of property management and are preparing to over-leverage yourself with little cash in reserve. Its a great plan until it isn't...

tonyspdx

I would recommend a Roth IRA because the TSP is a pre tax account. The roth is a post tax advantage account. It will have mutual funds. Choose a fund that follows the S&P large cap fund. You will be creating a multi prong approach to retirement with TSP pre tax and Roth post tax retirement tax advantage. If possible, max out the yearly contributions limit to each account.

Tacticucuy

I believe my retirement benefits include a pension and a TSP. Probably the same thing you said im pretty unfamiliar with it all. Would you recommend a traditional IRA with chase? It says, “you can choose from a wide range of investment products, such as mutual funds, stocks, ETFs and bonds”, so is it just like investing in the stock market? Again, super unfamiliar with all of this so I apologise if that’s a dumb question.

perciatelli28720

They should be only allowed to trade in a TSP like all the militaries 401k. Like 5 choices.

C-Paul

TSP!!!!As much as you can. You can retire a millionaire if you invest in it guaranteed.

5punkmeister

Don't invest in that TSP, it's a steaming pile of dogshit. Trust me I served for 6 years and they had just come out with that right before I got out. It's not good. Just put your money away privately. If you want to keep it low risk invest in some basic shit like berkshire or some of the EFT's that have a strong record VII or some shit.

Sergeant_Crunch

Make sure you're getting the full match from DFAS. Also, look at what fund your TSP is going into. The C Fund is basically an S&P 500 index fund like VOO. Make that the fund your money goes to.

XxXJ0J0XxX

Be smart on TSP get C fund 10% of your pay for your Roth IRA 75%VOO 25%SCHD that exactly what Im doing started in Oct of this year with max contribution of 6500 and now it’s at 7226.62

islandinparadise

Rolled my TSP to Vanguard. Simple. TSP mailed a check, in my Vanguard IRA in about 7 to 10 days, no forms. Don’t have your IRA check mailed to you, then put into another IRA. If you do that more than once a year, they penalize you. Have it go institution to institution.

Blade3colorado

I retired 10 years early, with TSP from combined military and Federal Civil Service w/$85k pension (remember those?). along with good equity choices in the stock market . . . Anyway, as others have said, maximize your TSP, preferably the C Fund, albeit, it might digress after the 1st of the year, i.e., it's indexed to the S&P 500, which has had a tremendous run-up the last 1/4 of this year. Regarding individual equities, concentrate or look for high-quality large-cap companies with strong balance sheets and pricing power, e.g., LRCX, AMAT, ASML, GE, etc. Regarding debt, do NOT use credit cards, except for convenience. Best investment out there is real estate (home). Why? Simply because you use other folks money (banks, mortgage company) to buy, i.e., statistics show that is the primary way most Americans accumulate wealth. Consequently, keep your eye on the ball - eventually buy a home. Good luck . . . You're already on the right track.

tdandevir

Stay in as long as you can, civilian life is hard to go back to. Pay into the TSP. Please make a good decision about a partner if you choose to marry. If you can, buy a house at every duty station and when you PCS rent them out. Have fun see as much of the world as you can, and go to medical when you are in pain. You will meet the best and worst friends you will ever have and be stuck with them for life.

Divinegenesis

Oh you can have 2 IRAs? Roth/Traditional going concurrently? I didnt know that/thought had to choose one or other other So people that can, should have and max both each year? I also can do the government TSP, which has a max contribution of 23000 So should I do all three of those first? that would be 36,000 of the 48,000 I'll have available to contribute this year (at least)

oldmanairsoft

You need to put whatever amount they match into TSP first and foremost. r/tsp ask questions there about how to invest in it.

scar375

This needs to be the top comment, if you’re not putting away 5% into the TSP you’re throwing away money. Good job you’re way ahead of where i was as an E-2

drbohn974

Max out your TSP.

FI_by_45

Max out your TSP. 65% C, 20% S fund, 15% I fund Open and max out a Roth IRA. Put all your money into VTI or the equivalent in whatever brokerage you have NO SINGLE STOCKS. You aren’t smarter than the market 22,500 to TSP and 6,500 to IRA. That’s a total of $29,000 a year. Don’t event think about contributing to a taxable brokerage before you max these out Edit: just noticed this is a Roth IRA. Sell it all and put it in VOO or VTI for simplicity

FLTtac1

For TSP you better be getting the C-Fund

Blers42

Nice job investing early. Keep it up! Staying diversified is important and you’re already doing that. Put a minimum of 5% into your TSP and try to max your Roth every year. I’d also stick with index funds like you’re doing. I like VOO.

chanceoftitan

It's a retirement account, just go 65% VOO or VTI, and 35% QQQ. No reason to chase everything else, that's for 5% or less of your account if you even do chase that. As for TSP, 80% C Fund, 20% S Fund. Get the max match. Set it and forget it. You'll appreciate your accounts more as time goes on if you're diversified in total markets. If you wanna chase growth and swing, just pick up some in a regular brokerage. I recommend you don't, though. You're better off pushing for maxing out your IRA and getting your match in the TSP and focusing on moving up the ranks and gaining as many skills as possible than wasting your time in the market trying to pick winners. Most of all, keep some money to go have a little fun. Experiences are wonderful, and material things ain't worth it at your age. You'll enjoy those experiences more than debt, I can guarantee that.

fuckyouPSG

How much are you putting on your ROTH TSP? I wouldn’t ignore the TSP if I were you. Putting money in the ROTH TSP will allow you to withdraw your gains tax free in the future. With that being said, try to apply for Pell grants if you are using your GI Bill. I regret not doing this after AIT because now I have too much money to qualify for Pell grants. It would be nice to funnel few hundred or a few thousand dollars into your portfolio every semester. If you are planning to do 20 years, might as well try to become an officer via ROTC or OCS. If that’s not possible apply for WOCS. Enlisted pay and retirement sucks. An officer or warrant officer retirement will allow you to FIRE in your late 30s-40s if you keep investing.

PBandJ_maniac

Here are the top: 1. Look at the Roth TSP, and do 5% to start you can always convert this to your Roth IRA when you get out. Dont assume you will do 20 years. 2. Max that Roth IRA. 3. Start going to the doctor and having anything that hurts documented, anything that happens no matter how small, have it in your medical record. This will all eventually help you build a case for service connection of any disability. 4. Don't follow the trends on reddit, youtube, tiktok. Most people recommended something to either get views, or to offload their losses. 5. It will take a while to learn, if you truly know nothing about what to invest in, start reading some books such as the dummies book series on index funds and stocks. Then read on dividend investing. Dont have to read a library, just start with 1 book on these 3 subjects. Then look at your portfolio and start to understand what you already own while still buying monthly. 6. If you need to change your allocation, it is best to slowly buy the other one and for anything you wish to sell, wait a year. Not only do you decrease your tax impact (if not investing in tax advantaged accounts, but also works like a cool off period to make sure you are not investing based on emotion.

soccerguys14

Hey my wife is a social worker for the VA. So she does a TSP contribution as well. Because you make so little as an E2 I would focus on maxing your Roth after the 5% match contribution to your TSP because taking that money isn’t tax very much (hell, if at all). Now the tsp has many different selections. If you don’t make a selection they put you in a target date fund based on your age. For example my wife was born in 92 and is in the target date fund for 2055. The target date funds shift your money for you as you age. Low in bonds high in stocks with higher risk while young then it shifts. If you like that no need to change it. I plan to probably have my wife shift away from the target date fund and keep heavy in stocks when the tsp would have slowly shifted her away in her mid to late 40s. All this to say the TSP is investing a good amount into VOO I can’t remember which ticker that label it as but it tracks the S&P 500 just like VOO. Nothing wrong with doubling up in your Roth and 401k just wanted to make you aware. Best of luck with investing you are off to a great start!!

sharkkite66

Get that TSP match at the least, choose mostly the S fund if that's still how it works (idk I got out last year). Save. Save. Save. And invest those savings in stuff that will grow. Don't make rush and stupid decisions.

joe0228

Max out your TSP - sounds like you could be close. Maybe take whats left of the 2k and invest it in a taxable, maybe Roth account. Look at some ETF's maybe VOO or QQQ both very hands off, one mirrors the S&P the other NASDAQ.

StaggeringMediocrity

Correct. As long as you meet the qualifications of being 59 1/2 and the Roth TSP was open for 5 years. That's why it's a good idea to contribute to Roth type retirement accounts during years when your taxes will be low or non-existent.

royalflippp

I guess this question is also relevant here: If I'm deployed overseas and receive my pay tax-free, and contribute that pay to my Roth TSP, it sounds like that money would grow tax free, and also be withdrawn tax free correct?

Parking-Ebb-4019

I am a married 27 year old male in the military with 2 kids, ages 3 & 4mo. Will be finishing my 20 years in the next 12 years & I’d like some additional income aside from retirement. I contribute 20% of my monthly pay to my TSP (similar to 401k for military) Have about $30k sitting on a savings account as an emergency fund. Own 2 cars, 1 paid off & owe about 25k on the other with a 4.9% interest rate. Owe around $430k on my 30 year mortgage with a 2.5% interest rate. All credit cards get paid off every month & I add approximately $2k to said savings every month. Instead of continuing to add money into my savings account that is not growing much interest wise, I feel I can put it to better use elsewhere. What is recommended I do with it? I have no major expenses planned in the near future & I want this money to be accessible in case I have a need for it. I’ve done some research into stocks but would rather have a hands off approach with it since I haven’t done well in the past lol.

mrzane24

I was in the L 2040 life cycle fund in my TSP for 13 years. It was mostly a mix of 70-80% stocks and 20% bonds. I'll admit, it served me well. However, back testing, id have been better off being all stocks. All American stocks that is, as the TSP L 2040 was a mix of American and international stock For the last five years I've been all stock 85% C fund and 15% S fund. It's been a wild ride but I'm going to stick with this allocation for the next 15 years and see where it takes me. History has shown the people who have invested 100% of their investments in the stock market s&p 500 have the highest balances.

big_deal

A rollover doesn't count as a contribution. If the TSP is funded with pre-tax money, you won't be able to do a direct rollover into a Roth IRA. You would have to transfer to a "rollover IRA". These days some employers offer "Roth 401k" which is funded with after tax money. Honestly I'm not too familiar with these but I guess that these can be rolled directly into an Roth IRA. I don't know if there's such a thing as "Roth TSP contributions". I'm not sure you are allowed to do an "in-service" rollover from a TSP. You may have to wait until you are no longer employed by the military to roll money from TSP into IRA. Assuming you have a traditional pre-tax funded TSP and rollover into a traditional IRA, then after the rollover you can do a Roth conversion. You will have to pay income taxes on the entire amount converted from traditional to Roth and you will need to have enough cash saved to pay the tax bill. You cannot use funds from the rollover IRA to pay the taxes without facing a penalty for early withdrawal. The tax cost to convert a large IRA to Roth can be prohibitive and it may not even make sense from a tax cost standpoint.

Lyrrad0

Basically yes. The TSP has its own contribution limit of $22,500 for 2023 and $23,000 for 2024, which seems to be the same as the 401(k) elective contribution limit. Note that Roth IRA funds can’t be rolled back into the TSP. You might want to consider keeping a small pretax and Roth amounts in the plan. TSP has some unique funds and relatively low fees and you may find it useful to have the option to roll money into the TSP in the future.

No-Champion-2194

The US pays its pensions on a pay-as-you-go basis, so they don't have pension funds with investments like state governments do - so their is no national 'pension fund'. The US does run the Thrift Savings Plan, which is essentially a 401(k) for government workers. TSP funds do invest in stocks, but they are not owned by the US, they are benefically owned by the individual beneficiaries

stickman07738

Lidar biggest issue is signal degradation and i have not see anyone overcome it and why TSP and AUR are using camera, Lidar and radar. Lidar good for security but never alone in automotive

arbortologist

Thanks! quick research Aur is looking pretty good to me but i’ll sprinkle my seeds a bit.. maybe 2 or 3 then stick to Alphabet A and Uber Also TSP is pulling out of the USA!

stickman07738

My money would be on TSLA as they have the most real world driving data. TSLA went with camera because they were more accurate and reliable (no signal degradation) versus Lidar. There are numerous Lidar companies - LAZR, AEVA, INVZ, OUST, Hesai, ARBE, LIDR, MVIS - too many to pick a winner but Hesai would be my bet. AUR, TSP for trucking.

zetia2

Their 401ks seem kinda low for their ages. Im only 34, and my TSP is already over 200k.

greytoc

The work being done for banking transfers aren't really relevant to the investing and trading process. It's simply a mechanism for money transfer. And the use of tokenization concepts aren't particular novel it's been around quite some time - especially for payment systems. Every platform that provides TSP services for credit card processing uses tokenization - ie. that's why they are called tokenization service providers in the credit card industry. ​ >Main roadblock now is regulation Afaik - there are no regulatory hurdles for using blockchain in the manner that I described for payments and money transfer. Can you please elaborate on what regulation doesn't allow it and what you mean?

gergsisdrawkcabeman

Just cleared 100k about 2 months ago, bit it's spread across a Roth IRA, TSP, mutual funds, and an actively managed brokerage account. Pretty excited and immediately moved the needle to 500k. Haven't done anything different aside from increasing how much I invest. Currently at 23% gross income from around 145k income stream.

Stanknutz69420

Yeh that’s what I’m thinking, when it hits $2.70 I’ll add a TSP

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cdreisch

I’m invested in rail mainly and some other things see what happens. TSP I’m looking at moving to my G fund which is basically bonds and take less of a hit. It will happen eventually totally agree.

Ok-Palpitation-649

Im currently starting with my TSP account, can someone help me with guidance or expertise on this? I dont know anything lol

SlowJackMcCrow

Since you taking a government position roll it into your TSP.

catsby90bbn

35M, married, one small kiddo. We keep about 8 months of bills and expenses in a HYSA, don’t ever really touch it, checking account for getting paid then paying all bills and expenses. Wife and I both max out our employee matched TSP/401k/IRA contributions - I have mine at 10% per check, hers a bit lower. I also have a brokerage account I’ve had since high school that I play with and acts as an alternative savings account.

H3nd012

Can you just roll it into your new retirement plan? If your a federal employee you'll have access to TSP. State/local level gov employees should have access to 457b. Atleast I did when I switched from private to gov employee.

thebigkevdogg

I'm about to do the same (private to fed), is TSP better than vanguard (my current 401k/403b provider) for target date funds? Worth transferring?

6Nameless6Ghoul6

Came here to promote TSP. What Juicy said

callidus7

I think a lot of people are missing the "government job" part. Are you in the US? Will you have access to the TSP? The TSP is one of the better managed retirement systems out there. I'd suggest considering rolling money into the TSP. [More info on the TSP site.](https://www.tsp.gov/tsp-basics/move-money-into-tsp/) It has fewer options than most plans, but includes a fully managed S&P index, Russell index, international index, and bond fund, as well as various target-date funds.

always_a_tinker

Federal government? Roll into TSP.

Spicy_Pumpkin_King

You can roll into TSP, if your gov job is federal

JuicyPellicle

IRAs do not have ERISA protection. Think very carefully before converting a 401k to an IRA and losing these protections. If your government job is federal, roll the 401k into the TSP. It’s the lowest fee retirement plan in existence. The TSP also has ERISA despite not being a 401k.