The same TSP/Roth IRA question thread...

[a2b2c3]

Another thing for you to look at (aimed at married or with dependents) is if your witholding status is still at single, you should change that to Married and 1 or higher, and increase the percentage of your TSP, to the point where your takehome is still the same.

Is there anyway to figure out just how many exemptions/withholding's I should take? Mine was at 1 but after trying to figure it out I set it to 2. Figured if I was a little too short for a month I could just reset it back to what it was. The IRS calculator gave me messed up answers. No matter what I put I always seemed to owe money to them... So anyone here have any guidelines on how many exemptions to take?

My understanding is 2: 1 for myself and 1 because no one can claim me as a dependent. Is this right or has government legal jargon confused me yet again?

 

[a2b2c3]

If you are approached by a First Command/USPA&IRA representative, I would look elsewhere.

Any info on why ignore first command? I've been with them since 2005 and have had no problems...

 

[SixBeersIn]

Ok I'm in the process of shopping for a Roth right now and though I understand a lot of the basic principles behind it, ultimately I'm at a loss as to which one to pick.

I'm a big fan of Vanguard. Their expense ratios are much lower, they don't really have load fees and they have a decent variety of options. Many of their options require a higher minimum investment to get started ($3000-$5000), but you could start in one of the lower ones (like the STAR fund), build up and switch the money over.

For the record, I'm no financial whiz, but my old college buddy works for an investment firm in Chicago (one that isn't Vanguard) and I got this exact tip from him three years ago. He had put himself, his Mom and his family in Vanguard. I've been pretty happy so far.

 

[Waldo]

Any info on why ignore first command? I've been with them since 2005 and have had no problems...

I've been with them since '94 and still agree with their principles. That being said, I think you can find mutual funds and insurance policies with lower costs and equal or better performance.

It would probably be more fair to say go in with your eyes open and realize that the retired senior officer who is your salesman is there to make money. Do not be afraid to compare the funds and policies they recommend with those from other companies. If you are "investment challenged" (as I was as a 2ndLt), they will put you on a plan to financial independence. You just need to realize that you are paying for their advice and services.

I still have Fidelity plans with First Command, but I have since moved my life insurance policies to USAA.

Best Regards,
Waldo

 

[Flash]

Ok I'm in the process of shopping for a Roth right now and though I understand a lot of the basic principles behind it, ultimately I'm at a loss as to which one to pick. I'm looking at the ones through USAA right now, mainly because I'm lazy and don't feel like managing money at multiple different places, but which ones are generally advisable for the 21 year old Ensign? I know I can afford to go for a riskier plan as I'm young, but what's a good balance with stocks and bonds in it?

I would advise calling up USAA and explaining everything to them your situation and desires, they will give you suggestions on what mutual funds/IRA's to invest in and why. It is my understanding, someone please correct me if I am wrong, that you can split your IRA between several funds if you so desire, max still $5000 total. The general 'consensus' is to take higher risks when you are younger and invest more conservatively when you get nearer to retirement. If you choose to do TSP as well, you can put your funds in a 'Lifestyle' fund that takes all of that into account.

I have invested in both USAA's Growth and Income and International Funds. Both have done fairly well, with their periodic ups and downs (now down). They have quite a few funds though and you could easily get info for the ones you are interested in. The USAA people would likely be more than happy to send you all the info you want to help make your decision. Of course, so would most other financial service institutions.

 

[FLYTPAY]

Any info on why ignore first command? I've been with them since 2005 and have had no problems...

Can I interest you in a Tupperware party, Amway, or the Brooklyn Bridge.