Tsp

[FlyingBeagle]

I'm investing in TSP and I just noticed they have different investment options (L, G, F, C, S, I). I know next to nothign about investing and I was wondering if anyone has any advice as to which investment fund i should go with. Also, what do you guys think about Roth IRAs vs TSP. I hear TSP kind of sucks for military since there isn't any matching plan. Do you guys use one over the other or invest in both? Help a fellow out with his cash-money.

 

[Fly Navy]

I invest in both TSP and an IRA. My TSP is setup as follows (%):

G - 10
F - 10
C - 40
S - 25
I - 15

It's more aggressive, which works since, well, I'm only 24. My IRA is invested in mid-cap stocks right now, also agressive. I'm looking to diversify.

 

[fc2spyguy]

Isn't a matching plan? I think 50% after twenty years is a pretty good matching plan if you ask me. However, if you do a search on tsp and investing policies (or something like that) you will find a whole bunch of methods. The one I use which is considered aggressive is 30% c 30% s 40% I. Like I said, this is considered to be a somewhat aggressive plan. I would do some of your own research before actualy doing it though. Of course on the flip side you can change it at anytime

 

[zippy]

I do both. TSP is Maxed at 10% and Im contributing upto the cap for the Roth IRA. My latest contributions are G 5%, F 10%, C 45%, S 25%, I 15%.

I am still considering those lifecycle funds, what are everyone elses thoughts on them?

 

[zippy]

I'm looking to diversify.

Perhaps realestate... after you leave Meridian...

 

[Fly Navy]

Perhaps realestate... after you leave Meridian...

Well I was talking about my IRA in that reference, but yes, real estate, etc... and we've established you are much more investment savvy than me.

 

[zippy]

Im not savvy, i just listen to people who have good ideas and capitalize on them... I too could use some advice about what to do with my Roth instead of just thowing the money in a CD.

 

[FLY_USMC]

I'm not sure how new, but L options we just got briefed on last week, seems instead of having to mix and match your percentages, selecting L will base your investments off of your age. IE if your young you'll be automatically aggressive high risk, and as you get older, it will change with you.

 

[Fly Navy]

Yes, the L funds are brand new. Anyone investing in them? I'm always open to new investment ideas.

Oh, forgot to add, I always shuffle money into a savings account too.

 

[gregsivers]

I don't really know anything about the L funds. I do both TSP and IRA right now. I'm looking at spreading around my TSP allocation, right now the majority is G with a decent amount in I. At least you're starting early, you'll have a head start on most people.

 

[Fly Navy]

At least you're starting early, you'll have a head start on most people.

And that is the key. I started TSP when I commissioned and my IRA in January of this year. Most of my friends don't invest. They'll be hurting later.

 

[ryann24]

I'm investing in TSP and I just noticed they have different investment options (L, G, F, C, S, I). I know next to nothign about investing and I was wondering if anyone has any advice as to which investment fund i should go with. Also, what do you guys think about Roth IRAs vs TSP. I hear TSP kind of sucks for military since there isn't any matching plan. Do you guys use one over the other or invest in both? Help a fellow out with his cash-money.

Something that was explained to my husband and I by NFCU, was that you should max out your Roth IRA first, then contribute to your TSP account. The reason being is that with the Roth, since it is "after tax dollars", you are not taxed later down the road at 59 1/2 when you make the withdrawls. We met with NFCU to get some direction on how to allocate money from real estate etc. This was just a point the advisor made.

 

[Fly Navy]

Speaking of, the year is nearing an end.... the max Roth IRA contribution this year is $4000 right?

 

[gregsivers]

Speaking of, the year is nearing an end.... the max Roth IRA contribution this year is $4000 right?

Thats a great question I wish I knew the answer to. But it does sound about right.

 

[zippy]

Almost 100 certain its $4k for this year.