Hello from a new guy

[joshdacane]

Hey all - I don't know if I am the youngest one on this board, but there is a chance (I'm 22).

I just started a career internship in the Defense Department, and after getting my access to the system this week, elected to start up with TSP - putting in five percent (starting with the next pay period, beginning on 6/10). I figure, at a minimum, if I completely forget about everything, they'll eventually start matching me.

My program has built-in, accelerated promotions, so I want to get a good start on saving while I am young and single, and my means are much less. I, unfortunately, do not know much about investing - I have some savings, but any and all investments in my name went to my college payments (I have pretty manageable student loans and no credit card debt, so I am not worried about paying them off versus saving).

I assume in the next week, I will get my PIN and be able to start changing things up if necessary (although it defaults me to the G-Fund, which may not be a bad idea with the drop in recent days). I am looking for any and all TSP advice, as well as general investing advice if anyone here feels qualified to give it.

Thanks!

[nnuut]

joshdacane a big welcome to the MB. Congratulations on your new career! Only one thing I can say, when I started if I would have contributed the MAX for all of these 34 years I would be very well off today! GIVE ALL THAT YOU CAN!! Best of luck with your investments. OH! I have socks older than you!:D:laugh:

[Show-me]

Welcome to the MB! Wish I was you.......................22 that is. LOL You have a huge advantage over most because you have made the good decision to start early.

Every bump up in pay increase your contribution until you get to the max. I guarantee you will like the results at retirement time.

Use the TSP calculator on the TSP.gov site and crunch the numbers to see for yourself. The earlier you start the richer you become.

Good luck and ask anything. There are a bunch of good people here. :D

[Show-me]

nnuut,
JINX! You owe me a crown and coke. See Josh MAX, MAX, MAX, is how you get rich. To late for old farts like nnuut and I.

[nnuut]

How true, I'll take that Crown and Coke now!:sick:hic! Get one for my new friend.:D

[nnuut]

Yeah, but how many holes do those socks have in them by now?

Darn socks! Some people used to darn their socks but my mother never would, said it was just too much work. So I had to either wear them with my toes sticking out or else use my paper route money to buy me a new pair once in awhile. Those were the good 'ole days! :cheesy:
The ugly ones don't have holes!!:laugh:

[Medic72]

Welcome to the MB, this place is great man, so much info, im still reading old posts, Goin on a month now. So many good people here that have alot of experience, sit back and read a while.

good luck, and MAX MAX MAX

[Spaf]

Josh, welcome there! 22, young and single, gee, you bring back a lot of memories!


Hey all - I don't know if I am the youngest one on this board, but there is a chance (I'm 22).

[Eldritch Flatus]

"Darn socks! Some people used to darn their socks but my mother never would, said it was just too much work. So I had to either wear them with my toes sticking out or else use my paper route money to buy me a new pair once in awhile. Those were the good 'ole days! "

Oh Yeah! Been there done that! Good ole days? NOT! NO WAY! :eek:
Those were the bad ole days. These are the good ole days! New Guy(s) take note! Get maxed out fast as you can. You won't miss it and the rewards will be greater than you can imagine.:nuts:

[James48843]

...
I assume in the next week, I will get my PIN and be able to start changing things up if necessary (although it defaults me to the G-Fund, which may not be a bad idea with the drop in recent days). I am looking for any and all TSP advice, as well as general investing advice if anyone here feels qualified to give it.

Thanks!


Welcome aboard!

Yes, doing the 5% as soon as possible after hire is the greatest thing you can do to start with. And at age 22, you have a LOT of time to build that nest egg, so don't let a minute of time go to waste. And get to 5% as soon as possible to get any "free money" you have coming your way- and then add percentages as quickly as you feasably can!

Browse through all the pages here, and you'll learn a lot.

If you are not sure where to even begin, you might consider doing the L2040 fund for starters- it is ideal for you for a holding pattern until you decide you want to work a little harder at it- That way you get what TSP calls "age appropriate" risk while you learn as you go.

If you'd like a little reading material, take a look at this thread for some TSP starter ideas:

http://www.tsptalk.com/mb/showthread.php?t=3629

Have a successful career, and good luck!

[joshdacane]

I have a question, because some of the info I have received from DFAS has been a bit unclear. I began work on 29 May and after getting a CAC and access to the system, registered - and was told that my contribution will be effective 10 June, which I assume means coming out of my second paycheck.

When can I expect to begin receiving matching funds? I have over a year's total service comp time from previous summer employment, but had not invested in the TSP.

[joshdacane]

Josh, welcome there! 22, young and single, gee, you bring back a lot of memories!

Haha, are there any of my female counterparts on here? (I doubt it, if they're anything like the girls I know, haha).

[Griffin]

Josh,

Welcome aboard and welcome to the DoD. It sounds like your contributions are starting with your first full pay period, which you will not recieve until the pay day after your second full pay period (assuming your getting paid bi-weekly). This means you will not see your first paycheck for about 4-5 weeks from the date you started. Also, you won't see any contributions until about 6-7 weeks after you get started - so don't be surprised if you don't see the money there for awhile.

Having your contributions go to the G is fine, but don't let them languish there, get them into stocks. Watch and learn before you start tinkering with your money. At this stage of the game, the gains you could get out of timing are negligible. Build up your account so it makes the time it takes to do it right, worth it.

Like everyone else said - MAX it as much as possible - you will be eligible to retire at 52. Only through maxing your account will you actually be able to make that happen. It may seem a long way off, but I don't know a person under the sun that wouldn't trade their left (fill in the blank) to be able to retire that young. :)


I have a question, because some of the info I have received from DFAS has been a bit unclear. I began work on 29 May and after getting a CAC and access to the system, registered - and was told that my contribution will be effective 10 June, which I assume means coming out of my second paycheck.

[SkyPilot]

Welcome,

Here is a calculator you can use to estimate how rich your TSP account can be when you want to retire!

http://hr.er.usgs.gov/calculators/tsp/index.html

[joshdacane]

52? Really?

[Show-me]

Actually for a young buck it is 57 year MRA unless I am missing something.


http://www.opm.gov/retire/html/faqs/faq11.asp

[charmed855]

57 would be your MRA. You can do a deferred retirement after 30 years but would need to support yourself via other means for 5 years.