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Thread: Starting with TSP and not sure how to proceed

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    klull18 is offline Newbie
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    Default Starting with TSP and not sure how to proceed

    Hello,

    I just started my TSP with the government as an intern right now in a hope to get a head start on saving. I intend to work where I am now after I graduate and stay within the government for my career. Right now, I work part time and am contributing a very high amount of 15% because I can afford to do so. I have it split between G and F funds only because I was unsure what else to do. I was thinking of putting my money into a life cycle fund but I don't know the differences or what to do. Any help or advice would be appreciated.


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    cbackous is offline TSP Starter
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    Default Re: Starting with TSP and not sure how to proceed

    Welcome to the MB and TSP.

    You have alot of information and smart people available to you on here so read around, see what others are doing then feel out your own path. Check out and get involved in the account tracker part of the forums. With your young age i would also suggest looking at starting a Roth IRA to take advantage of tax-free earnings.

    welcome aboard |cheers|
    "The safest way to double your money is to fold it over and put it in your pocket."- Kin Hubbard

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    nnuut is online now Moderator | TSP Legend
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    Default Re: Starting with TSP and not sure how to proceed

    Welcome klull18, giving specific advise is not a good idea in a resession and a Bear Market. You must read and study and make up your own mind which way to go. Some think we have hit the bottom and the Market is back on the uptrend, others think we will test the lows again, who knows?
    Best of luck
    You have plenty of time!!
    Norman
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    +$.30 Gain

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    Default Re: Starting with TSP and not sure how to proceed

    Quote Originally Posted by klull18 View Post
    Hello,

    I just started my TSP with the government as an intern right now in a hope to get a head start on saving. I intend to work where I am now after I graduate and stay within the government for my career. Right now, I work part time and am contributing a very high amount of 15% because I can afford to do so. I have it split between G and F funds only because I was unsure what else to do. I was thinking of putting my money into a life cycle fund but I don't know the differences or what to do. Any help or advice would be appreciated.
    Welcome,

    3 things:

    1. Congrats on your decision to start saving. Starting at a young age is important and you will be surprised how few of your peers are as ready to give up their toys for their future.

    2. Budget. Make sure that you are willing to budget accordingly.

    3. If you are so ready to invest, remember that 15% may not be 16,500, which is the maximum. I'll attach a spreadsheet so you can see what that might equate to.

    Good luck and good investing!
    Attached Files Attached Files
    If I'm curt with you it's because time is a factor. I think fast, I talk fast and I need you guys to act fast if you wanna get out of this. So, pretty please... with sugar on top. Post the IFT!!!

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    Birchtree is online now Hall of Fame
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    Default Re: Starting with TSP and not sure how to proceed

    If one is over 50 the maximum is $22K. My daughter and some of her military friends are holding at 75C and 25I for the duration. When you have time on your side it pays to be aggressive. I was so looking forward to picking up some C fund this Friday in the $9.00 range but that seems an opportunity that will be missed. My dollars today buy me almost twice as many shares per a year ago. That young man is your blessing if you are serious about accumulating some shares as time goes on. Time has come today.

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    klull18 is offline Newbie
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    Default Re: Starting with TSP and not sure how to proceed

    Thanks for all the input. I think I am leaning more towards a lifecycle fund since I plan to be in the government for a while. Would it be in my best interest to put my money in a 2040 since I am still young? That chart helped greatly on seeing how much each percent within my salary will actually amount to. I know there are different views on what the market will still do and trust me I am the last person who knows anything about the market but I figure we have to pull out of it sometime and I have about 40 years until I retire!

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    Default Re: Starting with TSP and not sure how to proceed

    Quote Originally Posted by klull18 View Post
    Thanks for all the input. I think I am leaning more towards a lifecycle fund since I plan to be in the government for a while. Would it be in my best interest to put my money in a 2040 since I am still young?
    Remember that the L funds balance according to expected retirement date. Being a bit more agressive and proactive with your retirement may mean bigger returns, i.e. individual funds
    That chart helped greatly on seeing how much each percent within my salary will actually amount to.
    I use that chart to show people starting points and how little it can affect your overall pay.
    I know there are different views on what the market will still do and trust me I am the last person who knows anything about the market but I figure we have to pull out of it sometime and I have about 40 years until I retire!
    If you invest aggressively, you may only have to work 30 years
    If I'm curt with you it's because time is a factor. I think fast, I talk fast and I need you guys to act fast if you wanna get out of this. So, pretty please... with sugar on top. Post the IFT!!!

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    Default Re: Starting with TSP and not sure how to proceed

    Almost forgot, read all the documentation on TSP site so that you'll understand all the ins-and-outs of the program.
    If I'm curt with you it's because time is a factor. I think fast, I talk fast and I need you guys to act fast if you wanna get out of this. So, pretty please... with sugar on top. Post the IFT!!!

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    Default Re: Starting with TSP and not sure how to proceed

    Welcome klull18! I stick with the theme... the younger you are, the more aggressive you should be.


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    Default Re: Starting with TSP and not sure how to proceed

    Welcome!

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    Thumbs up Re: Starting with TSP and not sure how to proceed

    Quote Originally Posted by tsptalk View Post
    Welcome klull18! I stick with the theme... the younger you are, the more aggressive you should be.
    Amen Brother, If I knew then, what I know now !

    KLuLL18, Balls to the Wall (Matrix Reference) young man
    and reap the rewards of your intelligence and youth
    when it come time to hang up those 6 shooters.

    It's good to see that youth is not always wasted
    on the young ! Best of Luck to you and Welcome !
    My thoughts of future market events are strictly my gut feelings and have nothing
    to do with actual knowledge or experience concerning the Stock Market or Investing.

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    dannyboy is offline TSP Talker
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    Default Re: Starting with TSP and not sure how to proceed

    Hello and Welcome,
    The fact that you are coming into this TSPTALK is fantastic. The other Great Fact that profits are hard to come by, is not fantastic. I had already been in the fed up-teen years before I found this. You will benefit a lot if you read the threads. Do try to visit often, there is a leaderboard, FOLLOW THE LEADERS, there most leaders state their moves. Which is very helpful and most keep their moves updated often. Be careful, invest wisely and you can make a lot of money. For now, you can only make 2 IFT's per month, hopefully, that will change back to unlimited or something like that.

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