Starting with TSP and not sure how to proceed

**klull18** · 03-25-2009, 02:55 PM

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.

**cbackous** · 03-25-2009, 03:14 PM

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|

**nnuut** · 03-25-2009, 03:26 PM

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

**Frixxxx** · 03-25-2009, 03:27 PM

Originally Posted by klull18

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!

**Birchtree** · 03-25-2009, 03:45 PM

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.

**klull18** · 03-25-2009, 03:50 PM

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!

**Frixxxx** · 03-25-2009, 04:47 PM

Originally Posted by klull18

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

**Frixxxx** · 03-25-2009, 05:19 PM

Almost forgot, read all the documentation on TSP site so that you'll understand all the ins-and-outs of the program.

**tsptalk** · 03-26-2009, 05:47 AM

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

**KevinD** · 03-26-2009, 11:47 AM

Welcome!

**squalebear** · 03-26-2009, 01:21 PM

Originally Posted by tsptalk

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 !

**dannyboy** · 03-26-2009, 07:29 PM

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.