Thread: Iraq bound

My thoughts are...

THANK YOU FOR YOUR SERVICE!!!

KevinD, thanks. Have a happy New Year!

8 Percent,

Welcome to the boards. You're in the right place to learn all that you can about managing your TSP. Thanks for your service and be safe over there.

I'm currently at Camp Liberty (Baghdad), retired US Army and working as a DA Civilian now.

Everyone on this site has their own process for reasoning the way they contribute to their TSP. Learn as much as you can, by reading the boards, and asking questions, and determine which process fits your risk model.

I can't really give you any advice, except to say take care of yourself and thank you.

Good luck!

The best advice I can give is to use a long-term approach with your allocation while deployed.

Think of it like this, if you had zero access to news and the internet for a year, what allocation would you choose during that time?

During my last deployment, I left everything in the I-fund. At the time the market was still bullish, but slid down the entire time I was deployed. Most of my access to TV was at the chow hall, and my internet was either slow, or completly broken, for weeks at a time.

While deployed, I worked long gruesome hours and had little time, nor desire to do my TSP homework.

Cheers and good luck!

Originally Posted by 8 percent

Hello, everyone. I just posted an introduction in the new member section and wanted to come here as well. We will depart for Iraq soon for a year long deployment. While deployed my plans are to max the TSP, take advantage of savings deposit program and basically save as much as I can. What are some of you guys/gals thoughts? Thanks!

There are few things in life that compare to honorably serving your country and being a good soldier. So my first thought is "You will always carry yourself in a better way and be proud of being a veteran".

While in the Military you have the advantage to save like never before because all the essentials are provided. Give yourself a little treat but stock up big time and let your earnings add up.

You should always MAX the TSP - put as much as you can possibly put in and get use to living on what's left over. I put in 16% and with the 5% matching that's 21% of my income. Just make sure you don't exceed the limits which I think is $15 - 16K.

Hope all goes well and we'll rejoice when you return.

Steady

Thanks for serving!

I am no expert on this but it seems to me that a Roth IRA might be a good thing too as I believe your pay will be tax free and the Roth withdrawal will be tax free later. Someone who knows for sure, can you help?

You have to check to see if the Roth will accept tax exempt money. Some plans do, some don't. If they do, it's a great idea but the interest earned from the tax exempt amount will probably still be taxed on withdrawal. The IRS isn't THAT nice!

Tax exempt money can be contributed to the TSP, earnings willl be taxable when withdrawn. You cant transfer this money to a Roth since its a quazi (mix) of pretax/exempt money, it wont work.

8%, did you ever get an answer or figure out putting tax free income in to a Roth IRA and then witdrawing it tax free?

PessOptimist and others

I've been here for 7 months now and so far been contributing 60% ($2379 mo) of base pay for a total over $16600, all in G-Fund(mistake). I should've allocated to C,S,I or at least L2040 fund. I missed out on some decent gains.

Roth IRA contributions are tax exempt as well. My next mission over the next 5 months is to max my wife's and my RIRA. Take care.