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When we put money in a fund other than the G-fund, does the FRTIB actually buy/hold shares of a stock/index fundin the amount? Or it just a calculation in a computer database and our money goes outasgovernment checks to pay for food stamps, veteran benefits, build another Robert C. Byrd building, yours/mine paycheck, $10K debit card to Katrina victims, etc?
Is it the same as social security contributions? Where Bush goes to the file cabinet in West Virginia and says "See, there's no money here". He does not tell that to the Asians and English that are buying governmentbonds that finance our debt He does not tell "Hey, there's no money here, so don't expect it get anything back." But that is what he told us. It's (social security, defense spending, government bonds pay back, welfare, etc.) is all in the same pot.
I'm thinking of putting in only 5% to get the matching 5% on the outside chance that I could get some of it back. And my other 10% will go to Roth-IRA in my name at company (where the government would put people in jail if they spent the money rather than keeping it in stated securities- HOW IRONIC)
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Greg,
Having a seperate savings system is not a bad idea!
But, you don't want to give up the government matching funds in TSP!
IMHO, the other savings account should be tax paid and controllable.
Most of us have medical insurance. However, that doesn't pay 100%. A couple of serious illnesses can require additional funds!
Been there, done that!Spaf
TSP Starter
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One investment principle I folow (with my really small $ here, no Warren Buffet) is to diversify retirement fund sources. So having the TSP, a pension, SS, Roth, traditionalIRA, 401k, 403b and a range of after tax investments is a good idea. You do not know how future taxes will be structured. I like the Roth IRA but if a VAT/national sales tax passes and taxes are lowered on saving accounts it will make the Roth a little less valuable. And I do not know if I will be in a lower tax bracket after retirement. Lots of variables so getting a range of fund sources seems like a good idea.
But I am in major agreement with Spaf, do not pass up the matching % in the TSP. Its as close to free money as you will find. Better than a lot of companies where matching funds can be in company stock.
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