Originally Posted by
yolli71
Sorry for the long questions, but I'm starting to get really interested in investing and would like to learn more about it. Any help is appreciated...
1) When comparing the TSP to the eventual Roth TSP, what are the major advantages or disadvantages of each? Yes, I get the tax deduction right now with the TSP, but I'll have to pay income taxes on that amount when I withdraw the money anyway, correct? So on the surface, it looks to me that you either pay taxes on your income now and save later (Roth), or you save now and pay later (TSP). Is there more to it than that? If the govt gives us the Roth TSP option next year, I'm not even sure which option is better.
2) How exactly do you receive your TSP money? In a lump sum? I have read a little about an annuity, but am not sure how that works. Is your tsp money just dispersed to you monthly over a pre-determined period of time, or over your remaining lifetime? Do we pay extra fees or premiums for an annuity once we start withdrawing?
3) Can anyone recommend any good, updated investor books for beginners? I'd like something that explains everything in fairly simple terms for someone just starting to invest. I want to learn what index funds, REITs, ETFs, small cap, mid cap, etc. all mean. What are the tax implications of each? Are there any funds that are rock solid and should be in everyone's portfolio?
I currently have a few mutual funds that I'm investing in, but outside of getting advice from friends/relatives or seeing reviews in Money Magazine, I don't really understand what those funds are all about. For example, I have some money with Vanguard, with T. Rowe Price, and with Dodge & Cox. I invested in these funds b/c I heard they were good, but I don't know if I'm just putting money into the same type of funds, if I need to diversify more, etc. I'd like to learn more about what I'm investing in.
Any advice would be greatly appreciated!
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