Thread: Help!!! Advice Please

Keep contributing as much as you can. Use the IRA and TSP to lower you taxable income. Use the ROTH to avoid paying taxes and alway ask your new employer about retirement plans and matching fund.

Here are my personal rules.

1. Get the company matching funds. Matching funds are "free money". You just have to show up every day to get the "match".

2. Max out the ROTH. IMO, taxes will go up, up, up. The ROTH principle and earnings are NOT taxable and you can use the principle with out penalty in a emergency. Roth withdrawals are not taxable.

3. Keep contributions has high as your pain level will allow or until you pass out. The IRS max. limits of $15,500 and $5000 catch up over 55.

As far as IRA or TSP, I would dump as much in the TSP because of the simplicity and the ultra low fees.

Have fun and good luck.

ExtremeWX, welcome to the MB, those are really good words from Show-me!!!
Norman

Thanks Show-me!

I'll get started right away. I agree...do as much as painfully possible...since I started late, I don't have the luxury of time.

Cheers,
Bryan

All of us each pretty much going to suggest to max out everything you can. However, it is up to you as an individual on what you can tolerate to invest now. I totally agree with Show-me's recommendation. I would just like to emphasize that there are times that maximizing TSP instead of throwing your investment to ROTH (after contributuing the match) is more prudent due to savings you receive now from tax deduction. Its not always the case but there are times that you will be better off with matching the TSP. Evaluate your finances now and see which one would benefit you more on the long run. Tnx and i'm glad you found this place.
P

Originally Posted by Show-me

3. Keep contributions has high as your pain level will allow or until you pass out. The IRS max. limits of $15,500 and $5000 catch up over 55.

The catch-up contribution starts at 50 years old, not 55.

Show-Me's just a baby.......50/55, it's all the same to him.....you know how that is.....now that I'm 54, 50 seems young!

I'm one of the catch em uppers here......thank goodness for catch up contributions....

I enjoy the tax savings from maxing out the TSP now......but I do have my doubts about how it will all work in the end.......because tax rates may have to be raised in my lifetime because of the deficit, etc.......and I may end up paying a higher tax rate on my withdrawals than the tax rate I saved.....I well remember 50% rates....it could happen again.....

GGAL

Georgia, that is a good point about tax rates they are very low now. Not to be political but if the Dems get their way they will be going up.

Extreme it might be better to do the after tax contributions after you have maxed out the TSP to get the matching (5%).

Personally I would roll the IRA from Janus into the TSP. Janus has a checkered past. I was with them from the early 90's and they lost my confidence with the late day trading scandal. That is just something to think about.

By the way which Janus fund(s) are you in?

Originally Posted by GeorgiaGal

Show-Me's just a baby.......50/55, it's all the same to him.....you know how that is.....now that I'm 54, 50 seems young!

GGAL

GGAL,

You made my day! And, you can call me "baby" any time you like.

Thanks everyone for straightening out the 50/55 mistake I made. That is the beauty of this MB, a lot of great people all trying to help each other out.

GL with you investing.

Originally Posted by Jackbnimble

Georgia, that is a good point about tax rates they are very low now. Not to be political but if the Dems get their way they will be going up.

Extreme it might be better to do the after tax contributions after you have maxed out the TSP to get the matching (5%).

Personally I would roll the IRA from Janus into the TSP. Janus has a checkered past. I was with them from the early 90's and they lost my confidence with the late day trading scandal. That is just something to think about.

By the way which Janus fund(s) are you in?

I'm in this camp too. Big gov. debt, war, baby boomer's, Social In-Security, Medicare, blah, blah, blah.

Two ways of raising revenue. 1. Cut programs and spending. LOL Yea, right. 2. Raise taxes.

Doesn't matter who is in office the next Prez. will have some tough decisions to make.

Originally Posted by Show-me

Two ways of raising revenue. 1. Cut programs and spending. LOL Yea, right. 2. Raise taxes.

Only one of these comes with no negative consequences to the taxpayer. But who sees this?
What we need is a Congressional majority elected by those who currently run a regular personal trade deficit with the government, ie they pay more in taxes than they get in benefits. Those numbers, though, are dwindling rapidly, and with continued "campaign reform" their dollars are being silenced as well. There will come a point of no return (we may already have surpassed it) beyond which there will no longer be an incentive to work hard to earn a better living. At that point the standard of living will steadily decrease...
Wait...haven't I heard somewhere that this current generation will be the first generation in America to have a lower standard of living than their parents...
Alas, we may already be there.
Perhaps, though, there is a remnant of people, though probably running a regular trade surplus with the government, almost unwittingly, see this horrible future and, realizing it will take personal sacrifice, stubbornly refuse to become the next Russia.
One slight problem, though.
For whom do we vote?

OK, but it will be tough cause Trader Fred wants to remain anonymous. Will that be a problem?