Thread: Self Directed IRA vs. TSP

Originally Posted by ExtremeWX

Hello,
I was wondering if anyone has advice on self directed IRAs. The way I see it, if you actively trade TSP, you are kind of doing a self directed retirement plan. The downfall is the IFT limit.

I just opened a Scottrade IRA account and plan on transferring my Janus account to Scottrade so I have more control.

I'm considering transferring my TSP to a self managed IRA. Has anyone considered doing this? If so, what are the pros and cons. I'm in the military, so I do not get matching contributions.

Thanks for any insight.
Bryan

I don't think you can transfer over your TSP while you're in the military otherwise I would have done it years ago. I enjoy having two seperate accounts. For taxes, one hedges the other.

Originally Posted by ExtremeWX

Hello,
I was wondering if anyone has advice on self directed IRAs. The way I see it, if you actively trade TSP, you are kind of doing a self directed retirement plan. The downfall is the IFT limit.

I just opened a Scottrade IRA account and plan on transferring my Janus account to Scottrade so I have more control.

I'm considering transferring my TSP to a self managed IRA. Has anyone considered doing this? If so, what are the pros and cons. I'm in the military, so I do not get matching contributions.

Thanks for any insight.
Bryan

Extreme, Several members here have lowered their % contributions into the TSP and put the rest in a ROTH or Regular IRA. The fee structure is much cheaper in the TSP but there are the IFT restrictions. So I guess the question is do you think you can earn enough more to cover the extra fees? Maybe someone who is actually doing this can help Extreme out with this question. Good luck!

JTH / Scout,
Thank you both for your responses. I'll roll my Janus to Scottrade and see how that goes, then possibly reduce my TSP contribution in favor of my Self Managed IRA.
Thanks again,
Bryan

Originally Posted by ExtremeWX

JTH / Scout,
Thank you both for your responses. I'll roll my Janus to Scottrade and see how that goes, then possibly reduce my TSP contribution in favor of my Self Managed IRA.
Thanks again,
Bryan

Get a Roth IRA. That way your money grows tax free. Use pre-tax dollars for TSP deposits and put after tax dollars into the Roth and focus on the Roth for aggressive growth while you are young. I wish I had this option when I was in the military. Knowing me, though, it would have cut too much into my German beer fund. I was pretty short sighted back then!

We have 2 ROTH's one in my name and one in my wifes. So if you're able to at this stage of your career load up both after you max out your match. GL

CB