TSP Loan Rate

**crws** · 08-17-2010, 01:17 PM

Originally Posted by Scout333

This topic has been explored in great detail previously in the thread below-

Re: TSP Loan and repayment with taxed income

One more note:
TSP funds are tax-deferred, not pre-tax. That is what boxes 12-13 on your W-2 are for, adjusting your AGI for retirement plan contributions.

So although you pay back your TSP loan with taxed dollars, it is because you have already deferred taxes once on the dollars you borrowed.
You would pay back any consumer loan with after-tax dollars anyway, so that point is mute...

**72Zorad** · 08-17-2010, 02:54 PM

If it helps I'll let you know the next time I'm taking a loan. I appear to be horrible at the overall TSP investing scheme as I'm at 5.74% total earned compound interest since 2003. However, I seem to be really good at picking the right time to take a loan. Twice I've taken loans just as the market goes down for extended periods. Nice thing about that is I'm effectively selling high, buying back at a lower rate, and paying my retirement account at least some interest.

I'd hate to see my earned interest without the loans.

Now, if I could just figure out the rest of it......

72Zorad

**Scout333** · 08-17-2010, 09:29 PM

Originally Posted by 72Zorad

If it helps I'll let you know the next time I'm taking a loan. I appear to be horrible at the overall TSP investing scheme as I'm at 5.74% total earned compound interest since 2003. However, I seem to be really good at picking the right time to take a loan. Twice I've taken loans just as the market goes down for extended periods. Nice thing about that is I'm effectively selling high, buying back at a lower rate, and paying my retirement account at least some interest.

I'd hate to see my earned interest without the loans.

Now, if I could just figure out the rest of it......

72Zorad

I'm with you on that one 72Z!