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GValdez
01-04-2008, 01:20 PM
How is everyone?

I'm an active duty SSgt in AF and am currently putting away 33% of my base pay. I'm stationed in Japan so I get a little more money than would see stateside. I've been locked into L2040 about a year know, maybe longer.

I'm still pretty new to this but am extremely interested. I'm trying to learn as much as I can when I can but duty comes first.

I'm subscribed to Money Magazine and Smart Money because I really like the scenarios they publish. It's good for those looking for direction (this guy).

I'm actually trying to study for E6 this year but after that I'm strongly considering lowering my TSP contribution a little and maxing out a Roth every year... What do you guys think?

Thanks in advance for all information/suggestions received!

:)

alevin
01-05-2008, 01:25 AM
Hi GValdez, welcome to the site. I'm pretty new on the site too, but a little older than you at this whole investing thing probably. Sounds like you do way better than me at socking it away, good job! I remember when my brother was studying for E6, a lot of work involved. Hang tough, you'll do it. I used to put the full 10% allowable, then I took a retirement/debt reduction planning class that caused me to modify that. Last few years, I've put 5% in to get the matching, and used the difference to achieve other financial goals, including getting totally out of debt and starting a Roth this year I hope, with what I used to spend on mortgage payments. Others on the site talk about doing things along these lines as well, so you're in good company. Even so, LOTS to learn from folks here. LOTS! I just learned today for example how the F fund is calculated/predicted on a daily basis. I had no idea.

Spaf
01-05-2008, 02:08 AM
Welcome GValdez!

Please check out "compounding" and "expense ratios". Ifn it were me I'd stay with TSP!


How is everyone?

..............................I'm still pretty new to this but am extremely interested. I'm trying to learn as much as I can when I can but duty comes first.............................I'm strongly considering lowering my TSP contribution a little and maxing out a Roth every year...

What do you guys think?

Thanks in advance for all information/suggestions received! :)

Rod
01-05-2008, 09:46 AM
Hello, and welcome!

I'm AF too. E-7 select (First time tester- will sew on in Jun-Jul).

If you are determined to make promotion, you will. Have you figured up what you need to make on each test yet?

I always take last year's cut-off, then add about a 5-10 point cusion to that.
That then becomes my goal.

If you do not have a WAPS calculator, let me know and I will send you one.

Just shoot me a PM.

BTW, I would continue to max out the TSP instead of a ROTH- but DO keep a ROTH open and continue to contribute to it.

Once you become intimately familiar with the TSP, you can beat the pants off of any fund mananger... just check out the returns from 2007 of some folks on here.

God Bless:)

Show-me
01-05-2008, 10:03 AM
BTW, I would continue to max out the TSP instead of a ROTH- but DO keep a ROTH open and continue to contribute to it.

Just for discussion, my recommendation based on what most financial advisor's recommend is getting the 401k/tsp matching funds then maxing out the Roth unless you need the tax deduction. If you have any money left over after funding the Roth then continue to fund the 401k/tsp.

Tax free earning and tax free withdrawals have a nice appeal when you retire.

nnuut
01-05-2008, 11:10 AM
Welcome to the Board GValdez, and Best of Luck with your investments.
Norman:D

Rod
01-05-2008, 12:58 PM
Just for discussion, my recommendation based on what most financial advisor's recommend is getting the 401k/tsp matching funds then maxing out the Roth unless you need the tax deduction. If you have any money left over after funding the Roth then continue to fund the 401k/tsp.

Tax free earning and tax free withdrawals have a nice appeal when you retire.

One thing though is that we (the military) do not receive matching funds. :rolleyes:

But if I could afford it, I would be doing BOTH.

I (as most military) simply cannot set aside $20,500 a year to invest.
($15,500 TSP & $5,000 ROTH)

IMO, The TSP is the better choice since we can only contribute to it as long as we remain in the military.

Once we leave, we can no longer contribute (unless we get a gov. job). That's why I am for the military to fully fund it if they can.

God Bless:)

EW_ret
01-05-2008, 03:35 PM
Welcome to our forums. You can join our Automated Tracker once you have 10 posts. Read the Automated Tracker Rules in my signature. Its been recording our members' IFTs and returns since August 31st. Click Members Ranking (http://www.tsptalk.com/tracker/tsp_user_balance_all.php) to see the current return rankings of our members.

Congratulations on having the fortitude to save for retirement while serving our country keeping us all safe. I never was able to save while I was in the U.S. Army for ten years. It took every penny I had to raise the family in the 70's.

My advice is never have all your money in one type of retirement account. I would contribute the maximum to the Roth IRA and the remainder to your TSP account. You need to have both a tax-deferred and tax-free retirement account to protect you from a future of unknown taxes. I don't see our tax rates coming down in the future. If you don't contribute to the Roth IRA now you can never go back and make it up. I think you have it right that you need to contribute to both the Roth and TSP.

Show-me
01-05-2008, 03:47 PM
............to protect you from a future of unknown taxes. I don't see our tax rates coming down in the future. If you don't contribute to the Roth IRA now you can never go back and make it up. I think you have it right that you need to contribute to both the Roth and TSP.

BINGO! New administration, new taxes to pay for the huge debt.

ezmoney
01-10-2008, 07:37 PM
Sounds like you're on track for a nice retirement when the day comes. Have fun investing.:D