Anxious for big gains...

[zacattacker]

Hello everyone, I need guidance and insider secrets to make the most of my TSP. I think that I have come to the right place.

zacattacker

[nnuut]

Welcome to the Message Board zacattacker. Plenty of info here to help you attain your goal. Check out the Auto Tracker and Read, Read, Read!
Norman:D

[OBGibby]

Hello everyone, I need guidance and insider secrets to make the most of my TSP. I think that I have come to the right place.

zacattacker

Please share the insider secrets once found...

[zacattacker]

Hello, I am new to TSP Talk but love watching the market everyday and investing a little here and there. I am here to learn more about when and where to intertransfer my money smartly.

I contribute 10% to TSP and so far have around 8K.

I also have 2K in stocks, $3,600 so far this year in 401K.

It is really hard for me to build a large emergency fund for some reason, does anybody have any tips on how to not dip into it?

[zacattacker]

I will!...I have noticed though that when you look at the history of the share prices and go back months and years, that the numbers are consistent in the I fund for going up and up and then when they plateau in the $20 something range they go all the way back down to $10 or so. I have all my money in I fund, is this a good idea or...?

[tsptalk]

Welcome zacattacker! Thanks for joining us.


It is really hard for me to build a large emergency fund for some reason, does anybody have any tips on how to not dip into it?
Great question about emergency funds. Have you tried putting it at the bottom of a fish tank full of piranha? How about 3-month CD's, although that kind of defeats the emergency part in case you need to get at it quickly. Maybe your parents can hold it for you. Hmmm... anyone?

[Guest2]

Making a timely IFT may not be as important to your account, as having
time on your side. From your acct. balance, it appears that you probably
have +20 years before retirement. If that holds true, share accumulation
is probably the biggest single factor that will lead you down the path of
financial comfort. 10% is a great start ! It's my opinion that max'ing out
both your 401k and TSP accounts will be vital as Social Security comes
to a slow, but inevitable death. Stay diversified but lean more towards
stock funds as they will truely account for the majority of your future
gains. Don't forget that you can carry 240 hours of A/L and unlimited
hours of S/L while working for the Federal Government. Should one of
those Emergencies pop up, you can count the dollar value towards the
Emergency Fund you asked about. Having a steady paycheck coming in
during hard times is not only priceless, it's the reason why you wanted
to start an emergency fund to begin with. If your as young as I think
you are, you'll hear it's better to use your leave instead of saving it for
retirement credit. I agree because you'll get back 100% of the value.
BUT, you MUST have a reasonable amount set aside because you are
not invincible and will more then likely need that kitty in the future. ;)

If your not a young pup and just started saving because you've become
more aware of the need, welcome to our world. It's unfortunate that so
many of our membership (here at TSPTalk) didn't have the resources or
information available when we were young pups. Today, you have the
Internet and fellow TSPTalk members who are willing to share their
investment opinions and goals. I never had that benefit until recently
and I'm glad I do now.

Welcome To The MB, Good Luck In Your Quest And I Hope This Helped ! :)

[Show-me]

Welcome and good luck! Try setting up a allotment to a small community bank or credit union many miles away and don't get the ATM card.

[alevin]

Welcome and good luck! Try setting up a allotment to a small community bank or credit union many miles away and don't get the ATM card.

He stole my line! :toung: I have an account at a local credit union. It's strictly for savings, no checks, no ATM. Have to get a cashier's check or have $ wired somewhere to withdraw any (the way I've used it anyway, tho I think I could get cash if I asked). I hardly ever even set foot in the place, maybe once every few years for a major withdrawal (I paid off the last chunk of my mortage that way, but since built it back to where it was). You could have part of your paycheck sent direct deposit to an account at such a place, the rest of your paycheck sent direct deposit to regular checking account (I think, never actually tried, anybody know any different?)

At any rate, welcome! You're in the right place. :)

[KevinD]

It is really hard for me to build a large emergency fund for some reason, does anybody have any tips on how to not dip into it?

Discipline? :confused: :D

Welcome! :)

[Birchtree]

You could consider getting a part-time job to suppliment as a personal sacrifice and use that money to build an emergency fund. When you have enough finish the agony of the other job. If you keep spending down the emergency fund the longer you'll experience agony. Have you thought about armed forces reserves? That's one weekend a month. My daughter is going to sign up when she completes her present active duty station and will get $700/month.

[zacattacker]

I am a 27 year old E-6 and my wife is and E-5, we have been in the Air Force about 9 1/2 years and plan to retire at around 20 and then start a second career for DoD. We just don't see eye to eye on saving, she wants to put hers in a savings account and keep it liquid and I know by research that diversifying to many areas is the way to make money.

[Frixxxx]

I am a 27 year old E-6 and my wife is and E-5, we have been in the Air Force about 9 1/2 years and plan to retire at around 20 and then start a second career for DoD. We just don't see eye to eye on saving, she wants to put hers in a savings account and keep it liquid and I know by research that diversifying to many areas is the way to make money.
Savings accounts are ok for getting money orders and such. Since you are both military, I would not be worried about being paid on time. But a good six months is a nice egg, just in case of RIFs.

Now, I have a liquid account in some 6% muni-bonds (you can write checks out of the account any time). I bet your savings account doesn't get that. Anyway, I rollover all interest and earnings into a Roth IRA at the end-of the year.

Also, One-source could help you. I know they offer FREE seminars and budgeting classes and you both need to sit down, plan, then execute and do it together. Finances are Numero Uno when caausing or aiding in the cause of divorce.

Good Luck!

[alevin]

Re the emergency savings. another trick I learned the hard way in my younger years was, don't link savings account to checking account with overdraft protections where they pull $ from savings into checking for you for a small fee (to cover a check/ATM withdrawal that would otherwise bounce). Don't do it. Keep accounts separate. That way you have to keep close track of what's in the checking account and don't get careless. I had a lot of $2 charges on my savings account every month during that era cause I wasn't worried about keeping close track (I knew the bank and savings account had my back-but I paid for my mental laziness). My strategy back then was do the direct deposit to savings so I'd be earning interest on the bigger savings balance, and just keep minimum in checking. I think the bank got more of my hard-earned savings that way for a few years than I ever got back in interest, until I stopped doing it that way.

Nowdays I make sure the checking account always has in it what needs to be there, and I conciously move excess to unlinked savings where it stays safe and sound and growing in a separate essentially untouchable location until I deliberately conciously make an effort to use some for a planned purpose. Other good ideas here too, GL!

[Scout333]

one other tip for the savings account is to put your savings in different credit union/ bank than your checking. Put money in by financial allottment each payday and forget about it. Takes a real effort to go get money out. Makes you think twice before doing it.:) Good luck!