Questions

[hiker777]

So I am new to the web site. I have been monitoring for some months now and decided to ask a few questions. Both my wife and I are in the military and have been investing in the TSP since 2002. Both of us put 15% each monthly and we also invest in some mutual funds and both of us max out our Roth. I have been using inter fund transfers for the last year and have a 39% gain for a 12 month period and she has about 25%.

My questions TSP:

I am due to retire in three years and want to know if I can roll the TSP in to my IRA or is it better to leave in the TSP and manage my account?

I just don't know what is a good amount to invest monthly. We also drop close to $2400 a year in each kids account. We put it in a CD but we are currently looking for some type of college investment. The kids are under 4.

Any help would be nice.

[tsptalk]

Hi hiker -

If you like the TSP for its low overhead costs, you can leave some in and do a partial withdrawal. Without the matching funds it really has no other big advantage. I personally wouldn't leave it all in the TSP. An IRA gives you so many more investment options.

Good luck!
Tom

[James48843]

Welcome Hiker777-

If what you are trying to come up with is a good way to save for kids college- then check out this thread, on College 529 plans-

http://www.tsptalk.com/mb/showthread.php?t=4244

Personally, I have been kicking in about $100 month for the last ten years in a 529- now knocking that up a bit higher to $150 a month.

I was doing ok- until the downturn hit. Now it's slightly better, but not much, than if I had put it in a CD. The good thing is we still have four more years until college starts.

That amount won't cover ALL the costs of college- but it will make a substantial dent in it- and that's really what I am trying to do- make it affordable for him, not pay everything for him. That's the deal- I'll do matching funds for his college, not pay the whole thing outright. He's got to put something into it as well.

[OMA]

Can't mix the TSP w/ current IRA, but you might consider a TSP to ROTH conversion. That's the talk of the town with CFP nowadays. There are a lot of pros and cons to do this.