TommyIV's TSP Talk Blog

Whether you contribute to a Traditional or Roth TSP depends on whether you think your tax rate will be higher or lower today than when you retire.

With a Traditional TSP you defer paying taxes on contributions and earnings until you withdraw. This means less money is taken out of your paycheck because you will only be taxed on your income after contributions are made. This also means that you will later be taxed on any earnings made from your investment when you withdraw ...

The bulls' overconfidence in the Fed set them up for failure. Stocks were up early to start the week leading up to the FOMC meeting where the Fed was expected to raise raise by 0.5%, a slow down from its 0.75% rate hike pace. Prices took a step further Thursday morning when the Consumer Price Index showed that prices had dropped by more than anticipated, another signal that the rate hikes were doing their intended purpose of bringing down the inflation rate.

Prices pulled ...

The TSP funds gave back the previous week's gains this week. The first full week of December did not carry the holiday spirit. Most of the losses were accumulated in the first two days of the week with back to back sell-offs putting the C and S-fund down more than 3% and 4% respectively. Trading in the remaining three days was tight in comparison but a late sell-off on Friday did extend the weekly losses a bit deeper.

The I-fund was down but not at the same magnitude. ...

Stock prices got a boost from Jerome Powell this week. A post-holiday hangover along with protests in China over zero Covid policies deflated stock prices early in the week. Both the C and S-fund were down more than 1.65% by the end of Tuesday. Investors had their sights on Jerome Powell's speech on Wednesday. The Fed Chairman isn't known for being accommodative to stock markets, so buyers were not lining up to be exposed before he spoke. But Powell did say what the market wanted ...