Thread: Late to the game... trying to figure it out

Not too much information to go on but you need to increase your savings in order to retire. I recently read that you should have at least 6 times your annual salary saved before retiring. You really need to contribute and get that matching money if you can. Also don't retire until you can claim at least your full retirement age for Social Security benefits at around 66 or 67 years old.

Good luck!

Welcome aboard WetRadio! PO is right on target. You really need to get more contributions in your TSP! Especially at your age. Not such a "where to invest the money you already have issue" but more about how to get more in the account. Know it is tough to solve but an extra part-time job, etc. may be worth the effort. Christmas is coming lots of retail jobs available? JMHO

Dear Wetradio,

I hope your position allows you to have a pension and SS coming to you. If so, you're at a better starting point than many (but should never get relaxed). Regarding your TSP account perhaps you should switch to L cycle funds? Also, challenges aside to your circumstance, I would do everything possible to get all of the matching. Easy money is hard to come-by and that is as easy as it gets. I would get a second job, knit socks, anything than willingly let free money be missed. Good luck, and very good of you to be supportive of your wife.

Welcome to the Forum Wetradio happy to have you here. I'm sure you will meet many people in the same situation as you are. Stick around and TALK!
Best of luck with your TSP!!
Norman

Welcome to the forum. If I were you, I would be aggressive as much as possible, its basically a gamble due to the amount of cash in your account and time you have left. 50% S fund, 25% C fund and 25% I fund. Save as much as possible, there is a lot of catch up to do especially if this is your only nest egg.

I would not do L fund, this is basically an "all-in" situation for you. Hate to break it to ya but you know your situation better than any of us here.

you could sign up for a premium account, but with 18k I would just go aggressive and hope for the best.

Wetradio you cannot afford to bypass the full matching on your TSP. Let's say your annual wage is $50K. You think your 5% contribution is costing you $2500. But after taxes (fed + state rate of 30%) the net cost to you is only $1,750 or $67 per paycheck. The government then matches your $2500 with another $2000 (I disregard the automatic 1%). That is a 114% return on the $1750 you're out of pocket on. You cannot find a risk free investment with a 114% return. Jump on it!

Welcome wetradio! Thanks for joining in.

Taking the unconventional route, if you consider the rule of 72, you would need about a 15% return annually to double your money every 5 years. The best way to do that is to try to time the market, particularly if the market is not cooperating. This year the S&P 500 is down and here we are in October.

Not to make this a commercial for the Premium Services, but Intrepid Timer's service is an example of how you can time the market to get returns that the buy and holder will not get. Intrepid is up nearly 20% this year (mid-Oct.) while the best performing TSP fund is up 2.3%. How, you may ask, can that be done? Market timing.

It's not easy and it could back-fire on you, but that's the only way to outperform the market, assuming the market will not give you the returns you may need to increase your balance sufficiently.

Good luck!

Originally Posted by tsptalk

Welcome wetradio! Thanks for joining in.

Taking the unconventional route, if you consider the rule of 72, you would need about a 15% return annually to double your money every 5 years. The best way to do that is to try to time the market, particularly if the market is not cooperating. This year the S&P 500 is down and here we are in October.

Not to make this a commercial for the Premium Services, but Intrepid Timer's service is an example of how you can time the market to get returns that the buy and holder will not get. Intrepid is up nearly 20% this year (mid-Oct.) while the best performing TSP fund is up 2.3%. How, you may ask, can that be done? Market timing.

It's not easy and it could back-fire on you, but that's the only way to outperform the market, assuming the market will not give you the returns you may need to increase your balance sufficiently.

Good luck!

Geez, Tom !!! You ARE taking the "unconventional route" !

The OP needs to do whatever it takes to get that Government match...I'm with Skorcher on this one...the ROI is WAY above anything the premium services can give him/her ! Get that, and you can mess around with how you invest your balance later !

I love my premium subscription service, but address the basics first !!!

Stoplight...

Originally Posted by tsptalk

Welcome wetradio! Thanks for joining in.

Taking the unconventional route, if you consider the rule of 72, you would need about a 15% return annually to double your money every 5 years. The best way to do that is to try to time the market, particularly if the market is not cooperating. This year the S&P 500 is down and here we are in October.

Not to make this a commercial for the Premium Services, but Intrepid Timer's service is an example of how you can time the market to get returns that the buy and holder will not get. Intrepid is up nearly 20% this year (mid-Oct.) while the best performing TSP fund is up 2.3%. How, you may ask, can that be done? Market timing.

It's not easy and it could back-fire on you, but that's the only way to outperform the market, assuming the market will not give you the returns you may need to increase your balance sufficiently.

Good luck!

Shameless promotion with minimal disclosure.

Personally, and I might be a little biased, I'd forego a Starbucks coffee once week and join a quality premium service at $20 a month if I couldn't put at least $800 per month into my TSP. The reason I say this is because even if the premium service only makes you a conservative 10% per year, that's $1800 for the year based on a balance of $18000. Subtract the $240 for the premium service, that's $1560 profit. The following year, it would be more. I don't know what your income is, but you have to get 100% match on an $800 contribution in order to beat what the premium service could make you. Like you said, if you are short on cash and can't afford to put much into your TSP, seems to me 20 bucks a month is "likely" doable. Of course, there are some who think $20 per month is too much to pay, but I guess it comes down to what one thinks "too much" is. I believe the majority of TSPers have over $100000 in their accounts, so 10% would be $10000, yet some are still bothered having to pay $240 for a year of quality investment information.

Yeah, I-T...I love ya !!! But the OP is leaving money on the table...he needs to resolve his finances to square things away, if that means putting that Starbucks coffee towards his TSP match, NOT a premium service !!!

Just sayin...


Stoplight...