Thread: am i on the right track?

Originally Posted by jpcavin

Go to TurboTax and play around with a few "what if" scenarios. Doesn't cost anything to play.

will do thanks

Originally Posted by Show-me

The 10% is more like 15% and yes it changes with the size of your income but you should pay yourself first. Life is not worth living if you can enjoy it to a small degree and that is up to the individual. So as the dollar amount of your income increases, so does the dollar amount of the fixed percentage you contribute.

TSP or Roth?

1. TSP if you get a match, always.

2. Roth if you are in a tax free theater of operation. Why? No taxes when you earn it and no taxes when you spend it.

3. TSP if you are making taxable income. Why? Taxes are deferred until you withdrawal. As a E-5 you don't want any tax liability to Uncle Sam, Congress will just **** it away. Chances are most of us will not draw such a large income once we retire to pay income taxes any ways and depending what State you retire to, you may not have to pay any State income tax either.

For a high risk trading account I like Roth, my two cents.

military personnels dont get matching contribution

Originally Posted by Frixxxx

Try this calculator:
http://interactive.taxfoundation.org/taxgraph/

It will show you how you can play with YOUR numbers to see how changing your AGI will affect your taxable income.

thanks frixxx, since BAH is not taxable i will not include that as part of my wages right>?

if thats the case i only make 30k(?) a year so it will put me at slightly lower then 15%

Originally Posted by law87

thanks frixxx, since BAH is not taxable i will not include that as part of my wages right>?

if thats the case i only make 30k(?) a year so it will put me at slightly lower then 15%

Correct, only your base pay and bonuses should be taxable. (excluding any oversea combat pay.)

Originally Posted by Frixxxx

Correct, only your base pay and bonuses should be taxable. (excluding any oversea combat pay.)

so if i calculated right, if i max out Roth IRA contribution that should put me just under 10% correct?

Originally Posted by law87

so if i calculated right, if i max out Roth IRA contribution that should put me just under 10% correct?

Roth doesn't affect taxes...It's only AFTER TAX dollars that go into a ROTH.

Originally Posted by Frixxxx

Roth doesn't affect taxes...It's only AFTER TAX dollars that go into a ROTH.

o yea good point! i think i know what to do now..open a roth account put in 200 a month and up tsp contribution to maybe 18% maybe more

thnx frixxx

Originally Posted by law87

o yea good point! i think i know what to do now..open a roth account put in 200 a month and up tsp contribution to maybe 18% maybe more

thnx frixxx

Good Luck, Remember~~Your life changes, so your investments will too. Stay on top of it and you'll retire earlier than most~

Originally Posted by Frixxxx

Good Luck, Remember~~Your life changes, so your investments will too. Stay on top of it and you'll retire earlier than most~

thanks frixxx

Originally Posted by law87

thanks frixxx

YW!