Thanks, i raised my contributions a couple days ago from 25% to 60%.
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That is good, but I want to make sure you understand what I am saying. Your TSP will be TAXED as you draw it out when you retire, it is tax 'deferred". Not really a advantage in a tax free zone.
A ROTH you will never be taxed..............ever, even on the gains..............ever.
My best advice would be to full fund this years a Roth before April 15, 2009 and then fully fund 2009's Roth.
Welcome to the board Senor...
I was deployed to Afghanistan in 2007, and like the others stated, I funded my Roth IRA first, then threw some more in my TSP. The good thing about the TSP in a combat zone is that you can go over the max ($15,500) and go up to around $45K.
Also, if you have a short term goal with regards to money, look at the SDP, where you get 10% guaranteed interest.
Like the others, I would also like to thank you for your service. I am on retirement terminal leave for the next 25 days and I am officially Fleet Reserve on 1Jan09.
Good Luck and Stay Safe!
I have L2020 and want to retire in the next 2 years, TSP contribution is 5%. I am 64 yo. My loss so far is about $9,000.00.............stay in or get out??
Welcome scpac1! Not too many of us, if any, are qualified to give individual advice like that. We can basically say which way we think the market might go, but there are so many factors to consider when giving individual advice.
That said, the L-funds are buy and hold investment vehicles that you dollar cost average into, so you should probably stay the course. That's not what most of us here do, so unless you want to change your investment strategy and philosophy and be more active in your account, you should probably stick to your plan. Maybe even kick it down a notch to 2010 or L-inc since you are so close to retiring.
Good luck! I hope you stick around and become a regular. It won't be long until you will figure out what will be best for you.
I would stay in the L-2020 fund. The $9,000.00 loss NOW should decrease over time as you automatically move towards the L-Income fund when you start withdrawing 2 years from now.
Things are really shaky right now I'd wait until an uptrend is confirmed before taking a chance on the market, could continue down.
Capital Preservation mode for me.
Really, a $9K loss on a $400K account is peanuts - hold the line and continue to buy cheaper. Better days are ahead.
Folks,
You are responding to a comment from SPAC1 on 2009/02/17. But great advice:p. If he/she followed it - and allocated to more risk than he/she was already at - than there are many Winnebagos (or maybe one Winnebago, a boat, and a captain/driver) in his future.
I took BTs advice and bought tons of shares when the prices were crashing. Yummy. Just watched the History Channels 'Men Who Built America' last night. BT is like JP Morgan - "Buy When There is Blood in the Streets". I see a trickle of blood now. What a joy. I get to grind on the victims of a demagogue for a few years and enjoy the view from a captains seat in the relatively near future. Than you Governor Moonbeam!!! Hope things go well for you...
This big cat is no longer content to slumber in the tall grass - this big cat will feed:).
In due time, Boghie, in due time.;)
[QUOTE=Boghie;382048]Folks,
You are responding to a comment from SPAC1 on 2009/02/17. But great advice:p.
QUOTE]
Boghie - Sharp eye. I read all comments up to yours and didn't notice they were responding to a question from 2009.