Investing for retirement (TSP, IRA)

[Beaver]

and even AFTER their 13.5% hit upfront, those funds (several) made small fortunes over time.

Yeah, but without that hit they could have made a LARGE fortune over time.

[Guest SnakeT38]

Originally posted by Beaver:

Yeah, but without that hit they could have made a LARGE fortune over time.

[Guest flynwithstyle]

Just buy some Iraqi Denairs

[Beaver]

No, it's like saying "Instead of giving 13.5% to a bunch on rip off artists, I could invest it myself and make my own money just as easily."

[Guest SnakeT38]

Originally posted by Beaver:

No, it's like saying "Instead of giving 13.5% to a bunch on rip off artists, I could invest it myself and make my own money just as easily."

That's common sense..........but not the point of the post.

[Guest Rainman A-10]

I wish TSP had been around when I was a Lt.

Max out your TSP. Invest your flight pay, all of it. Don't spend your bonus, invest it. All of it. Buy homes and rent them out when you PCS. Live w/in your means.

You will be able to retire at 42 and not work another day ion your life unless you want to.

That'll be 13.5% please.

[Guest ericvano]

Beaver, what do you mean by ripoff artists?

[Guest ericvano]

Thread Revival!!

Does anyone know what the AF policy is on providing matching funds for the TSP?

[C17Driver]

Currently, they don't provide matching funds.

https://www.tsp.gov/uniserv/features/chapter04.html

[Guest jmac2222]

Try USAA...

Steps for new LT:

1) If your car isnt broke...dont buy a new one

2) Pay off credit cards

3) Pay off any other high interest loan

4) Max out Roth IRA (until you are 0-4, then go traditional)

5) Max out TSP

[Champ Kind]

Start early, too. I started doing all of that as soon as I started drawing pay just so that I wouldn't "miss" the money. You'll hear advice like that all the time, just take it!

[Guest crobey]

Originally posted by jmac2222:

4) Max out Roth IRA (until you are 0-4, then go traditional)

What is the advantage of that?

[Guest DaRevrend]

crobey,

Are you asking about the advantage of maxing the Roth IRA before contributing to TSP, or about switching to a Traditional IRA once you hit 0-4?

Rev

[HerkDerka]

Holy thread revival. Back on topic, Roth IRAs are pretty good.

HD

[Guest jmac2222]

My two cents...

Taxes (% wise) ususally increase as your income increases. A reg IRA shields income up front (good for high income earners who also have shorter investment horizons). The roth is after tax, the investment yields are shielded instead (this is good for people who are in lower tax brackets and have longer horizons)

0-1 = Low income & far from retirement

0-4 = High income & near retirement

[Champ Kind]

I'm investing in a ROTH IRA right now. Should I switch over to a regular IRA at some point (ie, closer to retirement?) Is that even an option?

[Guest kottlows]

Originally posted by PhlashNU04:

Oh, and yeah.... stay away from First Command!

I haven't had any problems with First Command, besides the free financial planning they really aren't involved with my investments. They are making a commission from Franklin-Templeton but that's not cash out of my pocket. Is it thier bank that sucks?

Also, sure you can max out your IRA now but as was said, once you start making more, the extra money you make (can't invest it in IRA) should probably go somewhere else. Better to start out with smaller, multiple investments that can grow and compound similarly some of which you can use before you're 59.5. The 10% rule is right on for long term investment. Just my $.02

-WARHAWK-

[Toro]

Originally posted by Warhawk:

I haven't had any problems with First Command...Is it thier bank that sucks?

Type First Command into the search function and you'll get more horror stories than you care to read.

[scoobs]

Don't switch over to a traditional. Keep the Roth you can't max it out and its the best deal out there. Put the maximum amount in each year. And if your married get your wife a seprate one. That way in 20 years you will have an awesome retirement on top of the AF and/or airlines.

[Guest SnakeT38]

In 20 years there will be no such thing as an airline retirement.

[BFM this]

Originally posted by SnakeT38:

In 20 years there will be no such thing as an airline retirement.

Sounds like a quote from 1980...

[Guest tentoad]

I would put the forecast for no more airline retirements (A funds) at 20 months.

Watch the Delta guys over the next few weeks.

Wow...

[Chicken]

Come July my income (dual) will increase substantially and need to invest it in something before I start spending it.

We currently have investments with TSP, Roth IRA, mutual funds, index funds and own a house in NC. Is there another area I need to invest in that I have forgotten? Should I beef up one of the areas I already invest in like INDEX funds? We thought about buying a house in the San Antonio area since we plan on retiring there, and I think it will be a huge move for real estate investments.

[Guest Tertle]

Come July my income (dual) will increase substantially and need to invest it in something before I start spending it.

We currently have investments with TSP, Roth IRA, mutual funds, index funds and own a house in NC. Is there another area I need to invest in that I have forgotten? Should I beef up one of the areas I already invest in like INDEX funds? We thought about buying a house in the San Antonio area since we plan on retiring there, and I think it will be a huge move for real estate investments.

Funeral homes and mutual funds

[Chicken]

Funeral homes and mutual funds

?

Funeral Homes?