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Old 09-30-2007, 02:02 PM   #21
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I was maxing contributions earlier this year, but have rolled it back to 5%. Wife lost her job and the 30% cut in our take home pay caused us to reevaluate the situation. Recently got promoted and opened a Roth IRA. New plan now is to max that first, then start increasing TSP contributions.

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Old 09-30-2007, 08:31 PM   #22
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Originally Posted by Nords View Post
Mostly a process of elimination, starting with bonds. I have a military COLA pension and spouse will get her own in 2022, so neither of us needs any bonds in our ER portfolio. We also don't need to invest in the "C" fund since we already own Berkshire Hathaway and a Dow dividend fund. That leaves the "S" & "I" funds.

The military version of the TSP came along in the late 1990s, it was a way cheaper expense ratio than most small-cap funds, and small-caps were undervalued then so that's what we started with. Now that they've added the "I" fund I could go there too, especially since international funds tend to have much bigger ERs than other asset types.

I used to spread the asset classes indiscriminately among our separate accounts (taxable & tax-deferred) but entering all those dividends & reinvestment transactions in Quicken has become a colossal PITA. (I do it manually-- too many download errors.) The TSP is an extremly small portion of our total ER portfolio so it might as well stay all in one asset class. I'm much happier with all our international in our Roth IRAs and the rest of our asset allocations in our Fidelity account.

If the international grows faster than we can rebalance in the taxable then I'd have a different problem, but I'm betting that they won't get too far out of whack. It'd also be easier (non-taxable) to rebalance by shifting big chunks of an IRA than by messing with a taxable account.
OK, makes sense to me. When I retire in 5 yrs, I'll be in a similar situation with the COLA pension, actually 2 of them eventually. Thanks for the explanantion.

“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

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Old 03-07-2015, 09:51 AM   #23
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Originally Posted by packrat44 View Post
You can't beat the low ER of a TSP account. I am 63 and therefore in a different position than you. While I really like the low maintenance cost, I like getting the $ into a ROTH even more. My TSPs have been rolled into a TIRA and are being aggressively converted to RIRAs (along with my DW 403(b)) prior to turning 70.
This^^ makes so much sense. The TSP does work but I learned this, They teach you how to save save save and then one day it comes Harvest time.
Well they do NOT tell you how to do that. The TSP pre-tax is so rule
intensive with your money. The Roth came along only recently and I
did open one just to begin the 5 year time rule. I wish I had been able
to put more funds into the Roth because fact of the matter is, Taxes are
going to go up and believe me, the IRS is going to get their share from
your pre-tax pile of money.

An annuity is NOT the way to go IMO as there may actually come a day
when investment returns are in the double digits and if you annuatize your TSP, you become locked in to the lower rate...fin...there you are locked in.

So back to getting your funds into the Roth arena where taxes are all paid
in today's' dollars. Caution is warranted due to the disbursement of funds
in a year and there-by putting you into a Much higher tax bracket.

I see the need to develop a strategy to keep you in a comfortable tax bracket
where you take sums of TSP pre-tax up to that comfort zone and convert
them into the Roth. Enter the Roth have to be working to contribute.

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Old 03-07-2015, 04:32 PM   #24
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Holy necropost Batman! When I saw the post 'when I retire in 5 years' I got really confused...until I saw the date!

Sent from my mobile device so please excuse grammatical errors.
Founder and Head Lounger @ The Life of Leisure Institute
Retired in 2014 @ The Ripe Age of 40.
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Old 03-07-2015, 06:07 PM   #25
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Old 03-07-2015, 08:11 PM   #26
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I found this thread in the "similar threads" link at the bottom of the page and
without checking voom.... oops my bad

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