Arif
Full time employment: Posting here.
- Joined
- Jun 21, 2005
- Messages
- 761
It's been awhile since I've been on this site. After reading a few posts now I remember why I enjoyed it so much. There are so many smart people here from all walks of life willing to provide their prospective.
My wife works for the Federal gov't and she's contributing to her TSP. Since she served 10 years in the Army we're going to buy back her time so it counts toward her civilian retirement. This year we've got to decide whether to max out her TSP which would be $18,000 or pay off her buy back which totals $10,000. She gets a 5% match on the TSP and the buy back will start charging interest on the balance until the $10,000 is paid off. So my question is which one should we tackle first? One missing piece of information is the interest rate that the gov't charges on the buy back.
As I'm typing this maybe the answer is pay off the buy back in full and take the balance and fund the TSP. Am I missing anything?
My wife works for the Federal gov't and she's contributing to her TSP. Since she served 10 years in the Army we're going to buy back her time so it counts toward her civilian retirement. This year we've got to decide whether to max out her TSP which would be $18,000 or pay off her buy back which totals $10,000. She gets a 5% match on the TSP and the buy back will start charging interest on the balance until the $10,000 is paid off. So my question is which one should we tackle first? One missing piece of information is the interest rate that the gov't charges on the buy back.
As I'm typing this maybe the answer is pay off the buy back in full and take the balance and fund the TSP. Am I missing anything?