Hello, I'm a 24 yr old that has no idea where to start

[Auggie3369]

I have been in the army national guard for 3.5 years and will be starting my second year of college soon. I have used the army's tsp and maxed on it while in. I don't know the first thing about retiring and what it takes. Any clue on how to start would be nice.

I have 2k in crypto and about 1k in stocks along with having 6k in cash.

 

[RobbieB]

You're off to a good start. I had a used car and $2500 at your age. I wouldn't do anything until you get out of school. Keep the cash, you don't have too much. Finish up school, get a job, max out any employer comped plans and go from there.

And have fun! Twenty four years old...I remember 24, good times!

 

[Jerry1]

You’re 24. You don’t really need to think about retirement yet. You’re already clearly a saver. Keep that mentality. It will serve you well. Take advantage of any employer sponsored plan like a 401K by maxing out their contribution. So if they contribute say 50 cents for every dollar you contribute up to 5% of your salary, then try to at least contribute 5%.

Saving kind of suggests this, but try to live within your means or below your means. Living a modest life can have a lot of advantages both mentally and financially.

Really though, come back after you finish school. One of the main things that will change your life that is in your control right now is to get a job or start a business that will generate income (wealth). That’s your goal right now - wealth generation. Combine that with saving throughout your life and you’ll win the game.

 

[Golden sunsets]

My advice would be stick to an all world index fund and forget the exotics like crypto.

 

[EuropeOrBust]

I have been in the army national guard for 3.5 years and will be starting my second year of college soon. I have used the army's tsp and maxed on it while in. I don't know the first thing about retiring and what it takes. Any clue on how to start would be nice.

I have 2k in crypto and about 1k in stocks along with having 6k in cash.

Great advice here—hold that $6k for a true emergency, keep saving (and save as much as you can while you're young!), make sure you have a RothIRA, focus on index funds (or ETFs, etc.)— these allow you to diversify without trading individual stocks; they are often the right choice for long-term investors.

Here's where I'll differ from some other commenters:
1) IMO it's *not* too early to start thinking about retirement; I was your age when I started putting a savings strategy in place and I'm retiring early (@54) with $4M
2) I also hold crypto, but generally stay away from alt coins—although the ASS coin was hard to pass up BUT I think of this as sort of "play money" and not as a central retirement savings vehicle (I don't even consider it in my overall number). I bought BTC & ETH with disposable income and if I lost it, I'd be okay. It's worth $95k now, but could be a quarter of that if the market keeps fan boy'ing Elon. HODL (and dollar cost averaging) is my crypto strategy. All this is to say, keep the crypto, but you'll likely want your longer-term investing to be in funds that are a lot less volatile.

Good luck!

 

[OldShooter]

... Any clue on how to start would be nice. ...

Here ya go, written specifically for people in your situation by one of the acknowledged investment luminaries: "If You Can" by William Bernstein https://www.etf.com/docs/IfYouCan.pdf (free 16 page download)

Then:

"The Coffee House Investor" by Bill Schultheis https://www.coffeehouseinvestor.com/

"The Bogleheads Guide to Investing" by Taylor Larimore et al https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365

Oh, and ditch the crypto. Bernstein again, on the subject of retirement saving: “Make no mistake about it: The object of this particular game is not to get rich – It’s to not get poor.”

 

[Rocky mtn high]

Totally agree. It’s not too early, the sooner the better. I have a yellowed spread sheet that I started using to project retirement when I was 24. How much I needed to save and projected returns. 33 years later I did it.

 

[Mook1e]

Make sure your TSP is in the right fund. Ensure it's in the more aggressive funds. I can't remember the exact funds, but I believe the G and F are better/more aggressive, which is better for your age.
Max your ROTH, then TSP, then put any remaining money you have available into ETF, etc..
My kids are active duty and in the same position as you.
The most important thing is to protect your savings/investments from inflation and taxes.

 

[schenbew]

Make sure your TSP is in the right fund. Ensure it's in the more aggressive funds. I can't remember the exact funds, but I believe the G and F are better/more aggressive, which is better for your age.
Max your ROTH, then TSP, then put any remaining money you have available into ETF, etc..
My kids are active duty and in the same position as you.
The most important thing is to protect your savings/investments from inflation and taxes.

Mook1e's advice is spot on, but the G Fund is very conservative and the F Fund is a little less conservative, investing in short term treasuries.

Recommend you look here for further info - https://www.tsp.gov/funds-individual/

Consider the C Fund (SP 500 equivalent), the S Fund (Small Cap stocks) and I Fund (International). Also look at the Lifecycle funds which will automatically adjust their portfolio as you age.

I retired from the military 5 years ago and still have a sizeable TSP portfolio...all in the C, S and I Funds.

 

[Katiek]

Welcome! The If You Can book is the one i gave to my younger relatives when they graduated and got their first 'real" jobs. Great advice and reassuring that you don't need to do anything tricky or exotic. Basic investing over time is your friend.


I would tend to agree that your main goal at this point is finishing school with no or minimal debt, but as soon as you're working, start investing and taking advantage of chances for tax advantaged saving accounts.



You've gotten off to a great start and you're paying attention, so I'm sure you'll do great.

 

[RetireeRobert]

Any clue on how to start would be nice.

Start at the beginning.

 

[Mook1e]

Mook1e's advice is spot on, but the G Fund is very conservative and the F Fund is a little less conservative, investing in short term treasuries.

Recommend you look here for further info - https://www.tsp.gov/funds-individual/

Consider the C Fund (SP 500 equivalent), the S Fund (Small Cap stocks) and I Fund (International). Also look at the Lifecycle funds which will automatically adjust their portfolio as you age.

I retired from the military 5 years ago and still have a sizeable TSP portfolio...all in the C, S and I Funds.

Thanks, I forgot which were which.

 

[Sniggle]

Just keeping putting money away. Don’t sweat ups and downs. Pay your retirement fund first.

Or marry rich[emoji3]

And then sit back and watch the milestones roll by…$10k, $100k, $500k, $1 million, etc

 

[Surewhitey]

I married at 26 & stayed married (now 50). Marry a saver if you do marry. Continue to live like a student & max out your Roth IRA in low tax years. Then 401ks in the higher tax years & if you get a company match.

The earlier the start, the more compounding you will experience.

 

[Markola]

Read the book “A Simple Path to Wealth” by JL Collins. It was written for people exactly like you.

 

[Ramen]

You've made some great moves already. I started investing in mutual funds at 22. Made some mistakes over the years but have come out OK in the end. I'm 53 now, and here's what I'd tell my younger self if I could:

1. Start by building an emergency fund -- a year's worth of survival cash -- in a simple savings account. You're doing great on this already.

2. Read Your Money or Your Life and start living by its principles now.

3. Choose a career you enjoy, not just one that pays well.

4. When you have money to invest, keep it very simple. If I had to do this part all over again, I'd sock everything away in the Vanguard Balanced Index fund (VBIAX) and leave it there for life. I'd add to it until retirement and then withdraw from it at retirement until death (supplementing with SS, etc.).

Not sure what to tell you about your $2K in crypto. I'm steering clear of it, but it might prove to be a bonanza someday. In 20 or 30 years, you can come back and tell us how that worked out.

 

[travelover]

Good advice so far. To your question of how much you need, it is reasonable to know what an end goal is. Roughly you need to have 25 times as much as your yearly spending when you retire. Of course, there will be inflation between now and when you retire, but if you retired today with a million dollars, you'd have $40,000 a year to spend for all expenses including taxes. Any Social Security or pensions would add to that $40,000.


My advice to young people is to simply open two Vanguard or Fidelity accounts and invest 100% in an all world or all USA stock index fund with zero /near zero expenses and just let it ride. Max out your Roth IRA allowance every year, then put the rest into the after tax account.

 

[NgineER]

Lots of good advice. If you are not contributing to a Roth, do so now. I have used my Roth account as my emergency fund since withdrawals of contribution can be accessed at any point without penalty. If you don’t need the money then it can grow tax free.

 

[Nords]

I have been in the army national guard for 3.5 years and will be starting my second year of college soon. I have used the army's tsp and maxed on it while in. I don't know the first thing about retiring and what it takes. Any clue on how to start would be nice.

I have 2k in crypto and about 1k in stocks along with having 6k in cash.

Welcome to the forums, Augie!

As others have written, if you haven't already read "The Simple Path To Wealth", then you can get a copy from your campus library or local public library. It's well worth the read.

Here's your answer on earning a pension from the National Guard:
https://the-military-guide.com/reserve-retirement-calculator/

You can also read more about military personal finance here:
https://the-military-guide.com/start-here/

Send a PM if you have more questions, especially questions about your TSP funds.

 

[ModestNestEgg]

It sounds like you're off to a great start and at an excellent point in your life to be thinking this through and implementing a plan. You are far ahead of many 40 and 50 (and even 60) year olds.

 

[EastWest Gal]

Track expenses, especially subscription expenses which can creep up. Live below your means (LBYM). First fund your emergency fund, then retirement accounts-Roth when income is low, traditional IRA/401K when income is higher. Max out 401K when you have one, at least making company match which is free money into your retirement account.

If you marry, marry someone who is a saver, not a spender. Don’t have too many kids.

 

[Jenna]

I think you'd love the Mr Money Mustache Blog and Millienial Revolution. Along with Go Curry Cracker. They all have great articles for people just starting out.

 

[ERObjd]

Hopefully you never get deployed to a war zone, but if you do take advantage of the year of tax free and special pays "Hostile fire pay, family separation pay (if married), BAH, BAS and Perdiem which was about $3.00 per day and was paid at end of deployment. Back in 07 I was in Iraq for 400 days so everyone in our unit got a final check for about $1200 for per diem.

been a long time 2007,but back when i was there Hostile fire pay was $150, Family Separation pay was $250 a month , BAH was about 1700 because I was Omaha resident at time and it was about $1700 depends on your home of residence but will usually be anywhere from $800 to up to 5K a month in places like NYC or LA. I was an Omaha resident at that time and BAH for my rank E-8 was about 1700 a month an E-5 would be about 1500.Then you get Basic allowance for subsistence (meals) which was about 300 per month for enlisted. Very few perks being deployed to a war zone ,but all the extra tax free money you make is a major perk, plus your salary is tax free. At your age 24 you are likely doing better that 99% of 20 and 30 and even 40 somethings.
I dont do crypto because i do not understand it, but if you do then i would keep investing in crypto at least somewhat..it has done quite well for some and not so well for others.