Birchtree
TSP Talk Royalty
- Reaction score
- 143
The Roth IRA is a good mechanism but because you are limited on the amount allowed to be invested yearly ($5000) it will take forever to build a solid base - but you have to start early. I personally don't care for mutual funds - never have. Put dividened stocks in the Roth and reinvest the income every three months for free. My daughter has a Roth 401K plan with employer matching and profit sharing - she will be loaded and tax free when she retires. The Roth will allow you to play without the hassel of tax paper work - no schedule D. Stick with the TSP and load up as much as possible - later on in life you can switch some of those funds to your Roth. And you can even leave some money to the kids with that Roth.
