Hey guys! So I havent posted on here for a while. I am a military reservist that deposits 100% of drill pay into my military TSP and a recently hired FERS employee that contributes 7% to TSP. After I build an emergency fund for myself I will start to up my FERS to 10%. On the military side I contribute 50% to L2040 and 50% to L2050. Its the same for my FERS account. I have been putting 100% into the L2040 on the military side for the longest. So far I have 73k in the L2040 and 1k in the L2050. I am currently 30 years old and will retire in 30 years. Anyone have any advice for me? Does this set up look good? Should I invest in the non lifecycle funds?
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dox1842's account talk
- Thread starter dox1842
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JTH
Well-known member
Sorry no advice, but it sounds like you have a good plan and you've started early enough, I wish more folks like you saved as much.
Frixxxx
Moderator
My advice would be to stop/temper your TSP contributions until your emergency fund is 100%.
My advice on which funds you are in would only be participate at the level you are comfortable. Since this is not a buy and hold site (for the most part) I would suggest identifying your risk levels and adjust accordingly.
But,
My question is why you aren't all in L2050? What is your rationale behind being in L2040? You're young and can handle some massive swings.
Good Luck!
Frixxxx
My advice on which funds you are in would only be participate at the level you are comfortable. Since this is not a buy and hold site (for the most part) I would suggest identifying your risk levels and adjust accordingly.
But,
My question is why you aren't all in L2050? What is your rationale behind being in L2040? You're young and can handle some massive swings.
Good Luck!
Frixxxx
I am thinking about moving into 2050. I started the tsp when I entered military service in 07 and the 2050 wasnt out yet. Thats really the only reason that I never started investing in it. I am planning to retire at 57 since I have law enforcement retirement. I get my reserve pension at 62 I beileve. Can anyone chime in on this? I know the Lifecycle funds are more conservative than other comparable time horizon funds offered outside of the government
Frixxxx
Moderator
Actually your Reserve Retirement starts at 60 (unless you qualify for an age reduction calculation by serving in certain areas.)
I would jump into L2050 if you think you can stand the risk.
I would recommend a few reads in the basics on investing. Boghie has a good list to check out. Also check out Longer Term Strategies Since you have good 25-30 years in front of you.
Mcqlives
Active member
get yourself 6 months emergency fast and then never touch it...add to it slowly to get it to 12 months as you make more. As you do this, max your tsp quick to reduce your taxables...keep an eye on the tax brackets and take into account your total adjusted income. Once you have all that then you can budget the extra money you were putting into the emergency fund for vacations/car/other investments/etc. Us LEO's (and/fire fighters/flight controllers) make good money but that 57 cut off (even with the supplement) can kill you financially unless you are financially savvy...Good luck!!!
I had a thread but I could not find it so I think it must have been deleted. I am FERS and military reserves. Because of the generous military leave policy I contribute %100 of reserve pay and %10 of my civil service pay to the L2050 fund. I am currently 30 and looking to retire at 57 (im federal law enforcement so its mandatory) I am thinking about going %50 C fund, %25 S, and %25 I or maybe %33 S, %33 I, and %33 C after reviewing the YTD performance of these 3 funds. Should I stay put in the lifecycle fund or make the switch. I am well aware that the L2050 has a dispersement similar to the first configuration I posted with half of the assets in the C fund with the rest divided between S and I and a small sliver in G and F.
started saving at the age of 22 and still wish I started earlier. 22 is when I entered the military and 29 is when I entered civil service. I know im doing better than most but I wish I knew about mutual funds particularly vanguard's offerings when I was working. I wonder how much I would have if I started at 16 as soon as I got my first paycheck!!
Itchn2retire
Member
The fact that you started early puts you way ahead of most people. Invest early, invest as much as you can afford, and invest aggressively. That's my advice to the young folks who work for me and are just starting their government careers.
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