help, need a check up :)

[kthejoker20]

Hello, I was wondering if some of you can take a look at what I have going right now. Just want to make sure I do everything I can to increase my tsp.

Currently a gs-6 making $53k/year no potential for further promotions. I'm contributing 20% to tsp. I have 15 years on the job 40yr old.

Current tsp balance is $101k. I've been off an on s and g funds. Right now g fund.

Any suggestions on what I can do to grow this or what positions I should be in? I plan on working another 17 years.

I just feel that I am below average.

 

[nnuut]

Wow! Big question! Very hard to answer, read and read around the Forum or Join one of the Pay For Services that are offered. Check the Services and see how they are doing. If you want to do it on your own a lot of us do. Participate in the forums and ask questions. Best of luck.

 

[evilanne]

With the matching, that equals 25% of your salary or $13,250 per year.
You are still below the contribution limit, so you can always contribute more but I'm sure you need money to live on currently so that may not be an option.

In how to maximize your rate of return--it sounds like you are trying to time the market if you are on & off in S & G, which is very difficult for anyone to do consistently. I would not even try to advise you on how to time the market. The G Fund keeps you from losing money but returns are currently very low. Suggest you look at your annual TSP statements and compare your rate of return to the different funds, including the L Funds, for the same periods of time. What you ultimately decide to do will depend on your knowledge & risk tolerance.

There is a lot of information on the website. The best thing you can do is to read and learn as much information as you can about investing and select a method that you are comfortable with, whether it is buy & hold, using charts to determine when to get into or out of the market, etc. The other option is to subscribe to one of the paid services and take someone else's advice, but even with a paid services there are no guarantees.

 

[pmaloney]

I think that at 40 with $100K you are doing pretty well. Read and learn and don't be too negative. At 40 you are too young to be in the G except for big downturns. You also might rethink retirement at 57. Do you plan on collecting Social Security if that is still a viable option? You should come up with a plan with income and savings / investments to live into your 80s that includes inflation.

Best of luck! :smile:

 

[Frixxxx]

Currently a gs-6 making $53k/year no potential for further promotions.

All your comments show a propensity to plan for the future and I would not say you are below average.

There are many sites in which you can set your expectation on what you need to have for retirement and then that will allow you determine the path going forward.

I do have a question about the quote above. I hate to be pushy on this subject as I am different than some people when looking at the future.

The potential of further promotions is because of the job you have the availablility of a higher position non-existent? If that is the case, can I ask if you are happy with your job, and have you looked at training for something that might provide you with the ability to move out AND up? Would investing in a degree or certification program help?

I know those are personal questions, but I wouldn't want to limit anybody from attaining a dream if they could invest in themselves to move out and up.

If you are happy with your situation, then the question comes down to planning, sacrifice, and returns. Planning is the biggest part.

Many are here for you no matter which way life takes you.

Good Luck!

 

[nnuut]

5, 7, 9, and maybe 11!

 

[sillbeer]

I would stick to the L2040 or pay for a premium service as was previously mentioned.

There is always room to move around and grow in the government. You may also want to have a resume writer that is versed in federal PDs church up your resume.

 

[RazorCat]

Good advice so far. Look to a premium service on here for help with investing. At 40, you can be somewhat more aggressive. G is great for capital preservation during downturns, but you're going to need to invest in stocks or bonds (C, S, I, or F) to make any meaningful gains in your TSP account. A good premium service takes some of the guesswork out of when to be invested, and when to be in G.
Good luck going forward.

 

[Khotso]

You are getting some great advice here ...joker20. Just don't ever sell yourself short. There's always opportunity to advance your career if you are willing to work toward that and possibly move from your present location. I personally know a guy who started as a GS-1 and is currently a GS-14 ... no college degree, just a lot of hard work, focused on building strong interpersonal relationships and constructive communications as opposed to destructive, sought out all the training he could get whenever he could get it, and explored/found a career path that allowed himself to get to where he is -- the paths are out there if you look hard enough and understand the criteria. ... Just by your post and questions alone, I'd say you have a heck of a lot more to offer than perhaps you are giving yourself credit for both on the long-term financial and career fronts. Go for it man!

 

[evilanne]

kthejoker20,

You are in better shape than most Americans who have very little in retirement savings, see http://www.cnbc.com/2016/09/12/here...american-family-has-saved-for-retirement.html. FERS also provides a pension which many in private sector do not have.

Rule of Thumb based on Fidelity's framework on how much you should save (they have changed it slightly over the years) for retirement:
35 1 X Salary Saved
40 2 X Salary Saved
50 4 X Salary Saved
55 5 X Salary Saved
60 6 X Salary Saved
67 8 X Salary Saved
This article is a little dated but it explains Fidelity's rule of thumb and shows how people compare at time of study and addresses some of the factors to consider http://www.nirsonline.org/storage/nirs/documents/RSC 2015/final_rsc_2015.pdf I think you need to look at your final salary less your annual TSP contribution because that is more of a reflection of what you are actually spending. There are other things like social security that also reduce your take home pay that you won't have in retirement.

 

[uscfanhawaii]

Different savings approached are discussed in the section on TSP Strategies. In general, the more risk you undertake, the more return you can expect. So it is important to know your risk tolerance. Also, the longer time period you have, the better chance you have of recovering from a 'bad' year. This is the basis of the L Funds, that automatically put you in more G as you get closer to retirement. (But know that you will want to be in some % of equities, even in retirement, since retirements can last 25 years or so. If you choose L, choose one that is 20 years PAST your retirement date, or inflation will eat up your savings.)

For saving amount guides, you can use The 1 thing Millennials need to know about investing - Jan. 18, 2017 from CNN Money.

so, make sure time is on your side. You might want to think about postponing your retirement a few years.

Good Luck in your investing. Just make your plan and stick to it!!

 

[maui21ice]

With 17 years left to go according to your plan, don't be afraid to spend the next few years riskily in the stocks like the C and S funds. You have time still to make up for losses, and if they crash comes, you will still have time to make up for it. The market may go down, but the years following are usually big UP years!

 

[kthejoker20]

Thanks I appreciate all the replies. That's good advice. I'm gonna check out those L funds, but always been cautious of them. I was told L is for loser, so I stayed away. I love the S fund.

With possibility of international relation changes with US, I am keeping an eye on the I fund.

I wish I could change my job promotion potential. But I am in one of those situations where the manager is hiring friends stuff....has no loyalty for those with experience at the same level of his For example, I used to be the acting program manager for the same dept., but get pass over for promotion for newly hired people. Been supervisor for years, made National sup of the year in fact. Then I relocated to a different station for my wife to be closer to family, and it all ended. I am his kingdom and he made it known, I should be happy to be employed. He is real shady, but I can't rock the boat, most of the employees are related or friends with him outside of work.

Can't afford school, no other career paths, in my specialized career. It's all I know. So I am kinda stuck.

 

[alevin]

Those situations do happen. Then the questions I would be asking myself become, how close to retirement is that person? Can you outlast him? Is he looking for another promotion that would move him out of your office? At some point does the situation get to the point where you and spouse need to discuss what is better for your mental/emotional health and the marriage? stay near her family indefinitely or find a different job-laterally, at least til you or he retire?

 

[kthejoker20]

I do love my job. Honestly I don't know if I can do 10 more years.. at this place...lol. I'm not a complainer, and I know I could file and force his hand... But if I'm not picked to be on the team, it will be even worse to try to work with them on stuff. Just ain't worth it.

It's kinda of funny he has about 10 years left, and he doesn't know jack about the tsp. I just blows my mind that ANY employee would not take the time to learn this stuff.

Yeah, I've learned our employer environment is notorious for people to relocate to move up. I am happy, just could be better with salary and I think that's what I am not content with.

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[burrocrat]

have you considered taking up a hobby or finding a side job to add some income outside of the work trap? like maybe dancing on friday nights? that always perks me up. make it rain.

 

[kthejoker20]

Dancing? Nah I can't bust a move. I got plenty to do.

But another job is a good idea... I never considered that. I guess I was stuck in the full time groove.

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[burrocrat]

are you in ag? are you in the west?

i've come up through the ranks, from the lowest of the low. i understand that in small rural communities the best job in town is often the fed service center. i know technician work, it was way more pleasant than what i do now. i also understand that due to family or generational transition there is no other place to be, married to the land or the animals, this is life, this is identity.

but still, every town has f'd up bosses and every town needs friday night dancers. some folks like that and everyone is beautiful in their own way. don't sell yourself short, ever. it's easy, sometimes you shake, sometimes you shimmy, i could show you.

 

[evilanne]

You might want to expand your geographical area in looking for other job opportunities. Before getting VERA/VSIP I considered moving to higher cost of living area, either for lateral position or promotion, because I couldn't see staying where I was for 5 more years. It helps significantly if you are debt free. I figured, I could invest in a small condo or rent an apartment for a few years to increase my high 3 salary and still maintain my home here. I know plenty of couples that have lived in different cities/towns (various distances) and commuted either daily or just on weekends, some temporarily and others for extended periods of time. Everyone's situation is different but keep looking for opportunities. In the mean time, focusing on the things you like about your current job really does make it more tolerable

 

[gatoremt]

I am doing 60% C and 20%-S & 20%-I Are those good?