new to tsp

[thenewguy23]

How's it going I'm new to tsp but I have a couple questions. I'm 23 I work as a technician at an ANG base I'm doing the Roth tsp and I contribute 5% of my pay plus my agency matches me 5 % my question is what should I do since I'm young i am currently doing 70 % c fund 15% s 15% I fund does that sound good or what advice would you guys recommend.

 

[JTH]

How's it going I'm new to tsp but I have a couple questions. I'm 23 I work as a technician at an ANG base I'm doing the Roth tsp and I contribute 5% of my pay plus my agency matches me 5 % my question is what should I do since I'm young i am currently doing 70 % c fund 15% s 15% I fund does that sound good or what advice would you guys recommend.

Welcome to the forum, it's great to have you here

At this early stage in the game I wouldn't sweat it, there is nothing wrong with your current allocation. As you spend more time here and research your investment style you will gradually find the answers to those questions. In the meantime, pile that money in!!!

 

[RealMoneyIssues]

How's it going I'm new to tsp but I have a couple questions. I'm 23 I work as a technician at an ANG base I'm doing the Roth tsp and I contribute 5% of my pay plus my agency matches me 5 % my question is what should I do since I'm young i am currently doing 70 % c fund 15% s 15% I fund does that sound good or what advice would you guys recommend.

Welcome to the forum!!!

I was curious why you were contributing to the Roth? I would think tax considerations would have you out of Roth for now.

Congrats on finding this place, tons of smart people here to help (not me, others)...

Sent from my Samsung Galaxy S4 using tapatalk...

 

[thenewguy23]

I don't know I just heard from a couple older guys from my shop that a Roth would be best since I'm young

 

[nnuut]

Welcome to the Forum Newguy! Stick around and participate in the conversations there is much to learn.
Best of luck,
Norman

 

[Birchtree]

Your allocations are great - set them and forget them while you build accumulations. Just remember that even with your TSP Roth you'll be held in the far distant future to a required minimum distribution even though tax free. When you end employment you can roll to a conversion Roth IRA without penalty and no RMD - not even for heirs. It will take you longer to build your shares because prices are higher but you're right to start now - you should just hope the market trends sideways for several years - but the rally will persist for perhaps decades - so have fun learning. You're already way ahead of many.

 

[PessOptimist]

Welcome.

Your allocation should be fine for a young person. At least you are not sitting in G fund like many new employees I know.

You will have to pay the taxes on the money now or when you withdraw it. If now (Roth) works for you fine. If you need a few more bucks in your take home pay change it to traditional. We really have no idea what the tax situation will be in the 2050s.

If you follow your balance and earnings closely, don't get discouraged if you have some months/quarters where your gains are less than your contributions. It can happen. In the long term you make money, at least so far.

A good graph of fund performance since ancient times (to you, kid) can be seen at https://www.tsp.gov/investmentfunds/annual/annualReturns.shtml. Click on Individual Funds Chart.

Lots of stuff to read here while you figure out your strategy.

PO

 

[nasa1974]

Welcome aboard. This is a great place to learn and ask questions.

 

[DreamboatAnnie]

Hello Newguy and Welcome! So good of you to keep it in the market (S, C and I). Might be best to put it in and leave it alone...long term.. 10 + years. If you do that you'll come out ahead of the other funds! Even when there are down years!

But if you choose to manage it, it takes a big and consistent time commitment to keep up with it daily and to learn and develop investment strategy that works for you. Your allocations look good!

Not sure about Roth. You don't get to shelter contributions from tax now and so you do with less cash each year as you must pay Uncle Sam, and may not be able to contribute as much as you could (equal to amount you paid Uncle Sam and so you don't gain the advantage of appreciation compounding on that part). Then again, if you pay tax now on the contributions when your paying a lower tax rate on a lower income (compared to your higher future yearly pay) it could turn out well in the long term since it sounds like tax rates will be much higher in the future for your generation to pay down the irresponsible debt that the Government is incurring now. So try to get to max as soon as possible to reduce that, and just do without if you stick with Roth. I'm thinking I would do that if I had to start out in the current environment as long as I could afford the max within a few years.

No matter what you choose, you are doing great and on the right track!! That is awesome!

You might consider increasing contribution percentage each year in January if we get a cost of living increase ...suggest doing that until it's maxed out...no pain that way. Never miss what you don't have.

Best wishes! DBAnnie

 

[ravensfan]

How's it going I'm new to tsp but I have a couple questions. I'm 23 I work as a technician at an ANG base I'm doing the Roth tsp and I contribute 5% of my pay plus my agency matches me 5 % my question is what should I do since I'm young i am currently doing 70 % c fund 15% s 15% I fund does that sound good or what advice would you guys recommend.

Hey new guy. Welcome to the forum. Lots of smart folks here and lots to learn. All branches of service and all walks of life. I'm now retired but spent 32 years as an ANG technician bouncing between the 2Tango and 2Golf career fields. What AFSC are you in?

 

[thenewguy23]

Thanks for all the advice I appreciate it and my afsc is 2a573 sheet metal mechanic

 

[ravensfan]

Thanks for all the advice I appreciate it and my afsc is 2a573 sheet metal mechanic

Nice! Had lots of friends in the sheet metal shop. They were always so helpful when I needed a brace or bracket for an outbound shipment.

Take care and again, welcome to the forum!

 

[DreamboatAnnie]

Hey new guy. Welcome to the forum. Lots of smart folks here and lots to learn. All branches of service and all walks of life. I'm now retired but spent 32 years as an ANG technician bouncing between the 2Tango and 2Golf career fields. What AFSC are you in?

hi Ravensfan, what is a ANG technician??? Just curious! . DBAnnie

 

[ravensfan]

hi Ravensfan, what is a ANG technician??? Just curious! . DBAnnie

Awe DBA. I thought you were smarter than that. An ANG (Air National Guard) Technician is classified as an "excepted federal employee". This means they must maintain their military membership to keep their job as a federal employee. They are a small group of full time personnel who maintain day to day operations at an Air National Guard Base. As you know, a member of the ANG attends unit training assemblies (UTA's) one weekend per month and has a commitment to perform a minimum of 15 days active duty per year. It's the technician workforce that keeps em flying the rest of the month. The ANG Technician wears the military uniform during the week, but is graded as a GS, WG or WS depending on his/her position description. On UTA weekends they are recognized for their military rank. Hope this helps and I was just teasing about you being smarter than that. I know you're smart. I've read your posts...Yes I'm sucking up.

 

[DreamboatAnnie]

Awe DBA. I thought you were smarter than that. An ANG (Air National Guard) Technician is classified as an "excepted federal employee". This means they must maintain their military membership to keep their job as a federal employee. They are a small group of full time personnel who maintain day to day operations at an Air National Guard Base. As you know, a member of the ANG attends unit training assemblies (UTA's) one weekend per month and has a commitment to perform a minimum of 15 days active duty per year. It's the technician workforce that keeps em flying the rest of the month. The ANG Technician wears the military uniform during the week, but is graded as a GS, WG or WS depending on his/her position description. On UTA weekends they are recognized for their military rank. Hope this helps and I was just teasing about you being smarter than that. I know you're smart. I've read your posts...Yes I'm sucking up.

Ahh.. I like that! That's interesting. I didn't realize that! I always thought the facilities were run by full military..but that makes sense for a national guard facility. Take care and thanks for explanation. DBAnnie

 

[driz]

On another aspect of survival remember this CREDIT CARDS ARE PURE EVIL. Sure have one for real needs but use it wisely and pay it off monthly. Credit cards will easily outdo your investments in the other direction by a horrendous factor. Avoid the come-ons by the megabanks and keep your dealings with a credit union. You can't save $ if you are giving it all away in interest payments.


Sent from my XT1080 using Tapatalk

 

[ed.bard.9]

New to TSP, You can become a future millionaire. See if your base offers the Dave Ramsey Financial Peace Course. We at the Maryland Air Guard offer it for free to current members; next class starts in April. The next sentence is from Dave Ramsey; Put 60% in C fund, 20% in S fund, and 20% in I fund. I am current at 16% in Roth. You have time on your side and will do very well if you add one percent to your TSP every year until you max out @$17,500. Treat money management like your 3,5,7 level CDCs. Learn more about financial vehicles take can help your money grow. USAA.com offers Investing Essentials information and great mutual funds for $50 per month. Take a class on money management. Understand what are: Mutual Funds, Certificates of Deposit (CDs), Bonds, Fixed annuities, Variable Annuities. Dave’s investment advice is; “Don’t purchase anything you don’t understand.”
Fort George G. Meade in Maryland offers financial courses. Army Community Service, http://www.ftmeademwr.com/acs/frp/FinancialFocus.pdf
Good luck to you.

How's it going I'm new to tsp but I have a couple questions. I'm 23 I work as a technician at an ANG base I'm doing the Roth tsp and I contribute 5% of my pay plus my agency matches me 5 % my question is what should I do since I'm young i am currently doing 70 % c fund 15% s 15% I fund does that sound good or what advice would you guys recommend.

 

[thenewguy23]

Who would you talk to about that class and I'm going to try and up my percent every pay raise I'm currently WG 8 also I'm going to try and pay off my house in 15 years so I can fully max out my contributions

 

[Globalpack]

Smart move choosing the Roth. The important advantage a Roth TSP has over a traditional TSP is the traditional you pay tax on your contributions AND your earnings where as Roth earnings are never taxed.