Retirement Planning - TSP of Roth IRA?

[pyriel]

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Rolo wrote:

azanon wrote:

That's my problem. If it was completely up to me, i'd come up with the money np. But, alas, i'm married and getting my wife to see the light isnt so easy. She comes in the door and unloads a wadful of store receipts by the checkbook. I really want to ER, but i also want her to be happy. Trying to do both is very tricky and takes a lot of training (for her) and sacrificing on my part.

Hey Az, my g/f says, "Take...the checkbook...away...and the credit cards." heh. Yes, I say make a financial schedule and put her (and you) on an allowance.

It takes time for them to see the light sometimes but once they see it, theybecome more frugal than us. One thing that i did to break her is to put her in charge of the check book (i am always checking it too). If we write a check or use our credit card, she automatically takes it out of our checkbook right away. The premise is to pay the whole entire balance every month since money was already set aside. Also when she saw that the checkbook is getting close to negative, she knew that she couldn't spend anymore (except emergency).

Another thing that we did is to take out cash at the beginning of the month and used it for our allowance. We sat down and calculated that $20 per workday and $25 per weekendday spending money for each other was more than what we really need. We are ending up having more cash in our pocket since we really don't spend $20 for lunch at work (and weekend). Other things like gas, maintenance, groceries are not included with that. I am actually getting the best out of this because I go home for lunch since I am only 10minutes away from work and still get my aily allowance. We took credit cards that gives us airline mileage so at the end of bthe year, it is not uncommon for us to receive 20-40K miles which we used for travel. BTW, we started with $5 each yearsago and we were bringing our own lunch. Next year will be a challenge (but manageable)and we are prepared for that since it will be 15K each max forour TSP + maxing the ROTH IRA. Overall, all of us here in this board is in better shape than most of ourcounterparts. I am just glad to have known you all....

 

[Rolo]

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jgpalmerdds wrote:

So you max out your TSP and your Roth IRA each year?

Yes. g/f maxes out 401(k) and Roth as well (I manage her money too). I just can't not do it. Adding to my regular Scottrade account is going to be difficult, though, with a new house to furnish, but I can postpone funding that for a while.


Let me add a little context: I am in the "I wish I started sooner" club; I have ten years to compensate for.

 

[jgpalmerdds]

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Rolo,

Beware of Scottrade now!! They have new fees for trading. For instance, you heard me talk about Profunds before, right? Now when you sell any of the Profunds, you get charged $17 a fund, in each account, regardless how long you keep it. This was new as of 1/3/05. Just thought you should know. For instance, if you have 5 different Profunds mutual funds and you want to go from long to short, you have to pay 5 X $17 and that can add up. I just got burned on that to the tune of $527! I bought the funds in Novemeber (before the rule even existed or was let known)and sold about 2 weeks ago and never knew about the new rule until I got hit with all the fees. Ouch!

Joel

 

[Rolo]

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Yeah, ouch! Is that with any mutual fund or just ProFunds? My Scottrade is totally dormant right now, so I will check all the rules when I get back into it....yeah, I would have assumed same ole same ole.

 

[jgpalmerdds]

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Rolo,

Check the fine print. My account is dormant as well as I went with a CFP for my individual IRA's (long story) now. They have "no transaction fee" funds, but they need to be on the list of "no transaction fee" funds. Scottrade has that list. As far as I'm concerned, they have brought themselves down to everyone else's level as far as fees goes. It is really a shame.

By the way, how did you get a 6K picture to upload? Did you just take a real low res. picture of yourself? The smallest size I could get from my existing picture was 75K? What's up with that?

Joel

 

[tsptalk]

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jgpalmerdds wrote:

By the way, how did you get a 6K picture to upload? Did you just take a real low res. picture of yourself? The smallest size I could get from my existing picture was 75K? What's up with that?

Joel -
If you don't have photo editing software, you can email me the pic if you'd like and I'll shrink it down and send it back.

 

[Rolo]

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Ditto...I'll hook anyone up with their pic...PM me for my e-mail address.

At least ST has a list...USAA doesn't....I put in a trade and cancel it if it has fees, only way to tell.

 

[jgpalmerdds]

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Thanks, guys. Tom, I will e-mail it to you for editing. You should of seen me trying to take these pictures of myself last night, I think I broke the camera! How come the camera makes you look fat? (oops that's right, it is the extra 40 pounds fromcollege that does that) Out.

Joel

 

[cowboy]

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I won't put my picture on the internet. If I did. Rolo would probably need a new girl friend as she would probably move up here. LOL!!

 

[Rolo]

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ehehehehehe

Well, that's why we have leashes.

 

[GGal]

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:?Hi, I asked the crew at lunch today, "can I contribute the max to my TSP, and also contribute to a Roth IRA?"

The answer: a resounding "no" from everyone at the table! But, according to this forum, this just ain't so! Help please, on the law?

Reason important: I'm 51, and just got started seriously on my TSP a couple of years ago (don't ask).....the balance prior to that came mainly from the gov'ts 1%......so here I sit with only $80,000 in the TSP, and only 8.5 yrs to retirement. I am now of course doing the maximum 15% as well as maximum catchup.

I'm also shaking in my Peachy boots - wanting to be as aggressive as possible to make up for lost time. Currently 20% G, 25% C and S, and 30% I - but this market has me scared.

I'm betting that taxes will indeed go up due to the deficit issue as well as social security problems. So a Roth would be good, if it is allowable.

I read the Pub, but just couldn't quite figure it out.

Thanks

Jan

 

[VictorPR]

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Jan......the answer is YES, I have both (Roth IRA and TSP) and I faithfully contribute the maximum on both every year. Stick to this website and you'll be able to learn tremendously as about every situation possible comes to the table soon or later. Good luck. Victor:^

 

[GGal]

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Thanks Victor, this is great news, considering my situation!

Now, any advice from you or others as to where to go to get the Roth, and what kind of funds, given my age?

Thanks again, my peaches are grinning!

Jan

 

[cowboy]

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HAHAAHAHAHA! LOL! You probably have the old pooper scooper close by also.

 

[GGal]

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Well, actually, upon further research I found that I cannot contribute to a Roth, because of AGI limitations.

I am married and living with my spouse, but for reasons better not discussed here we file married filing separate.

Since my AGI exceeds $10,000 (the limit for MFS in making this determination) - I alas cannot do it (the Roth.)

If we filed Joint, the limitation would be $160,000 - -I'm sure that would cut it close for many married couples.

I'm expecting an insurance settlement soon - maybe I'll get into a growth fund, or something.

Anything to help make me feel I'm not fighting a losing battle!

Gawga Peaches Are Sweeter!

GeorgiaGal

 

[azanon]

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Well then your next step i guess would be a non-deductible IRA. Those can at least grow tax-deferred.