Step increase in October: Should I bump up retirement or wait?

[Anonymous]

I have a step increase coming soon that will boost my biweekly pay by about $125. I had planned to move all of it into my thrift, but now wonder if I should make other plans given the uncertainty of the economy. Thoughts?

[Anonymous]

Stocks are on sale. I would invest it in stocks if you have at least 7-10 years to retirement. I would consider bonds or other fixed income if you are closer to retirement. Your choice is not stocks or nothing. The TSP is tax sheltered so it’s always the right choice for savings. If you have high interest debt and are adequately saving for retirement, I’d pay down the debt first. But I would not choose to spend it because the “economy is uncertain.” That makes no sense.

[Anonymous]

Anonymous wrote:Stocks are on sale. I would invest it in stocks if you have at least 7-10 years to retirement. I would consider bonds or other fixed income if you are closer to retirement. Your choice is not stocks or nothing. The TSP is tax sheltered so it’s always the right choice for savings. If you have high interest debt and are adequately saving for retirement, I’d pay down the debt first. But I would not choose to spend it because the “economy is uncertain.” That makes no sense.

Retirement eligible in 2034, and good suggestion to reroute to paying off debt; I have 12k in cc debt. I wasn't going to spend it, I just didn't have a plan B since all my steps go to retirement.

[Anonymous]

Got it. Where did the CC debt come from? If that problem is solved, I would pay off your debt if it’s over 6% interest and then up your savings. I would maintain retirement savings of at least 15% (preferably 20%) since you are not very young. Do you know you are saving enough?

[Anonymous]

Pay off the debt. You'll feel free without it. It's a great feeling.

[Anonymous]

Bump it up. Time on the market is way better than Timon gather market. Worst case you are essentially flat in those contributions for the next 10 years.