Maxing out TSP
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
| Maybe go up to 8. |
Anonymous
You really are stupid. No certainties in life other tax/death. |
Anonymous
I think the point is that if government pensions and SS fail, then the money in the 401k is probably lost also. If you want to protect from a crash that causes the US government pension scheme to fail, you probably need to "invest" in gold, bitcoin, or guns and hide various currencies under your mattress. |
Anonymous
401k is YOUR money. Pension/SS is "promised" money. Big difference. |
Anonymous
| I truly don't believe the FERS pension will be around because CSRS is so expensive. I have relatives who make the same in retirement that they earned while working. |
Anonymous
I don't think you understand basic economics. There is no difference. 401 K invests in bonds, which is money "promised" from the government or from companies, or in stocks, the value of which is based on "promises" of future dividends from the companies. Even if it is sitting in a deposit in a savings account it is still money "promised" from the bank - they don't actually keep your money there, they lend it out to customers etc. |
Anonymous
The FERS pension will be there for vested feds, you nervous weirdo. |
Anonymous
LOL. Sure Ms. Yellen. If economy crashes to a point where there is no pensions, no SS, no bond markets and no stock markets, there will be no Govt. But thanks for the laugh. |
Anonymous
My first fed manager said to me on day one, "Put in the minimum to get the match, more if you can afford it. Every time we get a COLA or you get a step or move up a grade, increase the percentage until you max out. You won't miss money you never had." |
Anonymous
This comment doesn't make sense to me. Every year there are fewer and fewer CSRS recipients around and, as expensive as that pension system is, they did not cut benefits for recipients. FERS is nowhere near as expensive as CSRS. I think that sooner or later FERS is going away for new hires and they may switch to high 5 instead of high 3 but I don't think they're going to scrap it. |
Anonymous
Yep. I'm making $75k ish and I'm not maxed out, but I'm at nearly $500/payperiod. |
Anonymous
Uhh.. I think that's the PP's point. Your FERS pension, which is fully funded and invested in bonds, will be there unless the government collapses. If it does collapes, then your 401k will be worthless anyway. |
Anonymous
|
Doesn't congress "borrow" from our tsp balances to balance the budget?
|
Anonymous
No. They borrow from social security. |
Anonymous
How could borrowing balance the budget? Borrowing can only finance a budget deficit, not bring it into balance. The TSP is invested in various assets, like all funded pensions. One of those assets , the G Fund, is government bonds. These do finance the budget deficit, and roll over existing debt. So your returns are reliant on a promise by the government to pay you in the future, just like the FERS annuity. What happens if the government gets to the stage where it is unable to meet its promises? Ie if people become unwilling to continue lending to the government? It could: 1. Raise taxes 2. Cut discretionary spending 3. Cut future expenses, e.g by grandfathering current pensioners and introducing a new defined contribution scheme, or making social security taxable 4. Borrow from the central bank (the Fed), which could result in higher inflation. I would not assume that social security, or government pensions, are any less secure than money invested in a 401k. Quite the opposite. The Cntral government is usually the last thing to fail. That said, property/real estate may be safer. |