Reply to "maxing out" TSP, 401, etc.

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Reply to ""maxing out" TSP, 401, etc."

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[quote=Anonymous][quote=Anonymous]
NP here.  The poster above sounds very on-the-ball.  But here's one question -- why do you settle for a job that pays $52,000 at age 29?  It seems like you're quite capable, and I suspect you could apply for and get a job with a higher salary to allow you the occasional comfort.[/quote]

Only on DCUM is a salary that’s above the median U.S. HOUSEHOLD income considered “settling”...at 29, no less, sheesh.  I’m pretty average and not a professional, and $52k is almost 3x what I was making in BFE rural America, so there are no complaints from me.  And it just goes to show how far DC salaries are completely out of touch with reality.  A stable fed day-job lets me pursue and hustle lots of other opportunities outside of 9a-6p M-F.  Once a full deferred pension is locked up, then maybe I might think about leaving, or just simply retire and live on SEPP out of TSP.

[quote=Anonymous]

i would like to hear more info about how you max out and what funds you use/roth or traditional, etc?

also- it is a lot easier to live extremely frugally and simply when solo. much harder to negotiate space constraints etc when married[/quote]

I contribute the max $18k/yr…I really don't know what more to tell other than to just do it 'til it hurts. Put the max in each pay period and if you never see it in your bank account, maybe you won't miss it that much.  I always make traditional contributions, never Roth...I want the tax break now, not in 30 years. I also try to front-load TSP as much as I can early in the calendar year.    I prefer a traditional IRA as long as the contribution is deductible.  When the deduction starts to get phased out due to the income limits (modified AGI &gt;$61,000 in 2015), a Roth IRA is then the better option.    Your mileage will vary because of all the broadening choices nowadays, but you can always mathematically break down what options will best suit your own personal/family situation.

TSP = 55% C, 15% S, 20% I, and 10% G for the far foreseeable future.  I re-balance once yearly sometime in January, and also after an RBD (really bad day where the S&P fell more than 5%).   If you absolutely cannot restrain yourself from fiddling with your TSP, don't forget these two truths:  1)Buy low, Sell high  &  2)You've NEVER lost anything, unless you sell.

And yes, it is A LOT easier to live frugally as a singleton, and I'll admit that sticking to it is hard work.  On the flip-side, I'd never even give a thought to asking/expecting an SO/spouse to go along with it for fear of being smothered in my sleep.   Frugality is definitely not for everyone, and you might need to have a screw or two loose to give it a true best effort.

[i]&quot;It's not what you make, it's what you keep.&quot;[/i]
[/quote]

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