Investing Tax TSP

7 Lesson Learned by Debunking Retirement Plan Scammers, Gamers and Detractors

Retirement Plans, especially those sponsored by an employer (the 401K, 403b, and the TSP) are probably the most powerful and simple tool you have on your path to wealth. The TSP in particular automatically leverages the power of index investing for incredibly low fees. It has Roth and Traditional options, Targeted Retirement Funds, and starting in 2018 will come with a government match for those who opt in. Why are there so many people out there advocating against the TSP or trying to game the TSP’s investing practices? Greed. It is all about Greed. Detractors Dave Ramsey, the famous radio

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Simple Path to Wealth
Investing TSP

The Simple Path to Wealth: Book Review

I’ve been following Jim Collins, who blogs at www.jlcollinsnh.com, for about two years now. His simple, direct, and low impact investing style has changed how I invest. Investing before was exciting and time-consuming- watching the news, reading stock charts and pouring over technical analysis. Now, investing is boring. But I’m finally seeing returns. Mr. Collins turned the advice in his lauded “Stock Series” into this book. It contains advice he would give to his children who are just starting out and to his friends who are nearing full retirement. All of the advice is easily understandable by the most novice

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The Military Guide
FIRE Investing TSP

Guest Post on The Military Guide: Blended Retirement System

Hello everyone, I’m proud to announce the publication of my guest post over at The Military Guide. Doug Nordman was kind enough to feature my thoughts on the new military Blended Retirement System. In my guest post I also provide a spreadsheet which you can use to calculate what you stand to gain – or lose – if you chose to opt into the BRS. Many service members have a choice coming up in 2018. Either stay with the old “cliff vested” pension system, or jump to the new been BRS, which reduces the pension by 10% but provides a

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Investing TSP

Utilize the TSP’s low fees to supercharge your retirement

What if I said YOU could make 1% more in your retirement account, every year, for life? As far as things go, a 1% advantage is pretty good these days. The market isn’t returning twenty-odd percent like it did in the lead up to the ’08 crash. I’m talking about the fee’s you pay to invest. Vanguard, which has some of the lowest fees around, has a handy calculator.  According to Vanguard, the industry average fee is 1.01%. Vanguard pegs their average fee at 0.18%. Their calculator does a fantastic job showing the cost of high fees over time.  Fees

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Maxing the TSP should guide you like a Lighthouse
FIRE Tax TSP

Financial Independence with the TSP and IRAs

In a previous post we discussed how the actual annual TSP (Military 401K) contribution limit is $18,000. Most military folks, and indeed the general public, don’t know you can max out your contributions at work and continue to save for retirement by using IRA’s, with all the tax benefits that come with these methods. This got even more confusing when the TSP instituted the “Roth Option.” For years I have seen the “Roth” part of the TSP and conflated it with the Roth IRA. The TSP’s website and the IRS are not very clear as to whether you can contribute

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Thrift Saving Plan logo
TSP

What’s my Maximum Retirement Contribution, anyway?

The TSP is the military’s 401k. The below may apply to your retirement account too. Just about every current military member has sat in a training where someone has demonstrated the power of compounding interest. “Look”, they say, “if you start when you’re 18, by the time you retire you have $1 million. Wait till you are 25, only $600,000. Start saving money!” Never is maximizing the TSP discussed. Dutifully, those young military members go off and save a small portion per paycheck. Maybe the trainer even printed out the Thrift Savings Plan election form. Maybe they explained the difference

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