Q. I understand that it is possible to transfer Voluntary Contribution account deposits to a private Roth IRA (with any pre-tax interest earned going to TSP), but I’ve also been told there’s a five year ‘holding’ requirement for the Roth. I currently have a private Roth account that is more than five years old. Does the five year requirement mentioned in conjunction with the VC mean that the money should be placed into a new and distinct Roth account, so that an additional five years holding can be tracked, or can the VC contributions (without interest) be added to the…
Monthly Archives: March, 2014
Why shouldn’t you trust your money to a broker or agent who claims to be able to successfully pick winning stocks or funds? Let’s say you have $100,000 to invest. An investment manager – a mutual fund manager, stock broker or private account manager – will offer, for a fee, to manage your money. That is called active professional investment management. The typical fee for this management is 1 percent of the account’s balance per year, but this rate can vary widely and often runs up to 1.5 to 2 percent. Mutual fund managers typically take their fee daily, while…
Q. I am 24 years old and I have been contributing 15 to 20 percent of my pay to a traditional TSP for 3 years now. When I started my TSP, the option to invest in a Roth TSP was not available. I have a decent amount of money in my traditional TSP right now. I’m curious if it would be better to stop contributing to my traditional and let it grow and start contributing to a Roth TSP or continue to invest in my current plan and maintain my current compounding interest? I’m nervous that if I change my…