Browsing: Investing

Q. I’m a young federal employee, about 30 years old, trying to plan for retirement. Some of the literature on saving out there sets goals, either in dollar amounts such as $130,000-$200,000 by 30 years old, or in terms of salary such as one year’s salary by 30 years old. I presume these are geared toward private sector employees who do not have a FERS component to their retirement planning. I understand FERS changes the numbers, but I’m not entirely clear on how to factor it into my retirement planning goals. Are there any similar guideposts for our TSP you…

Q. I am 39 years old, an officer of 14 years in the Marine Corps and married (she’s 37) with four beautiful children. I have a car payment worth $25,000 and don’t own a house or mortgage. I have spent the better part of the last six years paying off my student loans, which were more than $69,000. We are, thankfully, now in a position to begin investments, especially considering we have solid emergency savings established and very little consumer debt (the car is it and we don’t have credit card debt). I am considering starting the Roth TSP for myself and a Roth IRA for my…

Q. I had 50 percent of my TSP in the G Fund and the other 50 percent in the C Fund. Back in 2014, I lost about $17,000. In the past week I have lost about $8,000. My plan is to retire in January 2017 (I will reach my full retirement in December 2016). I recently changed my contribution to 60 percent to the G Fund and 40 percent to the C Fund. I’m considering just putting everything in the G Fund. It’s very important that I have as much money in my TSP as possible. If I lose a significant amount this year I…

Q. I turned 70 in October so I am going to need to start taking withdrawals. Can I reinvest this money? I don’t need it now, and I feel like it would be better used when I am older. Can I roll it over into another fund where I will pay taxes on the interest earned?

Q. I plan to retire under FERS in three years at age 65 with 10 years of federal service. My TSP balance is $130,000. I also have a rollover IRA with our financial adviser from a past employer with a value of $150,000. Would it make sense to roll over my IRA into a TSP now? I’m paying a 1.25 percent annual management fee on the $150,000 and earning about 4 percent annually. A steady 3-4 percent return would be my goal within TSP, as I am getting close to retirement. Would the age-appropriate L Fund be my best bet?

Q. I am a federal employee contributing the maximum to TSP (Traditional). I currently own a Traditional IRA and a Roth IRA, and my wife owns a Roth IRA. As our combined income will soon exceed the threshold for the standard approach to contribute to our Roths, I am investigating strategies to utilize the back door approach to making Roth contributions. The fact I still have a traditional IRA is the issue — it is comprised of $12,000 of after-tax contributions, and $48,000 of pretax earning thus far. If I use the back door approach, I would have a large…

Q. I am a 24-year-old male Marine. I have all my money in the G Fund ($2,500), but I never knew anything about TSP. I never knew the control I had over my portfolio. The only advice I have is what I can remember from my high school economics teacher back in 2010. He told me that while I am young I can afford to invest in riskier funds. As I grow older and get closer to retirement, I need to relocate those to something like the G Fund. So today I put my future investments to go 70 percent, 20 percent…

Portfolio diversification is a concept that every TSP investor should understand and use to their advantage. It’s also a concept that few seem to properly employ. Over the past 15 years, there have been calls from participants to add all manner of specialized investment funds to the Thrift Savings Plan – Internet, real estate, energy, gold, health care or any other market that has been hot — in the name of diversification. Ironically, these calls for more ability to diversify wouldn’t really help to improve diversification. Instead, adding these kinds of funds will, more than anything, allow participants to…

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