Early Withdrawals From Your TSP and IRA After The Military

Readers frequently ask how they should handle their cash flow after they reach financial independence. The biggest challenge for military veterans is setting aside enough assets for annual living expenses after separation or retirement. There’s usually investment income (interest, dividends, capital gains distributions), rental property income, maybe some pension income, and perhaps a little employment […]

How Should I Invest During Retirement?

. A reader writes: “I would like your opinion on an investment strategy. I’m sure you cringe at anyone who asks for investment advice, however, this question is very big picture. I have five years before I retire and I am considering discontinuing my investing in our Roth IRAs and my Thrift Savings Plan and […]

I’m A Boring Investment Competitor.

(I recently returned from a three-week family vacation in Bangkok with very poor Internet bandwidth. We had a great time and I’ll write several posts about it.  However I’m also a couple of weeks behind on projects– one of them is today’s post.)   We bloggers love to write about financial independence group projects: contests, […]

Maximizing TSP contributions from a combat zone

A reader writes: “The goal: We are trying to reduce my taxable income while increasing my Roth contributions. I am in a combat zone through August, so my pay has been tax free, but will soon change. We have converted my spouse’s traditional IRA to a Roth IRA and expect a tax bill. The question: […]

Combat zone contributions to the Thrift Savings Plan

    A reader asks: “When does it make sense to make tax-exempt TSP contributions (contributions while in a combat zone)? I already max out my Roth IRA ($5,000) and hit my traditional & Roth TSP contribution limit ($17,000), but I can also contribute an additional $33,000 of tax-exempt combat pay to the TSP. Essentially, […]

The TSP matches contributions for military members?

This guest post is brought to you by Marine Corps veteran Rob Aeschbach, who’s starting a new career as a personal financial planner. The Thrift Savings Plan does not offer matching contributions for service members, but the IRS does in some cases. Here is what you need to know about how the government will pay you […]

529 college savings for military families

    Thanks to Brandi for her comments on an earlier post, and her question: My favorite part of the book was all of the personal stories. I can understand how the math works – I’ve calculated all of my future pay raises, estimated rate of savings, and projected retirement benefits to figure out how […]

Roth TSP: 7 May, but later for military

    You’re probably as tired as I am of these blow-by-blow breathless updates on the Roth TSP.  At least the military’s Defense Finance and Accounting Service is doing a better job of coordinating their announcements with the federal Thrift Savings Plan. The board of governors of the TSP has announced that the Roth version […]

Is the Roth Thrift Savings Plan right for you?

The Thrift Savings Plan “Highlights” newsletter came out last month with an update on the annual expenses of their six type of index funds: 0.025%. Two-and-a-half basis points. 25 cents of expenses for every thousand dollars in your TSP account. As far as I’ve been able to learn, that’s America’s cheapest collection of tax-deferred passive […]