A reader writes: How do you know when you have enough assets in retirement accounts so that you can stop contributing and put your money in taxable accounts? We could probably stop now but it's a hard habit to break. This is a good question for both military retirees and for servicemembers with only a few years of active duty. It's tempting to … [Read more...] about When do you stop contributing to tax-deferred accounts?
Today's post is from an officer who wants to remain anonymous while sharing his pay & investment data. Two of the links include Excel spreadsheets that you can download and review, and when you click on them your computer may attempt to launch your spreadsheet program. If you decide to use them for your own retirement planning, please contact … [Read more...] about Guest Post Wednesday: My Military Career Savings and Investment Story
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, I am … [Read more...] about Combat Zone Contributions to the Thrift Savings Plan
This guest post is brought to you by Eddie Wills. For those of us who have had to put together War Plans/OPLANs on a military staff, we all know the importance of an Exit Strategy. The late great author Dr. Steven R Covey, author of “The Seven Habits of Highly Effective People” knew this as well. His first (and likely most … [Read more...] about Guest post Wednesday: The importance of your retirement account Exit Strategy.
This guest post is brought to you by Eddie Wills. My dad just turned 70 ½. It's a major milestone in the eyes of the IRS, as it marks the calendar year he must begin taking Required Minimum Distributions (RMD's) every year from his Individual Retirement Account (IRA). To celebrate this major milestone, we threw a big … [Read more...] about Ask your Dad if you should contribute to the Roth TSP.
This guest post is brought to you by Marine Corps veteran Rob Aeschbach, who's started 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 up to $1,000 if you put away … [Read more...] about The TSP matches contributions for military members?
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 much I should have saved and how much … [Read more...] about 529 college savings for military families
I have over 250 posts on the blog stretching back over the last 18 months, and you readers would only notice a comment on one of the old posts if you happened to subscribe to the "Comments" RSS feed. (It's the orange icon over there on the right, under the "Please leave a comment!" text.) However, WordPress notifies me whenever a comment's added to … [Read more...] about Questions on the 4% “safe” withdrawal rate
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 of the TSP … [Read more...] about Roth TSP: 7 May, but later for military
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 index … [Read more...] about Is the Roth Thrift Savings Plan right for you?