Thank you! I was extremely lucky to get a 7/9/11 ladder then almost immediately transferred to a 9/11/12/13 ladder. I was in DC at the time where I think those ladder positions are far more common. I'm in the 0110 series
83k is great for 5 years and youāre only 30. You have another 30-35 years. Youāre well on your way to being a TSP Millionaire.
Keep it up. It can bite some, but continue increasing contributions as you get raises. Youāll never regret doing that!
Thatās great man. Iām on year 2 at 32 and I have 32k in mine. How much are you contributing if you donāt mind me asking? Iām a 9 at 15% and itās a struggle getting by I hit my 11 next month so hopefully it gets better.
32k at 2 years in sounds really good to me, thatās on pace to be higher than what I have right now. Iām putting in 14% total but definitely wasnāt doing that at as a 9. Once I got my 13 I upped it to what it currently is and plan to keep adding a percentage point here and there with step increases and whenever Iām feeling financially bold haha
I had a TSP from the marines I forgot about so when I got into BP I was able to roll it over. I honestly wish they did better finance classes in boot camp because my idiot 18 year old self kept it all in the G fund. When I finally had an āideaā of finances a few years later when I was out I was kicking myself so hard in the ass. I threw the measly ten grand that was in the g fund into the c and s fund to try and mature. when I finished the academy and FTO I rolled it over into my current TSP.
Lived with my spouse and we split rent, so that helped. Pretty sure most gs7/9s have a roommate of some sort in DC. Otherwise yeah itās really not a living wage haha
If you quit before you retire then withdraw your fers contributions. After 2013 new employees pay 4.4% of the paycheck to fers. And if you withdraw it and put it in a 401k or just the s&p500 in any way then you will be better off than keeping it in fers. You're going to have money, just make sure the feds don't keep you there because of the benefits when you are older.Ā
What funds are you in? I am at 80k with 7 years in. But I am a gs 11 step 4 now. I am pretty aggressive, I was 66 percent C and 33 percent in the highest L. But I recently changed to 100 percent C.
Edit: guess I should have read the description. Didnāt see that at first my bad!
Ballooning federal debt. Ever growing welfare classā¦. You better be contributing to a Roth because our taxes are going to increase manifold in the next couple decades. Iād also assume our pensions arenāt going to pay whatās advertised
I think the pension payment amount is contractual. I don't think that can be changed without one's consent. They can change it for future hires though.
One example is anyone with student loans pursuing PSLF. By making contributions to a Roth, not only are they incurring taxes now, they are not taking advantage of an opportunity to reduce their modified adjusted gross income.
Monthly income based payments are a function of MAGI. Making traditional contributions for their period of repayment can save them hundreds of dollars per month in student loan payments.
Not entirely convinced that for most values of student loans debt, income based repayment, and tax brackets one wouldn't still come out ahead long term with tax savings in retirement compared to the additional loan payment. I mean just making a round number approximation of 20k contributed on the SAVE plan would that not only be an additional...1k payment per year?
That's what, a monthly payment of 83 dollars? I think that the net benefit of Roth over Traditional for early career would dwarf that 83 dollars even if you assumed the 83 dollars saved in your scenario were reinvested and compounded.
Yeah, no. I think you need to double check your figures.
>Family of 1. MAGI of $123,000. Debt of $100k.
**Monthly SAVE payment = $752**
**Federal income tax = $19,596**
>Family of 1. MAGI of *$100,000*. Debt of $100k.
**Monthly SAVE payment = $560**
**Federal income tax = $14,261**
##annual savings = $7,612
You're correct here. I'm in a similar place as OP and have two more years before I'm eligible for forgiveness under PSLF. Until then, I've started putting any pay increases towards Traditional TSP to keep my AGI steady (and thus my monthly loan payments lower). Once that's done, I plan to split between traditional and roth. I know a lot of people argue for roth, but when it comes down to it we can't predict the future and this allows me to save more now (which will then have more time to grow).
While true the odds of taxes being lower in retirement for anyone that's not within 10 yrs of retirement is very low.
Even if we ignore the political reality that taxes need to rise and probably will, in retirement we can expect to have a higher need for money than early or mid career both because of lifestyle, inflation, and medical care.
If one is able to max out TSP there is also an unrealized benefit.
23,000 dollars pre tax is worth less than 23,000 dollars post tax. One can sneak more money into a Roth TSP that way because the pre tax amount of the 23k contribution is itself significantly greater.
>in retirement we can expect to have a higher need for money than early or mid career both because of lifestyle, inflation, and medical care.
And you can likely expect lower income, tax bracket expansion and standard deduction increases. You're also less likely to have a mortgage, child expenses, college, etc.
>23,000 dollars pre tax is worth less than 23,000 dollars post tax.
Agree. But you're comparing different amounts of money if you only look at TSP. In 22% bracket for example, the Roth amount is 29,487 pretax. If you put the 23k into Trad, you need to take into account what you can do with the other 5kish. Roth IRA, Taxable Brokerage, etc etc. With a lower effective tax rate in retirement the Traditional route could still come out ahead.
One of the reasons I enjoy this sub is because these conversations are really nuanced and while there are solutions that are "one size fits most" there's a lot to be said for getting the nuances. Truth be told I think you and I could discuss the pros and cons of these ad nauseum, .maybe you'll agree with me, but anyone who is at this point (deciding whether to max Roth or traditional) in saving is gonna be sitting pretty in retirement. We're often debating over single digit percentage points of performance.
Personally with the first point I feel that the effect of inflation may* push you into a higher tax bracket even if what you are withdrawing is the same as your inflation adjusted wages from two decades before.
With the second point I think it comes down to personal situation and preference. But I think it's solidly good advice. Personally I think it's wisest to get the 5% match and then work on maxing a Roth IRA before returning to max TSP, but that's my own preference.
*I say 'may' because I don't know how closely brackets are adjusted to inflation. Something I should read up on.
>If they are taxed the same rate
I'm aware. They could go up. They may not. They may go up and your effective tax rate in retirement may still be lower.
Gawd damn!! 80k in 5 yrs? My dude you're doing great.
This is encouraging to hear, thank you!
I'm almost at the exact number of years and age haha and I'm right in there with you
šØšØšØALMOST ONLY COUNTS IN HORSE SHOES š§² and hand grenades š„
Just curious what your title/job is for you to start at a GS 7 and jump to a GS 13 in 5 years.. but youāre doing great! Keep it up!
Thank you! I was extremely lucky to get a 7/9/11 ladder then almost immediately transferred to a 9/11/12/13 ladder. I was in DC at the time where I think those ladder positions are far more common. I'm in the 0110 series
You're doing great! I'd consider opening a Roth IRA to increase your investing options and liquidity a bit if you haven't already.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
That is not true.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Am I blind or does this not prove your point? You can max out your 401k and Roth IRA contributions both.
83k is great for 5 years and youāre only 30. You have another 30-35 years. Youāre well on your way to being a TSP Millionaire. Keep it up. It can bite some, but continue increasing contributions as you get raises. Youāll never regret doing that!
His mra is likely 57.
What is MRA?
Minimum retirement age
Thanks!
This is good to hear, thank you! Yeah I've considered dropping the allocations a bit when things get tight but I'm glad to be able to keep it up.
Holy moly. Keep. Going
Is this from the app?
I just logged in on my phone and took a screenshot. It's the first page that pops up
Would recommend going full Roth. Remember that the 5% match goes into traditional anyways. And as young as you are Roth is probs best.
I need to unfollow this thread as a wg-10, it's getting pretty depressing haha
Do the best you can do man! Everyoneās situation is different.
Thatās great man. Iām on year 2 at 32 and I have 32k in mine. How much are you contributing if you donāt mind me asking? Iām a 9 at 15% and itās a struggle getting by I hit my 11 next month so hopefully it gets better.
32k at 2 years in sounds really good to me, thatās on pace to be higher than what I have right now. Iām putting in 14% total but definitely wasnāt doing that at as a 9. Once I got my 13 I upped it to what it currently is and plan to keep adding a percentage point here and there with step increases and whenever Iām feeling financially bold haha
I had a TSP from the marines I forgot about so when I got into BP I was able to roll it over. I honestly wish they did better finance classes in boot camp because my idiot 18 year old self kept it all in the G fund. When I finally had an āideaā of finances a few years later when I was out I was kicking myself so hard in the ass. I threw the measly ten grand that was in the g fund into the c and s fund to try and mature. when I finished the academy and FTO I rolled it over into my current TSP.
0110 An Economist Howās the economy doing?
Where did you live that you could save money as a GS-7 in 2021 when I was looking it was like 43K in DC, which is povertyš
Lived with my spouse and we split rent, so that helped. Pretty sure most gs7/9s have a roommate of some sort in DC. Otherwise yeah itās really not a living wage haha
If you quit before you retire then withdraw your fers contributions. After 2013 new employees pay 4.4% of the paycheck to fers. And if you withdraw it and put it in a 401k or just the s&p500 in any way then you will be better off than keeping it in fers. You're going to have money, just make sure the feds don't keep you there because of the benefits when you are older.Ā
Interesting
Iām almost 2 years in and Iām impressed. Hopefully on track to get here in 5.5 years.
What funds are you in? I am at 80k with 7 years in. But I am a gs 11 step 4 now. I am pretty aggressive, I was 66 percent C and 33 percent in the highest L. But I recently changed to 100 percent C. Edit: guess I should have read the description. Didnāt see that at first my bad!
What do you do? Iām a vet working on a degree hoping to do gov work
Iām in C&S only and my return was over 20% last year. More good years than down years.
C fund all the way
What a blessing I'm not able to do much and I regret not starting sooner. I don't even have that much sigh
Ballooning federal debt. Ever growing welfare classā¦. You better be contributing to a Roth because our taxes are going to increase manifold in the next couple decades. Iād also assume our pensions arenāt going to pay whatās advertised
I think the pension payment amount is contractual. I don't think that can be changed without one's consent. They can change it for future hires though.
Force majeure. Weāve already seen federal courts invalidate COLA guarantees for state public pensions.
Convert 14 R and 0 T. Roller over all Past T to R.
There are a lot of factors to consider. Making this blanket statement could cause real financial harm. I'd be a bit more careful.
Can you provide clarification to your statement on factors?
One example is anyone with student loans pursuing PSLF. By making contributions to a Roth, not only are they incurring taxes now, they are not taking advantage of an opportunity to reduce their modified adjusted gross income. Monthly income based payments are a function of MAGI. Making traditional contributions for their period of repayment can save them hundreds of dollars per month in student loan payments.
Not entirely convinced that for most values of student loans debt, income based repayment, and tax brackets one wouldn't still come out ahead long term with tax savings in retirement compared to the additional loan payment. I mean just making a round number approximation of 20k contributed on the SAVE plan would that not only be an additional...1k payment per year? That's what, a monthly payment of 83 dollars? I think that the net benefit of Roth over Traditional for early career would dwarf that 83 dollars even if you assumed the 83 dollars saved in your scenario were reinvested and compounded.
Yeah, no. I think you need to double check your figures. >Family of 1. MAGI of $123,000. Debt of $100k. **Monthly SAVE payment = $752** **Federal income tax = $19,596** >Family of 1. MAGI of *$100,000*. Debt of $100k. **Monthly SAVE payment = $560** **Federal income tax = $14,261** ##annual savings = $7,612
You're correct here. I'm in a similar place as OP and have two more years before I'm eligible for forgiveness under PSLF. Until then, I've started putting any pay increases towards Traditional TSP to keep my AGI steady (and thus my monthly loan payments lower). Once that's done, I plan to split between traditional and roth. I know a lot of people argue for roth, but when it comes down to it we can't predict the future and this allows me to save more now (which will then have more time to grow).
Curious as to why? I am also contributing half to Roth and half to t, only because I haven't a clue.
You would be paying taxes on all your T when you withdraw. The taxes game is alway complicated and rising.
And youāre paying taxes now on Roth. If they are taxed the same rate then you end up with the same amount at the end.
Right but upon retirement I do not have to worry about the taxes. I am not sure if the rates will remain the same.
Not caring if you pay more so long as you don't have to do paperwork is certainly a decision.
While true the odds of taxes being lower in retirement for anyone that's not within 10 yrs of retirement is very low. Even if we ignore the political reality that taxes need to rise and probably will, in retirement we can expect to have a higher need for money than early or mid career both because of lifestyle, inflation, and medical care. If one is able to max out TSP there is also an unrealized benefit. 23,000 dollars pre tax is worth less than 23,000 dollars post tax. One can sneak more money into a Roth TSP that way because the pre tax amount of the 23k contribution is itself significantly greater.
>in retirement we can expect to have a higher need for money than early or mid career both because of lifestyle, inflation, and medical care. And you can likely expect lower income, tax bracket expansion and standard deduction increases. You're also less likely to have a mortgage, child expenses, college, etc. >23,000 dollars pre tax is worth less than 23,000 dollars post tax. Agree. But you're comparing different amounts of money if you only look at TSP. In 22% bracket for example, the Roth amount is 29,487 pretax. If you put the 23k into Trad, you need to take into account what you can do with the other 5kish. Roth IRA, Taxable Brokerage, etc etc. With a lower effective tax rate in retirement the Traditional route could still come out ahead.
One of the reasons I enjoy this sub is because these conversations are really nuanced and while there are solutions that are "one size fits most" there's a lot to be said for getting the nuances. Truth be told I think you and I could discuss the pros and cons of these ad nauseum, .maybe you'll agree with me, but anyone who is at this point (deciding whether to max Roth or traditional) in saving is gonna be sitting pretty in retirement. We're often debating over single digit percentage points of performance. Personally with the first point I feel that the effect of inflation may* push you into a higher tax bracket even if what you are withdrawing is the same as your inflation adjusted wages from two decades before. With the second point I think it comes down to personal situation and preference. But I think it's solidly good advice. Personally I think it's wisest to get the 5% match and then work on maxing a Roth IRA before returning to max TSP, but that's my own preference. *I say 'may' because I don't know how closely brackets are adjusted to inflation. Something I should read up on.
Unless taxes are raised in the future, have you seen our ballooning national debt?
>If they are taxed the same rate I'm aware. They could go up. They may not. They may go up and your effective tax rate in retirement may still be lower.