Hello. I’m 27 yrs old and I’m hitting a wall on how to save for the future- short and long term. I am single and currently make $114K from wages and one rental property in a low COLA. Because I’m in the military my after taxes wages are roughly $70k. My fixed expense are $32k/yr. i have no car payment just my 2 mortgages ( my house and rental), phone bill, utilities and car insurance, I currently have $50k in TSP with a combination of C & S funds. I contribute about $14k to TSP a year and max out my Roth IRA with Vanguard for a total of $20K towards retirement each year plus matching contributions by the gov. Between the 2 Vanguard funds I have $15k. I have another $40K in a high interest savings account earning a good rate (emergency fund). My questions are: 1. Should I continue to contribute to a high interest savings account each month ($1300/month)? Or should I park my money elsewhere? 2. I want to save for big items like a down payment on another rental house and a new car. I didn’t like the returns on a HI savings account so I opened a brokerage account with Vanguards. Was that the right idea or is there a better way?
3. I didn’t contribute the full $19k to my TSP. Should I fork over the xtra $5k a year to max it out? The only reason I didn’t was because I didn’t want to tie up so much money to my retirement accounts. Once it’s there it’s hard to withdraw it in case of an emergency or to build more wealth through other investment opportunities.
Thanks for any advice.
Submitted December 26, 2019 at 09:35PM by jmkroman24 https://ift.tt/2Mvc77t
