I've been a government employee for over 10 years. I've done very well with the TSP but it wasn't always this way. Until 2013, i only put in 5% until my boss have me valuable advice. He asked me why i wasn't doing more and i told him i couldn't afford. He said "Yes you can, just increase your withholding." That day, i used the IRS withholding calculator and went from married 2 to married 9 and went to the max (17500 at the time). My take home pay actually increased. I've never owed more than 750 to the IRS after making my adjustment. Now i have a balance in the 6 figures. My balance has grown 11k this month (Jan 2018) alone.
While you may not be able to go to the max, you can do more than 5%. Do it, you will not regret out. I feel you probably can do 10% if you adjust your withholding using the withholding calculator. Then, every time you get a raise, promotion, or step then increase your contributions by 1%. Before you know it, your account will grow exponentially.
Personally, I'm 50/50 in the c and s funds. My ROI for 2017 is 19.84%. If you are close to retirement, you should take less risk. If you are younger, you should consider this option. Also, stay the course. In 2008, i purchased shares at 10 dollars per share. Those shares are now worth over 30 dollars per share.
I'm not a financial advisor. If you are uncertain about anything i said, seek professional advice. However, if that professional tells you to take money from your TSP, find another advisor because that person is either a snake or an idiot.
Downside - I don't have any other investments. It's a risk to have all my eggs in one basket. I'm willing to take this risk because this will change when my wife enters the workforce in 2 years.
Im giving this free advice because someone gave it to me. I just wish i had heard it sooner.
On mobile, i apologize in advance for any typos.
Submitted January 20, 2018 at 09:40AM by still_learnin http://ift.tt/2G00qjZ
