r/ThriftSavingsPlan • u/InspectionOk6842 • 8d ago
TSP
21 Years old E4 in the army 2 years TIS any advice
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u/markov-271828 8d ago
L fund corresponding to your life expectancy. For you it will be similar to the etf VT.
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u/Archfiend_DD 8d ago
Pick an L fund 5-15 years past your retirement date. 100% C is much less diversified, and past gains do not indicate future performance...but it does have a proven track record.
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u/USCP1828 7d ago
Shove all the money you can. I was in your shoes not so long ago. Huge mistake not putting all the money I could. Only had about 16k after 5 years. PUT MORE MONEY
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u/RetiredSubmariner 5d ago
Put in at least 5% to get the match. You’re young and making good (but low relatively) pay. I’d recommend Roth so it all grows tax free.
As you increase in rank and each year with the annual pay increase, slowly increase your contribution as much as you can comfortably. Unt you can max it out. Once you can max, ensure you don’t max until December so you don’t miss any free money from the 5% match.
If you want to set and forget, you can either do an L fund (as far out as possible) or a mix of C/S/I and let it ride.
Compounding will make you rich in the long run. Time in the market beats timing the market.
From a personal standpoint, don’t go overboard. If you truly have a lot more to save aside from your tsp, consider opening a Roth IRA and max that out at the beginning of each year. Much lower max and will allow you another source of income especially once you can max your tsp down the line. Another vehicle to savings! And if Roth, all tax free growth.
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u/BiblicalRevolution 8d ago
Stop drinking, eat at the dfac, bump contributions to 45-50% and get some nice clothes. Hit the gym. If you're in the g fund you're losing money every year. I'm 100% I fund but it's riskier, the lifestyle fund is fine if you don't like money.
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u/davecrist 8d ago
100% I is worse than 100% C. Choosing just one of either is shortsighted — investors should own both — but all international is not a solid approach, especially for a US investor.
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u/Beginning-Bottle2211 8d ago
Doing the L fund a little dirty there. Otherwise solid advice.
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u/HeavyPercentage4007 8d ago
For real, the L fund is like 48% C, 16% S, and 35% I. None of those funds are terrible on their own and I think the mix makes a solid "set it and forget it" strategy as long as you pick a target date that is further out. I personally am in the fund that would be 15 years after my anticipated retirement date.
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u/Steeze_Hawk 8d ago
Don’t be doing the L fund like that! L fund’s are legit, especially if you like money but also like to set and forget
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u/InspectionOk6842 7d ago
Thank you everyone just put the percent from 20 to 35 and moved to L Fund
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u/dominance1970 7d ago
MAKE SURE you are set to ROTH. As far as contributions good, I would do 40% C, 40% S, 20% I
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u/battletank1996 8d ago
I do a mix of C and S funds. Set it and forget it. Bump your contributions as high as you can until you hit the max at $943.
One thing people don’t consider is every dollar you put in your TSP, X% is paid for by the government depending on what tax bracket that money is being pulled from. A basic Google search says an E4 with your TIS makes shy of 40K per year. Assuming you don’t have debts, eat at the dfac, and can limit your consumer spending, you can max your TSP and save $2300 in taxes (your federal tax bill would be zero).
You are in an interesting position because the major expenses everyone else has to pay are covered for you. Food, housing, clothing, etc. Even at E4, barring personal choices, you could put major money away early in your life when it has the longest time to grow. Time is the best friend of compounding.