Category Archives: Retirement Planning

Roth Conversion of a TSP Account: A Case Study

I’ve written several articles about Roth conversions, particularly tax planning considerations & marginal tax rate impacts.  This article serves as a case study to help visualize how a Roth conversion strategy could work, and how the tax liability can fluctuate … Continue reading

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5 Tax Planning Considerations of a Roth Conversion for Your TSP Account

Introduction Many people have taken advantage of the Roth TSP option since its inception in 2012.  However, there are still many federal employees and service members with most of their retirement savings in traditional accounts.  Naturally, this begs the question: … Continue reading

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30 Day Financial Transition Challenge Day 11: Retirement Accounts

Welcome to Day Eleven of the 30 Day Financial Transition Challenge.  Today’s article focuses on your retirement accounts. Bottom Line Up Front (BLUF)  Most military members and their families invest significantly in the Thrift Savings Plan, as well as individual … Continue reading

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5 Reasons to Consider a Traditional IRA

Everyone knows that tax-advantaged accounts can provide benefits that you don’t get from taxable accounts.  In the military, the Thrift Savings Plan is a great first step towards saving for retirement.  Within the Thrift Savings Plan, you can even choose … Continue reading

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6 Reasons to Choose a Roth IRA

Everyone knows that tax-advantaged accounts can provide benefits that you don’t get from taxable accounts.  In the military, the Thrift Savings Plan is a great first step towards saving for retirement.  Within the Thrift Savings Plan, you can even choose … Continue reading

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TSP’s Lifecycle Funds: What You Need To Know

There are a lot of people who wonder what TSP’s Lifecycle Funds are, what they are supposed to do, and how they are supposed to invest in them. This article aims to answer some of these questions and provide a … Continue reading

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Thrift Savings Plan Highlights from Director Greg Long

Normally, I write all of my blog posts, based upon research that I’ve personally done. However, last week I received a letter from TSP’s Executive Director, Greg Long. It accompanied the year-end statement, and is normally the type of document most people throw away with junk mail. However, I actually read it. Moreover, I liked what I read, specifically the Myth/Answer section. In case you missed the letter (or threw it away, like I used to do), I’ve recapped the Myth/Answers below for your benefit. Keep in mind, this isn’t the entire letter, and I’m not sure where you could find a copy of it online. Continue reading

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Why the Thrift Savings Plan Has Plenty of Diversification for Any Investor

This article first appeared as a guest post on Ryan Guina’s Military Wallet. Why Thrift Savings Plan Has Enough Diversification A solid investment approach requires a balanced, well-diversified portfolio.  Many people dislike the Thrift Savings Plan (TSP) because they feel … Continue reading

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Three Things About Thrift Savings Plan

TSP has the lowest investment costs of any investment vehicle out there. Take a look at Vanguard. Vanguard is generally regarded as the mutual fund industry’s low-cost leader due to its quantities of scale. When compared to their Vanguard counterparts TSP index funds are a fraction of even those. Let’s compare a $1,000 investment in the Vanguard S&P 500 Index Fund (.17% expense ratio) to the TSP C Fund (.029% expense ratio). That means for a $1,000 investment, Vanguard will charge $1.70 per year, while TSP charges 29 cents! By the way, in the mutual fund industry, an annual expense ratio below 1% is generally all right. However, index-tracking funds such as these should be below .5%, so you can see that Vanguard & TSP are both well below the industry standard. But TSP is better. Continue reading

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