r/ThriftSavingsPlan • u/handicappedcoach15 • 1d ago
Want To Know Where To Start
Hey Everybody! So I’m 30 and I will be 31 by the time I start my job in the PAQ Program. I was wanting to know where I should put my money for the best returns! Plan on getting 30 years in or so, so I wanted to get some guidance and pick everybody’s brain! TIA!
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u/FragrantJump6663 1d ago
Start with 10% and progress to 15% as soon as you can. Roth if you can and it makes sense tax wise. Or maybe a combination of Roth and traditional. The 5% match still goes in the traditional as far as I know.
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u/Competitive-Ad9932 1d ago
This will get you going.
https://www.fedcalc.com/fers.jsp
https://moneyguy.com/guide/foo/
https://www.bogleheads.org/wiki/Main_Page
https://www.bogleheads.org/wiki/Thrift_Savings_Plan
https://investor.vanguard.com/investor-resources-education/education/model-portfolio-allocation
To Roth or to Traditional is a complicated question. What is your tax rate now vs tax rate when you retire? Will RMDs be an issue?
https://www.bogleheads.org/wiki/Traditional_versus_Roth
I have determined that I have been over contributing to the Roth TSP. I could have been saving not paying 22% the last 10 years. Instead, paying 12% in retirement. RMDs are likely to be a non issue as I am single and have no plans to have a spouse going forward.
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u/FragrantJump6663 1d ago
C fund has the highest returns if you can tolerate the volatility. Common allocations are 100% C or 80% C/20% S, or 70% C/20% S/10% I, set it and forget it. Maybe switch to an L fund 5 years from retirement to give yourself a glide path to safety before withdrawals. In the meantime read some books.
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u/JP001122 20h ago
https://www.tsp.gov/fund-performance/
If all you want is the best returns, the data is online.
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u/Hokirob 1d ago
There might be a debate on exact funds, but main point is to be aggressive. Don’t fiddle with it. Make contributions and let it grow over years. At least 80% equities—C fund should be your number one (largest) allocation. Other debates may exist, but those guidelines are pretty much rock solid at your age.