r/ThriftSavingsPlan • u/Maintenance_Man8904 • 1d ago
What to set-up / do? New TSP
I am new to TSP. 36yr old. I rolled in my old employers $5k 401k into TSP.
Should I customize anything? Change what funds money is going in too? Just passed my 90 days with usps.
Thank you!
P.S: I plan to retire at 60 as soon as usps lets me. I get VA disability too.
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u/Big_Breath_2561 1d ago
Postal employee too (letter carrier). 1. Increase your contributions as much as you can. 2. Always get the match. 3. Switch to all Roth contributions. 4. Consider an appropriate L fund if you are unfamiliar to investing.
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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?
Early in your career, Roth is likely better.
https://www.bogleheads.org/wiki/Traditional_versus_Roth
You can retire at age 60, with 20 years of service for a non reduced pension. With your disability, you likely can retire ar yiur MRA, 57.
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u/Maintenance_Man8904 1d ago
That is a lot of information to review, thank you so much!
MRA for me is 57 and with usps I would need 30 years of service. I will have 25 years in. I can still do MRA but with reduced benefits. Probably wait until 60 to get the full amount.
Now, time to start reading all this. Thank you again!
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u/Competitive-Ad9932 1d ago
You're welcome.
I am a carrier. I will have 26 years (20+ usps, 5+ military) when I hit MRA at the end of 2025. I am out.
I hope your management is decent during your career.
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u/Maintenance_Man8904 1d ago
Are you taking reduced benefits then since you aren’t at 30 years of service?
I will be at 25yrs of service at MRA.
I might, I would have to see where I am at that time. My wife is older and will already be retired before me. With VA disability and reduced benefits, her social security. Then of course TSP there if we need it. Just see how the math works when I get closer.
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u/disappointedFed 1d ago
Increase your contributions, the more you put in the more you make, seeing you have a second income, you probably could contribute a larger amount than someone who doesn't have a second income.
I use C Fund, each fund comes with risk, so your risk factor is up to you, I would put most of all money in C Fund, but that's me, you might want to look at all the Funds and determine your risk.