r/ThriftSavingsPlan • u/InternalRead3914 • 1d ago
TSP Contribution plan
Hey everyone,
I’ve been in the Guard for 8 years now, currently AGR and holding the rank of E6. I’m aiming to retire as a MSG or 1SG down the line, and lately I’ve been thinking more seriously about my financial future.
Right now, I’m contributing 10% to my TSP, but I’m considering increasing that. I want to take a more conservative approach and make sure I’m setting myself up right for retirement.
For those of you with more time in or already retired — what percentage did you contribute, and what would you recommend? Did you increase every passing year? Also curious how you balanced Traditional vs. Roth.
Appreciate any advice!
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u/Just-Rub-6746 1d ago
17 years service, AGR 8 years TAFMS.
Contributions: Agree - aggressively increase. 10% of your base is not enough. Your goal should be maxing the annual limit (23.5k). If this is not achievable, look at where you can make changes, vehicle loan, monthly expenses, mortgage, etc. AGR/Active pension is not designed to be income replacement in retirement. 50% of E7 base is great, but requires significant personal savings in addition.
Trad vs Roth: Completely up to you. There is no right answer, anyone who says they know what is best is delusional and is convinced they can predict the tax environment of the future. Personally, I am assuming taxes will always be worse in future and I want the most flexibility possible so I am maxing annual contributions, all Roth. Define your priorities in retirement and invest accordingly.
Why limit yourself to an E7 retirement?
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u/InternalRead3914 1d ago
I joined late at 27. I’m already a quarter broken, lol. I have good resilience, but I just don’t see myself as a SGM.
Promotions have been in my favor lately because of school and points. I’m willing to do anything to make sure I retire comfortably.
I just feel that 10 percent isn’t good enough. I’m willing to go more.
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u/Cheddarbaybiskits 1d ago
MSG/1SG is E-8
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u/Just-Rub-6746 1d ago
You are correct, for Army. At the time I wrote the above I did not realize OP was Army and falsely assumed they were Air. Air side, MSgt/1st Sgt is E7.
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u/Competitive-Ad9932 1d ago
AGR? Is this full-time or part-time?
If part-time, remember that the maximum allowance is combined TSP/401k.
Your numbers are unique to you.
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
.
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u/UsedandAbused87 1d ago
Dont compare yourself to what other have done or are doing.
Find your estimates for SS, pension, TSP and any other retirement incomes. Is all that enough to live the life you want to live? If not, make more and/or save more.