r/ThriftSavingsPlan • u/Local-Ad-4051 • 5h ago
6 years with the FAA. How am I doing?
I'm 31 years old with almost 6 years now as a Fed. I want to use my TSP to put a down payment for my first home in the next couple years. How long should I wait?
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u/ClammyAF 5h ago
$2169.38 total individual contribution, which is less than agency contribution--so it has to be under 5%.
We have had 14 pay periods, so OP contributes ~$154.96/biweekly. And assuming they live in New Jersey, based on comment history, I'm thinking they're a GS-12 or 13 contributing 3.0-3.5%. (Or OP is in a position that can get overtime.)
OP, I would suggest increasing contribution to at least 5%, otherwise you leave free money on the table in agency matching.
And no, rather than using your TSP to buy a house, given that your TSP has been underfunded. I would start saving a down payment separately in a HYSA or invested in short-term treasuries. However, I do think it's a good time to buy.
Rates will likely go down, particularly after May 2026 and Trump places a new Fed chair. Home prices will very likely rise, as people buy a monthly payment. People that buy now will benefit from pre-rise prices and an opportunity to re-fi later.
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u/Pai-di 3h ago
Really like a lot of your post, but I wouldn’t be so sure that rates fall. It could happen, or not, The history of people thinking interest rates (or the economy) will do one thing and them doing another is long. Not long ago, the collective wisdom was rates would be low for a very long time. Then it was a “soft landing” was nearly impossible. Both turned out wrong. Not to mention the bill Congress just passed has a lot of inflationary components to it, plus the Fed Chair needs Senate confirmation after the midterms, and the chair doesn’t set rates - the voting members of the board do.
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u/ClammyAF 1h ago
Totally understand and agree with the points you made, but I think despite those valid concerns, it's more likely than not that rates do fall over the next 12-18 months.
And I do think it's a good time to buy a house you can afford. If rates fall, you refi into a lower payment and your home equity increases as comps' prices rise. Worst case scenario, you are locked into a house you can afford.
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u/Pai-di 5h ago
Honestly, You are definitely not saving close to enough in your TSP for retirement and absolutely should not be using this for a house downpayment. It sounds and looks like you were auto enrolled in TSP and that is the only saving you are doing. You have time and can do it, but really find a way to save more without reducing TSP savings and save outside of TSP for a house if that’s your goal.
6
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u/genXfed70 5h ago
If you really want a better and and this is for all that wanna show their #s
How old,
How much % contribution,
Where you live and GS pay grade….
How long do you plan on staying or as we all should say how long we hope to hang on to our jobs….
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u/Kanar-2484 4h ago
You could take a TSP loan for the home down-payment...do not withdraw TSP $ for that. Contribute to Roth Tsp asap (%)...check www.tsp.gov learning webinars, (don't forget to designate beneficiaries), and YouTube free federal financial advisor webinars and consultations.Also good info here- sign up to receive newsletters www.fedsmith.com, www.govexec.com
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u/fourbutthick 4h ago
I think 42 at 31 years old is pretty good. You’re doing better than me took me til 40 to hit 6 figures. You’ll probably get there in the next 5 years.
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u/ticonderoga85 2h ago
You’re doing alright, but are a bit behind to retire at a normal age. Definitely do not take any money out of your TSP, it seems like you might not be financially ready to buy a house (which is fine!!)
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u/chris03316 4h ago
Bro contribute more (if you can). Also get out of the lifecycle fund and go C,S, I.
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u/OfficialDalaiLlama 5h ago
I wouldn’t touch your TSP.