Comments on: Should You Invest in a Roth IRA or Thrift Savings Plan?

By: Dissatisfied Customer

Dissatisfied Customer — Tue, 25 Oct 2016 14:12:29 +0000

DO NOT invest with TSP if you need any customer service. I was totally unable to do a simple change of beneficiary because of bad information and poor customer service. So I have withdrawn my entire balance (>$0.5M). TSP’s costs are low, but you get what you pay for.

By: Jeff Rose

Jeff Rose — Fri, 20 May 2016 00:58:03 +0000

In reply to Daniel K. Good catch Daniel!

By: Daniel

Daniel — Tue, 19 Apr 2016 02:45:34 +0000

In reply to Jeff Rose. Jeff, I've just started listening to your podcasts recently so I knew that about your military service. I definitely have appreciate your advice and perspective in the ones I have listened to as well as on your blog. I'm active duty myself now (O-3 with 8 years service), but disagree with you that the TSP doesn't offer enough options. For the average young investor starting out, using the C, S, and I funds can be everything they need. A Roth IRA is a great option as well, but should be the second option once the max TSP contribution is reached. For those later on in life, with more assets, or approaching retirement then yes, I think they need some more options that the TSP does not provide.

By: Jeff Rose

Jeff Rose — Mon, 18 Apr 2016 17:52:50 +0000

In reply to Daniel K. @Daniel I was in the military (mostly part-time with one deployment) for 9 years and I never put a single penny into the TSP. Why? Yes, it's very low cost, but cost shouldn't be the only criteria in choosing your investments. The TSP, in comparison to a Roth, is very generic (ex. "G Fund") and offers very few choices where with a Roth the choices are almost unlimited.

By: Daniel K

Daniel K — Mon, 18 Apr 2016 02:05:23 +0000

Jeff,

Love your writing but you did not mention that members have the option (since 2012) to designate TSP contributions as Roth not just traditional. Since the TSP is still the cheapest option in town, most military members should first try to maximize their Roth TSP contributions before contributing to a Roth IRA.

By: Christian L.

Christian L. — Tue, 26 Mar 2013 19:46:41 +0000

Jeff,
We can never talk too much about saving money! That new Roth TSP option is getting super popular. From November 2012 through December, the number of enrolled military members almost quadrupled. I imagine that number will continue to increase.

-Christian L. @ Smart Military Money

By: Keith

Keith — Tue, 02 Oct 2012 21:12:34 +0000

Hey, love this piece. I think it’d be worth mentioning that as of July 2012 the government has set up a Roth TSP option for employees. Also, although you can’t make withdrawals from TSP accounts, you are allowed to take out loans up to $50,000 at a low cost of $50. You pay these loans back with interest but the interest goes into your account. For these reasons, including yours regarding the contribution limits, I’m leaning on the Roth TSP. I recently made full time at my job so I changed my contributions from contributing 20% to the basic TSP to investing 5% to the basic TSP account and 20%to the Roth TSP account.I’m also expecting a promotion in the next few months that will boost me from $30,000 to $40,000, at which point I will increase my total contributions 5-10%. I havent decided how I’d allocate the increased contributions (roth or basic) yet though. I’m 26 years old and extremely new to this investing thing which also has a lot to do with my choice.

By: cheeseman

cheeseman — Mon, 30 Jul 2012 23:59:47 +0000

In reply to estherlyne bayangos. Whatever you do, DO NOT invest any money through a bank; go to any of the mutual fund companies, Vanguard, Fidelity, T Rowe Price, etc. and do it yourself online or by calling them toll free. Vanguard usually has the lowest maintenance fees.

By: estherlyne bayangos

estherlyne bayangos — Sun, 17 Apr 2011 10:26:34 +0000

I am Planning to open a Roth IRA but I am nost sure where to open one.Is it safe to do it online or just open it at my local bank? I have friends that tell me to open at Vanguard,what do u recommend?