Maxing TSP

[D-Dub]

Do not listen to any pseudo finance guru of your facility who ppl think has the market cornered because he bought GME during the pandemic!!! Do your own DD.

My due diligence says a massive raise is coming soon so at that point I will have much more flexibility with diversifying investments TSP, et al. The RAZEWEN movement will have us going from Top Ramen back to the Top shelf. Cheers 🍹

Manchuren soon?!

 

[Golf delta]

So 884.62 effective for 12/17? Would that be right?

 

[GulfCharlie]

So 884.62 effective for 12/17? Would that be right?

Affirm, I maxed out again starting 12/17. ajmezz you doing alright bro?

 

[TimShady]

You have to do whole dollars, so $885, and it automatically reduces the last pay period to keep you from going over.

 

[Brotallion]

What are the odds they catch that I slightly go over the combined limit between my two TSPs? Or at least go back and take their matching?

 

[Acquired Taste]

Hypothetical for all you guys who are big believers in maxing your TSP... Why not get even more strategic with it? Like you guys want to get the max return right? And time in the market is better than timing the market they say. So lets say you're going to make 200k this year. You have to put in 5% to get the governments 4% match to maximize value so that's 10k. So if the new limit is 23k, you can put your first 3 paychecks to contribute like $4,3k, and then split up the remaining 10k between the remaining 23 pay periods and change it to $435ish for the rest of the year. That way you maximize time in the market to get more money compounding earlier in the year while also maximizing the employer match. Just something that crossed my mind.

 

[TimShady]

Some people do that. Or fully fund an IRA in January so it has more time to accrue interest. Problem is you are timing the market by doing that vs dollar cost averaging over the year, which is seen as less risk. I think I’ve read a study that compared the two strategies and front loading actually did come out ahead slightly on average, but to me saving and investing consistently over time and just getting in that habit is the better way to go.

 

[32andBelow]

Some people do that. Or fully fund an IRA in January so it has more time to accrue interest. Problem is you are timing the market by doing that vs dollar cost averaging over the year, which is seen as less risk. I think I’ve read a study that compared the two strategies and front loading actually did come out ahead slightly on average, but to me saving and investing consistently over time and just getting in that habit is the better way to go.

Time in the market is also a good buy and hold strategy.

 

[GulfCharlie]

Updated TSP chart for contributions.

 

[Raise when?]

Hypothetical for all you guys who are big believers in maxing your TSP... Why not get even more strategic with it? Like you guys want to get the max return right? And time in the market is better than timing the market they say. So lets say you're going to make 200k this year. You have to put in 5% to get the governments 4% match to maximize value so that's 10k. So if the new limit is 23k, you can put your first 3 paychecks to contribute like $4,3k, and then split up the remaining 10k between the remaining 23 pay periods and change it to $435ish for the rest of the year. That way you maximize time in the market to get more money compounding earlier in the year while also maximizing the employer match. Just something that crossed my mind.

Nice. i'm too lazy for that, but good thinking