Maxing TSP

Level 6 country club ? About 90k (base) plus 6% cip is when I started to max. I was also getting 150-200 hrs a year ot. So total gross was about 115k. I was 34 and had 5 years in just doing 5%.

If you can start maxing prior to 30 you will be in a great position.
Best tip I can give is to put every raise towards tsp if maxing is your goal. Example: Jan pay raise $1= add $80 to TSP.

This year my gross was 130k and I maxed tsp and both of our Roth's (6k each).

I like my job but I don't want to work 1 day past 50.
 
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Whatever level 12 D2 salary +28% locality was in 2015 probably $90kish?
 
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I maxed out my TSP a few weeks ago, D2, but since then D3. My wife has been working more and that helped us out. I wanted to be able to "See" my last 2 raises.
 
CF said:
that’s what motivated me to go balls out on paying it down. Having no interests is so huge for getting that balance down.
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Absolutely, keep it up!

CF said:
Yeah I started really dumping money into them before they reworked it and I did the math based on interest and the income driven repayment over 10 years I’d not be losing that much money so I just kept with it. The value of being debt free is also pretty high for me. If they would have done the reforms earlier I would have probably done it. But I’m almost under 10k now so I might as well just finish it off.
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Too bad Uncle Joe didn’t wipe off the debt.
Or the $50K he promised,
Or the $10K he promised,
Or… oh well?
*kidding*
 
Dolan said:
What tax savings? Be specific. We're talking about a roth retirement account, lots of options other than the TSP
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I mean you have access to savings from earnings on a Roth or just the tax refund from traditional
 
CF said:
Started out just doing enough to get the match then I stopped increasing with my raises so I could focus on student loans. The amount of interest accrued on 40k in student loans is way more than any return you’ll see on the tsp so I’m “avalanching” my debt then I’ll switch that money to maxing it out when I’m done. (Have paid about 25k off since may of 2020.)
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You gotta refinance that shit...I'm getting 1.75% right now, my interest rate on my student loans ($55k) is only $100/mo.
 
I always tell folks to do what you want to do. As it relates to saving or spending someone's hard earned cash, I'm not ever going to attempt to change someone's mind. But here's my story...

I maxed-out TSP contributions from day one as a DoD 2152, GS-11 Step 1 - which was roughly $50,100 per year. That was pre-SSR DoD pay and TSP contributions were limited to a percentage of salary instead of dollar amount. That's pre-2004 for those of you not in the know.

I wanted to max-out TSP contributions from day one for three reasons: 1) I am a simple person that grew up dirt poor and developed very simple wants; 2) I planned to retire when I was first eligible... at age 50 with 20+ years of creditable time; and, 3) I was living in an area of the country with a state/local income tax and I wanted to take advantage of contributing pre-tax earnings to limit tax liability.

- Simple wants. I don't have any fancy or expensive "toys" and I've always paid cash for everything I've bought (except my homes... because the mortgage interest tax write-off helps to reduce tax liability). I've never wanted a fancy car, his-and-hers jet skis, or a fancier boat; a trip to Vegas or the local casino; or $15k mountain bikes or $5k golf clubs. The conversations in the facilities I've worked at about 'who-has-what' have always interested me but I just kind of nod and take note.

- Retirement. It's actually quite simple yet so difficult for air traffic controllers to comprehend. Let me explain it like I would to a eight-year old: On your first day of work as a 2152 (FAA or DoD), you are on an expiration clock. The expiration clock I speak of is mandatory retirement. And the more money you can put away earlier in your career, the easier it will be to wake-up when you're eligible to retire and say "f*ck this, I'm outta here." I don't want to "retire" and have to turn-around to work in a contract tower to make ends meet. Compound interest is not some magical puzzle that can never be solved; it's actually a beautiful thing that produces beautiful results.

- Limit tax liability. Enough said. F*ck taxes. And I've tried to find the benefit in contributing to the Roth TSP option, but I haven't yet... at least in my financial situation. I just cannot foresee needing more money for day-to-day living in retirement than I need today. And since I plan to "earn" less annual income in retirement than I currently do, the tax benefits to investing via the Roth option are not really suitable for me as I intend to be in a lower tax bracket after retirement. Of course, federal tax legislation could change things up but I will take that change as it occurs and then adjust fire.

While I am not currently eligible to retire (too young, not enough years), I have reached seven-figures in my TSP account and I have another good 5-10 years left in me. Or, I could wake-up any day after I reach retirement eligibility and say "f*ck this, I'm outta here." But you do what you want to do. You'll get no lip from me.
 
echster said:
I always tell folks to do what you want to do. As it relates to saving or spending someone's hard earned cash, I'm not ever going to attempt to change someone's mind. But here's my story...

I maxed-out TSP contributions from day one as a DoD 2152, GS-11 Step 1 - which was roughly $50,100 per year. That was pre-SSR DoD pay and TSP contributions were limited to a percentage of salary instead of dollar amount. That's pre-2004 for those of you not in the know.

I wanted to max-out TSP contributions from day one for three reasons: 1) I am a simple person that grew up dirt poor and developed very simple wants; 2) I planned to retire when I was first eligible... at age 50 with 20+ years of creditable time; and, 3) I was living in an area of the country with a state/local income tax and I wanted to take advantage of contributing pre-tax earnings to limit tax liability.

- Simple wants. I don't have any fancy or expensive "toys" and I've always paid cash for everything I've bought (except my homes... because the mortgage interest tax write-off helps to reduce tax liability). I've never wanted a fancy car, his-and-hers jet skis, or a fancier boat; a trip to Vegas or the local casino; or $15k mountain bikes or $5k golf clubs. The conversations in the facilities I've worked at about 'who-has-what' have always interested me but I just kind of nod and take note.

- Retirement. It's actually quite simple yet so difficult for air traffic controllers to comprehend. Let me explain it like I would to a eight-year old: On your first day of work as a 2152 (FAA or DoD), you are on an expiration clock. The expiration clock I speak of is mandatory retirement. And the more money you can put away earlier in your career, the easier it will be to wake-up when you're eligible to retire and say "f*ck this, I'm outta here." I don't want to "retire" and have to turn-around to work in a contract tower to make ends meet. Compound interest is not some magical puzzle that can never be solved; it's actually a beautiful thing that produces beautiful results.

- Limit tax liability. Enough said. F*ck taxes. And I've tried to find the benefit in contributing to the Roth TSP option, but I haven't yet... at least in my financial situation. I just cannot foresee needing more money for day-to-day living in retirement than I need today. And since I plan to "earn" less annual income in retirement than I currently do, the tax benefits to investing via the Roth option are not really suitable for me as I intend to be in a lower tax bracket after retirement. Of course, federal tax legislation could change things up but I will take that change as it occurs and then adjust fire.

While I am not currently eligible to retire (too young, not enough years), I have reached seven-figures in my TSP account and I have another good 5-10 years left in me. Or, I could wake-up any day after I reach retirement eligibility and say "f*ck this, I'm outta here." But you do what you want to do. You'll get no lip from me.
Click to expand...
Promote this man and heed his words.
 

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