Dave Ramsey, the popular financial radio show host, has some opinions on the TSP.
His main advice, don’t begin long-term investing UNTIL you are debt-free except your home.
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Cooper Mitchell helps federal employees better understand their benefits and helps them retire on their terms. Using financial planning and investment management through Cooper is able to tackle the issues that are unique to federal employees.
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"Some guy on the radio" not condescending at all my dude….. I guess Dave's recommendation of being heavy on C fund doesn't sound that bad now huh? When inflation is passing 8%….. ant idiot that has his money om G fund is sitting there literally giving money back after inflation…… dude respect those that are big in your field…. When you trying to create a gimmick marketing video make sure you have more than just your accounting degree and actual experience in life to try to knock someome down…. with your wise recommendations
… This was totally unexpected … Had to make sure I wasn’t watching a video about my garage gym for a second.
With the Russia/Ukraine debacle it seems like the international funds will lose money. I’m No expert so see me straight
I swear you are the guy from the home gym youtube channel. I could go check, but I know it's you. Funny seeing you here!!
Dave ramsey is 100% correct because the average person does nothing and so anything more complicated then this most people won't do it. your average person makes 50k a yr with 500 in savings, a mortgage car payment credit cards etc. your average person doesn't have assets like interest in a business, real estate, trusts and several streams of income outside of a 9 to 5 job. so yes, his principles fit just about everybody.
Should I cash out my TSP to build a garage gym?
HI – I am planning on retiring next year, have my TSP distribution on C&F. Should I stay or should I switch to G?
What's your opinion of the L 2040 TSP option? I haven't heard Dave discuss it.
I just joined civilian service and started TSP account. I started a Roth TSP and I had a former employer with a Roth 401 k what i didn't know is both employers matched via traditional for tax purposes…when speaking with my advisor it meant that a amount will be tradional and the other would be Roth…split between the two….not much u can do but invest and realize a portion will be under traditional….
From what I have heard is take risk and do the c,s, and I fund in the beginning. And when you are getting closer to retirement, start moving money to the g fund
COVID 19 most small businesses are going bankrupt!
Looking for suggestions on a post-retirement TSP strategy with minimal risk-yet I would like to take advantage of a market up-tick post Covid-19. What do you think of a conservative G/C 75-25 ratio? Thank you!
An unexpected medical expense drained my rainy day fund and now I'm in debt. I'm a single mom in a tough position. Should I wait yrs till i'm out of debt before investing? I currently have 100% in G fund but I'm thinking 80% C fund and 20% in G fund.
I'm only 20 right now but got about 5 figures in there right now with 25-25-25-25 between the 2050(or maybe it was 2060) and the C,S,I
I had it at 30% at one point, then i got peer/supervisor pressured into debt and lowered to 5% since i also opted into BRS for matching
privileged to have family pay off debt so i owe them 0 interest.
Changed TSP to 15% recently but am now making effort to max roth IRA.
Dave Ramsey is good help, yes people can use debt (he did himself, got big and messed up, but lots of people do use debt to their benefit) but in general good to avoid.
Why in the world would you twist Daves Ramsey words. Second, your statement about caring debt shows you are an absolute Moron. Why in the world would anyone listen to you when they could go straight to Dave for free advice.
Should I stop putting into my TSP, until I am out of debt and have my EF? Thanks!
TSP has Roth accounts.
I have a question about the BRS, I’m 12 years in and I’m eligible to enroll but i don’t know if it would be a smart choice considering I’m looking at retiring after 20 and my pension would be diminished 0.5%. What are your thoughts on that? I know junior sailors should take full advantage of that program but what about the older guys who are halfway through their career. Thanks in advance.
Smh
How do you control debt properly
Been trying to find a video on. What is the TSP? How does it work? How does it invest your money? The nuts and bolts of it.
VERY VERY BAD ADVICE. You should invest as soon as you are able to so you can get compounding interest, regardless of debt owed like car payments, mortgage, etc. Diversify your investments by the lifecycle fund, or into the C, S , and I funds.
Can you please explain the difference between interfund transfer and contribution allocation in layman’s terms. When I diversify my investment, should I make the same changes to both the interfund transfer and contribution allocation? Thank you!
So, basically, go up to the max match on TSP and look to IRA's if your interested in putting a bit more to the side.
I alway helped my coworkers with their TSP allocation. Many were G fund only for YEARS! Ouch. The only reason I eventually sat for the series 7 Stock Broker exam was seeing in Changing Times magazine how you could get a 25% return from Mutual Fund. Yes, doing an allocation yourself can get you a bigger return. I never used the L funds as I used the C S and I mostly.
You stated what you don't recommend but you don't state what you do recommend.Your opinion of the L horizon funds would be more useful than anything you said in the video. The markets change so distribution should change. Dave is just being feduciary. The real message here should be the difference between active and passive management. Dave is suggesting a set it and forget it distribution, if passive management is what you want. I don't think anyone has recommended that here. But that's the real issue, isn't it?
To be debt free before investing for retirement is not realistic. Sure pay off debt, but at the same time invest in the TSP. I invested there for 35 years. One of my faults is not putting MORE MONEY in the TSP EARLY ON. Time is our greatest asset and to not have money working for you early on, your ending balance at age 55 and above will suffer. I got a bigger gain over time by using the S or small cap fund. Folks that don't want to allocate money themselves, can use the L funds. Using the G fund for "safety" disregards the effects of inflation over time. Using the G fund will give you a negative return over time verses the C S or I funds. I developed a healthy 6 figure account that I am now drawing on. In closing if I were to tell a Fed employee anything about the TSP, do at least 5 % for matching, 10 and above is preferred. Just keep putting money in there and remember that in market down turns you are buying shares at a DISCOUNT. Do not attempt to move money during market swings. Stay the course and use Dollar Cost Averaging (Google this) along the way. Ed Victory former employee at Edwards Air Force Base in CA. Good luck!
I am still waiting since 2012 for the TSP to give guidance on moving from the 401K to the 401k ROTH. I spoke to those people at TSP but got a non-determinate runaround basically they want to pass the buck. They longer they wait; the more it will cost me. There was some verbiage to allow holders to move from one to the other but I have yet to see anything concrete.
Hey Cooper, I am currently at that ratio of 80-10-10 in the C, S, and I funds, respectively, and intend to stick with that allocation for at least the next 10 years. I am 26 years old and don't intend to retire for another 40 years, give or take, so I am pretty risk tolerant.
Do you think this is a wise investment strategy for someone in my position?
Most people watching do not receive a match. Only civilians receive matching funds.
Do you have the paper on Roth vs Pre-Tax retirement funds? You mentioned that you were working on it in this video
Am I huge fan of Dave but I agree with your opinion on fund distribution. Everyone has different risk tolerance
Would love to hire you or someone like you for personal help. Any recommendations?
I am 30 with 8 years in and want to be a little more aggressive with my savings. A majority of my money is sitting in the G fund with my current contributions heading into the G fund as well. Buy low sell high, right? When would u suggest is the best time I should move into the C/S/I funds? I was thinking as soon as possible, any initial loss would be offset eventually…