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Question: “Cooper, should I take a loan from my Thrift Savings Plan?”
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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, Cooper is able to tackle the issues that are unique to federal employees.
Cooper is also a public speaker who is available for various federal conferences and events.
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LEARN MORE ABOUT: Thrift Savings Plans
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When repaying loan would you be paying it from gross dollars or net?
Had no idea Coop was a FED, figured he was a personal trainer somewhere.
I follow your garage gym reviews but I had NO IDEA that you had a financial channel!! Totally awesome Coop!
Thinking of taking out 10-15k from tsp tp help with a downpayment on an investment property, thoughts?
What is you have a home loan that is 45,000 at 7% interest rate and u have 60,000 in tsp ? Would it best to borrow from the tsp?
Hey! Its Coop from garage gym reviews!…..sweet
so you borrow from your own money, right?
Would you consider making a video about TSP Residential Loan? Any recommendations/resources?
Is it a good time to get TSP loans now?
Took a TSP loan out and my LES stopped paying them so I have to pay them manually. The payment process is very hard and annoying! I am thinking about using a 0% balance transfer credit card to pay it off
Can I make a withdrawal if i have not finished paying a previous loan from TSP?
How do they deduct from payroll? If I max out every year and want to borrow 10000, to be paid in a year. Would I need to make any changes on my payroll accounts?
Nope. Let that baby rest and wake her up when its time to retire.
It is my understanding that the interest paid on a TSP loan is paid back to your TSP, so you're paying yourself the interest. True?
I took a 2000 Tsp loan to pay off student loan debt because of it's low interest rate.. It was a lifesaver for me since I have bad credit.
I have taken 2 tsp loans. The first was when I had 22 years of service and a balance of 180k. I live in Phoenix and needed a new a/c for my home, my credit union wanted to charge me 13 %. I also had 3500 credit card debt. I borrowed 12,000 at 2.5% for 3 years. Second loan was with 26 years of service borrowed 27000 at 2% for 4 years for a Toyota Tacoma, yes I had a trade in. It is almost paid for. Has 22000 miles on it. I wanted an almost new truck that was paid for when I retired. Anyway tsp loans can be dangerous especially if you retire or leave your position b4 they are paid off. Not sure how much they hurt my tsp balance but I don't regret the loans.
Does the interest you pay back on the TSP loan go back into your TSP account? If so, you are guranteeing a gain.
I’m considering taking out a tsp loan for about 10k to pay off my car loan that’s at like 6 percent interest…is this a bad idea?
I have a question I can't seem to find an answer to… will TSP loan payments lower your taxable income?
I have a TSP loan and my question is, When you pay the loan back biweekly are purchasing new shares at the current market price every 2 weeks? Or is it just a loan against your current shares?
I'm a fed employee in California I would like to start a Roth IRA where do i start ?
Question: I need a new car and need to borrow 20K. Assume TSP loan rate and bank rate are equal. Also assume I have sufficient income to contribute the max to TSP and also make the payments. If I borrow from TSP aren't I essentially getting an interest free loan since (at least I think) the interest is credited to my account?
In general…taking a TSP loan and paying it back within 3 months wont hurt in the long run..?? Thanks
I took out a loan earlier in my career to pay for a financial emergency. I was able to pay it off within a year. It may not be the best financial decision, but it was a lifesaver in that instance.
Cooper – thanks for this video. I think most people who use a credit card that they must pay interest on their purchases doesn't really understand their financial well-being. If that person borrows against their tsp or home equity, they will just run that credit card back up and still owe for the loan. Americans, in general, grew up on borrowing. It is a very bad idea–in most cases. However, in 2008 right after the election and before the big market drop, I took out of our tsp as much as possible and missed the big hit the market did take. I kept that money out and only put back just the monthly payment til Trump was elected. Now that money is zooming. Just my thoughts… most people should NEVER borrow against tsp or their home!
I'm with you, Cooper. Typically, I don't recommend TSP loans. Having said that, though when my mortgage balance hits $50k, I will take a TSP loan at 2.whatever percent and pay my house off. I'm just tired of paying the bank interest. I realize I might miss out on some gains, but (and this is the side most CFPs neglect to mention) I only miss out if my fund goes UP during that time period. If it goes down, I've actually SAVED myself money by not being fully invested over that 3 or 4 year period. I'm willing to give up some potential gains on $50k at the end of my career in a 7 figure TSP balance in order to be done with the house payment. I would not argue with a financial planner that mathematically, this could be the wrong decision, but sometimes I feel it's not all about the math. (And that's coming from a guy with a Master's in Accounting.)
Keep spreading the good word! I know you are becoming more popular in my agency. Someone called me today and told me they watch you too, so that should be encouraging!
FYI, Cooper: Current TSP Loan Rate is 2.250% as of 6/1/17. You can always find this on TSP.gov. There is a link at the bottom on the left that says, "Loan and Annuity Rates". It is also the Annuity Rate. It is updated monthly (and down slightly from May).
Great videos, I have co-workers who after about 5 years of federal service asked me how much i have in my TSP. After telling them they freaked out saying (we started at the same time i should have that much i will buy a new boat and big screen TV, how do i look it up) . I said that is not really a good idea. and that you have to log into TSP website, they proceeded to tell me they threw all of that paperwork away or lost it. I said good, forget about it for another 5 years. These were younger guys.
I told them if you have to take out a loan best to do it early or for a major emergency or for something more permanent like a house or land not a car or boat or new TV.
Over my 22 years of working I have took out 3 loans, if I could go back in time I wouldn't have done it. Just wondering where my TSP balance would be today!!!!!!
Great topic-Awesome advice!