@@karenulvang5375I’m halfway there and I have 12 more years to go before I’m 62. Right now I’m 70% C 20% S and 10% I. For 10 years I was 50% C and 50% S. I’ve been in the TSP for 13 years.
I do 50% in C fund and 50% in S fund but I’m thinking I’m going to try Dave Ramseys 60% in C fund and 20% in S fund and 20% in I fund. I’m 30 and have been investing in tsp since 2019. I really hope i hit a million by retirement.
C fund is averaging 10% returns over time. There are down years at times but average higher over time. Rebounds so far take 2-3 years. S fund was 8% average over time. Short term these fund can wreck you IF you can’t stay for 3 years minimum
I heard him say get in the C and S fund. These are high risk funds with high returns that I'm in. After the divorces, court and child support I needed to devise a plan. I have one and it's working.
Great video as always Mr. Hawes. I am so glad I started investing in the TSP in my 20’s! It’s an amazing investment vehicle with the low fees and simplicity.
When I started with the federal government nearly 24 years ago, the advice we got from HR is go 50%C and 50G. I did that for about six years until a friend said to get out of the G fund. I retired three years and now have a little over $500,000 in my TSP. It can be better but it’s not too bad.
A colleague recommended at least 20% if one can as to lower your income which will mean less tax liability, the more you show for income the tax man will take a bigger chunk, best wishes out there fellow federal employees!
Does anyone know in 2024 with the new SECURE 2.0 Act that Congress passed will the TSP allow for matching contributions into the Roth portion of the TSP ?
@@yshouldifoogle6724No the Secure 2.0 Act changed that. The matching funds will now be eligible to go into the Roth Tsp. The question is when will the Feds adopt the change.
HA I did the same! I took my former 401k and rolled it into TSP when hired in 2010. I then went L2040 @70% (which I’ll retire in end of 2029) and have F fund@30%. I don’t know why I did this but I’m inch away from $1M. Now that I’m 5 years away to retire I’m thinking take that F fund $ and move it to C. Idk will wait to see comments
Hi Im not yet for retirement, but would love to know what is your advice for those of us who have Fed Stdent Loans (Loan Forgiveness after 10 yrs) and TSP? Do you have any videos on this? What would you recommend we can do, in order to “pay less” until “debt is forgiven” after 10yrs of service Will greatly appreciate your reply on this one.
QUESTION: I am 60 years old, 40 years of service, still working. While working, can I direct roll over some of my tradtional TSP to an external IRA and then back door it to a roth?
Hello, I am a brand new Federal Employee. I thought it was only worth contributing 5% to your TSP because my employer only contributes 5% I’m a little confused. Any insight would be greatly appreciated. Thanks!
No worries. We get this question a lot. If you would like to contribute more than 5% into the TSP, you certainly can. The limit each year is $23,000 (for people under 50 years of age). But, doing at least the 5% to get the employer match is a good idea. If you would like a more in depth explanation, feel free to check out this article: hawsfederaladvisors.com/the-ultimate-guide-to-your-tsp-for-fers/
Great question. We would love to sit down with you (through zoom) to talk about potential solutions/ideas. Feel free to schedule a meeting with us through this link: app.hawsfederaladvisors.com/work-with-us
I am military retiree and a Federal employee. Can I deduct my TSP Traditional Contributions in my Federal Income Taxes or it is already considered in my W-2?
Great question. Here is a great video about that: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-IBiFJrnCH3o.html&pp=ygUuaGF3cyBmZWRlcmFsIGFkdmlzb3JzIHRzcCBtYXhpbXVtIGNvbnRyaWJ1dGlvbg%3D%3D
That's a great question. Consider viewing our article on this: hawsfederaladvisors.com/tsp-returns/ Basically, if you're far from retiring, you want to be more aggressive with your funds (C,S,I). If you're about to retire, you can consider putting a portion of your money in the more conservative funds (G,F).
C Fund over the long term has outperformed the other funds. There will be ups and downs as the market fluctuates, but just keep contributing and it will grow over time. Also, don’t try to ‘time the market’ and move money to a different fund.
Cousin Joe, everybody’s situation is different. If you are 23 and just starting your career and can stand the ups and downs of the market, then 100% in the C Fund (11.03% average per year since inception). If you are starting with the government late, say 50, and you will need every penny at retirement and cannot stand when the market goes down, then a mix of C and F (5.3%), but the mix is up to you. The G has returned 5.3% and the S has returned 9.23% and the I has returned 5.26%. Whatever you do, ABSOLUTELY contribute enough from your paycheck to get the matching from the government. When I was in my 20s, I was saving for a house and so only did the match. After I got the house then I up it with every promotion and COLA til I had full natch. I started in 1985 with a salary of $22K and retired in 2015 at 55 and had $1.2 million. I was adverse to stock the first handful of years because my father, who was an engineer, had lived through the depression and had zero stocks and considered it gambling. After someone set me straight, I put 100% in the C Fund and never tried to time the market by anticipating a downturn and moving it to the F fund or the reverse in anticipation of a great year for the stock market and moving it to the C. Trying to time things almost always results in lower long term returns. If you are EARLY in your career, the other funds are a drag on your portfolio and you will miss out on the great long term gains of the S&P 500, but you have to be able to stomach the big corrections in the C. Remember, you don’t lose any money if you don’t move it out of the fund and current contributions are getting more stock at a lower price. I gave this same advice to new hires throughout my career and have spoken to some after I retired and they say they would never have been able to retire if they hadn’t followed my advice. Best of Luck and feel free to reach out to me if you have other questions.
Ok I know not to put my tsp all in the g fund and it seems 85% was put in L fund 2025 but I won't retire in 2025 more likely 2030 so should I move most of my money into L 2030? And would I or should I move a little money into something more aggressive?
Great question. A common split between aggressive and conservative funds when approaching retirement is 60/40. But, that could vary depending on your goals. Here is another great video that can help: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE--m87vaPtQ88.html&ab_channel=HawsFederalAdvisors
You can get creative,food is cheap even now ,cook at home drink water or make your own flavored drink at home , coffee at home buy cheap clothes to work and only a few nice clothes to go out on special occasions so much you can do if your goal is to have a good chunk of money
Yes, we have an email for general information here: service@hawsfinancialplanning.com If you would like a one-on-one meeting, feel free to schedule a meeting here: app.hawsfederaladvisors.com/whatservicemakessense
