Government Thrift Savings Plan for Beginners (TSP)

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Government Thrift Savings Plan for Beginners (TSP)

Рет қаралды 85,712

Күн бұрын

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DISCLAIMER:
This video is for entertainment purposes only. I am not in any way acting as an agent or representative of the Department of Defense or United States Federal Government when presenting this information. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video.
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Пікірлер: 305

@JakeBroe 3 жыл бұрын

Thanks for watching everyone! If you found this video helpful then give it a LIKE to help out my channel! Also check out my complete playlist on the Government TSP: kzfaq.info/sun/PLscTZuOqKWIxcH7ZW9STwVqQOY1xUKZgO

@gregmatthews6954 3 жыл бұрын

Jake I watched your video earlier this year and made the switch from the L2050 to the C Fund...…….I just saw though that the S Fund was up 30% on the year vs the C Funds 16% roughly......Should I transfer my balance into the S fund?.... I would hate to miss out because the C is up...Look forward to hearing your suggestion.....I plan on retiring in 2050 give or take a year

@JakeBroe 3 жыл бұрын

@@gregmatthews6954 , nope! It's already too late if you believe you can time the market. If you are investing on a timescale of decades, which is a better fund to be in 20+ years? I argue the C Fund. Which WAS (past tense) a better fund to be in just this year, I guess the S Fund was. What about next year? Or the year after that? Hindsight is always 20/20. Set it and forget it man! 100% C Fund!

@qwertyasdfg1261 3 жыл бұрын

@@JakeBroe thanks for the response and the reassurance. C Fund it is!

@agoodquestion5622 3 жыл бұрын

very good; a quick question/point. in your video you say it is BAD that the Life fund keeps the % fixed etc. ie you said it is Bad that in a rising market , the LF will SELL the C fund [which would naturally be increasing in value and per cent size,during a rising market] so the LF to keep it at its predetermined % size of the particular LF cycle. BUT, isnt that a good thing? the LF is simply "Taking Profits"! during the rising market and flip side, you say it is BAD thing if a LF would be Buying to keep the C fund at its fixed % during a Bear market. Again, isn't that really a good thing? the LF is Buyinig when the stocks are getting cheaper and better buys during the down market. why is all that wrong?

@brandonagan4148 3 жыл бұрын

Currently a SGT in the Army. Served 5 years. Haven’t contributed a thing to my TSP because it always seemed difficult. Thank you, thank you! For making this so easy to understand. Will definitely be doing some STT on this for the younger Soldiers.

@JakeBroe 3 жыл бұрын

Thanks so much Brandon! Glad this video helped and I appreciate you sharing my content! Cheers!

@dstorm7752 2 жыл бұрын

You should contribute every month without fail

@MrAdub97 5 ай бұрын

The navy made us go to classes about it they literally just do it for you basically lol don’t understand how it ever came off as difficult

@thmo9449 3 жыл бұрын

I’m starting to understand this. Every Sgt in the military should watch this. Thanks Jake

@JakeBroe 3 жыл бұрын

You are welcome Th Mo! Cheers!

@stanleyedouard377 Жыл бұрын

I agree I’m a Sgt in the army and I love Jake’s videos and yes I am in the TSP with the BRS. God bless.

@kevinc2061 3 жыл бұрын

I really needed this video. I’ve been in for almost 2 years and I haven’t even bothered to touch my tsp account because it seemed too confusing. Thank you for all the valuable information

@JakeBroe 3 жыл бұрын

That's awesome you are getting in to your TSP now! You got this! Good luck Kevin!

@Alvin_1914 3 жыл бұрын

I've been going with a 85/15 : C/S allocation and havent had any regrets. I've got 25+ years until retirement. Buy and hold!!!

@JakeBroe 3 жыл бұрын

Buy and hold Alvin! That's a nice split! I didn't want to make the video a minute longer by explaining what the S Fund is, but it's fine to mix that in there.

@mspencer9 3 жыл бұрын

90/10 C/S here, 13 years active service. I have just recently ramped up to 35% contributions in order to max out. I also set up a $500 allotment to my Vanguard Roth IRA each month as well...wish I knew what I know now back when I had just joined at 19yrs old....pinned on Chief 4 years ago and still happily live with a paycheck of an E-5. This is the way.

@Alvin_1914 3 жыл бұрын

@@mspencer9 strong work Chief

@angelaharris8783 3 жыл бұрын

This was very helpful I wish I would have known about this while I was in the military before I retired. I am now a civilian government employee and enrolled in TSP but I think how much further I could have been if I did this 25 years ago. Thank you again

@JakeBroe 3 жыл бұрын

You are very welcome Angela! It will drive you crazy if you think too much about "what could have been", but you have the knowledge and tools now. You got this going forward! Cheers!

@sayrox7422 3 жыл бұрын

Hey Jake, just wanted to say that your videos are great! Even though I have been investing for almost last 5 years of my life, I never really took the time to understand more complex methods, such as, short selling, backdoor roth IRA, etc. Your videos are very informative and make it easier to understand these complicated topics. Thanks for all your efforts!

@JakeBroe 3 жыл бұрын

Awesome! Glad you are getting something from these videos sayrox. Thanks for the comment and I promise I have more great content coming soon!

@rubzrubz2295 3 жыл бұрын

Great video, this should be mandatory viewing for SGT's time training across formations in the DoD.

@JakeBroe 3 жыл бұрын

Haha, thanks RubZ! Man I wish it was! My channel could definitely use some more views. We'll see how the algorithm treats this video over time!

@gsjj82 3 жыл бұрын

Thank you Jake! Been with the post office for 15years and haven’t fully taken advantage due to lack of knowledge. I will definitely be doing so now

@JakeBroe 3 жыл бұрын

That's awesome Gregory! Best of luck!

@hoodiezay 8 ай бұрын

I can’t explain how much you’ve helped me with understanding all this financial stuff on the Military side. Thank you 🙏🏽

@Leo-ln9rd 3 жыл бұрын

Great video im a 19 year old lcpl in the marine corps infantry and will increase my contribution on my tsp

@JakeBroe 3 жыл бұрын

That's awsome Leo! I recommend contributing to Roth, but the more the better at age 19!

@djm55 3 жыл бұрын

Great job! The retirement benefits under FERS are especially complicated, especially for new entrants, and you've done a fantastic job in explaining the basics and in encouraging federal employees to contribute to their TSPs.

@JakeBroe 3 жыл бұрын

Thanks D M! Cheers!

@brandonloesch4986 11 ай бұрын

about to start my first week as a federal employee, appreciate this

@rasulsamad5860 3 ай бұрын

How is it working

@ismaelcastillo5028 3 жыл бұрын

. I work for the post office. This information is very good. Thank you 👍

@DarthBadgerX 3 жыл бұрын

I just started rearranging my TSP last year. Been in just over 6. Currently split 50/50 between C&S funds. I was putting %10 in "I" fund for a while, then I decided to ditch it. Your videos are very helpful. Now I just need to get my wife out of the G fund, which she has been contributing to for 13 YEARS!!! I'm gonna forward her this video.

@JakeBroe 3 жыл бұрын

Oh my! It's never too late to switch it up and get in to the C and S Funds for that long term 10% average! Thanks for the subscribe and the support Matthew! Cheers!

@danskid661 3 жыл бұрын

Great video Jake! I feel like they should show one of these type of videos to military and federal employees when they start. I help so many people who have been contributing to the G Fund for 20 years 😞😞.

@JakeBroe 3 жыл бұрын

Thanks Dan! Thankfully, the government no longer defaults people in to the G Fund (I was in 2016, but got out in 2018). Everyone should be in their age appropriate Lifecycle Fund. That is better than the G Fund, but still not as good as just going 100% C/S Fund. Hopefully more people find this video. Cheers!

@darrenjames3065 3 жыл бұрын

I agree with the base comment. I’m a 1SG right now, and a good bit of my company is under the BRS. I will be passing this along and explaining this to my junior population, especially the piece about the 5% match. The default individual contribution setting I’ve seen is 3%, and I don’t think they’re getting the 5% government match after having watched this video.

@vivianakye9498 3 жыл бұрын

Hello Jake, came across this channel while looking for TSP info. I am a civilian fed employee currently but also served on AD a few yrs back. Wish I had this info back then...never contributed to TSP while in the Army & was never educated on it. Such a shame, too, bc I attended as many base finance classes as possible. Those instructors talked about saving, debt, cars, etc, but never touched on investing. Oh well! Live and learn. Maybe you can incorporate your knowledge be it KZfaq channel or just teaching classes to the soldiers on your base? If i was still in, I would've signed up for your classes in a heartbeat! Anyway, keep teaching the masses. You are awesome!!! Thank you!

@JakeBroe 3 жыл бұрын

Thanks so much viviana! It's never too late! Sound like you got it now. Cheers!

@gregorymoundine29 2 жыл бұрын

Awesome education. My son just joined the military. I will share this with him BEFORE ASAP!!! Thanks again!

@JakeBroe 2 жыл бұрын

Awesome! I appreciate you sharing my content! Thanks Gregory!

@emines27 3 жыл бұрын

You're awesome! You explain this so well! Not one minute during any of your videos do I ever get the "Charlie Brown teacher" voice..You're very clear and easy to understand. Thank you sooo much!

@JakeBroe 3 жыл бұрын

Awesome! Thanks for the comment Manny! If you don't mind the sound of my voice, then be sure to check out my other finance and investing content. Cheers!

@bridgetg1916 3 жыл бұрын

Jake, this is another great video. You do a great job breaking down every aspect of the TSP. Thanks a lot.

@JakeBroe 3 жыл бұрын

Thanks Bridget! I hope lots of government employees find this video!

@tictochernandez6822 9 ай бұрын

This video was so helpful. You went into detail about everything. I love the fact that you mention tackling debt and being free from debt. You know what you are talking about. I am on a debt free journey at the moment and stop contributing towards my TSP for a moment to get out of debt faster. Once I pay off all my debt I’ll bring it back to 15%. Do you think that is a good idea?

@alrocky 7 ай бұрын

Strongly suggest you contribute enough income to get the 5% TSP match as that represents a 100% return on your money.

@Created.Figure 8 ай бұрын

I've been in the navy for 7 months, im trying to get an early start on my tsp thanks

@kaivickstrom3225 2 жыл бұрын

Thank you so much as a 15 year old this was really easy to understand I love the way you explained things

@carlr458 5 ай бұрын

At 15 (16 now) if you work a job, you can contribute to a Roth IRA. Every penny counts and at your age, every dollar you put in should turn into at least $100 at retirement!

@joeykim373 3 жыл бұрын

Hey Jake! This video was super helpful... I just commissioned this may and this video has definelty answer a lot of my questions... I love how composed you are in your videos 🔥🔥🔥

@michaelhastriter3299 3 жыл бұрын

Congrats on your commission! What branch?

@joeykim373 3 жыл бұрын

@@michaelhastriter3299 army! Field artillery. Boom boom!

@JakeBroe 3 жыл бұрын

Thanks Kim! I hope people find use from this video. This is basically the video I wish I had watched 4 years ago.

@joeykim373 3 жыл бұрын

@@JakeBroe for real...

@TheAidanodian 3 ай бұрын

It’s absolutely wild to see this vid. I’m a relatively new sub (subbed from the Ukraine content) and was just looking for some vids about basic financial literacy and sure enough find this one.

@WomperRain 3 жыл бұрын

Thanks jake! Utilizing TSP with all this new info! Postal worker here! 💙

@JakeBroe 3 жыл бұрын

Awesome! Glad you found the video!

@tuffhellfire 3 жыл бұрын

14:33 is great info for all including non-tsp'ers. Thank you for this elaboration. +1 Subscriber!

@JakeBroe 3 жыл бұрын

Fantastic! Welcome to the channel Takara! Glad to have you with us!

@robbeggs6094 3 жыл бұрын

New subscriber here. Thanks for the info! My start date is a few weeks away and I am trying to gather as much info as possible about the tsp. I am a late starter (early 40s) so I am eager to jump in. I am running through several of your videos and they are very helpful! I just watched the how much you make on youtube videos and noticed that you picked up 10k subscribers in just 2 months. Congrats and I look forward to thumbing through your library and the new content to come. Good luck!!

@JakeBroe 3 жыл бұрын

Welcome to the channel robert! Yeah, I've been gaining 200 subscribers a day this month. It's pretty crazy! Lots of interest in stock market investing right now. If you ever have a question, just leave a comment. I do my best to respond to as many as I can. Best of luck!

@sloughdog9480 3 жыл бұрын

check into ROTH, you pay taxes upfront, but when you retire, its all cash in hand, even the interest earned. don’t worry about tax bracket unless your making around $300,000

@tommac5411 3 жыл бұрын

Today I found your channel. What a great find. Love your explanations for the clarity. Love the graphics. This is a well produced video!!

@JakeBroe 3 жыл бұрын

Thanks Tom! Welcome to the channel. Great to have you with us!

@JayAttys 2 жыл бұрын

Grateful for the Ch-Air Force! Lol But in all seriousness, thanks for the value brother. Hooyah! -your brother in the US Navy

@rosscurrie1337 Жыл бұрын

Great video...wish I had this information when I 1st joined the military in 2000...just retired and started as a GS and now I'm having to play catch-up.

@MsNiknak30 3 жыл бұрын

very informative video...I'm a new Government employee so this was very helpful

@JakeBroe 3 жыл бұрын

Awesome! Glad you found it NcHarrison!

@kcthenerd6581 4 ай бұрын

To all my current service folk: PLEASE PLEASE PLEASE put a minimum of 5% towards both Trad and Roth! If you can afford it, then send it. I’m looking at you barracks brethren! The smartest thing anyone can do is capitalize on free money and money that would probably get wasted anyway. Don’t get a stupid expensive car with an ungodly interest rate on the loan. And PLEASE, for the love of god build up at least 10k in your savings as a cushion so you don’t have to rely on the NMCRS (Navy/Marine Corps relief Society). Love this video, regardless of the age and am glad to be seeing it!

@Seanyb93 3 жыл бұрын

Very helpful info for a future soldier. Thanks Jake!

@JakeBroe 3 жыл бұрын

Thanks for watching Ti2! Cheers!

@michaelhastriter3299 3 жыл бұрын

Dang you've gotten good at this KZfaq thing since you started!

@JakeBroe 3 жыл бұрын

Thanks Michael! I am trying! Just imagine how good I will be if I am still doing this 5 years from now.

@michaelhastriter3299 3 жыл бұрын

@@JakeBroe And won't that be cool to watch from our perspective!

@reyshmaG 3 жыл бұрын

hy jake, Your explanation is very clear in all the videos. much appreciated. Can you please do a video on what index funds are best in investing in a roth ira account. Thanks!!

@JakeBroe 3 жыл бұрын

Hey Reshma! Thanks so much! If you want the shortest explanation, then just buy and hold VTI or VOO and make sure all capital gains and dividends are re-invested. I personally have 100% of my Roth IRA in VOO. Set it and forget it. Here is a video on the difference between mutual funds and ETFs if you aren't familiar. kzfaq.info/get/bejne/fbCboqSrnKi9nYk.html

@tanfel4 2 жыл бұрын

Love this video. My first time on your channel. Thank you for this lesson on TSP.

@ysk249 3 жыл бұрын

So basically we can open both RothTSP ($19,500) and Roth IRA ($6,000) accounts? Is 31-DEC-2020 the last day I can invest $19,500 into my TSP account? Thank you for enlightening me with helpful videos on finance.

@alrocky 3 жыл бұрын

Q1 Yes Q2 Yes although you invest via paycheck

@JakeBroe 3 жыл бұрын

Yes you can have both and yes the end of the calendar year is the official cutoff for contributing that year, but it is possible through your paycheck to contribute to last year's amount prior to filing your taxes.

@Ryan-tk 3 жыл бұрын

I wish you would have went more in depth into the other specific TSP funds like the Lifecycle Funds and the other G, F, C, S and I funds. The other information about the types of IRAs and 401K was good good, but not why I clicked on this video. Good info either way! Thanks!

@JakeBroe 3 жыл бұрын

Hey Ryan! I have a whole playlist of about 20 videos talking about the TSP. I cover the Lifecyle funds in detail there! kzfaq.info/sun/PLscTZuOqKWIxcH7ZW9STwVqQOY1xUKZgO

@sloughdog9480 3 жыл бұрын

don’t bother with f, or g fund, the C & S is where you want your money, do the research, life sickle funds are waist too

@SassyMissShae 3 жыл бұрын

I'm a postal employee and this video has been BEYOND helpful. I've been "regular" for 5 years (although my tsp start date is 2011). I currently do 10% traditional and $50 roth. I currently do the L Fund 2050 (I believe). I'm wondering if it would be better for me to switch to C fund seeing as though I have years before retirement therefore can stand to take a few risks.

@JakeBroe 3 жыл бұрын

Hey Shae! There is a difference between "risk" and "volatility". If you can buy and hold, ignore the news, and not panic sale with the value of your account temporarily goes down, then the C fund is the best performing long term fund that will yield you the most money for retirement. Best of luck!

@SassyMissShae 3 жыл бұрын

@@JakeBroe thanks a bunch Jake!

@melaniecota4398 3 жыл бұрын

C and S Fund is where to be if not afraid of risk and want to grow your money.

@rudyleotardo8278 2 жыл бұрын

@@SassyMissShae did you switch to C fund? I’m a postal employee almost 6 years career regular I’ve been advised the C fund is my best option to invest despite the risk fact but I got long way to go before retirement.

@alexandravenescar2217 3 жыл бұрын

Thank you so much for sharing. I learned so much.

@JakeBroe 3 жыл бұрын

Awesome! Glad I could help Alexandra! Cheers!

@kimlefler9355 Жыл бұрын

I needed this information 20 years ago

@nortorioustxc4359 3 жыл бұрын

Once I get these debts paid off, imma up my contributions

@JakeBroe 3 жыл бұрын

Solid plan Torrence! You got this!!

@HKX_ORANGECHICKEN 3 жыл бұрын

Just transferred all g fund balance into c fund! Let's hope the market doesn't crash again... lol

@rogerdoger9939 3 жыл бұрын

Eventually there will be a correction. Don't panic and sell. The market has always returned. So just hang on. Unless you are over age 50, then consider having some in the F fund.

@jimwidener1881 3 жыл бұрын

Great info. Easy to understand. Good explanations. Thanks for sharing!

@lacho9285 3 жыл бұрын

Awesome job with the explanation brother! 👍

@JakeBroe 3 жыл бұрын

Thanks Lacho! I appreciate the comment! Cheers!

@xRamim 3 жыл бұрын

Hi Jake, love the vids - can you make a vid on the best itemized deductions for personal (not business like home office)? Id love to see that!

@JakeBroe 3 жыл бұрын

Thanks WestGoat! That's a good video with tax season coming up. Maybe look for that in January!

@PlawrehYouTube Жыл бұрын

Thank you very much Mr. Jake I really love your videos

@pintobean8935 3 жыл бұрын

Thank you for this video. I'm a very new federal employee and trying to understand this. What if you started this tsp at a much later age (say in the 40s) and currently, default tsp is 5% (which is what I am doing). How do you recommend investing moving forward? This is so confusing, lol. That calculator was great for someone in the 20s...but what if someone started in the 40s?

@JakeBroe 3 жыл бұрын

Hey Pintobean! You can either start younger (more time on your side at 5%), or you can contribute more when you are in your 40s. It's all about what your investing goals are and how comfortably you want to live once you retire past the age of 60. If you think you can afford to put in more than 5% of your check, then you probably should to save for retirement.

@buyingiscrack 2 жыл бұрын

I am new as well. You can always login in to your account and switch it for later. I am doing 10٪

@elliotmyers9071 2 жыл бұрын

You need to contribute each month to get the gov’t matching. Rough contributions for each month as of 2022: (20,500-{5% of yearly base pay})/12 months. If no matching, then contribute as much as you want.

@irishIz4Him 3 жыл бұрын

I absolutely am thankful for your TSP videos. They are extremely helpful because there had to be more to my TSP than just what I have there. I'm a retired veteran, working federal employee, and 50yo. No way in hell, will I be a friggin' millionaire when, or if I retire from federal service!! So do I invest 90% of what I have in my G Fund in to the C Fund and put the remaining into the SFund??? I'll keep watching your videos! Keep up the good work!!

@dstorm7752 2 жыл бұрын

You won't be a millionaire if you place 90 percent in the G Fund because, although it is safe, it has a low rate of return. But, if a farm kid and Viet vet like me can become one, so can you! (P.S.: Don't limit your investing to the TSP. Look at some other provider like T. Rowe Price or Vanguard or Fidelity.)

@Senpai_B 2 жыл бұрын

Started my TSP after 7 years in and wish I knew this stuff early on. thank you for what you're doing educating everyone that most certainly should use TSP during federal sevice.

@sabrinagardner9935 3 жыл бұрын

Thank you for posting the video as it was very informative.

@IntrusiveThotBot69 3 жыл бұрын

You are a gem 💎 I love your content. Thank you so much!

@JakeBroe 3 жыл бұрын

Thanks so much Marina! I greatly appreciate the support! Cheers!

@jz1536 3 жыл бұрын

Thank you for this video. Great information

@JakeBroe 3 жыл бұрын

Thanks for watching Chef! Cheers!

@88jpen 5 ай бұрын

Traditional and Roth withdrawals won’t be the same. Your income starts at $0 and you have a standard deduction of about $14,000. That would mean you get the $10,000 in his example tax free, whereas you’d only get the $7,800 from the Roth. There’s more to consider in the grand scheme of things like RMDs, but I would definitely keep this in mind in your retirement planning

@opens11 11 ай бұрын

This video is amazing! Thank you!

@RandomNessL 11 ай бұрын

Good post Jake. It helped alot.

@dstorm7752 2 жыл бұрын

The new TSP web site continues to be a gigantic mess. And the customer "service" is polite but incompetent. Avoid the TSP if you can.

@doraemifa 3 жыл бұрын

Do you recommend using the L Fund by TSP or should we use the C Fund ? Still confused

@JakeBroe 3 жыл бұрын

Hey Stallin! The C Fund is the S&P 500 index fund. You are broadly invested across America's 500 largest publicly traded companies. I highly recommend just buying and holding that forever. If you want to learn more why I don't recommend Lifecycle Funds, check out this video: kzfaq.info/get/bejne/bc-GnZmInsm1fqM.html

@jalynmckay9966 3 жыл бұрын

Great video bud!

@JakeBroe 3 жыл бұрын

Thanks Jalyn! Cheers!

@marceldupree5881 2 ай бұрын

Complex question, if I did 100% contribution would I only tax defer the $19,500? I am asking to see if I contribute 100% of pay to TSP, would that mean I can collect my VA compensation since I essentially wouldn't be getting paid? Thank you

@tigerstealth5492 3 жыл бұрын

Great video but what do you think about Tesla's upcoming inclusion in the S&P 500? I love C fund but I'm worried that, especially with Tesla soon, the C fund will be more of a S&P 15 rather than 500. I'm worried C fund will become too dependent on a few big tech companies. Thoughts? What are the upsides of Tesla now being included? Maybe this could be a video topic?

@JakeBroe 3 жыл бұрын

Hey TigerStealth! When you invest in a retirement account, you are investing on a 30+ year time horizon. Nobody in the year 2050 is going to be talking about the inclusion of Tesla in to the S&P 500 from this year and how it affected the index. Can you tell me what hot stock companies were included in 1990 and how they affected the index 30 years ago? As the index changes over time, the fund and your investment changes over time. This is a good thing and you shouldn't worry about it. Buy and hold... then buy and hold more!

@tigerstealth5492 3 жыл бұрын

@@JakeBroe Thank you, Jake, is there a coincidence that your initials are JB just like the legend Jack Bogle? Hmm :)

@jkallendorf Ай бұрын

@JakeBroe what would you suggest when starting out mid career? Is it an option to rollover in to a TSP from my prior employer who offered a 403B?

@nagham68 2 жыл бұрын

Very informative video, thanks for your time

@mark.namoco 3 жыл бұрын

Great video, isn’t FERS the pension plan?

@alrocky 2 жыл бұрын

yes

@marceldupree5881 5 ай бұрын

You didn't mention 457B, can I do 457B & a IRA? Also can I put 100% in TSP? (Reserve pay)

@saintofgod9070 2 ай бұрын

Hey Jake, I’m looking to increase my percentage in C fund. Does it matter when I change it or any time is fine?

@mikewigs1587 3 жыл бұрын

I knew I followed this man for reason. Hua!

@JakeBroe 3 жыл бұрын

Thanks for watching and leaving a comment Mike! Cheers!

@jmemixx 3 жыл бұрын

What’s the good way to max out tsp every year? How much Percent of each check or take out home much from each check?

@notiitans 3 жыл бұрын

Jake, you talk a lot about your personal finance in other videos so I wanted to ask a personal finance question. Do you max the yearly TSP and or Roth IRA contributions amount to your retirement account(s)?

@JakeBroe 3 жыл бұрын

Hey Chase! Yes, I max my Roth IRA at $6,000 because I value that account the most because of its flexibility. I then am putting in 15% of my check to my Roth TSP but will not max it out. I actually am preferring putting more money in taxable brokerage accounts because I do not want to wait until I am 59.5 to retire. I am going to need a lot of money in my ordinary brokerage account if I would like to stop working well before retirement age.

@notiitans 3 жыл бұрын

@@JakeBroe lofty goals. I am almost to maxing both. Small brokerage act that I consider my future home buying act.

@chlo20230 3 жыл бұрын

very good ...i learn a lot thanks

@kalonjiis 3 жыл бұрын

Hey brother, could you do a video on BRS and also the government matching on contributions. Thanks in advance

@JakeBroe 3 жыл бұрын

Hey Nana! That's an important topic, but it is pretty straight forward. People in the BRS should always put in the 5% to get the 5% match. Free money!

@arthurburns993 3 жыл бұрын

Jake I have a question maybe you can answer. I was curious when it’s pay week what day does our money buy shares of the tsp funds? Thanks

@william4202 Ай бұрын

I moved all my TSP money into Roth and Traditional IRAs at a brokerage. I am still working and contributing, so the account remains open.

@Projectgreen1 Жыл бұрын

great informative video! aim high!

@royalewithcheese9257 7 ай бұрын

So essentially, its better to go Roth because you get taxed upfront based on what tax bracket you fall in, based on your income? Meaning that if I only make 50,000 now, and when I retire im at 150,000, I would have saved money on taxes because I made less back then? Just making sure I understood this correctly

@alrocky 7 ай бұрын

Favor contributing to Roth 401(k) when you're in relatively low tax bracket and favor contributing to traditional 401(k) when you're in relatively high tax bracket. Aim to max out your contributions as soon as you can. If unsure use as default to contribute max to Roth IRA every year and as much as your income and budget allows to traditional 401(k). Always contribute enough to receive the company 401(k) match.

@69jalo 2 жыл бұрын

Love the video thanks

@beccathering7035 2 жыл бұрын

Hello Jake, if I mostly contributed to a Roth IRA with Vanguard and paid off debt my first few years, do you know the best way to calculate the estimated amount I'd have if I were starting to contribute more aggressively a bit later in my service?

@TruetheFisherman 2 жыл бұрын

Very informative video! Thank you! Do you know when 2021 TSP contributions stop and 2022 contributions begin? I'm having a hard time finding a definite date. Does it coincide with the fiscal calendar or new year? Thanks in advance.

@JakeBroe 2 жыл бұрын

Hey Fisherman! It's always the calendar year. 2022 contributions start January 1st.

@TruetheFisherman 2 жыл бұрын

@@JakeBroe thank you!

@SgtThomasShelby 2 жыл бұрын

Why does the 5% match have to go on the traditional side? Wouldn’t you still pay taxes on it when you withdrawal?

@metthem88 3 жыл бұрын

Do you have a video out there about transferring a traditional tsp to a traditional vanguard IRA, and then to a vanguard Roth after seperation to avoid the RMD at age 75 (I think)? I watched one of your roth conversion videos, but it had $6k moves, and this conversion I'm talking about will be much higher amounts. Not sure if there are rollover limits after age 60

@elsamorales4898 2 жыл бұрын

Morning! base on your knowledge, would you recommend to a new federal employee to transfer his/her 401K balance (from a former employer) to TSP?

@JakeBroe 2 жыл бұрын

Hey Elsa! Yes, I don't know what fund options are available in your old 401k or what the expense ratio is, but the TSP more than likely is better for you. I would roll it over!

@CMDmed6067 2 жыл бұрын

Thank you. Thank you.

@JakeBroe 2 жыл бұрын

You are very welcome Abdul! Cheers!

@DCGEMINI202 10 ай бұрын

I know this video is a bit old but what do u recommend a e6 over 10 years thats enrolled in BRS put into tsp? 10%, 20%? Not including the 5% match

@dnehemiah1022 6 ай бұрын

Thank you!

@dansweda712 Жыл бұрын

This is the worse place ever when trying to cash out of your benefits, my uncle passed away going on two years now and TSP has given the family nothing but the run around, with the help of a lawyer we submitted all the necessary paperwork, and they will pick one thing out, one at a time which starts the process all over again, then when they've exhausted that routine, they'll say we didn't submit something that we have proof that we did, then when they've exhausted that routine they'll just go into complete nonsense mode, I truly hate this place for the stress they've caused my mother!!!

@MichaelBrown-ny3et 3 жыл бұрын

If there was any advice I could give to a newbie is that it would be anon-option to do the max contribution to TSP your whole career. I wish I did. I still came out alright but would’ve been nice to have that extra for retirement. Please do yourself a favor a take advantage of the TSP,

@JakeBroe 3 жыл бұрын

Solid advice Michael! People have to take this serious younger!

@mc-130h 3 жыл бұрын

Should I invest in a TSP if I don't plan on staying in the military?

@alrocky 3 жыл бұрын

Are you BRS and thus eligible for the *5%* DoD match?

@JakeBroe 3 жыл бұрын

Hey Max! Yes! The TSP is a retirement account and any money you put in there is yours for life. You can't contribute anymore after leaving federal service, but it will keep growing and will be there for you when you turn 59.5.

@mc-130h 3 жыл бұрын

@@alrocky I don’t believe so. I never opted in to the BRS

@alrocky 3 жыл бұрын

@@mc-130h If you entered military service in 2018 and did not opt in you are not in BRS. TSP is still a very good 401(k) type retirement plan ( you just don't get the 5% DoD match) and it's a good idea to contribute to TSP if you are interest in saving money toward retirement.

@Barrackscuts 7 ай бұрын

Thanks for the video . One thing I would like to ask, I recently enlisted and wanted to know if the money being contributed to the tsp can be rolled over to a 401k or any other retirement plan ( whatever civilian job offers) after I complete my service. Thanks in advance

@alrocky 7 ай бұрын

You're in new Blended Retirement System BRS so should contribute at least 5% of income to get the 5% DoD match after 2 years of service. Yes you can move your TSP to another 401(k) or IRA but TSP's low cost index fund options are good enough that it's likely better than most 401(k) plans.

@wen7688 3 жыл бұрын

Thanks for your video ! Could you tell me about my old 401K rollover to the new TSP is better or to ROTH IRA ?

@alrocky 2 жыл бұрын

Old traditional 401(k) generally better moved to traditional TSP instead of converting (and paying tax) to Roth IRA.

@RM-pp5rb 3 жыл бұрын

can I transfer my TSP to ROTH? and How? Thank you.

@alrocky 3 жыл бұрын

Are you asking if you are allowed to convert your traditional TSP money into Roth TSP money?

@rogerdoger9939 3 жыл бұрын

No at this time.

@RMHVids 3 жыл бұрын

I already have a Vanguard IRA I started before I was hired. Am I able to add or link this account to my Fed savings plan?

@alexiscole1015 3 жыл бұрын

What about putting into both TSP options (traditional & roth)? Would it be beneficial to put in say, 5% in each or would this defeat the purpose?

@JakeBroe 3 жыл бұрын

Hey Alexis! I don't think that matters. I tell everyone to put money in Roth to pay their taxes now and get 100% tax free growth and withdrawals the rest of their lives. If you are earning so much money that you NEED the tax savings this year... then you would know if that was you. Traditional only makes sense to me if you are a super high income earner ($150K+) and you need tax savings this year.

@Matt-ou3hp 3 жыл бұрын

Hi Jake, can I consider my TSP a part of my "savings"? Basically put, if a financial calculator requires me to put in my "current savings" should I include my investments in my TSP? Thank you in advance! - Matt

@JakeBroe 3 жыл бұрын

Hey Matt! No, your TSP would not be part of your savings. The reason why is because it is a retirement account and you don't have easy/quick access to it. Your TSP is part of your net worth though!

@r.b.5070 3 жыл бұрын

Hi Jake, at 10:30 in the video it shows you should try maxing out your Roth IRA, TSP. Does this mean you recommend having both a Roth IRA and a Roth TSP? Or would say having just a Roth TSP is fine?

@JakeBroe 3 жыл бұрын

Hey RB! With the Roth TSP, you can only invest in their 5 basic funds. That is all that is available to you. With a Roth IRA, you can invest in whatever you want. IRAs have more flexibility and control and I personally value that. If that doesn't matter to you, then just having the TSP is good enough!

@carlr458 5 ай бұрын

1. Meet the match for Roth TSP 2. Fund your Roth IRA to the max (because, unlike the TSP, you can withdrawl the amount you deposit into it early if needed for emergencies) 3. Fund your Roth TSP to the max (don't worry, most people don't make enough to get to this point) 4. Fund a Mutual Fund if you still have money coming in

@alexpetree1599 Жыл бұрын

What mix would you recommend for tsp

@dwayneanthony2049 Жыл бұрын

hello, not sure if your still reading messages, but i am now getting into tsp as i left my federal job last year and when i log in i see my account now saying civilian am i still able to contribute as a civilian if not should i just withdraw the littler money i have left in there

@Ken69690 3 жыл бұрын

How do you up your contribution to tsp?

@JakeBroe 3 жыл бұрын

Hey Kenneth! I am in the military and I use MyPay to control what percent of my pay goes to my TSP. If you work for a different federal agency, then you should ask your human resources department.

@Waynegoproductions 2 жыл бұрын

I am looking to early retire in about 10-12 years. Around age 55. I will have my TSP, FERS, and social security at retirement age. To fill in the 10 year gap I'm looking at starting an account outside of the TSP. I want to do ETF, REIT, and individual dividend stocks to have some passive income. What would be the best account for that so I'm not hit with high taxes? If I did a Roth retirement account I believe it's an additional 10% taxes if withdrawn before age 59 and a half.

@alrocky 2 жыл бұрын

"If I did a Roth retirement account I believe it's an additional 10% taxes ..." Not entirely correct. IRS calculates that you withdraw contributions from your Roth IRA first so for those withdrawals from Roth IRA contributions are tax and penalty free.

@jjarcast 3 жыл бұрын

Thanks for the video Jake, quick question how do maximize the match? I am right now contributing 16% to my Roth but I feel I’m not getting the max match, at what percentage do one get the max from the government match?

@alrocky 3 жыл бұрын

You must contribute 5% of income to receive the 5% government match. Are you contributing 16% of income to your Roth TSP account? Are you federal civilian or BRS?

@jjarcast 3 жыл бұрын

@@alrocky hello Rocky, I’m a federal civil employee and I contribute 16% to my Roth tsp

@alrocky 3 жыл бұрын

@@jjarcast You should be receiving *5%* government match toward your *traditional* TSP account.

@jjarcast 3 жыл бұрын

@@alrocky thanks Rocky, quick question, what is the max % one can contribute monthly?

@JakeBroe 3 жыл бұрын

Hey Jhon! If your government agency offers a match, then it will be going on your traditional TSP side. It is usually 5%. You should log on to the TSP's website and check your contribution history to see if it is being deposited. If you are contributing 16%, then you are maxing our your match. That's great!