DFAS stealing TSP funds

[HH-60H]

I put the six figure assumption right at $100,000
I assumed $40,000 which is a low-ball estimate of 50% of base pay at 20.
$100,000+$40,000=$140,000
The retirement is "factored" into that. Botton line, retire from the Navy, get a good job, contribute to your Roth and you are set. If you invest more, you are more set. Of course, don't forget taxes, and lack of taxes for the Roth, hence my disclaimer of not considering everything.

Oh, ok, I got ya, didn't catch it in the numbers.

 

[MasterBates]

Become a pimp?

Damn straight!

But as last night showed, Pimpin' ain't easy.

Especially at the Country Luau when you have a 180# maximum.

 

[FLYTPAY]

Damn straight!

But as last night showed, Pimpin' ain't easy.

Especially at the Country Luau when you have a 180# maximum.

Be careful when pimping......this creates a lot of passive income.

 

[JJCaesar]

3 of my last 4 bonus payments have been while deployed to a combat zone with 100% of the bonus going into TSP. The prior planning required is to ensure that you max out your TSP contributions for the year prior to the bonus being deposited. The beautiful payoff is that all that bonus money is deposited into the "Tax Exempt" portion of the TSP (vice Tax Deferred). What this means is that I've thrown almost 39k into Tax Exempt. You can do the math with what that means (deposit and all interest pulled without taxes). Been contributing to TSP (max every year) since it started for us, plus with the combat zone bonus and the military pension (and my wife and I maxing out the IRA's)...I think we're sitting OK for retirement. We've got seven children and Catholic school to boot, but my wife is a wizard with the bills and groceries and I do the investments. Money discipline is the key.

 

[Machine]

3 of my last 4 bonus payments have been while deployed to a combat zone with 100% of the bonus going into TSP. The prior planning required is to ensure that you max out your TSP contributions for the year prior to the bonus being deposited. The beautiful payoff is that all that bonus money is deposited into the "Tax Exempt" portion of the TSP (vice Tax Deferred). What this means is that I've thrown almost 39k into Tax Exempt. You can do the math with what that means (deposit and all interest pulled without taxes).

Your contribution will be tax-exempt, but your earnings will be tax deferred (eg. they will be taxed on the back-end). When you make a withdrawal, money will be taken proportionally from your taxable and tax-exempt funds.

There are no direct tax benefits from contributing tax-exempt funds to the TSP. You'd be better off contributing to a Roth IRA if you're eligible since those earnings will be tax-exempt.

 

[Machine]

he said he was doing that and maxing out his Roth

He said he was maxing his IRAs, not specifying whether they were Roths. But seriously, the "You" was for the readers who might think contributing tax-exempt funds into the TSP has tax benefits when it doesn't.

 

[BourneID]

When you contribute to your TSP account, DFAS forwards the funds on anywhere between the 1st and 4th of the month. This is between 0 and 3 days of-non interest earning stagnation! Over a year, this is a month of not earning interest. Furthermore, since your mid-month pay is about the same as your end of month pay, half of your contribution is stagnant for about 15 days! Since you have earned that money at that point, who should be gaining the interest on it?

Today is a perfect example, we were paid on what Friday? Granted Holidays and such, but today is Wednesday, and no funds have been liquidated into TSP, yet all of our allotments have been paid for over 5 days now.