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10-29-2008, 04:11 PM
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#1 |
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Registered User
Join Date: Oct 2008
Posts: 2
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Government TSP or IRA
I'm a government employee and I'm finishing college soon and I haven't hit 30. Should I pull my money from my retirement Thrift Savings Plan (TSP) and move it into something like a IRA or maybe a mutual. I don't have kids but plan to marry in a year or two. Does anyone use the TSP program or FERS? I did some calculations and after 10 years I would only have 13k and I currently have 8k in this plan. I'm new to investing, bought Goldman Sachs about 4 years ago, held it for two years then dumped it, lucky
 Any thoughts or direction would be great. Hope this question isn't breaking any rules. Thanks |
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10-29-2008, 04:47 PM
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#2 |
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Registered User
Join Date: Mar 2004
Location: New York
Posts: 1,351
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The TSP can grow just as fast as any mutual fund can. In fact, the TSP is made up of a series of Index Mutual Funds. I'm not sure where you are allocated, but for someone your age that is seeking growth, the C, S, & I Funds can be selected to put you well within the market.
Also, I'm not sure if you are planning on separation from Federal employment or not, but you will not be able to move your TSP to an IRA until you do so. If you are, the IRA is a better option because it can provide more investment choices and some liquidity; you can use some ($5000 single/$10000 married) of your IRA for a first home purchase (after it has been open for 5 years), college expenses, and/or convert it to a Roth IRA. Having it in IRA does not in any way make it grow faster though. Hope this helps. |
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10-30-2008, 08:02 AM
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#3 |
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Registered User
Join Date: Oct 2008
Posts: 2
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Thank you.
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10-30-2008, 12:27 PM
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#4 |
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Registered User
Join Date: Oct 2001
Posts: 1,586
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Just to clarify some information regarding IRAs:
Each IRA owner can take $10,000 from their IRA for acquisition costs of a first time home purchase. A married couple would then have $20,000. This money wold be exempt from the early distribution penalty, income taxes would need to be paid. There is no age requirement for the IRA. |
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10-30-2008, 01:36 PM
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#5 |
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Registered User
Join Date: Mar 2004
Location: New York
Posts: 1,351
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Ah yes, as usual Clydewolf is correct. Thanks!
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