Hello all,
I've been reading and absorbing for a while and this is my first post. Thanks for reading.
My husband and I (ages 36 and 37) are both federal employees making about $138,000 annually, each. I max out my TSP and the entire balance is in the L-2040 fund. My husband, who was in a tougher financial situation than I was before we got married 1.5 years ago, contributes 5% (enough to get the full match) and insists that his balance go entirely into the G fund, which as I understand it is government bonds that provide security but very little return (not even sure if it beats the rate of inflation?)
I do most of our financial planning (which he is fine with). I am wondering whether to have him max out his TSP contributions given that it will all go into the G fund, or pay taxes on that money now and then invest it elsewhere. The difference between 5% and maxing out is roughly $900/month.
I'd appreciate your thoughts! Thank you!