Author Topic: 2018 Roth IRA  (Read 1238 times)

MustacheDeStig

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2018 Roth IRA
« on: April 05, 2018, 04:33:38 PM »
Hey Mustachians!

I have been following this forum for a while now.....just created an account to become more active.  So a little about myself, I知 33 with no debt of any kind, secure job with the federal government.  I will be eligible to retire at 49 (after 25 years of service) with full benefits or I have the option to work until mandatory retirement at age 57. 

I知 now maxing out my TSP at $18500 a year and have a total of $152,000. 
Current TSP contributions:
40%- C fund
40%- S fund
20%- I fund

Roth IRA totals:
VFIAX- $13,711
VTSMX- $5520 (2017 purchase)

I am looking for advice on what to do with my 2018 Roth IRA contributions.  Should I continue to invest in the VTSMX and convert to a VTSAX or am I being too aggressive and should diversify?  If I have extra income that I am able to invest, is it recommended to continue buying VTSMX shares?

I知 new to investing so I apologize if this has been answered before.  I致e searched the forum but all TSP related forums seem to be geared to former military personnel. 
« Last Edit: April 05, 2018, 04:50:03 PM by MustacheDeStig »

stephen902

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Re: 2018 Roth IRA
« Reply #1 on: April 06, 2018, 05:18:49 AM »
VTSMX

SwitchActiveDWG

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Re: 2018 Roth IRA
« Reply #2 on: April 06, 2018, 06:30:39 AM »
Hey Mustachians!

I have been following this forum for a while now.....just created an account to become more active.  So a little about myself, I知 33 with no debt of any kind, secure job with the federal government.  I will be eligible to retire at 49 (after 25 years of service) with full benefits or I have the option to work until mandatory retirement at age 57. 

I知 now maxing out my TSP at $18500 a year and have a total of $152,000. 
Current TSP contributions:
40%- C fund
40%- S fund
20%- I fund

Roth IRA totals:
VFIAX- $13,711
VTSMX- $5520 (2017 purchase)

I am looking for advice on what to do with my 2018 Roth IRA contributions.  Should I continue to invest in the VTSMX and convert to a VTSAX or am I being too aggressive and should diversify?  If I have extra income that I am able to invest, is it recommended to continue buying VTSMX shares?

I知 new to investing so I apologize if this has been answered before.  I致e searched the forum but all TSP related forums seem to be geared to former military personnel.

VTSAX is a diverse fund, what alternative would you be considering to diversify?

MustacheDeStig

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Re: 2018 Roth IRA
« Reply #3 on: April 06, 2018, 08:12:42 AM »
I wasn稚 sure if I was being too aggressive in my tsp contributions. I wanted to do 20% on international funds but have little to no bonds in the other allocations. My thought process is I have many years left that I can be more aggressive and take more risk and as I get closer to retirement transition into more conservative allocations.

VTSMX is what I値l continue focusing on. Thanks!

Beach_Stache

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Re: 2018 Roth IRA
« Reply #4 on: April 08, 2018, 05:05:42 AM »
I'm a Fed also and used to have some in bonds until another Fed said that they treat their pension like their bond fund and just go for it.  So that's essentially what I do.  I have always been very aggressive and even more so now after seeing the allocation of lifecycle funds (used to put my money in 2050 Lifecycle for TSP - but that was not aggressive enough).  My hope/plan is that I'll have enough that even in a terrible downturn of the market that it still won't matter much since I'll have my pension and dipping in a bit during downtime won't be that terrible.  It all depends how risk averse you are and if you can stomach losing 50% in a down market knowing that you won't be tapping your account for another 25.5 years.  I know that a crash is coming every so often and am okay with it.