Author Topic: TSP vs. Betterment IRA  (Read 2663 times)

mikewanders

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TSP vs. Betterment IRA
« on: August 18, 2015, 06:56:26 AM »
Within the last year I've stopped contributing to my Betterment Roth IRA and have instead elected to put all my retirement savings into the ROTH TSP.  Is this a good plan?  Especially given how advanced I'm hearing that companies like Betterment are?

zephyr911

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Re: TSP vs. Betterment IRA
« Reply #1 on: August 18, 2015, 01:15:08 PM »
Within the last year I've stopped contributing to my Betterment Roth IRA and have instead elected to put all my retirement savings into the ROTH TSP.  Is this a good plan?  Especially given how advanced I'm hearing that companies like Betterment are?
Do you get TSP matching? If so, *always* contribute enough to maximize the match. Betterment is unlikely to double your money the day you put it in. For unmatched funds, TSP is probably still slightly better since their ER is lower, and the primary selling point of Betterment (tax loss harvesting) is moot inside of a Roth.

However, your goal should be to contribute the legal maximum to both accounts, since the contribution limits are separate ($18K TSP, $5500 IRA). I'm planning to do so this year (first time ever, first full year since finding MMM; no coincidence).

EricP

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Re: TSP vs. Betterment IRA
« Reply #2 on: August 18, 2015, 02:24:56 PM »
In addition to what Zephyr said, I would also reconsider whether Roth is what you want to be contributing to.  For ER, Traditional contributions give you a lot more flexibility and are generally the preferred method.

randommadness

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Re: TSP vs. Betterment IRA
« Reply #3 on: August 18, 2015, 02:45:35 PM »

However, your goal should be to contribute the legal maximum to both accounts, since the contribution limits are separate ($18K TSP, $5500 IRA). I'm planning to do so this year (first time ever, first full year since finding MMM; no coincidence).

My goal for next year. I want it so bad! Word to my fellow Feds.

zephyr911

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Re: TSP vs. Betterment IRA
« Reply #4 on: August 18, 2015, 09:01:11 PM »
Word to my fellow Feds.
*extends Big Brother secret handshake*

Migrator Soul

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Re: TSP vs. Betterment IRA
« Reply #5 on: August 18, 2015, 10:46:41 PM »
Hey now, we trigger happy grunts get access too. Personally I am maxing my Roth TSP. No matching, but since I'm in such a low tax bracket due to my pay being a good chunk non taxable bonuses. The low fees are wonderful, and it just makes sense. For my IRA I have a Roth through Vanguard. The maxing feels are real bro, keep at it.

Drifterrider

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Re: TSP vs. Betterment IRA
« Reply #6 on: August 20, 2015, 11:57:59 AM »

However, your goal should be to contribute the legal maximum to both accounts, since the contribution limits are separate ($18K TSP, $5500 IRA). I'm planning to do so this year (first time ever, first full year since finding MMM; no coincidence).

My goal for next year. I want it so bad! Word to my fellow Feds.

I max my TSP plus the over 50 catch up and this year I am going to max a Roth IRA. 

wenchsenior

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Re: TSP vs. Betterment IRA
« Reply #7 on: August 21, 2015, 07:38:53 AM »
Word to my fellow Feds.
*extends Big Brother secret handshake*

Me too! Next year, I hope.