Vanguard

[howling bean]

okay, I'm 62 and I have 20,000 to put somewhere.  Should I open a Vanguard account and should it be in a Roth IRA, or something else.  I will be retiring in 3 years.  I don't have a lot of retirement money because I gave my gov't retirement money away twice (when I left the gov't) to my exhusband, wasn't my ex at the time.  I will have the TSP (about 80,000 which will only give me approx. $300/month) and social security (about $1100/mo) and my retirement should be approx. $1300/mo).  Thanks.

[skunkfunk]

Wow, this sounds confusing. I think you need to type up an entire case study.

[FIPurpose]

Maybe I'm a bit ignorant, but how do you give away your gov't retirement?

[howling bean]

I dont know how to do a case study.   

When you leave federal govt for another job, you can take out the money thats been put away toward your retirement or leave it to collect interest.  I took it out and when I returned to a govt job, I did not pay it back.  I did this twice as hard as it is to believe never thinking I would end up divorced.

Ive saved almost sixty thousand but its in the credit union earning next to nothing.   I want to put at least twenty thousand in something beside the credit union.

Thank you.

howlingbean

[FIPurpose]

See: https://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/

[Argyle]

You are only eligible to put it in a Roth IRA up to the limit of $6500 per year.  You could do it over several years, of course.  An IRA would be a good idea in most circumstances.  But whether a Roth or a regular IRA would be better depends on the rest of your numbers.  If you lay it all out in the case study mode we'd be better able to give suggestions.

[howling bean]

Thanks flyingcircle and Argyle.

[GoldenStache]

@Howling Bean

Was it the US fed?  Have you looked into buying all of your years back?  It will cost you a shiny penny or two (maybe your 20K) but if you had a good length of time in, it could be worth it.  If you post the numbers here some of us get a kick out of running the numbers for you. 

[Joel]

An IRA would probably be the best as it would reduce your taxable income now. And it sounds like you won't have as much in one upon retirement.