Any tsp contributors out there? Got a raise and want to increase to 10%. Ive been fully 401k, but not sure if I should, or how much, put into the Roth 401. I expect to stay in the same tax bracket.
Also, what funds are people in? Ive been in 2050, more aggressive, but its been pretty average compared to c and s funds.
Get the agency Max of 5% first by investing at least 5% in the TSP. Then max the Roth. Then increase your TSP contribution to 10%. If you can afford it, then increase TSP to 15%.
I'm in the TSP. I'm 44, and have been a Fed since age 30. I contribute 10%, with the agency matching the first 5%, for a total of 15%.
Previously I was with a contracting company that only matched 1.5%. So from age 21 to 30 I was contributing to that 401k 15% and they added their measly 1.5%.
Overall, there has been a consistent flow of 15% of my gross income to a 401k style retirement plan. Based on the performance from 1992 to now I feel that I have contributed adequately to be able to fund a retirement beginning at around age 57, assuming Social Security and FERS income in retirement. Had I only invested 5% (feds matching another 5%) in the ages 30-44, I think I would feel more comfortable delaying retirement about 2-3 years.
If you are under 30 and can afford it, I'd try to put as much into the Roth and TSP 401k as I could. Those early contributions dominate final performance. 8% return over 30 years will multiply that early money by a factor of 10.
In the TSP, I have been generally allocated 70% to the C fund (S&P 500) and 15% each to the S and I funds (small cap, international). I have never invested in one of the lifecycle funds, and certainly not the F or G funds, because I have preferred to be more aggressive. Now that I am about 13 years from retirement I am contemplating moving it all to the 2030 or 2040 fund - to get some income protection. If I chose 2040 over the 2030 it would be to stay on the aggressive side. I feel comfortable staying aggressive because I have also built up a solid investment account, have significant home equity, and have the FERS retirement as well as Social Security to provide good retirement income. You have to set your aggression level based on those kinds of considerations.
My Roth was established before the feds offered one, so I fund that a la carte. And that is my #1 priority after securing the Federal 5% match.
Regarding which Fed fund to invest in, in general, you can't go wrong if you dump it all into your age-appropriate lifecycle fund. But yes, it will underperform the C fund over the years. But with the C fund you can get caught with your pants down if you stick with it all the way to the end.