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TSP

Administered by the Federal Retirement Thrift Investment Board, this defined contribution plan for federal employees has roughly 4,614,874 participants, and over $358 billion in assets under management. Ask your TSP questions and post related topics here.

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SeekingIdeas  
#21 Posted : Wednesday, August 6, 2014 7:37:58 PM(UTC)
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Originally Posted by: Knight Go to Quoted Post
Or save the amount you would have paid the TSP for 5 years and buy a home once you have the down payment.


Don't you think it's a better idea to have the money working at all time, whether it's in a 401K or as a down payment for a house, instead of having it sit around at a Checking or Savings account doing nothing for 5 years?

frankgonzalez  
#22 Posted : Thursday, August 7, 2014 3:28:06 AM(UTC)
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Originally Posted by: SeekingIdeas Go to Quoted Post
Originally Posted by: Knight Go to Quoted Post
Or save the amount you would have paid the TSP for 5 years and buy a home once you have the down payment.


Don't you think it's a better idea to have the money working at all time, whether it's in a 401K or as a down payment for a house, instead of having it sit around at a Checking or Savings account doing nothing for 5 years?

There are other savings options beyond a checking or savings account.. You could ladder Cert of Deposits for example.

You should have voted Cthulu...the greatest of all Evils
Trader3569  
#23 Posted : Thursday, August 7, 2014 10:57:53 AM(UTC)
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Your house isn't neccessarily working for you. Look at the recent housing downturn, a lot of home owners are still looking at a loss if they sell their home. Look into some sound investments through a brokerage (online or otherwise)rather then a savings account
New name, same old idiot! Former name TRyno.
Knight  
#24 Posted : Thursday, August 7, 2014 12:10:31 PM(UTC)

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That's a valid point. There are some people who no longer consider a house a safe investment. Some people prefer renting vs buying.

There is even a website to help on that decision

http://www.nytimes.com/i...ent-calculator.html?_r=0
frankgonzalez  
#25 Posted : Friday, August 8, 2014 4:29:57 AM(UTC)
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Originally Posted by: Knight Go to Quoted Post
That's a valid point. There are some people who no longer consider a house a safe investment. Some people prefer renting vs buying.

There is even a website to help on that decision

http://www.nytimes.com/i...ent-calculator.html?_r=0
I don;t plan on spending more than 5 or 6 years in this area, and I would need to spend at least $450k to get close to the space I have now renting (plus I would have to pay utilities if I move)...my rent is less than they list on your link as the number I needed to get under. If I was planing on being here between 9 and 21 years, then buying would make some sense...more than 21 years, it goes back to renting being better!



You should have voted Cthulu...the greatest of all Evils
SeekingIdeas  
#26 Posted : Friday, August 8, 2014 5:23:04 AM(UTC)
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Originally Posted by: frankgonzalez Go to Quoted Post
Originally Posted by: Knight Go to Quoted Post
That's a valid point. There are some people who no longer consider a house a safe investment. Some people prefer renting vs buying.

There is even a website to help on that decision

http://www.nytimes.com/i...ent-calculator.html?_r=0
I don;t plan on spending more than 5 or 6 years in this area, and I would need to spend at least $450k to get close to the space I have now renting (plus I would have to pay utilities if I move)...my rent is less than they list on your link as the number I needed to get under. If I was planing on being here between 9 and 21 years, then buying would make some sense...more than 21 years, it goes back to renting being better!





What's your plan after 5-6 years? Are you here in DC for the work experience/promotion only?

Knight  
#27 Posted : Friday, August 8, 2014 6:48:39 AM(UTC)

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nationally we are conditioned to buy but sometimes renting is the best way to go. Especially if you know you are leaving an area.
MC5Wes  
#28 Posted : Sunday, August 10, 2014 2:49:36 PM(UTC)
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I tell my new guys that a TSP loan is the last place you should get money. Besides paying the 2.75 percent for the loan. You lose the interest you would be making. Also its paid back with after tax money. So if your in the 10 percent tax range and making 10 percent a year on your TSP. Your looking at 22.75 percent interest. Also there is no early payment discount on the loan.

Your better off with a cash advance on a credit card.
SeekingIdeas  
#29 Posted : Sunday, August 10, 2014 5:31:42 PM(UTC)
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Originally Posted by: MC5Wes Go to Quoted Post
I tell my new guys that a TSP loan is the last place you should get money. Besides paying the 2.75 percent for the loan. You lose the interest you would be making. Also its paid back with after tax money. So if your in the 10 percent tax range and making 10 percent a year on your TSP. Your looking at 22.75 percent interest. Also there is no early payment discount on the loan.

Your better off with a cash advance on a credit card.


What do you mean there is no early payment discount on the loan? If you borrow $30K and paid back $20K within the first year, you only pay interest on the remaining $10K for after the fist year, right?

I didn't think about the pay back with after tax money. That does make a huge difference.
frankgonzalez  
#30 Posted : Monday, August 11, 2014 5:04:45 AM(UTC)
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Originally Posted by: SeekingIdeas Go to Quoted Post
Originally Posted by: frankgonzalez Go to Quoted Post
Originally Posted by: Knight Go to Quoted Post
That's a valid point. There are some people who no longer consider a house a safe investment. Some people prefer renting vs buying.

There is even a website to help on that decision

http://www.nytimes.com/i...ent-calculator.html?_r=0
I don;t plan on spending more than 5 or 6 years in this area, and I would need to spend at least $450k to get close to the space I have now renting (plus I would have to pay utilities if I move)...my rent is less than they list on your link as the number I needed to get under. If I was planing on being here between 9 and 21 years, then buying would make some sense...more than 21 years, it goes back to renting being better!





What's your plan after 5-6 years? Are you here in DC for the work experience/promotion only?

I would like to go overseas for a few years (preferably Europe, but open to other locations) while I am still early in my federal career. However, if I find myself in a GS15 position here in DC in the next 6 years (possible if I decided to go that route), then I would be looking to buy a home here.

But I get "itchy feet" every few years and like the idea of moving to a new place, to new experiences, so my next position/promotion may not be in DC.

You should have voted Cthulu...the greatest of all Evils
Knight  
#31 Posted : Monday, August 11, 2014 7:12:22 AM(UTC)

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Quote:
But I get "itchy feet" every few years and like the idea of moving to a new place,


I hear ya. I move about every 3 years. I have slowed down some now that I am a civilian but travel is one of perks I enjoy with DOD.
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