Yes, it takes a British Comedian John Oliver on HBO to get American Millennials to invest in their retirement. This quite a week as I have been following r/MilitaryFinance as well as long time asian o-5 reader to see that DoD has posted some dumbed down explanation of the new retirement plan. This in a combination with the Last Week Tonight on Retirement should be all you need to realize maybe its time to really think about putting some green into your TSP already. As John Oliver reiterates, even 0.1% fees can really f**k you! This is true as fee will compound, and you can never beat 0.029% that the C fund on TSP offers this is lower than the 0.05% that Vanguard charges for the same index fund.
Then another thing I thought about today is the 20% pay cut for the 5% matching (if they make me instantly vested) would be insurance to not doing 20 years AD. The Dave Ramsey approach would be take the matching as is equates to real money in an account that can be gifted to some one or some thing. The pension stops when you die, in the new system I at least have the 5% match compounding all that time.
I still got till 31 Dec 2017 to decide on exactly what to do, but I should know for sure:
- Financial advisors are mooches that can’t beat the index. They make mulah money by selling you on annuities and s**t products you are never meant to understand
- Many firms charge different fee for the same index, you can’t beat TSP as they charge 29 cents per $1,000. Not even the boogleheads Vanguard comes close at 50 cents per $1k
- The only precious resource in this world is time and every moment you spend reading this blog is taking away from your finite time on earth. Time is your friend in terms of compounding interest and you should of done this when you were younger.
I’m also excited as this week looks like a rough week, maybe a nice market correction so I can move most my funds from the G fund to the C fund when its valued correctly. The VIX seems to think so as well.
looking forward to the update on our TSP race with trainwrecktrader.com I don’t care who wins as long as we beat Dave Ramsey and the L2040 fund. If this correction happens this week I will be so happy to move my money out of G and buy up as much CSI as possible!