Re: [TSP_Strategy] Re: S fund

 

wait a min.---------Where it says govnt taking 10% off your Roth IRA?  

, in a Roth the government takes 10% which leaves you with a 5% gain

I only know you will be taxed on withdrawal of your traditional IRA/TSP, compounded for many years. and they are required to RMD.

Roth IRA is not and no RMD. If you rollover your Roth TSP to Roth IRA (tax free rollover), then no tax and RMD.

-----Original Message-----
From: David Garno dlgarno@gmail.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com>
To: TSP_Strategy <TSP_Strategy@yahoogroups.com>
Sent: Mon, Feb 27, 2017 8:25 am
Subject: Re: [TSP_Strategy] Re: S fund

 

Since Sarah has taken a position I would like to give you all my two cents. This Roth IRA has been sticking in my craw for a long time. I once heard a financial advisor say that it was usually wise to legally avoid taxes if possible while investing.  Now the Roth IRA seems like a government scam to me. Now lets just say that you buy a stock and it goes up 15% by the end of the tax year , in a Roth the government takes 10% which leaves you with a 5% gain (hypothetical), this would continue forever with this investment.

Instead I have fully invested in a traditional IRA which has compounded for 31 years.

In 2016 I was required to take my RMD on my TSP. My retirement included State Dept. Annuity, social security, veterans disability and the TSP withdrawal, totalling just over $100,000 my taxes totaled $7071. I am not complaining about taxes.

Now I do now want to make withdrawals from the TSP but it is required by the IRS.  Now I have one question about TSP that I would like advise on. Initially when I wanted to compute my RMD on the IRS website, I was directed to table II of pub-590B because my wife is more than 10 years younger than I. They have a formula to compute your RMD. This formula is a couple thousand dollars less than the formula that TSP uses. I called TSP and inquired and they just told me what formula they use.

I really don't need theseTSP funds so I transfer them to my brokerage account and purchase shares of Vanguard total stock MKT IDX funds. Happy investing.

On Mon, Feb 27, 2017 at 9:51 AM, sarah_oz@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:

 

"...most of the military TSP investors pick a percentage and leave it at that. If that is your investment strategy, Roth is the way to go."

Why invest less and pay taxes now?
Why not invest more and pay taxes later?

"The returns may grow untaxed in the regular TSP, but they are taxed when withdrawn."

Yes, more money when withdrawn, with a lower tax rate, since, you probably won't be earning as much when you retire.

"Also I don't understand your comment about paying more for goods and services."

Think about what Roth offers. 

1.You pay taxes now.
2.You invest less now.
3. Your money fails to multiply as quickly as in Traditional for decades....

Why would someone choose Roth?  Because, it is assumed that, in the future, you would pay a much higher tax rate than you would now, and that that higher tax rate would far outweigh the greater, non-taxed, savings that have been multiplying without taxes for decades.

Not only is the above hypothesis questionable, since clearly, the longer the time interval, the greater the non-taxed savings would be, but further...

4. If you are working less when you retire, your tax rate will likely be LOWER than it is now.
5. And there is, of course, the possibility that all tax rates will be LOWER in that distant future.
6. IF #5 comes to pass, you would not only have paid a higher tax rate under Roth, and accumulated less savings under Roth, but you would now also be using those reduced savings at a time of considerably higher costs for goods and services. (due to supply and demand factors, and reduced subsidies, both due in large measure to the lower tax rate)

__._,_.___

---

Posted by: lindalyc@aol.com

---

Reply via web post

•

Reply to sender

•

Reply to group

•

Start a New Topic

•

Messages in this topic (74)

---

Have you tried the highest rated email app?

With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.

---

Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.

Visit Your Group

• New Members 13

• Privacy • Unsubscribe • Terms of Use

.

__,_._,___

Anda baru saja membaca artikel yang berkategori dengan judul Re: [TSP_Strategy] Re: S fund. Anda bisa bookmark halaman ini dengan URL https://1stleadershipworkshop.blogspot.com/2017/02/re-tspstrategy-re-s-fund_92.html. Terima kasih!

Ditulis oleh: Andriansyah -