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Re: [TSP_Strategy] Re: Roth the rest of the way?

 

But does money in the TSP really compound? If I have a savings account with a guaranteed 1% return, I earn $10 on my $1000. The second year, my balance is now $1010 and I earn interest on the interest (the $10 I earned last year). 

How are we earning interest on our interest in regard to the TSP? Considering our account balances are simply (#of shares) x (share price), how does compounding play into that?




On Fri, Jul 19, 2019 at 6:15 AM Charles Rupp rupp.charles@gmail.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:
 

The question is: will you make, compounded over time, more money in the TSP than you will pay later in taxes?

Roth is post tax but, earning rates being the same, how much interest will you earn on today's taxes that you will avoid after retirement, when you tax liabilities are lower?

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Posted by: Mike VanAmburgh <mjv325@gmail.com>
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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.

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