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Posted: 5/4/2017 9:03:22 PM EDT
I'm 24, military, married, no kids.  

I think I'm doing decent, I was pretty financially illiterate until recently, started listening to Dave Ramsey about 3-4 months ago, just finished The richest man in Babylon.  

Take home pay is ~46k.  
Just bought our first home, $77K left on it, probably worth 90K. $670 monthly with escrow and paying extra as possible.  
$580 going into a Roth TSP monthly.  (50% C, 30% S, 20% I)
$7500 in a money market emergency account.  Another 1K in checking that never gets touched.  

I'm wondering what my financial goals should be?  Considering an IRA instead of TSP, maybe starting a small college fund to get ahead of the game for my kids?  Plenty of money goes to guns and the house and savings.
Link Posted: 5/4/2017 9:13:39 PM EDT
[#1]
I would keep the TSP, but transition to making those contributions the traditional (pre tax) way so it will adjust your annual taxable income. Also start a Roth IRA with Vanguard or Fidelity. Best of both worlds.
Great job with minimizing consumer debt, and living within your means. 
Link Posted: 5/4/2017 9:18:08 PM EDT
[#2]
Not bad for 24. Very good for 24 year old military. Lol.

Something I seldom hear, and how I do it. I'm a tangible thinker. I think in numbers and analytics.

Pick a goal. Your a 70 year old walldj45. How do you picture yourself. Any Mrs walldj45? Little walldj45s? Lifestyle? Money needed to live the life you want?

Okay, great. You picked all that out.

Now work backwards. How do you get there. Do a plan and goals for every year in the next 5 years, and the same for every 5 years after that. Map out how you get there. Research. You'll get there.

How do you win a race if you don't know where the finish line is? On here and in real life a lot of people ask me or post threads about how to meet their financial goals but they almost always list their current situation, and not actual goals.

We don't know your goals. You need to define that.
Link Posted: 5/5/2017 8:27:02 AM EDT
[#3]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I would keep the TSP, but transition to making those contributions the traditional (pre tax) way so it will adjust your annual taxable income. Also start a Roth IRA with Vanguard or Fidelity. Best of both worlds.
Great job with minimizing consumer debt, and living within your means. 
View Quote
What's the advantage to a traditional TSP?  I'm not near a tax bracket that I can get below and it seems that Roth usually beats traditional.  

What sort of fees or commissions would you recommend for a smaller investor like me?
Link Posted: 5/5/2017 8:28:36 AM EDT
[#4]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Not bad for 24. Very good for 24 year old military. Lol.

Something I seldom hear, and how I do it. I'm a tangible thinker. I think in numbers and analytics.

Pick a goal. Your a 70 year old walldj45. How do you picture yourself. Any Mrs walldj45? Little walldj45s? Lifestyle? Money needed to live the life you want?

Okay, great. You picked all that out.

Now work backwards. How do you get there. Do a plan and goals for every year in the next 5 years, and the same for every 5 years after that. Map out how you get there. Research. You'll get there.

How do you win a race if you don't know where the finish line is? On here and in real life a lot of people ask me or post threads about how to meet their financial goals but they almost always list their current situation, and not actual goals.

We don't know your goals. You need to define that.
View Quote
Thanks, that's good food for thought.  

Married and will definitely be having kids.

Currently in the military but I'm not sure where I'll be afterwards.  I have the option of taking over the family small business which would be great financially I just have to choose if that's what I want.
Link Posted: 5/5/2017 8:42:28 AM EDT
[#5]
Just came by to say keep up the good work!

One piece of advice I always use is every dollar should have a name.  Is it going to retirement, a vacation, toward a new car, or just to pay a bill or an emergency?

Dave Ramsey follower here.  Been debt free for 7 years and paid off the house almost 2 years ago.
Link Posted: 5/5/2017 9:06:52 AM EDT
[#6]
The college fund is a good idea, but you need a childs SS# for opening a 529 to receive the tax benefit.
Opening an IRA is a good idea but since you are able to contribute to a TPS just max that out instead.  The fees will be cheaper than an IRA as a general rule.  A ROTH is a good idea but when you income is higher it will make sense for estate planning.
Doing good for a married 24 military.
Just need to get the SO working.
Link Posted: 5/5/2017 11:20:39 AM EDT
[#7]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


What's the advantage to a traditional TSP?  I'm not near a tax bracket that I can get below and it seems that Roth usually beats traditional.  

What sort of fees or commissions would you recommend for a smaller investor like me?
View Quote
Here's a TSP calculator that will help compare the traditional vs Roth route for your situation. Roth might end up being the way to go given your income. 
https://www.tsp.gov/PlanningTools/Calculators/contributionComparison.html

Here are some good low cost investment options for Roth IRA's. (Ideally the expenses should be well below 1%)

http://clark.com/personal-finance-credit/investing-retirement/401k-plans-and-payouts/sample-low-cost-investment-options-dollar-amount/
Link Posted: 5/5/2017 10:44:52 PM EDT
[#8]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Just came by to say keep up the good work!

One piece of advice I always use is every dollar should have a name.  Is it going to retirement, a vacation, toward a new car, or just to pay a bill or an emergency?

Dave Ramsey follower here.  Been debt free for 7 years and paid off the house almost 2 years ago.
View Quote
I don't agree with some of the Ramsey stuff for my personal goals but it's VERY important to assign everything a purpose.

You personal finances are not personal. It's a business. Run it that way. Leakage kills businesses. I (and every non bankrupt manager in my industry) know their margins, overhead, and income. Identify the leakage and fix it. Every month. Hammer the details. That's how you get rich, or meet whatever goal you want to meet.

A good example. I was talking with a customer last year. He owned a small business and one day decided he wanted to manage dairies. Now he is a partner and overseas 4 large dairies milking 20,000 cows. My competition had cost him his bonus at a barn. I said "we'd love to have a chance to fix it, what does that bonus run at current milk prices, about $21,500 a month?"

$21,285.46

That's a man that knows his numbers.

The managers that don't know their numbers like that work hard. They always work hard. They turn a lot of money but nothing is ever left over. It all goes to the bank, the vendors, the cows, the equipment financing company. They don't fucking know. It just goes. That's all they know.

I own a business with family partners outside of my industry. I know to the tenth of a % what every line item in the budget is.

Same with my own budget, I had it so well mapped out that I actually turned it over to my mom (she does our bookkeeping). It took me 20 minutes to go over it with her and she was able to manage my finances for me. She just has to follow the rules.

I've worked with people that didn't know why they never had money to save, but they spent 50-75 bucks a day on crap at the gas station. Leakage.
Link Posted: 5/6/2017 9:32:57 AM EDT
[#9]
Doing the Roth, as you are doing, is best. You are earning less now that you will be in the future. Saving taxes now won't help as much as not paying taxes later on your growth will. Roth FTMFW.
Link Posted: 5/7/2017 10:27:05 AM EDT
[#10]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


Thanks, that's good food for thought.  

Married and will definitely be having kids.

Currently in the military but I'm not sure where I'll be afterwards.  I have the option of taking over the family small business which would be great financially I just have to choose if that's what I want.
View Quote
Yeah short term you look good, especially for bring in the military. I would focus on the medium term, i.e. What do you do when done with the marines, do you need education? Can it be done online? If it's the family business sit down and have a serious talk with the family and see what they except you to do to take j over. FWIW owning a business is a great way to achieve financial freedom.  Long term you need to talk with the wife and decide what the two of you want your future to look like. My wife and I save/invest over 75% of our take home income, we decided we don't want to work a day past 50 and want to move to Florida when we do. As a result we have adjusted our priorities to assure we reach our goal.

My last pieces of advice is take advantage of the fact that you're young, you have plenty of time to enjoy the be l if it's if compound interest and a $1 invested today can easily be worth $10+ when you retire so start investing!
Link Posted: 5/7/2017 11:21:24 AM EDT
[#11]
Being 100% stocks like Ramsey recommends can be good for a 24 year old.  Personally I think that 30% in small caps is too high but have at it.  Just be ready for the eventual down turn.  It will happen and don't be scared out of the market when/if your TSP Roth has its value cut in half.  

When I was 24 I had a small amount in fixed income to smooth out the bumps.  It has worked well for me during the past 30 years or so.

And good job!  You are on the right track.
Link Posted: 5/7/2017 11:02:02 PM EDT
[#12]
MAX OUT THE TSP.   You are doing very well.  The more you can save while young the better off you'll be ...compounding interest.  Keep it all between the C, S and some I. You won't need it for 50 years so don' t even think about G or F.
Link Posted: 5/8/2017 8:59:44 AM EDT
[#13]
The biggest thing to me is the college savings for kids you don't have?  Take that and focus on your retirement.  Out of tax shelters then look at a cheap rental if you can or something to diversify.  We have 3 kids and I'm not doing the college savings thing.  Focusing on the family savings and will focus on that when I get there.  A bunch of gotchas when I was looking at the different college savings plans.
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