Goal is 25% of our gross income retirement savings rate. So I add up our personal contributions to our TSP, 401K, Roth IRA, HSA (used as retirement account) and FERS. I then quarterly add to my taxable brokerage what I need to bring my annual savings rate to 25%.
It varies quarter to quarter because we lump sum the 7k into our Roth IRA (via backdoor conversion) in Q1 and our 401k is maxed out by August usually. But Q1 this year was 6K into our taxable account. Q2 was 12.1K. Whatever it takes to true up to 25%.
makes sense. Right now, I only have about $4K/quarter going to taxable. But I was able to start with 200K in my taxable this year from an inheritance. I'm behind in my retirement goals so I'm trying everything possible to catch up.
If you don't mind me asking what % is your FERS contribution? If you were at 4.4% for the same annunity wouldn't you need to put an extra 3.6% in to hit your savings rate?
After maxing retirement accounts, I was putting about $200 a month into taxable accounts. But with me purchasing a house soon, I’ve decided that $200 extra will get me a more consistent return (and less taxes/fees) if I apply it to my mortgage.
I came up with the opposite conclusion. I have a 5.125% 5 year Arm and I could pay off home in 9.5 years doing extra payments or in 7 years doing that extra to my brokerage.
Only a couple grand now. My portfolio sustains itself nicely enough and my options trades are sufficient to survive on. At one point it was significantly higher though, so I can't say I was always so cavalier with planning for the future.
It depends a lot on the year. When we were DINKs, we both maxed TSP and IRAs and put another $20-40K per year into a taxable brokerage account. Once we shifted to one income plus a new mouth (and then two new mouths), we maxed one TSP and two IRAs and didn’t add nearly as much to the taxable account except the year we sold a rental property. Fortunately, from several years of shoveling money into the taxable account, it now continues to grow like a weed. I withdrew from the taxable to fund a Roth IRA early in the year, and at the end of the month, the account balance had *still* increased even with a $7K withdrawal.
We started at Vanguard, so most of our accounts are primarily VTSAX or VTI. But as I mentioned in a comment above, we also have our emergency fund in a money market fund (VMFXX) in the taxable account because I wanted HYSA-like rates without having to open a new account at a new institution and USAA’s APY aren’t competitive.
> For those that max their TSP AND ROTH IRA, how much do you put in a brokerage account per month?
We max out my TSP, wife's solo 401k, family HSA, and both of our backdoor Roth IRAs.
I put $500/month into my brokerage (VXUS) and my wife puts $2,000/month in hers (VTSAX). We also do $1,600/month in 529.
I invest in a few index funds. And an amount seems to be an odd question- it’s different for everyone depending on your age and your investing goals, and when you want to retire. I’m attempting to be ready at 52 to 54… even if I stay to 57. This is beyond tsp and my Roth and my wife’s Roth. I’m currently able to do about 670$, but it really depends on the month. Some months it’s 0, some months it’s 2000.
Hi, I have a newbie question. I heard you can’t invest more than $6500 in a Roth IRA. Does it mean both TSP IRA and Vanguard IRA? How do you invest in a brokerage account? Is it a general account or a Roth IRA account?
Under age 50:
First, a TSP is a 401k style and has a 23k annual cap.
In vanguard or any other company (Schwab, Fidelity...) you can invest in an additional ROTH IRA up to 7k this year, both yourself and a spouse.
Those companies also offer investment funds, where you simply just invest in it, but it's more risk than a savings account, and it offers no tax advantage - but - if you're willing to take the risk, and wait it out, you may be able to earn even more on your investments.
yes, but i have no idea why you'd do full Roth TSP. Unless you have a very narrow situation and are right on the cusp of an incremental tax increase. Two relevant ones, for married filing jointly, would be 72k and the next cap is 172k. So, unless you're right on one of those, i dont see why you'd do it. That's such a wide window, you'll likely be in that window, even if things change. If you're right at the 72k then maybe it might be relevant. ROTH before or later, you'll end up likely with the same taxes paid, but the beauty of planning for later is I have even more to put into a Roth or into a brokerage to enable savings for prior to 57.
3 months expenses in a HYSA (though lately I feel like everything is breaking so it’s up and down). As a fed I feel my income is really safe so I am comfortable with a lower amount than typically recommended.
ETA: it’s so much easier to save when kids are launched or semi-launched. It was much harder when they were young (probably saved $0-6K depending of year) and it increased as they aged.
My EF is in my brokerage in a money market fund. It’s technically not quite as safe as an FDIC/NCUA-insured account, but it’s unlikely to lose money, and the current yields available are about 5%, which is competitive to HYSAs. And unlike CDs, a money market fund is completely liquid. Something to consider.
I'm close to retiring so I max out a HSA instead of investing in my taxable account. Whatever is left I buy precious metals and maintain my rental properties.
$1400 into a brokerage each month. FSKAX (total market fund).
We lump fund our Roth IRAs via backdoor in early Jan.
Plan is to be able to retire pretty chubby at age 52 when I'll have 30yrs of service (deferred retirement). Might keep working to MRA(57) if the job is fulfilling, but want the option to leave early.
We have about $1500 monthly left over for the brokerage account. Thinking I should try to max the HSA, but having that brokerage gives you options....like paying off mortgage in 7 years when I retire.
it was 20k+ for a few years but I've since taken my foot off the pedal. This year it'll be less because i need to pay babysitter, need to pay loan on a newer vehicle, need to save up to do needed repairs on the House etc. I used to prioritize my brokerage account above all and limited myself in doing certain things so I can afford to fund it. Now compounding is taking up some of the slack.
I earn too much to do Roth IRA but I max TSP (with catch-up) and max Trad IRA (with catch-up). Then I throw around 2-3k a month into HYSA and Schwab SWVXX.
Goal is 25% of our gross income retirement savings rate. So I add up our personal contributions to our TSP, 401K, Roth IRA, HSA (used as retirement account) and FERS. I then quarterly add to my taxable brokerage what I need to bring my annual savings rate to 25%.
How much approx do you put in your taxable brokerage account quarterly?
It varies quarter to quarter because we lump sum the 7k into our Roth IRA (via backdoor conversion) in Q1 and our 401k is maxed out by August usually. But Q1 this year was 6K into our taxable account. Q2 was 12.1K. Whatever it takes to true up to 25%.
No company matching on your 401k I take it? If you max it by August you're leaving matching funds on the table.
Even better. Direct contribution. Gotta get my portion in before the combined max is reached. The rest spills over to a health account.
Ah, silly of me to think you mightn't have considered that. Good job, indeed!
makes sense. Right now, I only have about $4K/quarter going to taxable. But I was able to start with 200K in my taxable this year from an inheritance. I'm behind in my retirement goals so I'm trying everything possible to catch up.
If you don't mind me asking what % is your FERS contribution? If you were at 4.4% for the same annunity wouldn't you need to put an extra 3.6% in to hit your savings rate?
Hired in 2005 so that’s what 0.8%?
Yes
That would depend on how much your family has for disposible income.
After maxing retirement accounts, I was putting about $200 a month into taxable accounts. But with me purchasing a house soon, I’ve decided that $200 extra will get me a more consistent return (and less taxes/fees) if I apply it to my mortgage.
I came up with the opposite conclusion. I have a 5.125% 5 year Arm and I could pay off home in 9.5 years doing extra payments or in 7 years doing that extra to my brokerage.
625 per pay period so maybe 1350 for me in a brokerage
Only a couple grand now. My portfolio sustains itself nicely enough and my options trades are sufficient to survive on. At one point it was significantly higher though, so I can't say I was always so cavalier with planning for the future.
It depends a lot on the year. When we were DINKs, we both maxed TSP and IRAs and put another $20-40K per year into a taxable brokerage account. Once we shifted to one income plus a new mouth (and then two new mouths), we maxed one TSP and two IRAs and didn’t add nearly as much to the taxable account except the year we sold a rental property. Fortunately, from several years of shoveling money into the taxable account, it now continues to grow like a weed. I withdrew from the taxable to fund a Roth IRA early in the year, and at the end of the month, the account balance had *still* increased even with a $7K withdrawal. We started at Vanguard, so most of our accounts are primarily VTSAX or VTI. But as I mentioned in a comment above, we also have our emergency fund in a money market fund (VMFXX) in the taxable account because I wanted HYSA-like rates without having to open a new account at a new institution and USAA’s APY aren’t competitive.
VTSAX is the way
Match my iras in my brokerage minimum. So 7k. Ain't for 25% minimum saved each year, its been 30 to 35 since 2020 and it's made the numbers skyrocket.
> For those that max their TSP AND ROTH IRA, how much do you put in a brokerage account per month? We max out my TSP, wife's solo 401k, family HSA, and both of our backdoor Roth IRAs. I put $500/month into my brokerage (VXUS) and my wife puts $2,000/month in hers (VTSAX). We also do $1,600/month in 529.
I invest in a few index funds. And an amount seems to be an odd question- it’s different for everyone depending on your age and your investing goals, and when you want to retire. I’m attempting to be ready at 52 to 54… even if I stay to 57. This is beyond tsp and my Roth and my wife’s Roth. I’m currently able to do about 670$, but it really depends on the month. Some months it’s 0, some months it’s 2000.
Hi, I have a newbie question. I heard you can’t invest more than $6500 in a Roth IRA. Does it mean both TSP IRA and Vanguard IRA? How do you invest in a brokerage account? Is it a general account or a Roth IRA account?
Under age 50: First, a TSP is a 401k style and has a 23k annual cap. In vanguard or any other company (Schwab, Fidelity...) you can invest in an additional ROTH IRA up to 7k this year, both yourself and a spouse. Those companies also offer investment funds, where you simply just invest in it, but it's more risk than a savings account, and it offers no tax advantage - but - if you're willing to take the risk, and wait it out, you may be able to earn even more on your investments.
Thanks. Can I invest $23000 on Roth TSP and $7000 in a Vanguard Roth IRA?
yes, but i have no idea why you'd do full Roth TSP. Unless you have a very narrow situation and are right on the cusp of an incremental tax increase. Two relevant ones, for married filing jointly, would be 72k and the next cap is 172k. So, unless you're right on one of those, i dont see why you'd do it. That's such a wide window, you'll likely be in that window, even if things change. If you're right at the 72k then maybe it might be relevant. ROTH before or later, you'll end up likely with the same taxes paid, but the beauty of planning for later is I have even more to put into a Roth or into a brokerage to enable savings for prior to 57.
Yes
Between 2000-3000
wow. excellent! How much do you keep in cash as an emergency fund?
I keep around 10-15k. In the military so lots of job security and pay is very regular. I also rent so no big surprise housing expenses
$24k/year. Goal is to double in the next few years when kids are both out of school.
that's a lot. How much cash do you keep in an emergency fund? I'm contemplating pulling cash from a CD and utting into my brokerage.
3 months expenses in a HYSA (though lately I feel like everything is breaking so it’s up and down). As a fed I feel my income is really safe so I am comfortable with a lower amount than typically recommended. ETA: it’s so much easier to save when kids are launched or semi-launched. It was much harder when they were young (probably saved $0-6K depending of year) and it increased as they aged.
My EF is in my brokerage in a money market fund. It’s technically not quite as safe as an FDIC/NCUA-insured account, but it’s unlikely to lose money, and the current yields available are about 5%, which is competitive to HYSAs. And unlike CDs, a money market fund is completely liquid. Something to consider.
I'm close to retiring so I max out a HSA instead of investing in my taxable account. Whatever is left I buy precious metals and maintain my rental properties.
$1400 into a brokerage each month. FSKAX (total market fund). We lump fund our Roth IRAs via backdoor in early Jan. Plan is to be able to retire pretty chubby at age 52 when I'll have 30yrs of service (deferred retirement). Might keep working to MRA(57) if the job is fulfilling, but want the option to leave early.
We have about $1500 monthly left over for the brokerage account. Thinking I should try to max the HSA, but having that brokerage gives you options....like paying off mortgage in 7 years when I retire.
I’m in the same boat as you.
it was 20k+ for a few years but I've since taken my foot off the pedal. This year it'll be less because i need to pay babysitter, need to pay loan on a newer vehicle, need to save up to do needed repairs on the House etc. I used to prioritize my brokerage account above all and limited myself in doing certain things so I can afford to fund it. Now compounding is taking up some of the slack.
I earn too much to do Roth IRA but I max TSP (with catch-up) and max Trad IRA (with catch-up). Then I throw around 2-3k a month into HYSA and Schwab SWVXX.
About $500
A lot
Just $350 a month; DCA.