So, I did a little math. If I stay with my agency for 21 years, contributing the IRS max to my 401k equivalency from the time matching starts (about a year from now) until the end of those 20 years, and if that account earns on average 10% interest for those 20 years, and inflation averages 3%, then by the end of it all, I will be getting the equivalent of a little under 70k in interest from my retirement fund, assuming that when I am withdrawing it’s getting 5% interest. If only 10 years, then 45k. Had I done something comparable with my cmu ira, or my motorola ira, well, I couldn’t have contributed as much, but I suspect I would have at least doubled it. <\/p>\n
If any of you have have plans, use them. Regard maximizing your employer matching as the minimum. Stick around wherever it is until you vest. Especially if you are young. Do as I say, not as I do. *wag finger sternly*<\/p>\n
Oh yeah, I’m also going to weight my TSP heavily toward the foreign index. Very heavily, like 1\/3 in that alone, not counting the stuff from the composite account. You know, just in case, cast a wide net.<\/p>\n","protected":false},"excerpt":{"rendered":"
So, I did a little math. If I stay with my agency for 21 years, contributing the IRS max to my 401k equivalency from the time matching starts (about a year from now) until the end of those 20 years, and if that account earns on average 10% interest for those 20 years, and inflation … Continue reading “Planning for the future”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1784","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=\/wp\/v2\/posts\/1784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1784"}],"version-history":[{"count":0,"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=\/wp\/v2\/posts\/1784\/revisions"}],"wp:attachment":[{"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cheerfulchaotic.crazycrew.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}