The Money Heifer

This evening I read TSP 8 Critical Mistakes by Gary Melling & David Melling.  [For those of you unfamiliar with TSP, it is the federal government’s equivalent to the 401k plan].

Anyway, mistake #6 is Failing to max-out TSPcontributions.  Melling & Melling elaborate as follows:

Too many employees fail to maximize their allowable TSP contributions – – and their rationalizations are many and varied.  Some say (especially FERS workers) that they’ll only contribute to get the government’s 5% match and they will invest the rest in Roth IRA’s etc.  This often fails because of bad spending behavior.  Once a contribution is made to the TSP the amount is “out of sight, out of mind” and the money is seldom missed.  Programs outside of the TSP often require much more discipline to make installment payments because they lack similar automatic contribution mechanisms.  (In the case of Roth IRAs…

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