Roth IRA Vs. Thrift Savings Plan?

Lee has his government employee's thrift savings plan, but Dave says he should fund a Roth IRA first.

QUESTION: Lee asks if a Roth IRA is better than the government employee’s thrift savings plan.

ANSWER: The military does not match in the TSP and you are better off to grow your money tax-free than tax-deferred.  So, you should fund a Roth IRA first.  After you fully fund the Roth IRA, you should fund the TSP because it is a good retirement savings tool. 

Remember: you should only save for retirement after you have paid all your debt except the house and saved 3-6 month’s of expenses.

Jump-Start Your Goals!

Jump-Start Your Goals!

Get our 8-Day JUMP START series and weekly newsletter that are packed with articles and tools to help you win with money.

Reach Your Money Goals

Reach Your Money Goals

Start with a budget. Join the millions already budgeting with EveryDollar!

Create My (FREE) Budget

Thank You!

Your 8-Day Jump Start is on its way to !