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.