I've been seeing some topics online and videos regarding obtaining the first 100k in investments to really see the significant difference compound interest can make. I am heavily considering rolling over my Roth TSP into my Roth IRA (2060 Target Retirement) to help jump start that compound interest growth.
A bit about myself, I am 27. I left the Army 6 months ago after 7.5 years of Active Duty service. I am now a Software Engineer in Phoenix. I've maxed my Roth IRA every year since I was 20 years old. My current investment balances are:
Vanguard 2060 Target Retirement: $51k
Roth TSP: $39K
I focused on maxing my Roth IRA since it served as a second tier emergency fund. Now, I am pretty dang close to that $100k investment goal, which I will for sure obtain before 30 years old. I would like to jumpstart that compound interest by having the Roth TSP funds rolled over into the Roth IRA. The only thing stopping me is the expense ratio of the TSP compared to the Roth IRA. The TSP has expense ratios that cannot be beat by anyone from what I understand. Is my concern valid, or am I splitting hairs, and the compound interest of having my 401k funds rolled over into my TSP, along with the compound interest gained from that far outweigh my expense ratio concern?
A bit about myself, I am 27. I left the Army 6 months ago after 7.5 years of Active Duty service. I am now a Software Engineer in Phoenix. I've maxed my Roth IRA every year since I was 20 years old. My current investment balances are:
Vanguard 2060 Target Retirement: $51k
Roth TSP: $39K
I focused on maxing my Roth IRA since it served as a second tier emergency fund. Now, I am pretty dang close to that $100k investment goal, which I will for sure obtain before 30 years old. I would like to jumpstart that compound interest by having the Roth TSP funds rolled over into the Roth IRA. The only thing stopping me is the expense ratio of the TSP compared to the Roth IRA. The TSP has expense ratios that cannot be beat by anyone from what I understand. Is my concern valid, or am I splitting hairs, and the compound interest of having my 401k funds rolled over into my TSP, along with the compound interest gained from that far outweigh my expense ratio concern?
Statistics: Posted by alex1996p — Sun Dec 17, 2023 12:50 am — Replies 9 — Views 669