You listed the checklist… my employer matches up to 5% should I only contribute up to 5%? I am currently contributing 18% now plus 300 a Month in an Roth index fund. Should I lower the % and max out index fund?
Hey @BrianUSMC!
Don’t confuse the accounts with what goes IN the accounts. (401k is an account. Index funds go inside of a 401k).
That said, 18% is great. I wouldn’t dial that down, rather ALSO try to do the other things on the checklist (i.e. Roth IRA and HSA if available). Ideally you’d be filling up all three! 
Jeremy,
Thanks for the response I guess I could have been more clear my apologies. I contribute 18% towards my TSP which is matched up to 5%. On your checklist on your Instagram it says contribute up to match so that was the reason for my question. Because I am also contributing 300 a month to my target date index fund as well. So should I put more into target date and reduce TSP. Basically which one is the best to increase my monthly contribution?
Hey @BrianUSMC!
TSP is a type of account. Index fund is a type of investment. So I think you’re confusing those things. (Did you read “the layers of investing” link above?)
It’s best to prioritize which accounts you invest in based on their tax advantage. Then you put index funds in ALL the accounts.
When you say $300/month to your “index fund”, what type of account is that index fund in?
Yeah maybe I am man haha so I contribute 300 a month to a fidelity 2050 Roth index fund.
Yeah… so you said “Roth” index fund.
I suspect you mean: “I have a Roth IRA, into which I contribute $300/month and invest it into a 2050 index fund”. That layers of investing post is exactly for you. So your layers are:
- Brokerage: Fidelity
- Account: Roth IRA
- Investment: 2050 index fund
Anyway, TSPs are awesome so I definitely wouldn’t dial that down, but I would want to at least know WHAT you’re investing in, inside of your TSP. (I might suggest the 2050 L fund). 18% into your TSP and $3,600/year into a Roth IRA, both invested into target date index funds is awesome. If you want to be more rich, or retire sooner, just try to ramp up either or both of those numbers. Which one doesn’t really matter since they’re both great.
Hey sorry it’s been crazy just celebrated my 40th here in San Diego. We moved away from here a few years ago. So my TSP account is set up in a life cycle fund where I contribute 20% which equates to 540 every two weeks plus 300 in a fidelity Roth 2050 index fund. Been thinking about increasing that even more to 400 a month. Any other ideas to help make us richer come retirement time? Thanks man
I don’t think there are any other tricks. Spend less than you make, invest the difference. Your 2050 TSP is a perfect option. The more and earlier you plow money into there, the more wealthy you will be!
Why not increase your 401k and increase your ROTH IRA? LOL. All you have to do is tweak your monthly budget & downsize a bit (considering we’re in a “covid-19” environment, I’m spending a lot less). Your future self will thank you.