Will be promoting to E6 soon. I have a few considerations for the pay bump:
I have ~4years/36k left on a 45k car loan at 5.04% for 60m. Monthly payments are $850/m.
I am putting in 20% into my roth TSP at $810/m. Current amount in TSP is 49k.
My husband is also an E6 and is only putting 10% into his TSP. The last time we checked his TSP was around ~20k. I know our TSPs are low but we weren’t well educated early on in our careers. We are both currently at 11 years and on high 3. We both want to retire at 20, but I can be persuaded if I make rank again in my last couple years (we’re both aiming for at least E7).
We have $4.5k in a HYSA at 4.25%.
Please help
Increase TSP %, pay off car quicker, or more savings
byu/el_rica inMilitaryFinance
Posted by el_rica
1 Comment
My personal take would be keep the TSP contributions going, get your savings to where you are comfortable with it as an emergency fund, and then pay the car down. Technically you’d have a better return by paying the car down first since it’s a higher interest rate, but it’s always a good idea to have a good safety net. Once your car is paid off, start feeding money into both of your TSPs. Your balances might be low right now, but it will grow and grow until you start using it around age 60. Plus you’ll have two pensions in retirement.