I started off maxing my Roth TSP, but then reduced it to 15% so I could keep cash more liquid and grow it in a HYSA (plus I needed to eat lol). It got to a point where I now have a lot in my HYSA and I think I’d be better off moving it into a brokerage. I went back to maxing my monthly TSP and now I’m maxing my IRA too since it’s now affordable to sustain. It looks like the brokerage would be the better option for liquidity (lower tax rate, likely higher yield for long term). My current idea is keep emergency funds HYSA and move the extra cash to grow in a brokerage to save up for a car. Are there any cautions I should take with this strategy? Any better recommendations? Any particular investment recommendations for serious gains within the next few years to get to my purchasing goals sooner?
How to use extra cash right now?
byu/InflationAutomatic79 inMilitaryFinance
Posted by InflationAutomatic79
1 Comment
Unless you are saving for an expected expense, I’d just up the % going into your ROTH TSP. You’ll likely never be in a tax bracket this low again.
Edit: Because I can’t read. If you want to buy the car within 5 years keep the cash