So I'm a 23 year old E3 with 2 years TIS and have been saving since I got a job at 16. Fast forward to today and now I have $28k liquid sitting in a Navy Fed money market savings account.
Because I'm not certain if I'm gonna stay in or not, I was thinking about keep it liquid and getting a CD or opening a HYSA at 4.25% to fight inflation while I continue to add to it. I'm already in the process of opening a HYSA because the 1.095% I get from Navy Fed is laughable. But I'm almost certain I won't need all of the $28k to survive if I do get out. So I'm thinking about maybe only keeping $10k or $15k in liquid and investing the rest.
I currently contribute 15% to my TSP and have it sitting ~$10k, but I'm thinking about dropping it to 10% or 5% so I can contribute something to my IRA. My IRA is pathetic and I've only added $200 this year ($6800 to max it). My other idea was to take $6800 out of the $28k and maxing out my IRA and then keep my TSP at 15% while I continue to add to a HYSA.
So what would you guys do? Any advice or words of wisdom are welcome. I'll answer any questions!
What should I do with $28k?
byu/TimeYesterday2024 inMilitaryFinance
Posted by TimeYesterday2024
2 Comments
Leave your TSP where it is. Add the 6800 to your IRA from savings.
The easy start CD with Navy fed is typically a decent rate, but only caps out at 3k. HYSA would definitely be better than sitting in that account. The Amex one is convenient if you’ve already got accounts with them, but feel free to shop around for rates.
Unless you’re planning on buying a house in the near future, it’s generally more beneficial to put it into retirement. IIRC it’s more beneficial to max out your TSP before an IRA since there’s less fees and if you do get out you can transfer it anyways.