TSP Center - The Thrift Savings Plan Community
 
"FantasyTSP™ and Discussion Forum for the Thrift Savings Plan Investor"
 
  Recommend TSP Center Register  •  Search  •  FantasyTSP Trophies   

Board index » Thrift Savings Plan » General TSP Discussion




Post new topic Reply to topic  [ 19 posts ] 
Author Message

Join now for full access to TSP Center

This topic has 18 replies

You must be a registered member and logged in to view topic replies.


 or 

 Post subject: TSP loan
 Post Posted: Wed Apr 12, 2017 11:54 pm 
Offline
User avatar

Joined: Jan 20, 2016
Posts: 157
Location: Poughkeepsie
Flag: United States (us)

Reputation point: 20
I currently have 2,800 left on a loan I took out 3 years ago. I'm not in any way implying that I will ever take another loan from my TSP, but I have a question regarding this comment on a Q/A site.

In the 3rd answer, by Michael Mez, he states that you will pay a tax penalty on income as a result of taking the loan out. Am I missing something, or is he foolish? We contribute pre-tax dollars, just as we would pay back a loan with pre tax dollars..... So, loan or no, (besides ROTH obviously) you'll have to pay taxes on the money you withdraw, just the same, right?

I think the answer to her question is How much time do you have to recover the hit to your TSP. I understand this is a game of compounding, so the higher the balance, the more you can earn.


So, just so I don't do anything foolish, myself, please reenforce me with your wisdom/advice.
I have 50k in my TSP. 25 years till retirement. I have saved up ~4k for an eventual down payment on a house. Is it smart to wait till I have the 20% in the bank (which may take 5 more years) or if I found the perfect place, take out TSP $ (~10k) for the down.

My thinking is, if I can lower my cost of living (rent is 1100) by a few hundred, I can put that right back toward the loan, and also be investing in my own property. But also, that I'd be setting myself back, ruining my chances of seeing a big balance, provided I don't die.


Top 
 Profile FantasyTSP  
 
Display posts from previous:  Sort by  
 
Post new topic Reply to topic  [ 19 posts ] 

Board index » Thrift Savings Plan » General TSP Discussion


Who is online

Users browsing this forum: No registered users and 4 guests

 
 

 
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
 
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)
S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)

20min. delay http://www.google.com/finance

Contact TSP Center

Copyright © 2006-2013 Hostspring Technologies, LLC
All Rights Reserved

Hostspring Technologies, P.O. Box 9457, Chesapeake, VA 23321


Powered by: Hostspring
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)

S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)

DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)

EFA (I Fund)
iShares MSCI EAFE Index (EFA)