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@happyfrog Stocks still grow in a similar way to compounding interest, particularly when you look at a basket of stocks in an ETF or TSP. Specific terms may vary but overall compounding interest applies to stocks whether they issue dividends or not. One critical way that it’s different is that...

@brianch35 12% is essentially the unadjusted average returns over a long period of large cap stock (adjustments would mainly be for inflation). The trouble is that long period doesn’t start until 15 years after the initial investment and even then the average ranges widely from that number. It’s...

@yorkslad You could end up with too much on tax deferred accounts but if you have the means to maximize tax preferred accounts you will be greatly benefited. If you tilt more to Roth accounts you’re in a position that even at higher tax brackets now you could be in a better position once you hit...

@clare100 Invest in yourself. Low tax bracket means you should be fully Roth (10%) just changing what you have now. Invest in yourself. If you don’t have something you need then save for your future. As much as you can/want so you can use it for something most beneficial. If they don’t match...

@mariahhgrim For military members it’s 24% or greater and I lean more heavily to the or greater mindset. An exception would be if they will retire at twenty and not seek another career. Then retirement taxable income will most likely be less than while working for the military.

@luckycharmwa I echo this. Current Low tax bracket, historically low tax rates, crippling federal debt. Eventually Congress will raise tax rates, take effect while you can for tax free forever money. Plus with OPs taxable income level they should get a $200 tax credit for retirement savings.

@frankiejohn This is the type of post I expect to find on Wall Street bets. The information isn’t bad but the way it’s presented is off-putting. The good advice is hidden in the middle: use the lifecycle funds. The community call to action is: recommend lifecycle funds first. Both are good...