Age-. The general rule in the industry is that once an A/C unit reaches 10-15 years, the idea of replacing the unit is usually a much better investment than putting money into an older system. If your system is at this threshold, it's usually wise to begin expecting, not wondering, when the system will fail.
You can keep the money in the TSP after you leave your federal job to benefit from the low fees, or you can roll over the money into an IRA or a new employer's 401(k), 403(b) or 457.
Contributing to the traditional TSP: Since you arenât paying income taxes on the $10,000, you can invest the full amount. At 5 percent annual investment returns, the $10,000 in your traditional TSP will grow to $16,289 ($10,000 times 1.05**10). Youâll pay $5,701 of that amount in taxes, leaving an after-tax amount of $10,588 to spend. Contributing to the Roth TSP: Youâll pay $3500 (35%) income taxes today on your $10,000 contribution. Youâll have $6,500 left to invest in your Roth TSP. Your $6,500 will grow to $10,588 ($6,500 times 1.05**10).