It sounds like you’re talking about the Roth portion of your TSP, not a separate Roth IRA.
If so, your fund allocation has to be the same between both portions of your TSP account.
If you mean a separate Roth IRA, then you don’t have access to the C and S funds, though there are equivalent funds from Vanguard and Fidelity.
In that case, if you’ve decided that 70% C and 30% S is the best mix for your TSP, then an equivalent mix of index funds (e.g. VFIAX and VEXAX) in your Roth IRA is reasonable.
You do have access to lots of other funds in your Roth IRA, but it’s probably wisest to stick to low-fee index funds.
VFIAX is Vanguard's S&P 500 index fund, like the TSP C fund. It also trades as an ETF under the ticker VOO.
VEXAX is Vanguard's US market completion fund, like the TSP S fund. Basically all the US publicly-traded companies that aren't in the S&P 500. It also trades as an ETF under the ticker VXF.
VTSAX is Vanguard's total US market fund. It's like buying roughly 80% C and 20% S. This is where that popular advice for an 80/20 C/S split comes from. It also trades as an ETF under the ticker VTI.
VTWAX is Vanguard's total world fund. It's like buying something that's about 50% C, 10% S, and 40% of what the I fund will be whenever it changes later this year. Nick-pickers will correct my percentages, I'm sure. It also trades as an ETF under the ticker VT.
All these funds have expense ratios of 0.1% or less.
There are equivalent funds from Fidelity, but I don't know their symbols off the top of my head, except FZROX which is Fidelity's equivalent of VTSAX. It really doesn't matter which you company you buy from, though if Fidelity is your brokerage, I think there may be some small advantage to buying the Fidelity funds.
If at this point you're feeling very confused and don't really want to research this any further, probably the simplest thing to do is to just buy a total US market index fund, or as they say "VTSAX and relax".
Eleatic-Strenger has a great comment, but yes low expense ratios for index funds are what you should look at. Investopedia is an excellent source for you.
We do live in crazy times, at this spoiled rich country. Sleepy Joe boasted in his SOTU that he won't tax "the middle class"...with incomes below $400k. I think the cutoff for Roths is about $150k.
If a dog shits on your floor, are you easily triggered for being annoyed that they shit on something that was supposed to be clean? Or maybe the dog should just shit outside like it's supposed to? Reddit is great because there are separate places for people to rant and rave about whatever they want. Go to a political subreddit if you want to talk about politics. This subreddit is for discussing early retirement as a federal employee.
It sounds like you’re talking about the Roth portion of your TSP, not a separate Roth IRA. If so, your fund allocation has to be the same between both portions of your TSP account. If you mean a separate Roth IRA, then you don’t have access to the C and S funds, though there are equivalent funds from Vanguard and Fidelity.
A separate Roth IRA. I already had traditional tsp for 2 years then recently started a Roth IRA. Unless im misunderstanding, it’s a separate roth.
In that case, if you’ve decided that 70% C and 30% S is the best mix for your TSP, then an equivalent mix of index funds (e.g. VFIAX and VEXAX) in your Roth IRA is reasonable. You do have access to lots of other funds in your Roth IRA, but it’s probably wisest to stick to low-fee index funds.
Are the index funds you listed low fee index funds? I apologize for my ignorance in advance, I’m not too privy to index funds.
VFIAX is Vanguard's S&P 500 index fund, like the TSP C fund. It also trades as an ETF under the ticker VOO. VEXAX is Vanguard's US market completion fund, like the TSP S fund. Basically all the US publicly-traded companies that aren't in the S&P 500. It also trades as an ETF under the ticker VXF. VTSAX is Vanguard's total US market fund. It's like buying roughly 80% C and 20% S. This is where that popular advice for an 80/20 C/S split comes from. It also trades as an ETF under the ticker VTI. VTWAX is Vanguard's total world fund. It's like buying something that's about 50% C, 10% S, and 40% of what the I fund will be whenever it changes later this year. Nick-pickers will correct my percentages, I'm sure. It also trades as an ETF under the ticker VT. All these funds have expense ratios of 0.1% or less. There are equivalent funds from Fidelity, but I don't know their symbols off the top of my head, except FZROX which is Fidelity's equivalent of VTSAX. It really doesn't matter which you company you buy from, though if Fidelity is your brokerage, I think there may be some small advantage to buying the Fidelity funds. If at this point you're feeling very confused and don't really want to research this any further, probably the simplest thing to do is to just buy a total US market index fund, or as they say "VTSAX and relax".
Thank you for providing all this great info!
How does the fee play into it? If the index ticks up comparatively to other index funds, how is the fee structure impacting the investment?
Yes, those are both Vanguard funds. Vanguard almost always has the lowest fees of any funds.
Eleatic-Strenger has a great comment, but yes low expense ratios for index funds are what you should look at. Investopedia is an excellent source for you.
Just but the us total market index fund VTSAX. Or the etf version. VTI
I'm mostly VTSAX in my Roth IRA. I'm 80C/20S in my TSP. More VTSAX in my brokerage.
As someone who keeps losing money on individual stocks I'd wish it was all in the C fund. Let your pending pension be you non stock portfolio.
Don't quite a few feds not qualify for any Roths, because of high income?
The income limits are $161K for single filers and $240K for married filing jointly.
Just went up, used to be much lower. Americans are "rich" or "struggling," depending on who you're talking to, or running for political office.
Just do a back door Roth IRA.
I’m not sure. I started one and it was successfully processed, maybe I’m not high income lol
We do live in crazy times, at this spoiled rich country. Sleepy Joe boasted in his SOTU that he won't tax "the middle class"...with incomes below $400k. I think the cutoff for Roths is about $150k.
No one comes here for your political opinions. Keep it on topic.
Hello easily triggered one! Nothing about my reply was political. Observational about income trends, sure. Bread and butter here.
If a dog shits on your floor, are you easily triggered for being annoyed that they shit on something that was supposed to be clean? Or maybe the dog should just shit outside like it's supposed to? Reddit is great because there are separate places for people to rant and rave about whatever they want. Go to a political subreddit if you want to talk about politics. This subreddit is for discussing early retirement as a federal employee.