personal finance
Throwback Thursday Classic Post – Step 1 to Crush the TSP – Prepare
The Thrift Savings Plan (TSP) is the military’s retirement account. Learning how to maximize its utility should be high on your financial priority list. I’m going to create a guide that will show you how to crush the TSP. Here’s Step 1 in that guide…
Step 1 to Crush the TSP – Prepare
Before you can crush the TSP, you have to do a little preparation. You don’t need to be Warren Buffet, but you need to understand the basics of investing and the TSP. Luckily, there are many ways to learn the basics. Here are a few:
- Read a book – Go to your library, search for a used book with AddAll (one of my favorite tools), or buy one new on Amazon. The easiest and quickest read to increase your basic investing knowledge is The Elements of Investing: Easy Lessons for Every Investor. Read this book. THAT’S AN ORDER! (unless you outrank me)
- Read an online introduction to investing – The one that I’d recommend is the Bogleheads Wiki. Here’s a link to their getting started page and their investing start-up kit. What’s the best part? All of this is free.
- Watch videos – The Bogleheads have a video series, which is also free.
- Read blog posts – My favorite TSP-specific blog posts are found at The White Coat Investor. You can read What You Need To Know About The TSP, The G Fund – A Free Lunch, or The Military’s New Blended Retirement System. I wrote the last one.
- Read the TSP website – The TSP website has a wealth of information.
Now you’ve got some homework. Once you’ve done as much of this as you can, move on to the 2nd step.
New TSP Lifecycle Fund Asset Allocations
Here’s the PDF that shows you the new asset allocations for the 5 year TSP Lifecycle Funds:
Here’s the graphic that summarizes it:
Finance Friday Articles
Here are my favorites this week:
Free Beer Plus Profits! A Craft Brewery Investment Goes Full Circle
How Often Do Long-Term Bonds Beat Stocks?
Roth 401(k) vs. 401(k): Which is the Better Option?
The Best Side Gig Is Spending Less
Here are the rest of the articles:
3 keys to building an emergency fund
5 Ways Financial Freedom Beats Burnout
10 Reasons to Consider a Nonclinical Job to Defeat Burnout
Achieving Financial Freedom as a Physician is Simple, but Not Easy
Breaking the Traditional Financial Rules
Consumer Addiction and 5 Ways to Beat It
Consumption Smoothing is Stupid
How a Career Transition Can Help You Reach Financial Independence
Indexed Annuities – No Down Less Up
Investing legend Burton Malkiel on day-trading millennials, the end of the 60/40 portfolio and more
IRS Adds New Criteria for COVID-Related Loans, Withdrawals From Retirement Plans
IRS expands criteria to withdraw money from retirement plans for those affected by coronavirus
Report of Retirees Fleeing Market Due to Coronavirus Was Greatly Exaggerated
Should spouses get to contribute to troops’ retirement savings accounts? Debate set to begin.
States Without Income Tax: Is There a Benefit to Moving?
The Best and Worst Quarters in Stock Market History
The Economy is Not the Stock Market
The Key to Successful Investing? Your Mindset
When It Comes to Social Security Retirement Benefits, Timing Matters
Finance Friday Articles
Here are my favorites this week:
Beyond the pandemic: What to expect from stocks, bonds
Don’t Leave a Mess When You Die
Top 8 questions on investing in the current climate
Top 10 Things Bogleheads Get Wrong
Here are the rest of this week’s articles:
6 Greatest Sins of Insurance Agents
6 Ways to Invest in Apartment Buildings
10 Milestones to Financial Independence Worth Celebrating
10 Reasons Why Residents Shouldn’t Buy A House
Changing My Mind About Personal Finance Due to the Pandemic
How to Fund a Million Dollar Roth IRA for Your Child with Government Money
How to Start Investing in Private Real Estate Deals
How Would Investors React If We Finally Get Some Inflation?
Mortgage Debt Versus Student Loan Debt: Which is Better to Have?
Residency Interviews: Spend Less and Interview More
Financial Blogs I Recommend
For those looking to get financial education online, here are the blogs and other online resources I’d recommend:
A Wealth of Common Sense – This is a blog written by one of the Animal Spirits podcasters I recommended you listen to. He provides excellent contemporary analysis of the financial markets.
Humble Dollar – Jonathan Clements was a personal finance writer at The Wall Street Journal for 20 years and is a well-respected source for financial advice. He has a number of books and a blog called Humble Dollar that includes a free comprehensive money guide that is a continuously updated guide to all aspects of personal finance.
Mr. Money Mustache – There is an entire early retirement culture on line, of which many physicians are unaware. If you have an interest in early retirement, you’ll love this website and the story of Pete (Mr. Money Mustache), a software engineer who retired in his thirties. It is filled with investing information, as well as practical advice on how to save money in everyday life. The site has an anti-consumerism, pro-Earth bent and Mr. Money Mustache is a strong proponent of using a bicycle instead of driving a car, even in the dead of winter. He will show you that retiring early and controlling your spending doesn’t have to lead to unhappiness. In fact, he’ll probably convince you that the less you own the happier you’ll be.
Oblivious Investor – This is a tax-focused investing blog by an accountant who also writes a series of very short, informative books on all finance topics.
Vanguard Blog – Regular readers know I’m a huge fan of Vanguard and do all of my non-military retirement investing there. You should too! Many know that Vanguard was founded by John Bogle, and those who follow his investing principles are self-named “Bogleheads.” They have a Bogleheads Wiki that you can read in addition to the Vanguard blog.
White Coat Investor Empire – Fellow Emergency Physician James Dahle, MD has created a digital and print media empire. You can’t go wrong if you make this your solitary source of financial information. There is a blog, internet forum, Facebook group, sub-Reddit, podcast, and book, so no matter how you prefer to ingest information you can find what you are looking for on this site. In addition, he has partnered with three other physician financial blogs, Physician on FIRE (which stands for Financial Independence, Retire Early), Passive Income M.D., and The Physician Philosopher. All three of these are excellent sources as well.
Debt, College, and Discretionary Spending
Here are the slides I used to record this episode of the podcast:
Debt, College, and Discretionary Spending
Here’s the screencast:
2021 BRS Continuation Pay, TSP Info on New 5-Year L Funds, and Finance Friday Articles
Here is an article about FY21 Continuation Pay for those in the Blended Retirement System (and here’s a guest post about applying for it):
Blended Retirement System CY 2021 Continuation Pay Announced
Here is the TSP PDF about the new Lifecycle Funds in 5-year increments that start 1 JUL 2020:
Additional Lifecycle (L) Funds
Here are my favorites this week:
6 steps to selecting a target-date fund
When Should You Sell Your Stocks?
Here are the rest of this week’s articles:
3 Reasons Why You Can Take More Risk with a 529
Coming Up Short When Trying to Buy a House
How State and Local Taxes Affect Your Retirement Plan
How Will Private Equity Work in 401ks?
Is This The Most Volatile Year Ever?
Not All Income Is Created Equal
Questions I’m Asked About Term Life Insurance
Sitting on One Million Dollars in Cash
Some Things About the Markets That Will Never Change
Finance Friday
Here are my favorites this week:
Implementing and Refining the “Spend Safely in Retirement Strategy”
Thrift Savings Plan Adds New Funds
Here are the rest of this week’s articles:
5 Unusual Ways To Accelerate Your Financial Independence
A PHYSICIAN’S INSURANCE CHECKLIST: THE DEFINITIVE GUIDE
Backtests vs. Real Life in the Markets
Could Multiple Savings Accounts Help You?
FIRE FAQ: Frequently Asked Questions About Financial Independence & Retiring Early
Inflection Point? Time to Diversify?
My Bad – 3 Insights Into Behavioral Finance
My Best Financial Decisions of 2019
Roth vs Traditional When Going for PSLF
The 2020 Stock Market By the Numbers
The Craziest Charts of the Year (So Far)
The One Percent Rule For Real Estate Investing
Vanguard leaders discuss the risks of default or downgrades in the bond markets
More TSP Lifecycle Funds and Finance Friday Articles
Starting July 1, 2020, you will have ten Lifecycle (L) Funds to choose from instead of the five currently available. They’re adding the additional L Funds so that the target dates will be separated by only five years instead of ten, allowing you to more precisely target the time when you think you’ll need your money. Six more L Funds will be added, and the L 2020 Fund, having reached its target date, will be rolled into the L Income Fund. See the fact sheet Additional Lifecycle (L) Funds for more information.
Here are my favorites this week:
My Real Estate Performance in the Coronavirus Era
The Six Big Money Items You Should Do as a Resident
Here are the rest of the articles:
5 Personal Finance Truths for the Military
Averting My Gaze from the Stock Market
Divvying Up Dollars When You Have a Surplus
How to Optimize Your Money in Retirement
Love Your Job? Why You Should Still Pursue Financial Independence
Massive Up and Down Moves in Stocks in the Same Year Are More Common Than You Think
The Story of Stocks and the Three Bears
Tips for Dealing With Your First Market Downturn
Vanguard and Fidelity investors didn’t flinch as the market tanked
Vanguard Total Stock Market Mutual Fund vs ETF: What’s the Real Difference?
What Percentage of Your Current Income Will You Need in Retirement?
Where the Private Real Estate Market Stands Six Weeks Into COVID-19
Financial Podcasts I Recommend
For those looking to get some financial education through their earbuds or while driving, here are the podcasts I recommend and actively listen to as well as one I don’t listen to but you should consider.
Two investment advisors give an educational and entertaining summary of recent market/financial news 1-2 times per week.
Many know that Vanguard was founded by John Bogle, and those who follow his investing principles are self-named “Bogleheads.” This podcast will teach you those principles.
Creative Planning is an investment advisory firm. Its President, Peter Mallouk, and Director of Financial Education, Jonathan Clements, who was a Wall Street financial columnist for 20 years, provide a monthly podcast series discussing recent market events, investment philosophy, and give monthly tips.
Financial Residency or Physician Finance Minute
Ryan Inman is a fee-only financial advisor who happens to be married to a GS physician at NMCSD. Financial Residency is the podcast that I recommend but don’t personally listen to because I find it to be too basic. That said, if you are a beginner to intermediate when it comes to personal finance, I think this is a podcast that you should strongly consider to build your financial knowledge base. For those with a short attention span, he also offers the Physician Finance Minute, which is literally 1-2 minutes of financial learning each day.
This podcast is hosted by a former investment manager. He does an excellent job of reviewing personal finance and economics topics in shows that are usually about 30 minutes in length.
Jimmy Turner, a practicing Anesthesiologist, and co-host Ryan Inman, the host of the Financial Residency Podcast above, teach you all of the personal finance topics you wish you had learned in medical school.
Peter Kim is also a practicing Anesthesiologist and entrepreneur who focuses this podcast on ways that physicians can create diverse streams of passive income.
This podcast from Morningstar is hosted by Christine Benz and Jeff Ptak as they talk to influential leaders in investing, advice, and personal finance about a wide-range of topics, such as asset allocation and balancing risk and return.
Our finances, portfolios, and the markets are affected daily by the policies and politics coming out of Washington. In each episode of WashingtonWise Investor, host Mike Townsend, Charles Schwab’s Vice President for Legislative and Regulatory Affairs, focuses a non-partisan eye on the stories that matter most to investors, and his guests offer actionable suggestions for what to do—and what not to do—with your portfolio.
Fellow Emergency Physician James Dahle, MD has created a digital and print media empire. You can’t go wrong if you make this your solitary source of financial information. There is a blog, internet forum, podcast, and book, so no matter how you prefer to ingest information you can find what you are looking for on his site.
Joel Schofer's Career Planning Blog 