On Sun, 4 Jun 2006 09:05:32 -0500, euqs[at]hotmail.com wrote:


- quote -

Yes and yes. You cannot contribute more than the calendar year limit,
however.

- quote -

Not enough info to answer, but generally, yes.

- quote -

Because of payroll deduction, costs and diversity of funds, I think
the TS Plan is about as good as it gets. As to your choice of
investments within that plan, it depends on you.

Do this: Close your eyes and imagine you are invested in stocks via
the C and S Funds. The market declines suddenly 30% and almost
everyone, including experienced investors, think things will get much
worse. In fact, there is talk that we are in a new era and that for
the forseeable future stocks will do poorly.

If on having that happen you would stop contributing to C & S Funds,
get out of them now. You should continue in TS Plan, but look at G
Fund. If you are going to get out/stop contributing when the market
goes down - as it surely will - in the end you would be better off in
the G fund from the start.

On the other hand, if you think you can tune out all the bad news and
keep contributing regularly, then no, your present plan is not too
risky. Ultimately, and assuming you watch costs and diversify, the
markets reward consistency.



-HW "Skip" Weldon
Columbia, SC

Hi,

I'm 49 and make 49,000 after deductions and my wife makes $8 k after
her tax write-offs.
Our accountant suggested that we put $50,000 into American Funds last
year which I now realize is a loaded fund....................oh well.
Some of it is my wife's SEP and some is in a ROTH. I think I will keep
the American Funds to see how they do, but I want to buy some no-load
funds this year.
Can I open a new ROTH with say, Vanguard or Fidelity this year?
Can you have different ROTHs in different places?

Also, we are about to pay off the house, we owe $20,000 and it is at
6.75%.
I assume that paying off the house is better than earning money at 3%
in a money market account.

I am paying $500 each month into a Thrift Savings Plan with the C, S
and I funds each receiving 33%. (Is that too risky?)
I also will have a Civil Service retirement so I am ok with taking
some risk with the TSP.
Is it smart to sock away even more into the TSP each month if it keeps
me in the 15% tax bracket?

I am just now, at age 49, finding all this financial stuff quite
interesting. Having always been an artist with a Government day job, I
have spent most of my life avoiding worrying about money.
Thank you for any suggestions, and I hope my questions are not too
lame.

Cheers,
Al