Sunday, November 1, 2015

October Update

This month we came bouncing back from the downturn.

My current strategy is to max out the husband's TSP, and an IRA for each of us. Given our income, it is possible to use the traditional TSP/IRA to reduce our income enough that we pay no income tax. After we hit this point, I switch all of the remaining contributions to the Roth variety. As if that's not complicated enough, I will harvest some gains in our taxable account as the tax rate is 0% as long as they are within the 15% bracket. This is of course assuming that gains exist in our taxable account and the stock market hasn't tanked.

After I have maxed the TSP and the IRAs, I add any remaining money to our taxable account. For this year, we are on track to save approximately $31,000. This number could be higher, but I've been hoarding a bit of cash in case the husband leaves the military and transitions back to civilian life.

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