Comments on: Lumpsum Options

Question: Lumpsum Options

roundrock — Tue, 11 Sep 2007 18:32:04 -0800

TaxShieldingFilter: The feds want to keep me in the service and give me $35K...and I want to keep as much money as possible from the tax coffers.

So, I'm in the Army and they, as you can imagine, are having a hard time keeping Captains in the Army. I love the Army and plan on staying in for a career anyway. With that being said, I want to put as much as the money as possible in a retirement or tax-favored account (less a shopping trip for my wife). It's my understanding that I could put $15,500 into the federal Thrift Savings Program (TSP) and then $4K each into a IRA that I create for my wife and I. We each have a R-IRA (but haven't contributed this year). What are my options? Thanks!

By: LobsterMitten

LobsterMitten — Tue, 11 Sep 2007 19:01:55 -0800

Do you have USAA? They have financial advisors who might be especially well positioned to help you. I haven't talked to their financial advisors, but everyone else I've talked to at the company has been great - knowledgable, very up-front, etc. If you don't get good advice here, I would call USAA and ask if it costs anything to speak to a financial advisor.

By: crewshell

crewshell — Tue, 11 Sep 2007 19:44:58 -0800

I second USAA, fantastic company.

By: ArgentCorvid

ArgentCorvid — Tue, 11 Sep 2007 20:08:29 -0800

well, i was going to ask if you were stationed (or going to be) in a combat zone, but you asking this question pretty much obviates that. because that is the 'best' option for tax purposes, although you can probably see how the risk might not be inline with the reward. other than that, definitely see a financial advisor, either through a bank/credit union, insurance company, or other firm that handles money.

By: zackola

zackola — Wed, 12 Sep 2007 06:31:49 -0800

Someone over here might have an answer for you, and you might just get the talk to a financial adviser advice, but there are a bunch of people over there usually very willing and interested to help analyze your situation. http://www.diehards.org/forum/index.php

By: roundrock

roundrock — Wed, 12 Sep 2007 14:05:24 -0800

I should have thought of USAA ... it has - hands down - the best customer service of any company I've ever interacted with. I'll give them a call this afternoon. Thanks also for the link to Diehards (I have the Boggleheads book but didn't think to reference that, either!). I'm going to follow up on both of these suggestions - anyone else have any advice?