Lumpsum Options

September 11, 2007 6:32 PM

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!

posted by roundrock to Work & Money (5 answers total)

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.
posted by LobsterMitten at 7:01 PM on September 11, 2007

I second USAA, fantastic company.
posted by crewshell at 7:44 PM on September 11, 2007

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.
posted by ArgentCorvid at 8:08 PM on September 11, 2007

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
posted by zackola at 6:31 AM on September 12, 2007

Response by poster: 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?
posted by roundrock at 2:05 PM on September 12, 2007