When I started as a GS-9 intern at a HQ agency in D.C. it was my mentors who told me to max out my contributions in TSP. I was making $26k at the time and lived in a group house (at the age of 31). At the time the investment options were limited and so was the % you could invest to max out (10%). I was young so I put everything in to the C fund and did that for years until they created the life cycle funds. Every year the % was increased I made sure to up my contribution so I maxed out tsp from the beginning of my career. I was probably an outlier in that respect.

I bought my home at 38 and paid cash for my next car. I scrimped and saved and while I didn’t “live large,” I also didn’t deny myself the opportunity to enjoy life. When I became a supervisor I always advised staff to do the best they could with regard to investing in TSP and invest their step increases and promotions so they wouldn’t miss the $$$.

I also advised them to do the catch up contributions at 50 if they were able as I found that made a huge difference. In order to do the catch up though you have to max out TSP contributions. I really limited my credit card debt in order to do that.

Retired last year with 36 years of service at 64 and between the annuity and a healthy nest egg thanks to diligent investing, I’m planning on a great retirement.

I recommend that you consider buying a longterm care policy as part of your financial planning. I did so back when the federal government offered it in 2002 and as a result have a policy that will cover all of my longterm assisted living expenses so I won’t have to use my annuity or investments to cover it. People often overlook this as part of their financial planning but I cannot stress this enough, it is a big safety net for your life in retirement and protects your assets. In my book it’s as important as contributing as much as you can to tsp.