# TSP or Vanguard Target Retirement Fund? **URL:** \ **Category:** Investing\ **Created:** [February 18, 2023, 4:09pm UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284 "2023-02-18T16:09:01Z")\ **Posts on this page:** 10\ **Page:** 1
**Author:** ![soldieradvocate](https://avatars.discourse-cdn.com/v4/letter/s/dfb087/32.png) [@soldieradvocate](https://community.clark.com/u/soldieradvocate)\ **Post date:** [February 18, 2023, 4:09pm UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/1 "2023-02-18T16:09:01Z")
No longer in military but working. I already have a Roth TSP account but of course, no longer get matching funds. Should I continue to contribute to Roth TSP (L4050) or just open a Vanguard Target Retirement Fund? I plan to just leave current funds in TSP but don’t know whether to add the allowable $6000 per year or put in Vanguard fund. ---
**Author:** ![PricePerformer](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/priceperformer/32/159_2.png) [@PricePerformer](https://community.clark.com/u/PricePerformer)\ **Post date:** [February 18, 2023, 5:12pm UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/2 "2023-02-18T17:12:24Z")
The advantage of the Roth is that you have more control of the distributions rather than what I call the end of January Surprise. I am not a big fan of Target Funds. They appear to be too conservative. If you want target funds… push the date out 5 to 10 years. This will make them less conservative. At some point you may want to switch to Vg Index Funds… VTSMX ---
**Author:** ![soldieradvocate](https://avatars.discourse-cdn.com/v4/letter/s/dfb087/32.png) [@soldieradvocate](https://community.clark.com/u/soldieradvocate)\ **Post date:** [February 18, 2023, 7:54pm UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/3 "2023-02-18T19:54:28Z")
I assume VTSMX has more stock investments. I have two Vanguard accounts. One is a IRA rollover in Wellington. The other is target 2045. If I were to change the 2045 into VTSMX, how would I go about that? Would I incur fees? ---
**Author:** ![soldieradvocate](https://avatars.discourse-cdn.com/v4/letter/s/dfb087/32.png) [@soldieradvocate](https://community.clark.com/u/soldieradvocate)\ **Post date:** [February 18, 2023, 11:24pm UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/5 "2023-02-18T23:24:05Z")
So only government employees can contribute to TSP? ---
**Author:** ![clydewolf](https://avatars.discourse-cdn.com/v4/letter/c/839c29/32.png) [@clydewolf](https://community.clark.com/u/clydewolf)\ **Post date:** [February 19, 2023, 1:47am UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/6 "2023-02-19T01:47:15Z")
Same contribution limit for a Traditional IRA, $6,500. For those 50 and over they can do an additional catchup contribution of $1,000 for a total of $7,500 IRA contribution for 2023. ---
**Author:** ![clydewolf](https://avatars.discourse-cdn.com/v4/letter/c/839c29/32.png) [@clydewolf](https://community.clark.com/u/clydewolf)\ **Post date:** [February 19, 2023, 2:07am UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/7 "2023-02-19T02:07:10Z")
Only federal employees can contribute to the TSP. [https://www.tsp.gov/tsp-basics/how-tsp-fits/](https://www.tsp.gov/tsp-basics/how-tsp-fits/) ---
**Author:** ![Smartpolitics](https://avatars.discourse-cdn.com/v4/letter/s/65b543/32.png) [@Smartpolitics](https://community.clark.com/u/Smartpolitics)\ **Post date:** [February 19, 2023, 2:54am UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/8 "2023-02-19T02:54:18Z")
Target retirement funds are too conservative and have too much in international stocks often in excess of 35% of the equity holdings thus having 100% in target funds is sub optimal. You may want to have 50% in target funds, 0-10% in bonds, 20-30% in large cap stocks and 10-25% in small cap stocks L2050 is for government employees; it has 18.25% in fixed income which is perfect for someone retiring in 2038 or 15 years. In contrast, the Vanguard 2050 is in 10.53% bonds or 89.47% stocks. If you use the 130-age, that’s appropriate for a 40 year old or someone retiring in 25 years or 2048. Most target date funds have only 30% in stocks. If stocks earn 10% and bonds earn 4% a 50/50 portfolio nets around 7% which barely covers 3% inflation and a 4% withdrawal rate. A 30/70 portfolio in turn only earns 5.8% thus reducing the withdrawal rate to a mere 2.8%. A 70/30 portfolio by contrast may have an aggressive withdrawal rate of up to 5% though you will likely need to drop your withdrawal rate in half during a down or stagnant market ---
**Author:** ![Nicki54](https://avatars.discourse-cdn.com/v4/letter/n/e274bd/32.png) [@Nicki54](https://community.clark.com/u/Nicki54)\ **Post date:** [February 19, 2023, 4:29am UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/9 "2023-02-19T04:29:03Z")
I’m just going to clarify that TSP is military and civilian federal employees. ---
**Author:** ![Smartpolitics](https://avatars.discourse-cdn.com/v4/letter/s/65b543/32.png) [@Smartpolitics](https://community.clark.com/u/Smartpolitics)\ **Post date:** [February 20, 2023, 4:30am UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/10 "2023-02-20T04:30:16Z")
Civilian employees get a match, 5 for 5 ---
**Author:** ![Nicki54](https://avatars.discourse-cdn.com/v4/letter/n/e274bd/32.png) [@Nicki54](https://community.clark.com/u/Nicki54)\ **Post date:** [February 21, 2023, 1:22am UTC](https://community.clark.com/t/tsp-or-vanguard-target-retirement-fund/2284/11 "2023-02-21T01:22:07Z")
Military members under BRS get 1% to start then up to 5% match after two or three years. Those who joined before 2018 and did not switch to BRS do not get the match.