No. of Recommendations: 1
Hi Angel,

Congratulations on starting the TSP!

There are a few things you should know before you decide your allocation.

1st, even though you plan on getting out in 2008, you can keep the money in your TSP until you are eligible to withdraw. You just can't contribute any more once you separate. Also, when you leave the service, you can transfer your TSP into a traditional IRA.

So, when choosing the type of fund to invest in, think for the long term.

If you plan on trying to get at this money when you separate, I suggest you don't invest in it at all, as there will be penalties for withdrawing the money (not the same as transferring to a qualified accnt) for your personal use.

I recommend you read this portion of the FAQ:

Bottomline: If you're going to invest in the TSP, do so looking at a long time horizon. If you know you will separate in 2008, plan on rolling it into a Traditional IRA once you leave.

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