Dear Dave,
The other day, my wife and I discovered a Thrift Savings Plan (TSP) we’d forgotten about for over 10 years from my time in the Army. There’s a little over $3,200 in there. We’re both in our 30s, and we’re trying to save up our starter emergency fund in Baby Step 1 of your plan. We were wondering if we should withdraw the money and use it toward Baby Steps 1 and 2 or just leave it in there.
—Todd
Dear Todd,
It’s not a ton of money, but conceptually, I hate the idea of giving the government 30 percent to 40 percent of my money just to get my money out. So yeah, do some research, find a good investment professional near you—one with the heart of a teacher—and roll it into an IRA.
Congratulations to you and your wife for deciding to take control of your money. And thank you for your service to our country, Todd. I hope this helped.
—Dave