Diversification: Reducing The Risk In Your TSP

Every federal employee has heard the saying, “Don’t put all your eggs in one basket.” If you understand this concept, you understand one of the most fundamental principles of sound investing, diversification. Given the recent stock market turbulence, I thought it would be good to review this essential principle. So, this week we’re going toContinue reading “Diversification: Reducing The Risk In Your TSP”

Are Your TSP Investments Right For You?

Do you lose sleep every time the financial markets decline, or do you view a market correction as an opportunity to invest at a more reasonable price? How you answer this question reveals a lot about whether your TSP investments are suitable for your risk profile. Creating a TSP portfolio that accurately reflects your riskContinue reading “Are Your TSP Investments Right For You?”

Why Federal Employees Must Prepare For Spending Shocks In Retirement

Federal retirees face numerous risks in their golden years. These risks often fall into three categories: market risk, longevity risk, and spending shocks. This week we’re covering spending shocks, meaning large unanticipated expenses in retirement, the most common of which are rising health care costs, changes in-home needs, and inflation. While it is nearly impossibleContinue reading “Why Federal Employees Must Prepare For Spending Shocks In Retirement”

Life Expectancy: What Federal Employees Need To Consider When Deciding When To Claim Social Security

As a federal employee, one of the biggest decisions you face when preparing for retirement is what age you’ll claim Social Security benefits. Your choice will range from age 62, the earliest possible age you can start benefits, to delaying until age 70. Now you might be asking yourself why you would delay receiving anContinue reading “Life Expectancy: What Federal Employees Need To Consider When Deciding When To Claim Social Security”

What Is The TSP Age-Based Withdrawal?

Many federal employees are unfamiliar with the Thrift Savings Plan’s withdrawal options, and for good reason, the list of terms and rules for making contributions and taking withdrawals can seem endless. Adding to the confusion is that there are different withdrawal rules for active and separated federal employees. So, to help shine some light onContinue reading “What Is The TSP Age-Based Withdrawal?”

The Biggest Risk Federal Employees Face As They Near Retirement

The years immediately before and after retirement are often referred to as the fragile decade for your Thrift Savings Plan (TSP) because of the disproportionate impact that investment returns during this period have on your TSP’s longevity. This disproportionate impact of investment returns is called the sequence of return risk, and it’s the greatest riskContinue reading “The Biggest Risk Federal Employees Face As They Near Retirement”

4 Tax Pitfalls Federal Employees Need To Avoid

There are many financial mistakes that federal employees can make throughout their life, but some of the most common that I see revolve around tax planning. Specifically, there are 4 common errors I see federal employees make before they work with my firm. These tax mistakes can be costly and might even derail your financialContinue reading “4 Tax Pitfalls Federal Employees Need To Avoid”

5 Things Federal Employees Need To Know About RMDs

Many federal employees have heard about Required Minimum Distributions (RMDs), and although most will be subject to this rule, few know the details surrounding it. Since RMDs are such an important factor in retirement planning, this week, we are covering the 5 things you must know about them. So, let’s dive in! 1: What AreContinue reading “5 Things Federal Employees Need To Know About RMDs”

What Federal Employees Need To Know About Tax Diversification?

An overwhelming number of federal employees that come to me for help have most of their retirement assets in a tax-deferred account, meaning the traditional Thrift Savings Plan (TSP) and/or a traditional IRA. And while saving diligently in your TSP throughout your career is a great thing, using other account types to build diverse taxContinue reading “What Federal Employees Need To Know About Tax Diversification?”

What Happens When Federal Employees Make Ineligible Roth IRA Contributions?

Most of us can agree that Roths are great. Whether it be your Roth TSP or a Roth IRA, these accounts provide tax-free income in retirement, the opportunity to limit the taxation of your Social Security benefits, and they don’t have Required Minimum Distributions – while this last one only applies to Roth IRAs. ButContinue reading “What Happens When Federal Employees Make Ineligible Roth IRA Contributions?”