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?”

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 Is The TSP Hardship Withdrawal?

Most federal employees are familiar with the rules for putting money into their Thrift Savings Plan but aren’t sure about taking money out. When thinking about the withdrawal rules for the TSP, it’s essential to differentiate between the rules while you’re a federal employee versus when you have separated from service. Withdrawals made while you’reContinue reading “What Is The TSP Hardship Withdrawal?”

Should You Use Your TSP To Pay Off Your Mortgage?

As federal employees near retirement, many questions inevitably come up. One common question I am asked is, “should I use my TSP to pay off my mortgage?” And my answer almost always is, it depends. Though it might seem like a smart financial move, several factors should be considered before deciding to pay off yourContinue reading “Should You Use Your TSP To Pay Off Your Mortgage?”

3 Things Federal Employees Must Know About Social Security

Your FERS retirement benefits consist of three main components: The Basic FERS Retirement Pension, Social Security, and the Thrift Savings Plan (TSP). And while your FERS pension is one of the more unique parts of your retirement package, Social Security is an equally important benefit providing guaranteed income. Since Social Security is such an essentialContinue reading “3 Things Federal Employees Must Know About Social Security”

3 Critical Mistakes Federal Employees Make

As federal employees approach retirement, thoughts shift from worry over the workday grind to concerns about preparing for retirement. And while you will likely never starve due to your pension and Social Security, many mistakes can devastate your retirement, turning your vision of a fulfilling second chapter into a period of scarcity and fear. So,Continue reading “3 Critical Mistakes Federal Employees Make”