Mid-Year Tax Tips For Federal Employees: Part 1

It’s hard to believe that half the year has gone by already, and while summertime is perfect for going on family trips and sunbathing, it’s also a great time for some mid-year tax planning. Yes, I know, taxes, everyone’s favorite topic. Although you may not enjoy reading through your 1040 or your 1099s, you willContinue reading “Mid-Year Tax Tips For Federal Employees: Part 1”

Withdrawing From Your TSP Early: Part 2 Age 55 And 50

While the TSP is great at providing tax benefits and allowing federal employees to save for retirement efficiently, it has several restrictions that limit how and when savings can be accessed. In fact, most federal employees are aware of the age restriction that imposes a penalty on TSP withdrawals before age 59 ½; however, manyContinue reading “Withdrawing From Your TSP Early: Part 2 Age 55 And 50”

The Big Mistake To Avoid When Transferring Your TSP

Most federal employees saving for retirement have heard the terms “IRA transfer” and “rollover,” which refer to how you move your money from the TSP to an IRA. And while both terms are often used synonymously, they’re not identical and have significant differences that you must be aware of to avoid making a big mistake.Continue reading “The Big Mistake To Avoid When Transferring Your TSP”

The New 2022 TSP Changes

For over a year, we have been hearing that the Federal Retirement Thrift Investment Board (FRTIB) has been working on upgrading the TSP platform. Well, the promised updates are nearly here! In fact, the platform is currently transitioning. By next week, federal employees will have more ways to access their accounts, communicate with the TSPContinue reading “The New 2022 TSP Changes”

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”

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”