One of the perks of employment with the federal government is a retirement plan known as the Thrift Savings Plan. The question is what you should do with it once you retire. Dave Ermlick, a financial planner from Washington DC, discusses some retirement options federal employees have with this plan. Dave Ermlick (703) 338-7103 d.ermlick@cornerstonesenior.com...(read more)
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As retirement approaches, one of the most important considerations for federal employees is what to do with their Thrift Savings Plan (TSP). The TSP is a retirement savings plan offered to federal employees and members of the uniformed services, and it’s often considered the cornerstone of the retirement package offered by the federal government. Here are a few things to consider as you determine what to do with your TSP when you retire. Withdrawals The easiest option for many retirees is simply to withdraw their TSP savings in a lump sum. While this can be tempting, it can also be risky. Taking a lump sum can leave you vulnerable to unexpected expenses or a longer retirement than you’d planned for. A better option for most retirees is to set up a systematic withdrawal plan, which allows you to receive regular payments from your TSP over a set period of time. Annuity Another option is to use your TSP savings to purchase an annuity. An annuity is essentially an insurance product that pays out a fixed stream of income for a set period of time. This option can ensure that you have a reliable source of income for the rest of your life, no matter how long you live. Transfer to an IRA If you’re looking for more options and flexibility with your retirement savings, you may want to consider transferring your TSP savings to an Individual retirement account (IRA). By doing so, you’ll be able to choose from a wider range of investment options and have more control over your retirement savings. Additionally, transferring your TSP to an IRA can help you avoid certain fees and taxes that may be associated with withdrawing your money in a lump sum. Keep it in the TSP Believe it or not, keeping your money in the TSP may also be a viable option for some retirees. The TSP offers low fees and some of the best investment options available, and many people find that they’re happy to leave their money in the plan. Additionally, leaving your TSP where it is can help you avoid the temptation to withdraw your savings prematurely or make other rash decisions with your money. Ultimately, the best option for your TSP will depend on your individual circumstances, investment goals, and financial needs. As you approach retirement, it’s important to carefully weigh your options and consult with a financial advisor to determine the path that’s best for you. With the right approach, you can ensure that your TSP will be an important part of your retirement plan for years to come. https://inflationprotection.org/washington-dcs-dave-ermlick-advises-on-retirement-planning-for-your-thrift-savings-plan/?feed_id=82076&_unique_id=6422617edfa90 #Inflation #Retirement #GoldIRA #Wealth #Investing #05 #11 #2012 #ANN #DaveErmlick #thriftsavingplan #ThriftSavingsPlan #05 #11 #2012 #ANN #DaveErmlick #thriftsavingplan
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