Mistakes that Federal Government Employees Often Make with Their Thrift Savings Plan

Federal government employees, including members of the armed forces, have access to a tax-deferred retirement and investment vehicle called the Thrift Savings Plan (TSP). If you're not using it in the right ways, it can be costly for you. Like a good education, it only helps if you use it. This episode shares five common mistakes people make with their TSP—costly mistakes that you could be making right now. If you or your loved ones have a TSP or are in service of the federal government, listen to this entire show as we expose the risks of the G Fund and more and how to fix them. Plus, catch the weekly market report where The Sandman discusses if inflation is cooling and if better times are ahead for the 60-40 portfolio, which was down 21% last month—losses we haven't seen since 2008. You can send your questions to questions@pyaradio.com for a chance to be answered on the air. Website: 🗓 Schedule your free 15-minute call with our team: 🎧 Listen and subscribe to the Protect Your Assets podcast for retirement and investing advice from The Sandman, David Hollander: 3:57 Weekly market report 15:12 Listener question: What happens to credit card debt when a person dies? 16:57 TSP mistake 1: not putting away 5% of your income into your TSP 18:48 TSP mistake 2: assuming a lifecycle fund is the right choice for you 25:14 TSP mistake 3: assuming the G fund is a safe investment option for your TSP 30:21 TSP mistake 4: not understanding your withdrawal options when you leave federal government employment 36:58 TSP mistake 5: not filling out the TSP-3 form correctly Follow Protect Your Assets on Social Media! TWITTER: FACEBOOK: 📷 INSTAGRAM: Social media disclosures: #Retirement #RetirementPlanning #Veterans #FederalGovernmentEmployee #ThriftSavingsPlan...(read more)

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The Thrift Savings Plan (TSP) is a retirement savings plan available to Federal government employees. It’s an important part of their retirement planning, but many federal employees make common mistakes when it comes to managing their TSP. Here are the 5 most common mistakes federal government employees make with their Thrift Savings Plan: 1. Not contributing enough to the TSP One of the biggest mistakes federal employees make is not contributing enough to their TSP. The minimum contribution is just 1% of their basic pay, but experts recommend contributing at least 10-15% of their salary. Without doing so, it may be difficult to meet retirement goals. 2. Not taking advantage of employer contributions Most agencies match employee contributions to the TSP, adding up to 5% of basic pay to the employee’s account. By not taking full advantage of this free money, employees may be missing out on an opportunity to grow their nest egg more quickly. 3. Failing to diversify investments Another common mistake employees make is failing to diversify their TSP investments. Diversification is key to avoiding concentration risk and ensuring that all investments within the portfolio aren't consistently underperforming. 4. Not paying attention to fees Many government employees are unaware that there are fees associated with their TSP accounts. Failing to pay attention to these fees can be costly in the long run, particularly for those who hold onto high-fee investments. 5. Not adjusting investment strategy over time Lastly, employees make a mistake by not adjusting their investment strategy over time in accordance with their personal risk tolerance or as they get closer to retirement. It’s important to monitor their investments regularly and make adjustments when necessary to maximize the TSP returns. In conclusion, avoiding these common mistakes is key to ensuring that federal employees maximize their Thrift Savings Plan contributions, ultimately securing their financial futures. Seeking out a financial professional who can provide important guidance and advice is a good idea when planning retirement. https://inflationprotection.org/mistakes-that-federal-government-employees-often-make-with-their-thrift-savings-plan/?feed_id=93122&_unique_id=644f45d5c18f4 #Inflation #Retirement #GoldIRA #Wealth #Investing #ThriftSavingsPlan