To rollover or not rollover your TSP FinEd for Feds is dedicated to providing financial planning education that is relevant for U.S. Federal Government Employees. Federal Employee benefits are complicated yet extremely valuable. Our goal is to make your benefits easier to understand and explain how they integrate with other aspects of your financial life. Ultimately, we want you to be educated during your working years and to feel confident and empowered to retire comfortably from federal service. Discovery Wealth Planning LLC is a Registered Investment Advisor. We are fee-only, which means we do not sell products for a commission. We are also a fiduciary and we put client interests first 100% of the time. We offer one-time and ongoing financial planning engagements with a CERTIFIED FINANCIAL PLANNER™ for U.S. Feds. To learn more, please visit This channel is purely educational and should not be considered as financial, legal or tax advice. Discovery Wealth Planning LLC (“DWP”) is a registered investment advisor offering advisory services in the states of Virginia and Maryland and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This communication is for informational purposes only and is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal the performance noted in this publication. The information herein is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, DWP disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose. All opinions and estimates constitute DWP’s judgement as of the date of this communication and are subject to change without notice. DWP does not warrant that the information will be free from error. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall DWP be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided herein, even if DWP or a DWP authorized representative has been advised of the possibility of such damages. Information contained herein should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized. This site may contain endorsements by non-clients who are not users of our products and/or services. These endorsements reflect their own opinions or views and may not be representative of our own. We are not affiliated with users who provide endorsements and they are not paid or otherwise compensated directly or indirectly for them....(read more)
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If you are a federal employee or military service member who has contributed to the Thrift Savings Plan (TSP), you are probably wondering whether or not you should rollover your TSP savings into an individual retirement account (IRA) or leave them in the TSP. While there is no right or wrong answer, there are pros and cons to each option to consider. First, let's explore the benefits of rolling over your TSP into an IRA. One major advantage is greater flexibility in investment options. With an IRA, you have access to a wider variety of investment choices compared to the TSP’s five index funds. This can help you diversify your portfolio and potentially earn higher returns. An IRA also allows you to consolidate multiple retirement accounts into one, making it easier to manage your retirement savings. Another advantage of rolling over your TSP into an IRA is that you can avoid required minimum distributions (RMDs). Once you turn 72, the IRS requires you to start taking RMDs from your traditional IRA, but not from your TSP if you’re still working. If you roll your TSP into an IRA and then convert it to a Roth IRA, there will be no RMDs. This is a great strategy for people who don’t need the income from their retirement accounts and want to minimize their tax liabilities. On the other hand, there are also some drawbacks to rolling over your TSP into an IRA. One of the main disadvantages is that the TSP has lower fees compared to most IRA providers. With TSP, you pay a flat rate of 0.042% of your account balance regardless of the size of your account, while many IRA providers charge fees that are calculated as a percentage of your account balance. This means that if you have a large TSP balance, the fees at an IRA provider could be substantially higher. Another disadvantage of rolling over your TSP into an IRA is that you lose access to the G Fund, which is unique to the TSP and is essentially a government bond fund. The G Fund is a stable, low-risk fund that earns slightly higher returns than a savings account but less than the other TSP funds. If you value stability over potential gains, it might be worth leaving some of your money in the G Fund. If you decide to keep your savings in the TSP, you can continue to enjoy low fees and an excellent government-backed investment option with the G Fund. You can also take advantage of the TSP's loan program, which allows you to borrow money from your account at a very low interest rate. However, if you are looking for greater flexibility in investment options and want to avoid required minimum distributions, rolling over your TSP into an IRA might be the better choice. Ultimately, the decision of whether to rollover or not rollover your TSP depends on your individual financial situation and retirement goals. Consider consulting with a financial advisor to weigh the pros and cons and determine the best course of action for you. https://inflationprotection.org/should-you-rollover-your-tsp-or-leave-it/?feed_id=94193&_unique_id=6453a5721cd4e #Inflation #Retirement #GoldIRA #Wealth #Investing #federalretiree #federalretirement #FERS #thriftsavingsplan #thriftsavingsplanexplained #thriftsavingsplanfunds #thriftsavingsplanhelp #thriftsavingsplanrollover #tsp #tsprollover #RolloverIRA #federalretiree #federalretirement #FERS #thriftsavingsplan #thriftsavingsplanexplained #thriftsavingsplanfunds #thriftsavingsplanhelp #thriftsavingsplanrollover #tsp #tsprollover
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