No withdrawal strategy is discussed more that the Thrift Savings Plan barbell strategy. The barbell strategy is a method for federal retirees to take withdrawals from TSP, but how does it work? Here I discuss how it would work incorporating an IRA as well as if you left funds in TSP (hint: not simple!). My kids taking pics on my phone comes in handy sometimes 🤣...(read more)
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The TSP Barbell Strategy is an investment strategy that encourages investors to allocate their investments between two extremes, namely low-risk investments and high-risk investments. The name of the strategy is derived from the shape of a barbell, where the weight is distributed on two opposite ends. The TSP Barbell Strategy is primarily meant for investors who have a low-risk tolerance, and at the same time, want to reap the benefits of high-risk investments. The strategy involves investing a significant proportion of the funds in low-risk investments, such as government bonds or certificates of deposit (CDs), while the remaining funds are invested in high-risk investments, such as stocks or real estate. The idea behind the TSP Barbell Strategy is to reduce the overall portfolio risk while still allowing an investor to take advantage of the higher returns of high-risk investments. By having a mix of low and high-risk investments, an investor can balance their portfolio's risk and return, ensuring that they have a stable income while simultaneously giving extra room for growth. In practice, the TSP Barbell Strategy works by allocating 70 to 80 percent of the investment portfolio to low-risk investments and the remaining percentage is dedicated to high-risk investments. The percentages can be adjusted according to the investor's preferences. The TSP Barbell Strategy is an effective investment strategy as it provides investors with a sustainable source of income, while at the same time providing the potential for significant growth in the long-term. It is worth noting that the strategy may not be suitable for investors who have a higher risk tolerance or for those who are looking for short-term gains. This is because the strategy mostly focuses on long-term gains and wealth accumulation rather than short-term profits. In conclusion, the TSP Barbell Strategy is a unique investment strategy worth exploring for investors who are looking for a balanced portfolio that factors in both low-risk and high-risk investments. The strategy is especially suitable for those who are looking for a stable income source, while at the same time achieving substantial growth in the long-term. It's important, however, to note that like other investment strategies, the TSP Barbell Strategy carries with it some potential risks. Investors should always evaluate their financial goals, their risk tolerance, and seek the advice of professional financial advisors before embarking on any investment strategy or making investment decisions. https://inflationprotection.org/the-barbell-strategy-in-tsp/?feed_id=98855&_unique_id=64666066ef75d #Inflation #Retirement #GoldIRA #Wealth #Investing #advisorforfederalemployees #federalemployees #federalretirement #fersretirement #thriftsavingsplaninvesting #tspbarbellstrategy #tspdistribution #tsptransfer #tspwithdrawal #ThriftSavingsPlan #advisorforfederalemployees #federalemployees #federalretirement #fersretirement #thriftsavingsplaninvesting #tspbarbellstrategy #tspdistribution #tsptransfer #tspwithdrawal
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