If you are a federal employee, you may be wondering how to plan for your retirement and make the most of your Thrift Savings Plan (TSP). The TSP is a tax-advantaged retirement savings plan that allows you to invest in various funds and options, depending on your risk tolerance and goals. On this tag page, you will find articles and resources that will help you understand the benefits and features of the TSP, as well as tips and strategies to increase your investment returns and secure your future income. You will also learn about the latest news and updates on the TSP performance, fees, withdrawals, and more. Whether you are just starting your federal career or are near retirement, these articles will provide you with valuable information and guidance on how to make the best use of your TSP.
“Back to the Future” was a great movie–or series of movies. Still, no one likes to see their retirement investments sinking back to levels of six years ago. That is what has happened in the current bear market. Here are charts showing the results through the recent sell-off–and some hope for the future.
Federal retirement expert John Grobe recently wrote an article read by tens of thousands of readers entitled “What Happens to Your Federal Employee Benefits if You Die While Still Working?” Some readers had questions or wanted more information. Here are answers to some of the more frequent questions. Please read this in conjunction with the previous article on this subject.
October was the worst month in 21 years for the index on which the TSP’s C fund is based. The good news: The last week of October was one of the best weeks for the C fund index. Here is a summary of the TSP results for October.
An argument that risk can and should be avoided with retirement funds by removing money from the private sector and investing in government bonds (similar to the G fund) may gain popularity in the next Congress.
The ideal time to transfer money from the G fund and back into the TSP stock funds is when the market reaches a bottom and is about to start heading back up. Have we reached that point with the current stock market?
Declines in the value of the stock market are leading to proposed changes in retirement plans and complaints from a few investors that the TSP is taking money from their pockets by placing unreasonable restrictions on trading TSP funds. Here is a summary and a response from a TSP official that gives a more in-depth description of TSP expenses in the TSP funds that will interest to all TSP investors.
As the current stock market doldrums drag on and the value of TSP stock funds dwindle, some TSP investors have been busy moving billions of dollars into the safety of the G fund and out of the TSP stock funds.
It is human nature to panic when you see your stock investments losing money. The result is always the same: small investors dump their stock funds as the market goes down and they usually dump the most money when the market is at its lowest point. To preserve your retirement funds, take a deep breath, step back and look at the bigger picture. It may keep you from making a big mistake.
On October 9, 2007, the stock market hit new highs. On October 9, 2008, the markets hit a multi-year low. Current retirees, those planning on retiring soon and even those hoping to retire in the next five years and concerned. Here is how the TSP funds have fared in the past year–and some hope for the future.
Your TSP funds have probably taken a dramatic hit. Put the situation in perspective before hitting the panic button and making decisions you may regret later.
