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.
Are stock market investors at “the point of maximum pessimism”? It isn’t possible to know but there is plenty of evidence to think we are at least in the vicinity. Here is a chart that shows how stocks have fared after dramatic one-day drops and how the stocks had fared one year later.
The stock market has been falling fast and TSP return rates are falling along with the market. And, this will surprise some current and future federal retirees, the current COLA adjustment for next January also dropped in the past month. Here is a quick summary of your TSP returns and the 2009 COLA adjustment.
TSP stock fund returns were all up for August, with the exception of the I fund which took a drubbing and is down more than 17% for the year.
The way to make money in the stock market is to “buy low and sell high.” But many investors follow the opposite practice. They “buy high and sell low.” Current trends show that, once again, the past is prologue and TSP participants are selling stock funds and adding billions into the G fund.
The stock market decline continued in July and the TSP funds reflect the declining values as most of the funds are down for the month, year and and previous 12 months.
New legislation passed the House this week to protect public health by providing the Food and Drug Administration with authority to regulate tobacco products. The bill will cost about $300 million. An influential Congressman says not to worry–the money to fund this legislation will come from changing the federal Thrift Savings Plan. No doubt, these changes reassure TSP investors that Congress is looking out for their financial future.
P.T. Barnum is credited with the phrase “There’s a sucker born every minute.” Keep that in mind when you read ads about how how to invest (or roll-over) your TSP money.
A pending bill would quietly change the TSP’s investment philosophy. The result would be opening the door to more investment options, confusing many investors, applying more political pressure on the TSP and profiting financial interests with Congressional patrons. The likely losers: TSP investors who are benefiting from a simple, inexpensive retirement plan that is currently a model for private sector retirement plans.
What is the best investment strategy in the Thrift Savings Plan for your retirement future? A recent report from the Thrift Investment Board provides useful guidance you can use to shape your financial future.
When a politician says he wants to improve your TSP returns by changing the system, hang on to your wallet. Someone may benefit, but it may not be the TSP investors.
