Posts in Retirement Planning
Pros & Cons of TSP Annuity

Is the (antiquated) TSP Annuity Appropriate for You?

An annuity, in the broadest terms, usually refers to an investment or program where the participants exchange a sum of money (contributions) for a guaranteed stream of income.  In general, programs like this look to mitigate longevity risk – or the risk that you will outlive your personal life savings.  Since no one knows exactly how long they are going to live, an annuity refers to a family of investments generally designed for individuals to pool their money together in order to collectively mitigate the risk of any individual participant outliving their own personal savings. 

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The 4 Motivations

The 4 Motivations Behind Every Retirement Decision

Behind the scenes of every Fed’s personal decision to retire is a set of justifications for why the time is now right.  Every one of us will eventually have this mental tug of war comparing the pros and cons of retiring.  Every justification, every reason, every inspiration, or excuse that gets attached to our final decision falls into 4 underlying categories.

            The good news is that 1 of these 4 motivations will almost always result in a secure retirement with true financial freedom.  The bad news is that 3 of these 4 reasons commonly won’t.  The scary part is how few of us are really aware (or choose to acknowledge) which of the 4 influences are driving our own retirement decisions.

The 4 Motivations are:

Your Situation, Your Emotion, Your Information, and Your Finances.

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