The G Fund, has long been the low-stress haven of TSP participants looking to shelter their nest egg from market volatility thanks to its combination of safety and liquidity. It is the most popular of the TSP funds, holding nearly 36% of all TSP assets because of its ‘safe returns’. But in todays interest rate environment, the G Fund’s ‘safety’ comes at a cost…Read More
Many articles, websites, and newsletters focus their efforts on helping you learn more about how to grow your TSP prior to utilizing it in retirement to supplement your fixed income. Many of these resources provide a plethora of knowledge to help you understand the different TSP funds, to track their performance, and even monitor your TSP account to quickly communicate market downturns… but the way these resources are often interpreted, it leaves readers with the impression that if they can ‘hit their number’ prior to retirement then they will simply have enough money to ‘coast’ through their golden years. As a result, there are still far too many feds around the country that view retirement as the financial finish line… which couldn’t be farther from the truth.Read More
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.Read More