Invest Your TSP Like A Pro - 7 Ways For Federal Employees To Maximize Retirement

The Fed Corner - Federal Retirement Planning

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To maximize your Thrift Savings Plan (TSP), there are some core principles that federal employees can apply. Using these will help you avoid costly mistakes and learn how to best use the TSP to meet your goals. There are also some quirks about the TSP C fund investment that you should know about, and understand exactly how to use index funds. Thiago discusses tips for federal employees to maximize their retirement in this video.
[HOW TO CREATE A BUCKET STRATEGY]
• How To Protect Your Re...
[MASSIVE CHANGES TO RMD]
• MASSIVE Changes to RMD...
[SECURE ACT 2.0 LAW CHANGES]
• SECURE Act 2.0 | Impor...
[THE TRUTH ABOUT INFLATION]
• 3 Ways to Benefit from...
0:00 TSP Setup
0:59 Risk Rating
2:28 Management
3:23 Retirement Target Date
4:02 Drift
6:04 Lifecycle screenshot opp.
7:00 Core funds
9:11 Tax savings
10:40 Growth investments
11:32 Investment Tax efficiency screenshot opp.
11:40 Market timing
12:30 Investor cycle
14:05 Tell us more
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#TSP #fersretirement #federalemployees

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Опубликовано:

3 авг 2024

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Комментарии : 80

@glasshalffull2930 4 месяца назад

For a new employee who is looking at a long career with the government, I cannot emphasize enough that you need to be 100% in stocks and just put blinders on as the market goes up and down as it always does. I’m retired now, but began my federal service in 1985 with a salary of about $22,500. The TSP didn’t even have any stock funds and after they added them, I didn’t have any money in the C until several years later. Because of advice, I switched totally to the C Fund and never looked back. During the 2000 Tech Bubble and then the 2007 Financial Crisis, I thought I’d never be able to retire. However, the stock market recovered and went on to set many more records.

@TheFedCorner 4 месяца назад

Glad you received advice that served you well!

@menasiak7173 Год назад

I love all the helpful info and easy to read graphs :)

@TheFedCorner Год назад

Glad it was helpful!

@wm1329 Год назад

Thank you for providing an helpful and informative lesson!

@TheFedCorner Год назад

My pleasure, glad you found it helpful. -TG

@mauricereid4796 9 месяцев назад

Great info. Keep up the good work!

@TheFedCorner 9 месяцев назад

Glad you enjoyed, thanks for tuning in!

@brianjackson6342 Год назад

You can actually pick either Roth or Traditional TSP now.

@CumminsTurbo4 6 месяцев назад

I guess I missed where he stated otherwise...I've been investing in both ROTH and traditional, on and off, for over 5 years via TSP 😊

@user-ut5cb2dg8z 6 месяцев назад

Wow! Best TSP video I have ever seen. Great Job!

@TheFedCorner 6 месяцев назад

Glad it was helpful, thanks for the kind words! -TG

@GunMD Год назад

Fantastic content. Please keep it coming. Thanks for taking the time to educate us

@TheFedCorner Год назад

Thank you! Glad you enjoyed! -TG

@joshualarson5916 28 дней назад

great work

@TheFedCorner 26 дней назад

Thanks!

@edwardjohnson4649 5 месяцев назад

Please make more videos like this. I like how you break it down and explain why you would choose or structure what you need for a certain situation or stages of life.

@TheFedCorner 5 месяцев назад

Will do!

@todaysbest369 Год назад

We are GRATEFUL!! We are! Our new jedi to investment.

@TheFedCorner Год назад

May the [financial] force be with you! -TG

@wdeemarwdeemar8739 Год назад

Very interesting.

@TheFedCorner Год назад

Glad you think so!

@jimmybx0072 Год назад

As someone who just fear dumped into the G I appreciate this vid. +1 Sub from me. I will be on the look out for more education on TSP. Excellent vid!

@TheFedCorner Год назад

Thanks for your support!

@ivdubgti 9 месяцев назад

Inflation and the cost of living has become unsustainable. I had to drop my TSP contributions to put gas in my car to get to my Federal job.

@TheFedCorner 9 месяцев назад

Sorry to hear that, I know inflation has been quite difficult to deal with for many people.

@silverowlthrifter Год назад

Thank you..retiring next year

@TheFedCorner Год назад

You're welcome, glad you found it helpful. Congrats on your soon-to-be retirement!

@martinhyizna3299 7 месяцев назад

My issue with the TSP is the slow mechanism for interfund transfers and the limited number of transfers allowed monthly.

@TheFedCorner 7 месяцев назад

It’s a challenge shared by many work-retirement programs, unfortunately.

@Matt-fs1yy 7 месяцев назад

Not rebalancing can cost you at least high five figures come retirement time. Alexander Green explains this brilliantly in his book "Gone Fishin' Portfolio."

@TheFedCorner 7 месяцев назад

That's right, and the larger a portfolio, the bigger the mistakes will cost. We've seen 6-figure problems that people had to work through, and in a few cases, even 7-figure mistakes.

@jayviermendiola Месяц назад

I've been getting real interested recently in budgeting, & because of my personal situation, not sure If I want to extend my 4 year contract, I'm playing stupid risky with 60% roth & 100% of that into the C funds. I'm 50/50 rn, I do not want to stay in the military but I also want to continue taking advantage of Roth TSP & invest much more.

@TheFedCorner 5 дней назад

If you’re young, Roth may make a lot of sense. Even when older it can be a great tool as well. I have several other videos talking about the importance of Roth and tax mgmt so check them out if you’d like.

@johnsullivan4413 Год назад

Thanks so much, I really appreciate your work. As a point of clarification, isn't the TSP S Fund a small cap stock index fund?

@TheFedCorner Год назад

Hi John, glad you enjoyed. The S fund is technically a completion total stock market index looking to replicate the Dow Jones, but it does indeed contain a significant amount of small cap stocks. -TG

@rogerdoger9939 Год назад

@@TheFedCorner Coming from someone trying to educate people, this is a poorly written response. When you say "Dow Jones" the average person is going to thing the Dow 30. From the TSP website: The S Fund's investment objective is to match the performance of the Dow Jones U.S. Completion Total Stock Market Index, a broad market index made up of stocks of small-to-medium U.S. companies not included in the S&P 500 Index.

@fred4987 Месяц назад

50% C 50% S AND let it ride.

@TheFedCorner 26 дней назад

That can work for younger folks, thanks for tuning in!

@OEA2580 Год назад

You can select traditional or Roth in TSP…

@CumminsTurbo4 6 месяцев назад

Seems like he should know this? I guess I missed where he stated otherwise

@johnchastain4351 Год назад

I use the life cycle funds in a ladder format. I use L2030, L2025, and L. I plan on moving money up the ladder as time goes on. So after 2025 it will be L2035, L2030, and L. I also keep a minimum of 20% in G and 20% in C.

@TheFedCorner Год назад

Thanks for sharing that! Glad you're staying on top of it!

@rogerdoger9939 Год назад

I don't understand what you are trying to accomplish with this. Why not use an L fund that has the mix you want? Or make your own mix?

@CumminsTurbo4 6 месяцев назад

I agree @@rogerdoger9939

@Ryan-lm9mo Год назад

What would happen if I also have Roth outside of TSP Roth? Like if I max 6k on an outside brokerage what happens to my ROTH TSP??

@TheFedCorner Год назад

Hi there, nothing happens to your Roth TSP, you can continue to contribute to your Roth TSP. You should just make sure you're still eligible for Roth IRA contributions as that changes as income rises.

@alrocky 11 месяцев назад

You may contribute *$6,500* to Roth IRA

@edwardsinchuk8199 9 месяцев назад

50%S 50%C. For the last 20 years. Even though market getting hammered lately will never change percentages

@TheFedCorner 9 месяцев назад

Can work for those with a lot of time, but it may be too aggressive for those coming up to retirement. Thanks for tuning in!

@PracticalPostMan_FLA 5 месяцев назад

This is what i been doing for 4 years and i feel like my money is growing pretty slow. I’ve been doing 10% but considering going up to 15% of my check.

@gixxer4629 4 месяца назад

Postman, I’ve been in the L240 retiring in 2031. Account grew 18% last year, trust the process.

@user-tz5uq2bt1s 7 месяцев назад

Why would you decrease the c fund when it’s low? Are people really selling low and buying high?

@TheFedCorner 7 месяцев назад

Many, many people do. It's easier to stay invested during market volatility before retirement. But once you've realized you no longer have an income and that sequence of returns risk can destroy a portfolio, then it becomes much more difficult to stay invested during times of volatility. That's why having a plan that works to help you meet your goals in all market types is key!

@axetrops 6 месяцев назад

If no longer working for federal service but want to keep money in TSP and want to grow it for retirement, what would you recommend for reallocation? 70% C / 20% S / 10% I?

@TheFedCorner 5 месяцев назад

Think about what the C, S, and I funds are designed to do. Use them like a tool for your objectives. If growth is your goal, they are growth tools. But this also comes with a high degree of volatility, so make sure you understand this risk. It's hard for me to say more without it counting as advice to you. Hope this helps. -TG

@axetrops 5 месяцев назад

@@TheFedCorner Thank you

@Kep19901 Год назад

70%S/30%C

@nachowny 2 месяца назад

i have 300k in the c fund is it a good move to alocate everything today to the g fund ,,, i still have 5yrs to retired

@TheFedCorner 2 месяца назад

Hard to say without knowing your specific financial position. The G fund is designed to protect your wealth from volatility, but it doesn't protect you from inflation and is not good at replenishing your spending once you retire. Hope this helps!

@jayviermendiola Месяц назад

If you're content with the money, move it now. I'm rather risky, and would keep all that into the C funds (maybe S & I) for 4.5 years & then move it into G funds.

@mscottster444 11 месяцев назад

I’m doing the Warren Buffet strategy. 90%C 10%F.

@Alucard171 11 месяцев назад

I just started doing 90%C 10%S

@louchelada8296 3 месяца назад

@Alucard171 I'm doing that also...how have you done...may I ask

@mscottster444 3 месяца назад

@@louchelada8296 I changed mine up to be 46%C 45%S 9%G. But haven’t haven’t change it since. It follows the rule of 120. I’m 29 years old etc. but mine has done pretty good! I just wanted more diversity than mostly C. But I’m sure it works good though either choice!

@trojan7933 Год назад

Best TSP allocation regardless of age: 70% - C fund 20% - S fund 10% - I fund

@TheFedCorner Год назад

Whew! Not everyone can stomach that volatility! More power to you!

@usaqt2 Год назад

May I ask why you feel this way? Is it based upon your personal experience or data?

@alrocky Год назад

@@usaqt2 That's a horrible asset allocation "regardless of age."

@usaqt2 Год назад

@@alrocky thank you. I’m trying to learn more about different investments strategies. I recently heard a coworker talking about putting 50% in C and 50% in S. Any thoughts?

@alrocky Год назад

@@usaqt2 VOO / VFIAX is S&P 500 = C Fund. VXF / VEXAX is Extended Market Index = S Fund. C/S in ~75%/25% proportion = VTI / VTSAX US Total Stock Market. If you go C/S 50%/50% you'd overweight S Fund. Unless you understand "risk tolerance" you should consider having at least 5-10% in F/G. Perhaps the best strategy is to contribute as much money as your income and budget allows with aim to contribute max of $22,500 year as soon as you can. You should be contributing at least 5% to receive 5% TSP match and hopefully 10 or 15% or more to TSP. Favor contributing to Roth TSP when you're in relatively low tax bracket and favor contributing to traditional TSP when you're in relatively high tax bracket: < $45k is 12% Federal Tax Bracket [Single] and you should favor Roth TSP. $6,500 to Roth IRA is good idea.