Many investors know the conventional thing to do, when times are good. But when things go south, which they do regularly, the fight-or-flight instinct kicks in. Times like now.
By later this year, TSP investors could have as many as 5,000 new investment options. So what next?
House lawmakers passed the Securing a Strong Retirement Act, which will raise the age for starting required minimum distributions from TSP accounts.
Last month marked approximately two years since the COVID-19 pandemic reached the U.S. in full effect and pushed the federal government into a maximum telework stance.
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Sometime this summer, the number of investment choices in the federal Thrift Savings Plan will jump to include roughly 5,000 mutual funds.
The age requirement for starting TSP retirement distribution would increase under the Securing a Strong Retirement Act
Financial planner Arthur Stein, who has a large number of federal-retiree clients, says there is another option for them — or anyone else — who may want to invest some of their emergency funds or excess cash in a super-safe option.
After a month of disappointing returns in January, Thrift Savings Plan funds closed out February trending positive. Performance is still negative over the past year.
TSP participation rates for the Federal Employees Retirement System and active duty uniformed services were at all-time highs in January: 94.9% and 81.3%, respectively.
What can people do — either by working longer or delaying their Social Security — that will boost and maintain their standard of living when they do decide to retire?
For many feds, the money they have in their Thrift Savings Plan will provide anywhere from one-third to one-half of their income. Most know that knowing when to buy and when to sell is a crap shoot, at best.
If you choose the invest-for-the-long haul course you may, as 112,000 rank-and-file federal and postal workers have done, become a TSP millionaire. But the keys are long-term investing and doing what the proven winners have already done.
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