Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Website Link: https://planyourfederalbenefits.com/your-fers-retirement-pension-calculator/ Check out the full article here: https://planyourfederalbenefits.com/blog/ My YouTube Channel: https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg (https://www.youtube.com/channel/UCOVfyrVDS83jgo97HM0bmNg) Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ The TSP can be a powerful wealth accumulation tool, especially when used wisely. Here are the top three mistakes that Feds makes with their TSP. Not Starting Early When it comes to investing, time and compound interest are key. When those two things get together, the results can be incredible. That is why it can be so powerful to start investing early in your career. Here is a simple example to emphasize this point: Let’s say a Fed who makes 50k per year starts investing at age 35. He contributes 5% of his salary and his agency matches his 5%. This means that he puts about $208/ month into his TSP and his agency adds another $208/month. Let’s say he continues to do this without increasing his contribution for the next 30 years. Assuming a 7.5% return, he’d retire with over 500k at age 65.  Pretty cool right? Now let’s change just one variable in this equation. Let’s say that he started investing 10 years early at age 25 instead of age 35. That one change changes his ending balance at retirement to almost 1.2 million dollars!  That is the power of investing while you are young. Even if you can’t invest very much, start as soon as possible! Not Understanding The Funds Especially for a newcomer to investing, the TSP funds can be daunting and confusing. That being said, understanding at least the basics can pay off big over the long haul.  The first thing that a Fed should know is when to be aggressive and when to be conservative. When a federal employee is young and early in their career, they should be investing primarily in the C,S, and I funds. These funds are stock funds and will grow much faster than the F and G funds. Many Feds regret spending way too long in their early career in the G fund. While the G fund does protect you from losing money it also protects you from making much at all.  But as an employee approaches retirement, it often makes sense to get more conservative. This way, their account balance won’t be bouncing too much when they need to start drawing money out.  For those that don’t want to worry much about their TSP investments, the L funds might make sense for you. The L funds are designed to automatically get more conservative as you approach retirement. They aren’t a perfect solution for , but they are the government’s best guess at a one-size-fits-all approach.  With all that being said, the best investment strategy is what makes sense for your personal situation so make sure you do the research to understand your options.  Panicking In Downturns Downturns in the market can be scary especially when our life savings are involved. That being said, we have to make sure that our decisions are rational. Market downturns are a very normal part of the economic cycle and the great investors know that downturns are the best time to invest. For most Feds it makes the most sense to just ride out the waves and stick to their long-term investment strategy. Statistically, someone that just buys and holds will do much better over time than someone who is trying to time the market. Like the famous saying goes, “it is not about timing the market, it is about time in the market.” Conclusion: Because of the wealth building power of the TSP, many Feds become millionaires every year. The vast majority of these millionaires aren’t made through luck or winning the lottery. They are made by consistent effort and patience.  

Check out "Building Wealth in The TSP" on Amazon: https://amzn.to/2FytP9W Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ The question that we all want to know the answer to is: How much money will be coming my way once I retire? And is it enough?    These questions have been asked by millions of Feds and getting the right answers can be a deal breaker in planning your retirement.  As an employee under the FERS, you will have income from three main sources. 1. Federal Pension/Annuity 2. Social Security  3. Your TSP These are commonly called the 3 legs of your retirement stool.  A great place to start is with your fixed income or your pension and Social Security. Once you have a ballpark on your monthly fixed income, you’ll know how much you’ll need from your TSP to cover your standard of living. Federal Pension/Annuity If you have some years before retirement, a good estimate of your pension is a great start. If you are eligible for an immediate annuity, you can estimate your pension with the following formula: High 3  x  Years of Creditable Service  x  Your Multiplier Your multiplier will be 1% unless you retire at age 62 or older with at least 20 years of service, at which point your multiplier would be 1.1% (a 10% raise!).  For example, if you are have 20 years of service, a high three of $100,000, and retire at age 63, your calculation would look like this: $100,000  x  20  x 1.1%   =   $22,000 This means that your gross pension would be $22,000 every year or about $1,833.33 every month. Your gross pension would then be decreased by any of your insurance premiums (FEHB, FEGLi, ect) and other things like taxes and your survivor annuity if you elect it. Make sure you do the math for your situation to know what your net pension will be.  Once you get about a year out of retirement, you should request an annuity estimate from your agency to make sure their records match yours. It is not uncommon for them to make mistakes. Social Security  The equation to calculate your Social Security benefits is very complex so the best thing to do is to go to ssa.gov and request a copy of your Social Security statement. On the top right hand corner will be an estimate of your monthly benefit at full retirement age. Your full retirement will be somewhere between 65-67 depending on your birth year.  The challenging part about Social Security is knowing when to turn it on. The earliest you can start benefits is 62 and the latest is 70. For every month you start your benefits before your full retirement age, your benefits will be decreased. However, for every month you wait to start your benefits after your full retirement age, your monthly benefit will be increased. There is no cut and dry answer on when is the best time to to start but the things to consider are your life expectancy, financial needs, and your personal situation.  If you retire early, you may find it difficult to wait until your full retirement age to start your benefits. You will want to be careful to not deplete your TSP too much in the meantime. The best case scenario is to make these decisions long before you retire. This way you have plenty of time to know how you are going to handle every stage of retirement without stressing your finances. Note: If you retire before age 62 with an immediate retirement, you will be eligible for the Social Security supplement or FERS supplement. While this benefit only lasts until age 62, it can help to bridge the gap between retirement time and when it makes sense to start Social Security. Your TSP Everyone wants to know how much they need in their TSP in retirement. Again, there is no perfect answer for everyone. If there was, it would make my job as a financial planner much easier.  Once you

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://planyourfederalbenefits.com/work-with-us/ (https://planyourfederalbenefits.com/work-with-us/)

Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ The TSP is a great retirement saving tool, but how does it stack up next to other plans in the private sector such as a 401(k)?  Let’s dig into it. In January of 2020 the average TSP balance was $138,933 while the average 401(k) balance was $112,300. The market has seen some turbulent times since then but it is very likely that the average TSP balance is still way ahead. This one fact tells us a lot about how well these plans function.  The TSP does a few things extremely well that make it hard for most 401(k) plans to keep up.  The Match-The government offers up to a 5% match. This is free money that all eligible feds should be taking advantage of. If a 401(k) plan has a match at all, it is very rare for a company to be as high as 5%. Most matching plans are around 3%. The Fees- It is not uncommon for participants in a 401(k) plan to pay 1% between fund fees and advisory fees. Federal employees on the other hand, pay between 0.026% and 0.039% depending on what funds they are in. That means that someone in a 401(k) with a 1% fee is paying 25-38 times what feds are every year. 1% may not seem like that much but it really adds up over the years. Let’s do a quick example. Say one person invested $500 a month in funds that earned 8% per year. He kept investing for 40 years. At the end, he’d have more than 1.6 million dollars. But if he would have paid a 1% fee every year, he would have only ended up with about 1.2 million dollars. That is a difference of $400,000 over a career! Now, I do want to mention that all fees aren’t bad. I often charge fees in my work as a financial advisor. Just like with everything else, it comes down to what you are paying compared to what you are getting. If you find value in the services you receive then by all means pay the fee. Just make sure you understand the fees you are paying and what you get in return for those fees. The Funds- The TSP funds are a head and shoulders above most 401(k) plans because of their simplicity. Because most employees struggle to know how to invest, the simpler the better. For the average Joe, these 5 funds are plenty to build a solid portfolio.  When you put all these advantages together, the TSP becomes an impressively powerful retirement planning tool. Now, I am not saying that 401(k)s are bad, because they aren’t. All I am saying is that it is very hard to find a retirement plan that trumps the TSP. All that being said, the TSP is merely a tool. And just like any tool, the TSP is absolutely useless until you start using it. Those that truly understand the merits of the TSP are those that invest into it often and consistently. And it is not a surprise that these same people are generally the ones who become TSP millionaires. 

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://hawsfinancialplanning.com/contact-us-make-an-appointment/ (https://hawsfinancialplanning.com/contact-us-make-an-appointment/)

Check out the full article here: https://planyourfederalbenefits.com/blog/ Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ Dallen Haws at Haws Financial Planning Sierra Vista, AZ Want to work with me? Click here: https://hawsfinancialplanning.com/contact-us-make-an-appointment/ (https://hawsfinancialplanning.com/contact-us-make-an-appointment/)

Check out my courses here: https://planyourfederalbenefits.com/courses-main-page/ Check out my articles on FedSmith here: https://www.fedsmith.com/author/dallen-haws/ The TSP has served you well over a long career but now it is time to retire. My retiring clients often say things like “Is the TSP still the best option in this new stage of life? Some people talk about moving it to an IRA, but all I’ve known is the TSP. I’ve done well enough investing my TSP during my career but I really don’t know how I should invest in my retirement.”  Unfortunately, there is no black and white answer. There is not one single answer solution that fits the needs of every single federal employee out there. Everyone, (that means you too) needs to educate themselves enough to know the basic pros and cons of this decision because it can make a big difference over a long retirement.  To get you started, here are some things to consider. IRA? An IRA is a great tool and is widely used by those working in the private sector. It is less common among feds however, because of their ability to access the TSP.  The main advantages of an IRA in retirement is the flexibility. You much more wiggle room with withdrawal options as well as investment options. The one potential problem that comes with more choices is the complexity. The TSP’s strength lies in the fact that it is so simple and easy to use. There are limited investment options but they meet the needs of most feds just fine. Not to mention the fees are incredibly low. If you want to have more flexibility to withdraw and invest funds in more complex ways and you don’t mind paying a little more to invest in private sector funds then maybe an IRA is the right choice.  It is important to note that many financial advisors will tell you to roll your TSP into an IRA. This is not always a bad thing especially if you’d like your advisor to manage the account for you. Just remember that most advisors get paid to manage money. The more money they manage, the more money they make. Because advisors can’t directly manage your TSP they will often advise you to simply roll it out into an IRA so that they can manage it.  Now, I am not saying that all financial advisors will throw your interests aside just to make more money. There are many advisors out there who truly put their clients before themselves. As an advisor myself, I have definitely seen both the good and bad in the industry.  My advice to you is to not be afraid to ask your advisor when you don’t understand why he/she advises a certain way. An advisor that is worth their salt will be able to walk you through the reasons why a certain action makes the most sense for you in the long run.  How to Invest During Retirement Investing during retirement is often crucial to ensure that your money lasts longer than you do. Not only are you trying to make your money last but you are also trying to beat inflation and maintain your standard of living. Assuming an inflation rate of 3%, it takes about 25 years for the value of your money to be cut in half. Many retirements these days last at least 25 years.  Now I can’t say exactly what investment strategy is the best for you but I can give some general advice. The major difference in investing strategies between feds depends on how much of your TSP you need every year, your other income sources (Social Security, Federal Pension, ect), and your timeline and goals. A good way to approach retirement investing is to think about 3 different buckets. The first bucket is your cash bucket. This is the bucket that you will be drawing from to fund your living expenses. You will always want 3-5 years of living expenses (whatever isn’t covered already from other income sources) in your cash bucket so that you can wait out any down markets without having to sell your investments when they're low. This cash bucket gives you security and...