TSP investments and strategies

[Addicting]

How does retirement work for you civil service guys?

Until very recently, TSP was a additional option for us a because we were covered under a pension based program depending on your entry date.

 

[sbhooper]

Not really. You could live 40 years after retirement. Current advice says most people will need to continue to take risk in equities past retirement. A lot of so called “thru” funds maintain at least a 50/50 split.

Your choice. Your money. If you feel lucky, then keep taking chances.

 

[SAJ-99]

Your choice. Your money. If you feel lucky, then keep taking chances.

That applies always. Just explaining the current thinking on the subject from professionals.

 

[beginnerhunter]

That applies always. Just explaining the current thinking on the subject from professionals.

True, but they are assuming social security and defined benefit plans are obsolete. The beauty of FERS is the 3 pronged approach (SS, TSP, federal pension). If I make it to my 90s I'll just live off the pension plan .

 

[BuzzH]

True, but they are assuming social security and defined benefit plans are obsolete. The beauty of FERS is the 3 pronged approach (SS, TSP, federal pension). If I make it to my 90s I'll just live off the pension plan .

The beauty of CRS was the pension...30 years you were in a great position, anything more than 30 years, was a thing of beauty.

Of course there were a small bunch of people that got in on both CRS and FERS.

The other thing most people really under appreciate/value is the medical insurance and what you pay for it after retiring...that's worth a fair bit as well.

 

[mtmiller]

The other thing most people really under appreciate/value is the medical insurance and what you pay for it after retiring...that's worth a fair bit as well.

^^^^^^^^
17.02 last 12. See what the future brings.

 

[SAJ-99]

True, but they are assuming social security and defined benefit plans are obsolete. The beauty of FERS is the 3 pronged approach (SS, TSP, federal pension). If I make it to my 90s I'll just live off the pension plan .

They are not assuming SS is obsolete. Any professional will take into account all sources of income and every person is different. I’m just saying that with the risk free rate where it is right now (and assumed not to rise much) making income on government securities would require a very large starting base. there is a reason why the % of people over 70yrs old still working continues to rise.

 

[brownbear932008]

One thing I always strive to do is if I see a raise it goes straight into tsp. I will continue that until I max it out eventually if everything goes as planned. Think I'm 18% traditional and just beginning to play with Roth at 2% along with my employer match. Just received my annual statement today had a 23% return last year. I would like to see a few more of those.
To all you old heads I like to run my stats with an average of 7% return. Do you all think that is realistic with what you all have seen over many years in returns?

 

[Lostinthewoods]

I run 80% C and 20% S.
Last year was strong and my annual statement that I received today said I got 30% return. Not bad!

My Roth IRA had a banner year too.

 

[Pucky Freak]

A very popular assumption in retirement investing is you should become more conservative over time. Build up a nest egg then scramble it and eat it until it’s gone. This is quite risky because if you run out of egg you starve. A much less risky strategy is to have diversified aggressive investments all the time. When you quit working you have a “nest goose” that lays nest eggs (interest) into infinity. Doesn’t matter how long you live, and when you die you bequeath your fortune to whomever you wish.

 

[Sytes]

A good site for Feds:

http://www.thefedtrader.com/

 

[Labman]

anyone with the federal government invested in the TSP funds, any insite as to what to do were to go with investments right now, if you had 100,000.00 in the account right now how would you allocate in knowing your 15 years from retirement

C, S, I
Then roll it over into something else when you get out.

 

[BuzzH]

To all you old heads I like to run my stats with an average of 7% return. Do you all think that is realistic with what you all have seen over many years in returns?

Probably safe...but during the recession years it wasn't close to that.

 

[Kaitum]

This thread was a good reminder just to log into my account and make sure profile info is up to date. Also a reminder, check your beneficiary info and make sure it is correct. Easier to do so now than when (if) that info is called upon.

 

[brownbear932008]

A good site for Feds:

http://www.thefedtrader.com/

I follow this guy quite a bit. I think he is further in his career than me so plays it a little safer sometimes than I would. But lots of good info.

 

[sbhooper]

This thread was a good reminder just to log into my account and make sure profile info is up to date. Also a reminder, check your beneficiary info and make sure it is correct. Easier to do so now than when (if) that info is called upon.

Yep. If you don't log in occasionally, they will make you go through getting a new pass word from them.

 

[sbhooper]

The beauty of CRS was the pension...30 years you were in a great position, anything more than 30 years, was a thing of beauty.

Of course there were a small bunch of people that got in on both CRS and FERS.

The other thing most people really under appreciate/value is the medical insurance and what you pay for it after retiring...that's worth a fair bit as well.

When they changed over to the FERS system, they tried like crazy to get us old guard to switch over to it. There were pros and cons, but I held with what I had and added the max allowable (5%) TSP to it. I am glad, overall, that I held firm and did not switch. There were few investment decisions to make that way!

I pay a lot for medical insurance, but it is only a part of the fee. The rest is paid as part of the retirement. In these days of high medical costs, it is worth the money, as I pay very little, to no extra for medical treatment. High Blue Cross and medicare part A and B are a wonderful thing, even for someone like me that is still healthy.

 

[beginnerhunter]

When they changed over to the FERS system, they tried like crazy to get us old guard to switch over to it. There were pros and cons, but I held with what I had and added the max allowable (5%) TSP to it. I am glad, overall, that I held firm and did not switch. There were few investment decisions to make that way!

I pay a lot for medical insurance, but it is only a part of the fee. The rest is paid as part of the retirement. In these days of high medical costs, it is worth the money, as I pay very little, to no extra for medical treatment. High Blue Cross and medicare part A and B are a wonderful thing, even for someone like me that is still healthy.

From what I heard, CSRS was a lot better than FERS. I can't complain though, FERS was what I agreed to when I started employment.

 

[MThuntr]

This thread was a good reminder just to log into my account and make sure profile info is up to date. Also a reminder, check your beneficiary info and make sure it is correct. Easier to do so now than when (if) that info is called upon.

I just checked and my beneficiary and it's wrong. Dang what a mess. Atleast my TSP did well last year though I need to switch things out of the I fund until the whole Corona Virus & Brexit nonsense is hashed out

 

[sbhooper]

From what I heard, CSRS was a lot better than FERS. I can't complain though, FERS was what I agreed to when I started employment.

Unfortunately, you did not have a choice. It is, what it is, but it is a fine system, if you take an interest in the part that you have control over. I went to a retirement seminar one time, and they used all of my data, comparing the two systems. Based on what the TSP was doing at the time, I would have been some dollars ahead, had I switched to the FERS. It was not substantial enough to have ever convinced me to switch, though.