4 Pillars to TSP Success - Federal Retirement

[@drmitofit2673]

I maximized my TSP contributions and stayed 100% C fund for 29 years until I retired. No bond funds, no life cycle funds. I don't consider the C fund high risk. Yes, it has had down years, but since I never panicked and stayed the course, it ALWAYS bounced back and grew exponentially. I did better than any of my coworkers and physician colleagues.

[@TheFedCorner]

That's right! The C Fund (S&P500) can offer great growth over time. However, now that you're retired, that same volatility that gave you growth presents significant risk. If you draw from your portfolio during down years, make sure you're not selling investments that are down in value. Doing so create sequence of returns risk. Check out our website for articles on more info on that. The strategy that led to financial success up to retirement is NOT the same that will KEEP you financially independent. Most retirees need some amount of bonds in retirement, for myriad reasons. Good luck! -TG

[@davidfolts5893]

Great list!

[@markmurrell1894]

My goal is to live off my FERS pension and SS. And then only take out what TSP has earned each year. If it’s a down year, leave it alone unless forced to take distribution. Hope that makes sense and is doable. I want the golden eggs and not kill the goose.

[@TheFedCorner]

Great goal to have! Thanks for tuning in.

[@BlackMarilynMonroe33]

I’m grateful for your videos. If I had a personal request, it would be that you offer advice and share scenarios involving single folks-in this video, the tax planning advice was geared more for a two-income married couple. Spouses aren’t the only beneficiaries to consider in retirement. Again, thanks for all you do.😊

[@TheFedCorner]

Great point! We'll let Thiago know and maybe he can include additional charts/resources for various filing statuses. Glad you enjoy the videos! -RMG

[@Kep19901]

50%C/50%S

[@TheFedCorner]

Thanks for sharing! Just make sure you understand the volatility involved. Good luck! - TG

[@Kep19901]

@@TheFedCorner I embrace the volatility. I'm fairly young. I can ride out the waves.

[@Kep19901]

@@TheFedCorner don't we want volatility? Buy low, sell high?

[@TheFedCorner]

​@@Kep19901 Volatility is both good and bad. In the short term, volatility is a risk. In the long term, volatility is what gives you the opportunity of growing your money. Being young means you don't need your money in the short term. If you're in solid investments and can tolerate volatility, that gives you the best chance of growing your wealth. I do caution investors not to try and time the markets. Attempting to buy low and sell high can work opportunely only a finite amount of times before someone makes the trade that ruins their retirement. Having an investment plan for each stage of life instead is imperative--it saves you from yourself.

[@Kep19901]

@The Fed Corner - Federal Retirement Planning only thing I try and time is my 💩 schedule. I don't time the market. Ever. I just stick as much $$ in there as I can and try not to check.