If you could find out, for sure, when you are going to die — would you do it? Knowing your precise expiration date could be comforting in some cases. And a crippling nightmare for others.
For financial purposes, it would help 401k holders decide whether to stick to conservative investments like the TSP’s G and F funds, or go with higher-risk, higher-option investments like the stock-indexed C, S and I funds. With much lower returns in most years, the Treasury and bond funds produce a smaller nest egg that is more subject to high inflation. Over a period of medium to high inflation, those retirees would lose purchasing power. Those investing the same dollar amount in the higher risk/reward stock funds, at least so far, have larger account balances to draw from.
It would also help people in deciding when to take Social Security. For somebody with a long retirement horizon ahead of them, deferring Social Security until age 70 could boost their benefit 68%. It would also mean no Social Security income until age 70.
Tough call. But one worth considering very carefully.
When they qualify for Social Security, many Americans apply as soon as they are eligible. Many need the income. They may have had a short working career, worked in a low-paying job or retired from a company that doesn’t offer a pension plan or retirement benefits. which by the way, is most nowadays. Unless they have a lot of savings and/or a six-figure 401k plan, they may need the monthly Social Security benefit...
Read Full Story: https://federalnewsnetwork.com/mike-causey-federal-report/2021/09/social-security-the-tsp-and-your-expiration-date/
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