Most feds are smart enough to invest enough in their in-house 401k plan to get the government match. Many long time feds on modest salaries have become Thrift Savings Plan millionaires. The vast majority did it by investing in the TSP’s stock-indexed C, S and I funds.
But when they retire or leave government for another job, most transfer their TSP to an outside IRA. Good idea or bad idea? The TSP is considered one of the best, most heavily monitored and lowest-cost funds in the business. But many people believe it lacks flexibility and doesn’t offer as many investment choices as most outside plans.
Most government officials you see on nightly TV — whether elected, appointed or regular civil servants — belong to the government’s in-house 401k plan. Many are the best in their fields. And while they may not be financial gurus, they are smart. And busy trying to guide the nation through the current pandemic, watching foreign adversaries and the once-again spiking coronavirus cases nationwide. For some — millionaire politicians — the TSP is a nice option. For most civil servants, it is their primary retirement nest egg, along with Social Security and a civil service annuity based on salary and length of service, for life. Longer if they designate a survivor benefit.
When the federal Thrift Savings Plan was created, it was designed to be a low-fee, easy-to-use investment vehicle for active and retired civil servants ranging from NASA rocket scientists to letter carriers. It is...
Read Full Story: https://federalnewsnetwork.com/mike-causey-federal-report/2021/08/life-after-government-wheres-the-best-place-for-your-tsp-nest-egg/
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