In the United States, retirement for federal employees is a three-legged stool. Federal employees are entitled to Social Security benefits as all Americans are, the federal employee annuity, and the thrift savings plans (TSP). The TSP offers federal employees the opportunity to invest in their own retirement with the added bonus of matching funds from the federal government. The program is designed to bolster the federal government’s revenues in the present and pay out later. There are many advantages to a TSP, but you have to be careful.
The Advantages
Thrift savings plans in Central Illinois provide you with the opportunity to set money aside for the future. After a certain amount of time, the federal government promises that it will match the amount of money that you have invested in your retirement account. They are designed to mimic both public- and private-sector retirement accounts. If you hire a quality investment planning service, such as Frank Snyder, you’ll have access to great advisors who can help you navigate the murky waters.
The obvious advantage is that you will be able to invest the money and also receive matching funds; also, the money is more secure than at other institutions because the federal government is very stable. However, there are some dangers for which you need the help of financial services.
Hire a Professional
You need to hire a professional to help you navigate the intricacies of thrift savings plans. The dangers surround how much of your money to invest in your plan, how much to place in the stock market, and how much to put into a different kind of account. You want to think long-term with your retirement money and you want to maximize the payout. A talented professional can help you do that. Also, he or she can provide a peace of mind about the future that makes the thought of retirement much more pleasant.
For more updates, follow us on Facebook.