TSP – Increase Individual WealthAugust 30, 2017 / by Matt Pierce
Retirement isn’t something that is easily achievable. For most of the federal employees, becoming a wealthy retiree is only a long-off dream that they have always want to achieve. For some, it is also a nightmare. Many companies that used to offer pensions have now made the switch to self-fundable retirement plans. According to EBRI, there is only around 14 percent of workers that are employed in the private sector that enjoyed defined pension plans in 2011. There has been a massive decline in the number of companies that have started dropping their plans. Around 50 percent of businesses now offer 401(k) plans to their employees.
The 401 (k) plans offered by Uncle Sam are considered to be the most generous of them all. The TSP has the lowest administrative fee, and a multitude of workers that come under the FERS retirement plan are eligible for approximately 5 percent from the government. According to a report from the Thrift Investment Retirement board of the federal government, around 75 percent of the employees invest around 5 percent (if not more) in their Thrift savings plan, which makes them eligible for the 5 percent match from the government. This 5 percent, in the longer run, can amount to serious amounts of money.
Speak with a licensed financial advisor that understands your needs for information on growing your wealth.