TSP: What’s Your Value
TSP and Value
Do you know what your value is in terms of dollars and cents. If I asked you right on the spot – What is the value of your net worth – could you answer that question without missing a beat? Is your net worth more than just the value of your money and TSP account?
You not only need to know what is in your bank accounts, you also need to know the value of your TSP account and the estimated value of your annuity. In addition to having that information at your fingertips, what about the value of your home if you were to sell it or rent it out. Life insurances if they have a cash-value should also be evaluated.
I heard a woman say recently that she had FIVE bank accounts. I asked why. She answered, “I just like having my money in different banks.” Ok, perhaps a pet peeve, but not a good idea on its face. Neither bank offers anything special, she has simply had the accounts for a long time and had not thought about closing them or consolidating the accounts. She also pays monthly fees on the accounts because of no activity in the accounts.
So each month she very kindly gives the bank money for letting her house her money in their bank. Pretty soon her accounts may show a zero balance and she has not used any of the money. Her fund is called a -Throw Your Money Down the Sewer- where you will never find it.
If you have your money in different banks just to say you have 5 or 6 bank accounts, consider getting another hobby, that one is not good for your financial future. Always think about how to make your money work for you, not somebody else, particularly the bank.
After you have evaluated all of your monetary holdings, think about how you can turn your skills and gifts into money in retirement. Often hobbies can be turned into cash. You might have a yard sale to turn your clutter into cash. I am sure you have heard about some pretty significant finds at yard and estate sales.
Make sure you are evaluating your total value to enhance your retirement future. The TSP account can help you realize your true value.
P. S. Always Remember to Share What You Know.
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