Which of us have attained, or have passed, our career’s “Bon Jovi moment”? What do Bon Jovi moments entail? It’s when you’ve made it midway. In Jon Bon Jovi’s famous track Livin’ on a Prayer, the band declares that the track’s themes (Tommy and Gina) were midway there. Where “there” is everybody’s assumption.
Assuming we take “there” as being a pleasant retirement and think either Gina or Tommy is a full-time government worker, midway there implies Gina or Tommy still has around fifteen years left in their government jobs. If they’ve been fiscally responsible, they are likely to have finished on student loans, have a home on which they are paying rent, and have laid contingency funds for their kids’ future. They put aside 5% of their TSP with these responsibilities to qualify for the state match. They’ve also been pushed to save through FERS contributions and Social Security.
Gina and Tommy have attained the stage where they have to ramp up their TSP payments. The TSP optional deferral sum for 2020 was USD 19,500, and it rose to USD 20,500 in 2021. USD 307,500 is the result of multiplying USD 20,500 by fifteen years. That’s before factoring in the state match or gains from their TSP fund. Also, it ignores the funds they’ve put in over the preceding fifteen years and the interest they’ve earned on it.
How will they be able to finance their TSP with many of their existing obligations entirely? Below are some ideas:
• If they could get a better mortgage, they should remortgage their home. However, they cannot accept cash out of the account or change the loan duration.
• Let the kids understand the amount of school expenses their parents will cover and the amount that will be their own obligation. There is no requirement that parents pay for their kid’s education in full. They should also talk to their children about college options.
• If they cannot increase their TSP payments to the full instantly, they can devise a strategy for ramping up their retirement savings to get the highest amount as swiftly as possible.
• Recognize that they’re not quite “midway there” and anticipate working for a few more years if necessary.
According to tradition, a person’s life is divided into three key savings goals:
Purchasing a home, funding their kids’ education, and putting money down for retirement are all priorities. And the question has been posed: Which of the products mentioned above will a bank not lend you money for? You shouldn’t ever put your retirement on the back burner in favor of these, undoubtedly vital aspirations; else, you may discover yourself livin’ on a prayer after you retire.
You could use TSP tools to know where you stand today and where you might be in the year. https://www.tsp.gov/calculators is where you’ll find them. There are various calculators accessible, and “How Much Will My Savings Grow?” is the finest one for forecasting your potential bank account. This tool allows you to run various situations to evaluate how modifications in your savings account will affect the sum of money you have set aside for retirement.
Even though you’re midway there, you would not want to end up in your retirement years livin’ on a prayer.
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.
Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.
Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.
Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.
Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.
With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.
Aaron can help you and your family to create, preserve and protect your legacy.
That’s making a difference.
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