Why TSP Is The Way To Go by David Chan

David Chan
September 8, 2017

Why TSP Is The Way To Go

By David Chan

Thrift Savings Plan aka TSP, is similar to a 401(k) but one that the government provides to all the federal employees. The TSP plan is a perfect fit for people who want to save but don’t like the hassle other ordinary savings plans possess. Let’s take a look at why exactly it is what you might be in need of:

The Quick Breakdown

Diversification:

TSP has a diverse choice of funds. Through it, you can get your hands on government bonds, various indexes and even the S&P 500.

Low Fees:

Many of the funds have a low cost attributed to them and have become a great choice over many other funds in the marketplace. However, there’s also room for alternative options.

Roth option for IRA:

In 2012, the Roth feature was added for TSP accounts. Roth TSPs are a great option when considering your entire investment strategy. There are options for tax-free withdrawals and after tax investments. Of course, always consult with a professional first before you take any withdrawals.

Summary

The TSP is a great retirement vehicle. It is one of the most popular investment programs you have available as a federal employee. Of course, don’t discount the help and advice of a professional you can trust. Whether it is to ask questions about your investment options or if you are now preparing to retire, a planning professional who knows and understands your options are vital.