Federal retirement expert John Grobe recently wrote an article describing what federal employees can expect to happen to their federal benefits should they pass away while still working. Many of our users had more questions on the subject, so he has written this follow up article providing answers to some of the questions he received.
The American Savings Act would create a new organization that may be popular with many Americans. How would creating such an organization impact the TSP?
The Thrift Savings Plan is one of the most popular benefits available to federal employees. Should a comparable program modeled after the TSP be set up for all Americans? One Senator from Oregon thinks so.
The author says that federal employees are frequently sheltered from financial and retirement information in their careers. He says federal workers need to be permitted to have self-reliance in their understanding of at least basic retirement concepts to avoid making mistakes that can harm their future financial goals.
There are fresh hints that the Thrift Savings Plan is considering whether to offer investment advice to participants. But would investment advice within the TSP keep federal employees from rolling their accounts over to an IRA after they leave federal service, and who would pay the costs for the service?
Are you a highly compensated FERS employee who contributes the maximum to the TSP each year? Don’t risk losing any of the government’s matching contributions by maxing out your TSP before the end of the year.