The TSP is a Federal retirement savings plan. Contribute at least 5% of your salary to benefit the most from the government match. You can contribute to both Roth (after-tax) and Traditional (pre-tax) TSP accounts depending on your tax strategy.

The best investment strategy for your TSP and other investments depends on your age, risk tolerance, retirement goals, and financial situation. Early in your career, you typically have a longer time horizon, which allows you to take on more risk in pursuit of growth. As you move into your mid- and late-career stages, diversification becomes increasingly important — you’ll need to strike a balance between continued growth and financial stability. Working with a trusted Financial Advisor can help ensure your investment choices align with your long-term goals and adapt as your life circumstances change.

A financial plan includes your pension strategy, investments, Social Security, insurance, and retirement withdrawals. It evolves with your life and goals. A professional Financial Advisor can help tailor it to your specific situation.

Start by understanding the eligibility requirements and long-term impact of each option. Review your personal and family budget. Use online retirement calculators to estimate pension payments and always list pros and cons. Finally, like all major financial decisions, avoid emotional decisions and talk with a trusted Financial Advisor who understands your long-term goals and plans.

To qualify, you need at least 5 years of Federal service at age 62, 20 years at age 60, or 30 years at your Minimum Retirement Age (MRA). If you retire at age 62 or older with at least 20 years of service, your pension is calculated at 1.1% of your high-3 average salary per year of service; otherwise, it’s 1%. Your FERS pension may include deductions for survivor benefits and insurance premiums.

Consider your retirement income needs, tax situation, and market conditions. You can immediately access your TSP if you retire at age 55 or older. If you retire before age 55, you must wait until age 59½. Generally, withdraw from fixed assets when the market is down and withdraw from equities when the market is up. Diversification and withdrawal guidance from a Financial Advisor are important to maintain a sustainable income stream and reduce tax liability. They can also provide guidance on whether rolling over your TSP to an IRA could provide greater control, investment options, and/or flexibility in estate planning.

Yes, if you want to protect your retirement assets from high future care costs to help provide your family with a financial legacy. Most traditional health plans and Medicare don’t cover long-term care. Most people consider long-term care options in the mid-50s when they’re still in relatively good health, premiums are more affordable, and they have more financial flexibility. Evaluate your health, family history, and financial resources when deciding. Your long-term care plan should be a part of your whole financial and retirement plan.