Episode 28: Insider Tips on Thrift Savings Plans for Federal Employees

ABOUT THIS EPISODE

On this episode of the Build Your Life Podcast with Financial Expert John Browning, we're discussing Thrift Savings Plans for Federal Employees.

 

When it comes to federal employees and retirement there are a lot of things to be considered. Sometimes it comes down to the question...should I stay or should I go? Listen in as John explains some of the things you need to take into consideration--including how to stay flexible and prepare yourself along the way. 

 

For more information, visit www.GuardianRockWealth.com to learn more about what John can do for you. Or, give us a call at (312) 372-5000.

 

 

Welcome to the build your life podcast with John Browning. Build your life as a relaxed and unedited conversation with financial expert John Browning. John's the founder of Guardian Rock Wealth, with offices in Hawaii, Colorado and Illinois. John's also the author of the book build a life, not a portfolio, a guide to your financial future based on your personal values, which you can purchase on Amazon, or stay around to the end of today's show and I'll tell you how to get a free copy meld right to your door. I'm Michael Delan, your host for the next few minutes as we chat with financial expert, business owner and author John Browning. Hey John, welcome to your podcast again. How are you today? I'm doing great. How are you? I'm doing tremendous. It's a wonderful day to be here, to be alive and be talking to you, and we're going to talk about something that's really outside of my realm once again, we get that a lot when I'm talking to...

...you, but just because I'm not a financial guy. The other thing I'm not is a I'm not government employee, I've never been in the military or things of that nature, but I know the people who have been in military or who are a federal employees. They have some savings plans that are a little different than what normal folk have. help us understand and their thrift plans. Is that what they're called? Yeah, thrift savings plan is what is called. And being here, I'm physically located in Honolulu, Hawaii, and of course we have clients all over the mainland and Hawaii, but here in particular it's a it's a really it comes up all the time because there's so many federal employees here on the islands and the question that comes up is I'm getting close to retirement. The TSP's been great to me. I have this...

...great little nest egg that I built up over last twenty, thirty years in the military and it seems like maybe I should maybe should just stick with it, or should I roll it over to an IRA or what should I really be doing with this? And they offer they also offer annuities and things like that. So it's a real common topic here and something that I thought you know, probably not just on the islands, but there's a lot of military and federal personnel out there that they have access to this. So some people might want a little bit more information on what do we do as I get closer to retirement on this? That's great, all right. So I that I don't know why, John is just wave my brought my mind thinks there's a song back in our day, right, and I know who's saying but you probably will. Right. Should I stay or should I go? Bah Blah. But so that's that's the question. These federal employees are saying, after twenty or thirty years, should I stay with the TSB or should I go? Is there another option? So that's why I wanted to throw that...

...out there. We should have that theme music. But there we go. Where is that theme music? Right, I remember that song if I can only figure out who played it. But talk, you talk to us about what can they do? What are some options they have? How do you counsel them? Because that's a big issue. It's a big issue and you know, frankly, for most of the minutes it's for most, not all, it's kind of the only the thing that they've really used. And so and it's very low cost. It's a great program and that it only cost about, you know, point zero three percent. That's the all the fees are. So as they look at it. They're like, well, cost is the big issue. I don't want to pay any fees or charges or anything like that, and that's it's a valid point, right, and surely the federal government is the only one that can provide things for that cheap? Right? Wrong. Okay, I just want to get that minute out of...

...the there. And and also, probably even more important than this, and this is something that we deal with all the time outside of federal employees, has cost is a a an issue, but it's not the only issue. And if there are if I paid a hundred dollars to you and I got a return of a thousand dollars, I really wouldn't care about that hundred dollars. Right, right. So if there are better performing options out there for your specific situation, then frankly, should be willing to pay something for that. So I mean and the TSP has different funds. They've got the F on, the C Fund, the S Fund, the I fund, the GEF fund, right, and it makes it pretty simple. And they're all indexes, so they all represent different indexes in there. You can actually get...

...those almost exact same funds in an exchange traded fund for the same or cheaper outside the Tsp. The advantage to being outside of the THASP and rolling that money into an IRA is that you then have access to a myriad, in essentially the entire universe of products and individual securities that are out there, and you can custom make, as you know, I'm passionate about. You can custom make your portfolio to build your life, and what you should have is different from what Joe should have or what's sally should have, because you've got a different perspective, if different, once needs and dreams for what you want your life to be like in retirement. That's good, yeah, because that's yeah. Then you, and you said it so well. I'm just going to rephrase you. PSB's were great and there's nothing wrong with them. There...

...just might be some other options. And I love your idea of it's not about the cost, it's about the gains that you can have cost from getting mitigated. Everything, you know has a cost to it and sometimes you get what's paid for right, and so off you need to go. I don't know. I don't know if you've ever ever bought something because it was cheap. If you've ever done that before, I you know. I had to buy that thing three times. Actually, yeah, yeah, I actually, yeah, yeah, painful, painful memories, right. Or tried to do something without buying the right tool. This is another favorite of mine because I used to work on my own car, cars and I would desperately try to use the wrong tool just because I got to go out to the store by that expensive tool, and one or two things happen, I would eventually get it done. It take me five hours, or I would try for a couple of hours, give up, go get it and I would get it done in five minutes because I had the right tool and I spent the money. Is saved me the most important resource that I have, that anybody has,...

...which is time, not to mention the aggravation and angsty exactly. And when you walk into some stores, it's like wow, you know so, for I was doing brakes one time on my car, right, and it was just this weird brake system. I didn't have the tool. I had to go buy the tool. When I got the tool it was so much fashion. I thought somebody actually has that tool. That's crazy that somebody thought about that tool. Right. Same thing with you and investing. So if you've been in a TSP all your life. That's really all you know. Talk with John. He has a broad variety of options that might be available to you that might be very similar to what you're doing or might be drastically different. But it's a conversation and that's the thing I love about it, John, is is people can come and talk with you, have a phone call, emails, Zoom Call and say here's my situation and you can begin a dialog to really understand them their situation, because every situation is different, and then you can start understanding what's what's the lifestyle there after? What are...

...they trying to accomplish and what kind of portfolio is going to be right, and I'm imagine sometimes it TSP's going to be like, let's just leave that one there. That's totally fine. Other Times it's going to be well, you might consider going in this other direction. Right, it's a conversation. Right, essentially, the number one thing you want to think about is do I want or do I need financial flexibility? So I talked about having that flexibility in many different contexts during our various other episodes as well. But having the flexibility to be able to do what you need when you need to do it outside of that Tsp, because there is. It's a good list of options. It's not a great list of options. That's good and and you need. Well, it's just good to talk with somebody, to have somebody else in your court who who understands where you are. And if you're a federal employee, John Understands where you are, understands the DSP world. He...

...can talk with you about that and show you some other options and figure out what you're really trying to do in life, because it is about building a life, not just a portfolio, and so that's what John Does so very well. And John, I found it just so you know. It was the clash. I looked it up while you were talking. You remember the clash? I do. Yeah, and it's funny because they're you know, we're talking about government employees and military. The album was combat rock, so I thought that was appropriate. There we go. So I would play it but it wouldn't come across very, very much. So anyway, go find it on spotify or something to clash. Should I stay or should I go? But right now we're going to go because you wrapped up another great episode. This one specifically run federal employees and thrift savings plans. So if you have one of those or you know somebody who does, you need to listen to the all of these episodes, especially this one. But you need to reach out to John Because he can help navigate you on on should you stay...

...there, should you go? Should you have something else, and really help you build a great portfolio to support the life that you're wanting to have. And if you haven't read a John's book, you need to get a copy of that as well, and when you talk to John Ascomb and he'll tell you how to get a copy of that for free. So, John, thanks man. That was great. Thrift savings plans for federal employees, that is very unique and different and again, I didn't know anything about that because I'm not in that category. But it's good to know that you know about those things so people can reach out to you and have that conversation. So well then, thanks. Thanks for another great episode, Sir. All right, thank you and we'll see you soon. All right, look forward to by bye. So thanks for listening to the building your life podcast with John Brownie. Be Sure to subscribe to this podcast so each new episode will be sent to you automatically when it is released. Have a terrific day.

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