Thrift Savings Plans‚Ä¶ We‚Äôve heard of them, read a little bit about them, but many of us likely haven‚Äôt started saving or preparing for retirement.¬† It‚Äôs a bit overwhelming to estimate what your financial needs will be and how you can plan for that now.¬† Money is tight for many and the thought of squirreling some money now is daunting.¬† Don‚Äôt let all the information, options and planning deter you from getting a TSP in place!
Thrift Savings Plans were highlighted last month here in our blog and as you start to learn more about them and what is the best fit for your family, don‚Äôt put off saving for your retirement too much longer.¬† First, start by calculating what your current retirement savings will provide monthly.¬† Then determine how much more you think you will need to sustain you.¬† Don‚Äôt forget to also build into your estimate any aging care costs, such as assisted living, personal nursing, etc. that may not be covered by a health insurance plan.¬† Also, plan for entertainment costs as well.¬† After all, you surely want to comfortably afford some date nights with your spouse while enjoying your golden years!
After determining how much money you think you will need each month, determine for how long you plan to utilize a retirement account.¬† Will you kick your feet up and soak up the Floridian sun at age 55, work until 67 or continue in the grind for as long as you possibly can?¬† Estimating how long you plan to draw from your retirement accounts is imperative for planning.¬† Keep in mind, your TSP contributions can be altered as your needs and wishes change.¬† Are you eying up a home on the coast, an RV to see more of the country or planning a relaxing vacation back to your favorite PCS spots?¬† If so, you can start planning for those now via your TSP.
What‚Äôs important though is that you create your savings plan, deduct it right from your pay so you don‚Äôt miss the money and stick to the plan.¬† Yes, there is risk involved, and you may lose some money here and there.¬† Through diversification, you can mitigate risk.¬† Visit https://www.tsp.gov for more information and get saving!