Save
Remember the laundry list of things we talked about building in order to retire well in our FLEXIBLE Plan post. Now we come to the all important aspect of SAVING. We learned from our parents as children to save in the event of the unexpected. There is no avoiding the unexpected – things happen. No matter how well we plan, how careful we are – things happens.
As such when things do happen and most certainly most things that happen require financial resources to move towards a solution or remedy. We are not saying that money is the great equalizer or problem solver; we are simply saying that in most cases having some extra money might help to make the rough spots smoother.
When we speak about saving, the very notion seems to conjure up something big. Therefore, if we cannot save a lot, many of us end up not saving at all. If you look at any financial picture – any amount of money outweighs ZERO. Each individual’s retirement goals and savings capacity will be starkly different.
However, our collective goal as Americans is to retire well with financial security and comfort. After working for a greater part of our adult lives, every American’s aspiration is to live on their own agenda with a high quality of life.
Americans have long moved away from the passbook savings accounts of our parents and grandparents. However, the need to save has not lost its importance. Today, we must be more aware of the financial markets, our TSP investments and participate more passionately in building and securing our own retirement future. Saving needs to become contagious to us whether a little, a lot or somewhere in between. It is imperative that we become more financially literate and apply the economic principles of supply and demand in our everyday lives in order to meet the challenges of retirement.
Most of us rely on savings through employer-sponsored plans such as some version of the 401K plan, for our purposes, the Thrift Savings Plan (TSP). Although, new employees to the federal service are automatically enrolled in TSP, they may opt out since it is a voluntary program. However, not participating in the TSP at some level would not be one of the best choices to make. Fully maximizing your participation in the TSP on the other hand might just be one of the wisest choices you make to enhance your resources in retirement.
The TSP has a diversity of funds, including its safe Government Securities Fund (known as the G fund). The principal amount of your investment is always safe, guaranteed by the Government. The average American’s income comes from three sources in retirement – employer pension, savings and investments. Federal employees, unlike many Americans, have the luxury of all three – a life time annuity from your federal retirement plan (CSRS/FERS), savings and investment via the Thrift Savings Plan.
In order for your plan to work towards building a safe and secure retirement future so that you have the luxury to retire well, SAVINGS must be at the forefront of your plan.
P. S.  Always Remember to Share What You Know
