How to Invest TSP When You Have a FERS Pension

Having a FERS pension should change the way you allocate your TSP and other investments. A good retirement portfolio is completely different than when you're working, and if you aren't properly factoring your federal pension and Social Security, then you may be investing incorrectly.

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#TSP #federalretirement #federalemployees #FERS

[gregsmith]

i have not moved my money in the TSP in 18 years since day one they have been c and s. no matter how bad or good it is that is where it has been. no complaints of the amount of zeros in the account.

[lisasullivan]

The bottom line is that the pension and social security should be treated like the bond portion of your portfolio. I have my TSP 85% in equities because 80+% of my retirement expenses will easily be covered by the pension and social security.

[marykwart]

I retired 15 years ago and have maintained a 60 to 70% TSP stock investment. My principal in the TSP is the same now as it was 15 years ago even after having taken monthly disbursements according to my life expectancy. I rode out covid and the 2008 debacle.

[logroller]

This is why retiring without debt is so important. Market goes down, you spend less, thus need less to withdraw. Market goes up, you can withdraw more, maybe put some extra in other things like an online bank account. That will help buffer those down years. Yes, an over simplification. Debt just creates mandatory obligations which could be very stressful in a down year. Maybe a video about debt and how that affects retirement portfolios. Thanks for the video - the way you explain a concept is exceptional.

[Drewkapoww]

New to the channel and appreciate your content. I’m an early career fed but it’s never too early to start planning! Keep it up. Subscribed.

[heymoe]

Using my FERS pension to bridge the gap between retirement 62 and FRA 66/10 mo. Leaving TSP and one Vanguard Roth IRA alone until I really need it. House is paid off which makes this possible. I think I'm good.

[davidpippin]

I have always felt the way you were discussing in this video. With Mil ret, Fed ret, disability and SS I continue to keep 90% in growth in my TSP while still 5 years away from retirement at 62. I look at the TSP as not my retirement income to rely on but as "fun money" as with the 4 income streams listed above my wife and I can easily live and enjoy on those. The TSP will fund vacations, grandkids college funds, etc.

[JuanMartinez-knqs]

Excellent information. The only video of many that considers federal and military retirement. Thank you

[Harry_]

Incredibly helpful (and easy to understand) presentation.👏👏 Will definitely check out some of your other videos. Thank you 🙏

[dstorm]

This video does a good job on explaining it for FERS recipients. They changed the old CSRS because it was too generous, but did give CSRS folks the opportunity to open a TSP account which many of us did.

[oahuguy]

Bottom line, you can be more aggressive in your investing when you have a pension and Social Security that can make up a majority of your needs.

[ccruz]

I’m not good at math so your example made so much sense to me and helped me a great deal. You’re awesome!!!

[jnyzhxh]

This video title was very misleading. You really did not say how to invest in the tsp if you have a fers pension. You just kept using general investment terms and instruments like cds, bonds, treasuries, etc. using tsp terminology would have been more useful

[Kep]

Look forward to our meeting next year TG 👍

[nealnc]

Well, I am a couple years from my retirement. But I have not made a lot of investments and not used my TSP to the best of my ability. I won't retire a millionaire but I never figured that I would. I have been saving and I am starting to understand investing. And I have very little debt. I am single, no children. No ex wives. I am fiscally responsible. I will be fine. I just hope the government will still be around in the future to pay our benefits. 🤔

[kevinedward]

I moved my TSP out to Fidelity and invested in MYGA's and Tbills at 5.3++% to create a revenue stream form which I dollar cost average my excess yearly cash into the stock market. This way, I have a steady income stream, but can also grow my money in stocks as it makes sense. I don't think people should have anything in stocks that they can't afford to lose, or can't afford to wait for 10 years to recover should a downturn take place.

[calvinhaynes]

Good video sir. What’s your attitude regarding buckets? I have 13 more working years left as a fed employee. My plan at that point is to withdraw 8 years of income from my TSP; around $350K. I will leave the remainder invested in the C and S fund over the next 8 years to allow for market volatility. Some of the examples you described seem to follow that strategy. Thoughts?

[vinceordonez]

Hi Thiago - I watched your videos all the time. Question: I retire 2 years ago. I just change allocation this month 50/50 G&C. Since I am newly retired unaware to lots of stuff being a retiree, did I do the right thing or this was a mistake?

[JazzyJames]

I didn't quite see nor hear where you can continue to invest into TSP while being a FERS retiree. Maybe I missed it. Can you please point it out.

[dsilva]

Hey I have a question. My husband is a federal employee and in his early 50’s. When it comes to his TSP upon retirement, do we have to take a set amount each year? Like the 4%? Or if there is a year we need more money are we able to take more? This is all new to us and basically no one knows in his office 😅