Showing posts from June, 2018

Four Reasons Not To Take A TSP Loan

Four Reasons Not To Take A TSP Loan For most federal employees under the Federal Employee Retirement System (FERS), the Thrift Savings Plan (TSP) is their largest investment asset outside their home.   The Plan offers loan programs which allows federal employees to borrow money from their accounts. This feature is very enticing for someone that has a need for cash to place a down payment on a home purchase or just general expenses they want to take care of.   They can tap the dollar value they have built up in their TSP after contributing for years through payroll deductions. There are two loan programs available through the TSP: the residential loan and the general purpose loan. The residential loan program is available to assist in putting together the funds required for a down payment or to help pay for closing costs on a home purchase. These loans can be paid back for up to a fifteen-year period and require documentation on the property.   The general purpose loan can

Estate Planning for Federal Employees

Estate Planning for Federal Employees Estate planning is an often neglected part of financial planning, particularly among federal employees. “It’s for the rich” is an excuse I’ve heard people give for not taking the time to consider estate planning. Feds believe it is reserved for the well to do and a segment of financial planning that only millionaires need to worry about. They also believe it involves complicated, legal documents that require the help of a specialized estate attorney. Although this may be true if you have a large estate or a complicated family structure, most estate planning can be quite simple to prepare. At the very least, you should be educated on what estate planning is so you can make a decision on what legal documents you need.   You don’t want to leave a mess behind for your heirs to deal with.   Moreover, most of us want our wishes carried out in the event of our passing. Here are some important estate planning documents: Last Will and Test