Page 56 - The Informed Fed--Hearn (edited 10.29.20)
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the G fund, where it has no risk of loss. Although it’s not all that exciting,
               he  knows that he  has already  doubled his money. He  can sleep well
               knowing that he will not experience any losses. Based upon his salary,
               5% is just a little over $100 each pay period, or about $2,700 per year.
               His contribution plus the matching funds from the government and the
               interest on the entire balance helped his TSP account grow by almost
               $6,000 last year while many of his co-workers lost thousands. His plan is
               to retire within 13 years. Based upon his contribution rate, the total will
               be in the $35,000 range. Taking into consideration the matching funds
               and moderate but consistent interest rate, his TSP will grow by another
               $100,000. With other investments, he will have enough for retirement.
                   This  example  shows  us  that  by  saving  $5,000  per  year  at  2-5%
               interest, his TSP will grow to an estimate of $150,000 in a 20-year career.
               That  can  add  a  considerable  amount  of  monthly  income  during
               retirement and help fill the income gap many employees face when they
               retire. We have seen many employees with the same benefit plan as their
               co-workers and yet one employee was forced to seek employment in
               retirement, yet another who had more income in retirement than when
               they were employed by the government.
                   Guaranteed  interest-  and  tax-free  funds  are  available  that  most
               federal  employees  are  unaware  of.  For  a  federal  employee  making
               $52,000-year, 10% means saving $200 each paycheck for retirement. If
               you are like most employees we visit with, you are over 30 and have not
               started  putting  away  the  amount  necessary  to  provide  a  secure
               retirement.  You  may  be  like  the  thousands  of  people  starting  over
               because of life’s roadblocks that seem to get in the way at the worst
               possible time. You know the list: bankruptcy, divorce, refinance, kids,
               failed business ventures, health issues, etc. The good news is there is
               hope! The difficult part is that you need to become more aggressive and
               educated about your retirement investments. Take some time to review
               your budget and determine where you can make some cuts. You need to





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