DigitalPiggyBank

Every year I take a look at the Allocations in my retirement plan Target Date/Lifecycle funds.  I have Qualified Plans with both my (current) private sector employer and funds I left with TSP when I resigned as a Fed a few years ago.  

If you look at the same Target Date (I’m focusing on 2030), the TSP has a much more conservative allocation than the Brokerage houses like Fidelity, Schwab, and Vanguard:

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Here’s an interesting retirement case study for you.

Let’s take a former active duty veteran who resigns after 7 years of service and  enters the civilian workforce in the year 2000.  This purely hypothetical employee in turn contributes to a Defined Contribution plan (401k or TSP)  during his years as a working stiff.  He or she contributes to the maximum ‘match’ amount of the employer’s plan-  That is, when the employer matches up to 50% of contributions on up to 10% of salary, he contributes 10%.  When he is a Federal Employee, he contributes 5% to get the most of the TSP automatic and matching contributions (5% of salary).  (Stop me if you’ve figured out who the hypothetical employee is by now).

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Don't go work for this guy.Mmm- Yeah, I’m gonna have to ask you to save much more for retirement, okay?

Defined-Benefit Pension Programs (like your FERS Annuity and/or Military Retirement Pension) are headed the way of the Dodo Bird.  Here’s a recent example.

The State of California recently illustrated the difficulty of running a Defined-Benefit Pension program.   CALSTRS (the California State Retirement System) is a juggernaut of a pension fund that is designed to support almost 500,000 teachers, state employees, and municipal employees in retirement. Continue reading


Happy New Year!  It’s time to make some predictions for 2014 that affect Federal Employees and Veterans.

1. Feds, You’ll get your 1% raise, (if you’re still working). 

2. Then again, maybe you won’t.  
There’s no guarantee there won’t be another round of furloughs this year once the Defense Service Chiefs figure out they are going to run out of ‘Gas Money’ by August.