Don’t Miss These Three Federal Retirement Lessons from… Football?

These are three important lessons federal employees should learn about saving in the TSP to help plan for a successful retirement.

In my life, I have been blessed to be a part of three great, meaningful endeavors. They are, in order: my family, my career serving Feds, and playing college football. In my work every day with career Feds, I am struck by parallels between planning for a great federal retirement and what I learned from my college coaches.

With that in mind, and since we are at the end of college and pro football seasons, I thought it might be fun to share them. So here is the list and then I will expand upon each.

1. A great gameplan does not need perfect players.
2. Discipline in the face of adversity pays off.
3. Additional investment makes a big difference.

A great gameplan does not need perfect players.

One of the big mistakes I see in retirement planning for Feds is when someone is obsessing about products versus having a plan.

What do I mean?

Well, I really do wish I had a nickel for every time I’ve heard a Fed say, “I have all my money in ___________ fund because it’s the best.” That is the equivalent of a head coach deciding that only one player will touch the ball in the game. No single fund (or outside financial product) can be “the answer.”

You need to take some time with this. You must learn and understand your tolerance for risk, then you will want to set up the correct mix of funds (a percentage in each of the 5 core funds) in your TSP and stay with that mix. You will only make adjustments to that mix to bring it back into balance.

There is no academic data to support that jumping from fund to fund leads to long-term success. Know your tolerance. Set up your allocation. Stick with it and rebalance even if the market seems scary. Click HERE to read more.