Never too young to plan – TSP and beyond

Next generation of Government Summit — Never Too Young to Plan – Financial Planning from TSP to Insurance

Nicolas Troy Abrams, Founder, AJW Financial Partners
Erin Doyle, Benefits Officer, Department of Veterans Affairs
Rebecca Schreiber, Certified Financial Planner, Solid Ground Financial Planning
Bobby Whiteside, Client 4 Life Insurance and Financial Services

Getting your hands around your financial situation

• A healthy spending pattern — not static — the one thing that no one can really give up is your lifestyle
• Adequate insurance to protect your income — most valuable insurance is disability insurance — the federal government doesn’t offer it
• Shrinking debt — even a little bit
• Growing savings

“How much I want to spend = save $ per month for x months,” said Schreiber.

Personal Finance Priorities

1. Automate monthly payments of all debts
2. Save emergency cash: 3-6 months of debt payments
3. Pay down high-interest credit card debt.
4. Contribute enough to your employers TSP/401(k) to get the match.
5. Increase emergency fund savings to 3-6 months of living expenses
6. Save toward future purchases.

When you are hired as a fed you are automatically enrolled in the TSP at 3%.

Doyle says the pension rules are changing but the TSP is a great first step to start your savings. The TSP is at a lower costs because it is shared across the government.

When to start?

“See so many people who wait until they are in their 50s to figure out their retirements,” said Abrams “taxes matter as well — its not how much money you have but how much money you get to keep.”

Economic Impact?

“When you are young you need to plan for your future because you have no idea what will come up. You may need that foundation,” said Whiteside

Financial Team – What you need: CPA, Financial Planner and you need a Will (make sure you look for people with experience with young people)