In planning for retirement, of course, we all want the highest possible retirement income possible. If you are able or willing, here are few suggestions for the long term planning:
- Locality Pay: You may want to consider a transfer to a location that does offer. Of course, this means a higher cost of living, perhaps, a big city, commute and such, but remember, Locality Pay is included in the eventual High 3 for retirement purposes and will have long term, lasting effect.
- Compete for promotion: It comes as no surprise, the boss might make more money. More money likely means more retirement. Consider competing for a higher position or management.
- TSP Contributions: The TSP is where you have the greatest control. The more you have, the more income you will have. Currently, a 50-year-old plus, may contribute $30,000.00 to the Traditional TSP each year. If that is coupled with an aware self-management, you can’t go wrong. A larger TSP will mean a larger income, in retirement. I realize $30,000.00 is not possible for everyone, but if ‘Pay Yourself First’, go over your budget, look for expenditure that can be eliminated, pour you most available into the TSP, you will thank yourself.
