Q: “I am a decade away from my retirement, how will I know I will have enough income to retire?”
A: First, you are wise to look this far ahead, so you are not caught short and not be able to recover:
- First, keep good records, so any change in your employment, pay or benefits are correct. If discovered after retirement you will likely not be able to fix it.
- Contribute as much as possible to your TSP. The TSP is one of the finest means of building a retirement nest egg.
- Manage your TSP as if it were a business. ‘Mind the store’, watch it every day, be aware of the market and inflation impact on your future.
- Use the G Fund as a Safe Harbor when market down swings occur.
- Look for promotion opportunities, the greater your income the greater the retirement.
- Make sure your deductions and beneficiaries are always correct. When a life event occurs, adjust your FEHB, FEGLI and Spousal survivor benefits accordingly.
- Buy a home.
- Audit your life insurance expense, change to private if and when the benefit or cost can mean a ‘Better Deal’ for your needs.
- Keep your lifestyle as frugal as you can, without sacrifice of life’s happiness.
- Keep personal debts low or none: pay the new car off ASAP, credit cards should be kept current.
- Avoid unnecessary purchases: boats, play car and other toys, unless these are very important to you.
- Consider working into retirement, so you can have extra income for:
- Continued IRA contributions.
- ROTH contributions
- Build a business: Find a new income, perhaps a family future and legacy for your children.
