Will My TSP Grow After I Retire?

Shawn Plummer

CEO, The Annuity Expert

Will My TSP Grow After I Retire?

Yes, your Thrift Savings Plan (TSP) can continue to grow after you retire. However, it’s important to remember that TSPs are subject to market risks. This means that while there is potential for growth, there is also a risk of market loss.

Exposure to Market Loss

Since TSPs are invested in various securities, they are exposed to the fluctuations of the market. If the market performs well, your TSP may see significant growth. Conversely, if the market performs poorly, you could experience a loss in your TSP’s value.

Rule of Thumb: Risk Versus Affordability

A general rule of thumb is that if you cannot afford to lose money, you should consider reducing your exposure to potential loss. This is particularly relevant for retirees who rely on their TSP for income and cannot afford significant fluctuations in its value.

Rolling Over TSP into an IRA Fixed-Indexed

Annuity One recommendation to mitigate risk is to roll over your TSP into an IRA fixed-indexed annuity. This move has several benefits:

  1. Tax Consequences: Rolling over into an IRA fixed indexed annuity can be done without immediate tax consequences.
  2. Growth Potential: Your investment can grow based on the performance of a stock market index.
  3. Protection from Stock Market Loss: A fixed-indexed annuity offers protection against stock market losses, providing a more stable investment option for your retirement funds.

Conclusion

In summary, your TSP can grow post-retirement, but it’s crucial to balance the potential for growth against the risk of market loss. Rolling over into an IRA fixed indexed annuity can be a viable strategy for those seeking growth with protection from market downturns. If you’re considering this option or need advice tailored to your specific situation, contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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