CCM INSIGHTS
A Newsletter by Compass Capital
Management
JOIN US FOR BREWING UP TRIVIA!
OCTOBER 9 | 6 P.M. TH
A LOOK INSIDE THIS ISSUE:
1.Join us for Brewing Up Trivia!
Don’t Forget to RSVP for our event on October 9th!
2.IRA Rollover Options as a TSP Participant Thrift Savings Plan (TSP) is the primary retirement savings program.
3.Love Is In The Air!
CCM’s Alexandria Williams is getting MARRIED!
UPCOMING EVENTS:
Brewing Up Trivia; October 9th
Holiday Hoedown: November 13th
Our BREWING UP TRIVIA night is quickly approaching! Join us for an evening where coffee meets competition!
Grab a drink, test your knowledge, and enjoy a night of fun with friends, clients, and community. This event will be held at Downtown 312 in McAlester
We’ll have fresh-brewed coffee, tasty treats, and trivia that will keep you guessing Whether you’re a trivia pro or just in it for the laughs, this event is the perfect blend of fun and connection. We will have prizes for the winner of each round!
RSVP today and save your spot this is one you won’t want to miss! Call/text our office or email statum@compasscapitalmgt com
We can’t wait to see you there!
IRA ROLLOVER OPTIONS AS A TSP PARTICIPANT
BY: JIMMY J. WILLIAMS, CPA/PFS, CFP , CRPC ® ™
Saving for retirement is one of the most important financial steps an employee can perform to be prepared for the future Most employers, through a qualified retirement plan, provide a matching percentage of the employee’s salary to the deferral contributed by the employee. The easiest method to grow your retirement account within an employer plan is to maximize the matching percentage of the plan with your deferral amount For example, if your employer plan matches 5% of your compensation, it would be to your advantage to defer 5% from your salary In this manner, you will have doubled your balance without market considerations.
For federal employees and members of the military, the Thrift Savings Plan (TSP) is the primary retirement savings program This type of plan functions much like a 401(k) plan that private companies offer This article provides a review of some of the benefits of the TSP and will explore some reasons for rolling the TSP account into an Individual Retirement Account (IRA) when the participant retires.
The largest benefit of the TSP is its low fees By utilizing low administrative costs and fund expenses, more of the participants’ investment benefits the individual Funds are utilized to invest the participants’ money with a broad index utilized as the base for the fund. For example, the TSP uses several index funds and a few lifecycle funds to allow for cost controls and participants’ choices for future investment needs The funds offered within the TSP are very straightforward and attempts to avoid confusion that may arise with offering hundreds of options
Similar to 401(k) plans, the U S Government contributes a matching contribution to the employee’s account which is a great tool for accumulating a larger account over their career. Also, the TSP allows for pre-tax contributions to reduce the participant’s taxable income while accommodating post-tax contributions to a Roth account for tax-free growth and withdrawals in retirement Lastly, the contributions from the employee’s paycheck are performed by the employer and directly deposited into the TSP account of the individual Little administrative time is required for the employee to contribute and receive reports on their account.
While the TSP has strong benefits during your working years, many retirees find it useful to roll their TSP balance into an IRA once they are ready to take distributions The reasons for such a rollover are many A few of the benefits of performing a rollover IRA from the TSP are that the retiree can choose from a larger number of investment options. The purposes for this benefit are that you would have greater diversification opportunities by including asset classes and investment types not offered in the TSP Further, by rolling the TSP account to your IRA, it requires less management time and fewer accounts to review periodically
IRAs provide more freedom on how and when you take withdrawals compared to the TSP’s limited distribution choices. Flexibility can help with planning for your taxes and income needs in retirement A person controls the estate planning process better with an IRA and may have more options in naming and protecting beneficiaries This would be a more tax efficient way of distributing the balance of the account to heirs
®
One of the most important benefits of considering rolling over your TSP account to your IRA is that you may gain professional advice from a CERTIFIED FINANCIAL PLANNER practitioner who specializes in retirement planning and taxation. When your family experiences an unexpected and costly event, an experienced retirement planning advisor can make changes to your plan that will keep you on track toward your lifetime goals. Perhaps your risk tolerance has changed due to the event. A professional investment advisor can assist you with evaluation and rebalancing of your portfolio to provide you with greater confidence and comfort while in retirement.
The Thrift Savings Plan is an excellent tool for building retirement savings while you are working, thanks to its low costs and simplicity. But when it comes time to retire and start taking distributions, rolling over your TSP into an IRA can provide greater control, flexibility, and professional support.
Every investor’s situation is different, so it is wise to talk with a CERTIFIED FINANCIAL PLANNER professional before making a rollover decision. Still, for many retirees, moving funds from the TSP to an IRA is an important step in making the most of their hard-earned savings. Seek out a complimentary consultation with a retirement specialist today. Tomorrow will arrive before you realize it and you will be more prepared to meet the future with a plan in place. See you on the jogging trail!
®
LOVE IS IN THE AIR
Compass Capital Management’s Marketing Director, Alexandria Williams, is getting married this weekend!
Marriage is such a meaningful milestone, and we couldn’t be happier to cheer Alex and Ryan on as they embark on this journey. Please join us in congratulating the newlyweds and wishing them a lifetime filled with love, laughter, and endless adventures.
