As we step into 2024, it’s time to set forth resolutions aimed at crafting a robust financial plan for retirement.
Resolution #1: Fine-Tune Your Retirement Budget Blueprint
Crafting a retirement budget is pivotal for ensuring financial stability in your golden years. With multiple income streams like your pension, Social Security benefits, and investment plans, it’s essential to gauge whether they suffice to sustain your desired lifestyle post-retirement. Assess your monthly retirement income against anticipated expenses and consider trimming non-essential costs. Testing your budget while still employed allows for adjustments to ensure alignment with your retirement goals.
Resolution #2: Eradicate High-Interest Debts
The burden of high-interest debts, particularly credit card balances, can cast a shadow over your retirement income. Kickstart the year by resolving to curtail the use of high-interest credit cards and focus on reducing outstanding balances. Windfalls such as gifts or inheritances can be strategically utilized to alleviate debt burdens. Exploring options like low-interest home equity loans can aid in consolidating debts, offering a clear path to debt-free retirement.
“Remember – maximizing your TSP contributions not only secures your future but also capitalizes on employer matches, translating into free money.”
Resolution #3: Amplify TSP Contributions
Your Thrift Savings Plan (TSP) stands as a cornerstone of your retirement strategy, offering control over your financial destiny. Prioritize maximizing your TSP contributions in the pre-retirement phase. Capitalize on employer matches by aiming for at least a 5% contribution from your wages. With the 2024 TSP contribution limit raised to $23,000 and a $7,500 Catch-Up Contribution limit for those aged 50 and above, there’s ample room to fortify your retirement nest egg.
Resolution #4: Seek Guidance from FRC® Certified Advisors
Navigating the complexities of retirement planning, especially for federal employees, demands expert guidance. FRC® trained advisors bring specialized knowledge in federal retirement benefits, offering tailored strategies for a seamless transition into retirement. Meet with an FRC® advisor to tap into their expertise and secure your financial future. Explore available advisors in your area to embark on a well-informed retirement journey.
