jimatax
Sterling Heights,#2General Comment
Thu, January 17, 2013
Dear Agent,
To be sure, a large and growing share of government workers are tapping their retirement savings accounts for non-retirement needs, raising broad questions about the effectiveness of one of the most important savings vehicles for old age. This is your opportunity to help people.
The Board that administers the Federal TSP is chaired by a staff in the OPM Office. According to Kevin Laird, federal employees urgently need to speak with financial professionals about their retirement. This is your opportunity to help people.
With federal policymakers eyeing cuts to Social Security benefits and Medicare to rein in soaring federal deficits, and traditional pensions in a long decline, retirement savings experts say the drain from the accounts has dire implications for future retirees. This is your opportunity to help people!
In my experience it is better to help people get what they want. The agent who wrote the astringent report is clearly getting emotional. This behavior is not surprising because Were going from bad to worse, said Diane Oakley, executive director of the National Institute on Retirement Security. And the savings in individual retirement savings accounts which already are severely underfunded continue to leak out at a high rate.
Federal Employees can benefit greatly from speaking with a professional adviser. A report due out this week from the financial advisory firm HelloWallet found that more than one in four workers dip into retirement funds to pay their mortgages, credit card debt or other bills. Those in their 40s have been the most likely culprits one-third are turning to such accounts for relief.
The investment advice out there needs to recognize that a large share of participants is not going to use the money for retirement, so they should not be exposed to risky investments, Fellowes said. There is no investment adviser in the country who would put workers in the stock market if they were told the money being invested was for short-term needs.