Hows it going everyone my name is derek ifasi owner of the classic Financial Group todays topic I want to discuss with you Thrift Savings Plan in particular I want to discuss with girls with their savings plans and some of the risks that are involved with the diversity deployment Charles and how to essentially avoid those risks making sure that youre leveraging those dollars the correct way thats specific to your you know retirement situation your specific goals so when somebody has a drift savings plan set up this is mainly set up through a federal your child some sort of federal governmental employee and thats through a federal governmental agency so what was happening was every single year his individual would go work for this agency they would be offered a savings plan someone who you might see at home is like a TSP at L think of this kind of like a bucket of money so what happened when individuals would go and place dollars from their salad replace certain portions of their of th eir income every year and place it aside to this thrift savings plan to this retirement type bucket so it didnt matter how much money was placed into that bucket what mattered was what was the amount of money please dad what was any sort of matching contributions that were also placed in and then most importantly what was the percentage rate that came back if you go and you place money into to any sort of retirement account or any account you have certain negatives that occur certain downward market loss benicar certain negatives to that portfolio obviously that buckets going to be smaller at the end of the day at the end of the year so with these TSP plans you want to make sure that when it comes time for the most crucial part of your life in retirement or when youre looking to withdraw that money that youre doing in a very safe consistent way youre doing it properly the largest risks that we see with through a savings plan when someones trying to take that out is most importantly is this individual would outlive their money when individuals leave their money into our savings plan they decide to take out with girls they have certain benefits theres certain benefits of a thorough savings plan that you have over different types of retirement accounts theres certain ways on how you can leverage those dollars making sure that if youre taking out the withdrawal it correlates properly for your goals if you go and you leave your money in the bucket you have certain mutual fund related charges you have certain TSP related fees if youre leveraging a financial advisor that advisor could charge you something known as a wrap fee which is just an additional fee to help you pick you know your different funding options your limited funding options within the TSP account and all of that information all those fees are not guaranteed to make your account go up so if there is a way on how to maximize what this withdrawal is then what you can do is make sure that youre never out livin g your money the way that individuals outlive their TSP accounts is they try to take out money from an account and they leave that money at risk so theyre taking money from an account thats now getting hit with mutual fund related fees TSP related fees advisor fees and then if the market has a reset like weve seen in most common weeks in years and 2021 days and you know a very big one any console because it to the office Im speaking to them about their TSP counts you know I just dont want to have a crash like I did in 2021 like it did in 2021 its a common occurrence so theres ways on how you can take a portion if youre eligible for it you have to hit certain years of service you have to be a certain age you have to be a sort of retirement criteria that you could take a portion or all of your TSP plan and essentially roll it over into a specifically designed contract would be specifically designed IRA contract that allowed you to maximize those withdrawals and have that withdrawal come to you like a personal pension plan income that you could never outlive but unlike certain pension plans out there if something god forbid something happens to you whatevers remaining in that bucket will now go to your beneficiaries so youre able to leverage certain contractual guarantees that you can place on to these IRA contracts and then also make sure that you are leveraging that full bucket of money to then leave it as an inheritance to your beneficiaries so the most important thing is not living your money and the reason why people outlive your money once again is because theyre paying the fees theyre paying the different mutual fund these different advisor fees and then theyre also susceptible to that that word market loss so when you have all three of those negatives happening and then youre also pulling out money for income that could deplete that bucket a lot faster than obviously if youre just having a little growth so theres two different ends of the spectrum for individua ls I want to take the withdrawal or somebody that says hey listen Im eligible to now do a rollover for my PSP count and make sure that goes to a specifically designed IRA contract I might not be so interested in lifetime income but I wont have an IRA contract thats going to gain so kind of things like a bucket but now that bucket has a little bit of a lid over it that every year that goes by dependent on whatever the stock market index thats linked to that IRA count if.