The Fed15 Podcast: Early Retirement Factors and TSP Considerations During Volatility

Dan outlines key considerations for federal employees who plan to retire before age 62, beginning with an overview of the FERS supplement and the past discussions surrounding proposals to modify or eliminate it. He explains the role of the supplement, reviews prior proposals from the White House, and highlights which elements remained unchanged. Dan also emphasizes why staying informed about policy debates is important. He then provides general considerations for navigating periods of uncertainty, such as avoiding overreliance on the FERS supplement. He concludes by underscoring the value of maintaining a consistent, well-thought-out retirement strategy.

Then, Katelyn discusses key considerations for evaluating market volatility within the TSP. She reviews principles tied to prudent investing and explains the main TSP options in choppy markets, including the stability of the G Fund, the diversification of the F, C, S, and I Funds, and the automatic rebalancing of the L Funds. She also covers considerations around maintaining an existing approach versus making measured adjustments, along with rebalancing and transfer guidelines. She concludes by highlighting the importance of staying informed and maintaining a steady perspective during volatile periods.