Crop Insurance and your TSP

Guest post by David Fielder.

David Fielder is owner of Postal Benefits Group

Click below to see all of Davids’s Guest Posts.

We have spent a lot of time with Rural Carriers over the years. Many of you are farmers or know a close friend or neighbor who farms. We wanted to write a quick article that we hope will get you thinking about you retirement like you look at a potential crop.

A farmer has a decision to make each year on whether he will purchase crop insurance. Why would a farmer purchase crop insurance? Sometimes Mother Nature doesn’t cooperate and instead of losing an entire crop to one of these events a farmer would prefer to pay crop insurance to pass that risk to someone else. Yes there is a cost but the cost is fair in the farmer’s eyes to eliminate the catastrophic risk of loss. By buying the crop insurance he can basically guarantee a fair return on his investment. This is all pretty common sense right?

Well as a Rural Carrier you are all “farmers” to some degree if we look at your TSP as your crop. Many of you have been working this crop for over 20 years and have accumulated a ton of money. Unfortunately, the TSP doesn’t offer “crop insurance” where you can protect your savings from losses due to “mother nature” or the market. For the last few years the market or Mother Nature has cooperated. Does that mean she will ALWAYS cooperate? If a catastrophic loss happens do you have time to start over building your crop back?

Some may say “My money is safe in the G fund.” While you won’t lose anything in the “G” fund you won’t make anything either. It’s like owning land and not farming it at all or only farming enough for your family and leaving hundreds of acres idle. So even though you aren’t losing money you are wasting time and the potential of your land.

We say all of this to let Rural Carriers know that there are options out there that allow you to have your “crop” protected. Yes there is a cost to the insurance. However the logic behind it is very similar to our crop insurance analogy. Would you be willing to pay a small price to pass the risk of catastrophic loss to someone else? Would you sleep better knowing that no matter what “mother nature “ or the market throws at you your money is safe? Would you like to know that you can have a fair profit locked in and not have to worry if your money will last long enough?

If you are 59.5 or older or retired you can take advantage of these options where your money can be protected. The TSP is a great tool to build wealth. However, when it comes time to live off of your “crop” large losses in retirement can be devastating.

We encourage all Rural Carriers who are 59.5 or older to take advantage of our Free Benefit Review. We review all of your current benefits as well as determine if you qualify for options outside the TSP. Some of the things we will cover in your review:

  • Pension Calculation
  • Deductions from Pension
  • Health and Life Insurance now and in retirement
  • Military Time and Sub-Time
  • Social Security
  • Thrift Savings Plan Options
  • Survivors Benefits
  • Codes on your paycheck
  • Can you afford to retire on the date you have chosen?

You can request a Free Benefit Review at www.postalbenefitreview.com

We would love to assist you in any way we can. The bottom line is we want you to have the information you deserve and hopefully that will allow you to make the decision that is best for you and your family.

Guest post by David Fielder.

David Fielder is owner of Postal Benefits Group

Click below to see all of Davids’s Guest Posts.