August is a mix of vacations and back to school preparations for many of us. Here in our household, we have a kiddo who is entering 4th grade – so we’ll soon have to try and pretend that we understand his homework…at least until Christmas break!
However, a quick glance at the client service calendar reminds us that we are also diving into retirement tips for you this month. And one account we think is worth mentioning – the Roth IRA (Individual Retirement Account). Specifically, Roth IRAs for Federal Agents. So yes, we know it’s a busy month full of curing poison ivy from summer camps, shopping for school clothes that won’t fit in 6 months, and having a few final laps in the pool. But take a couple minutes of quiet time and consider that you may wish to go beyond your TSP and add to your retirement arsenal. While doing so, contemplate this question:
What’s a Roth IRA and do I need one?
See this month’s video below for more:
Then make some chocolate chip cookies – Download Now – to snack on while you review our flowchart to see if you can contribute.
Meanwhile, if you know other Federal Agent or Front-Liners that face this question, feel free to pass this on – we’re all in the Battle for Financial Independence together!
Question of the Month:
Is there anything I can do today to be better at saving for retirement?
Answer: Absolutely you can! Consider automating monthly contributions to your outside retirement savings. You’re likely already doing it – or you should be after you read this – for your Thrift Savings Plan or similar employer-sponsored retirement plan – like a 401(k) or 403(b). An employer-sponsored plan is one that you are allowed to participate in because your work (i.e., your employer) offers the plan.
Outside of an employer plan, you are free to open your own retirement account (like a Traditional or Roth IRA). If you do decide that opening a Traditional or Roth IRA makes sense, then be sure to automate the contributions just like you do for your TSP. We believe in the adage of invest early and invest often…so automating monthly contributions to a retirement account gives you a positive financial behavior that you can do today – right now. It will also help to transform your thinking and build your resiliency. You’ll start believing in a pay-yourself-first mindset. It’s also likely that you won’t miss any money that wasn’t available to you anyway.
For example, you could set up a monthly automatic deduction from your checking account. So as soon as you get paid, a certain sum of money (e.g., $50) then moves automatically and directly to your Roth IRA every month. By doing this you’ll be building your armor each month with auto-savings. Then it’s important to stop and remember to give yourself the credit you deserve. Do this by literally visualizing yourself putting on a piece of financial armor to protect you and yours.
In Other News:
Check out our new profile, as we are very grateful to be in partnership with the following:
Certified Financial Planner Board of Standards, Inc.: Profile
XY Planning Network: Profile
National Association of Personal Financial Advisors: Profile
New hats are on order. We don’t see any reason financial planning can’t be “bada$$”. So in a nod to St. Michael – patron saint of those who place themselves in harm’s way for others – we’re producing a Client-Only Black Label line of swag. Stay tuned…
May you have a wonderful, happy and safe end of Summer with family and friends! Contemplate a bit about the benefits of Roth IRAs for Federal Agents while you walk the dog. Then take some time to be grateful for your blessings and don’t hesitate to do a “10-4 check” on a friend. Cheers!
Our Goal for You
Our goal for you – always be thinking about what money really means to you and yours. Partnering with Charles Michael Financial means stepping into your own values, aligning them with your money, and being part of a bigger community that believes the same. Stay with us on the journey…
