The Thrift Savings Plan (TSP) is used by many federal and government employees as a retirement savings vehicle. What many TSP participants don’t realize is that there are safer retirement plans that don’t have nearly as many restrictions. Index universal life insurance (IUL) provides a tax-free retirement income with fewer restrictions and no market risk, so your money will be safe.
With an IUL retirement plan, you won’t have to wait until you reach retirement age to gain full access to your money, and your premiums and benefits are flexible. You can decide how much you want to contribute to your retirement. Many IULs don’t even have restrictions on the maximum cash value of your policy. There is also no market risk, so you’ll gain interest when the market is up without losing money when it decreases. You can access your money at any time, and you don’t have to repay the money you withdraw as long as your policy is active. Everything you withdraw from the policy is tax-free and the interest you earn is tax-deferred.
The Thrift Savings Plan has restrictions on everything from the amount you can pay them, to who can get tax-deferred status, to the age you have to reach to access your money. There’s even a restriction that requires both you and your spouse to give consent in order to withdraw any money from the savings plan. You’re also required to pay back any loans you take out. Thrift Savings Plan also requires that you figure out what you want to do with your plan as soon as you retire. On top of these restrictions, there is no guarantee that your money is safe; most TSPs have market risk that could cause you to lose money if the market drops. You may also have a hard time accessing your money in the event of a government shutdown.
Federal Advantage Benefit Company offers IUL retirement plans for federal and government employees. If you would prefer a safer, tax-free retirement income with fewer restrictions and no market risk, fill out the form to the right or give us a call at 888-340-7187. One of our certified agents will help you find the retirement plan that’s right for you.
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