Podcast | Season 1 | Episode 53

The Description

Do you have a TSP account? Do you know what your investment options are? Listen now.

Host: Scott Marks, CFP®, CRPC® | Financial Advisor

Scott truly has a passion for his work. He is willing to go the extra mile to ensure every client is confident with their customized financial plan. When assisting his clients, he prides himself on being accessible, relatable, and transparent. He is particularly adept at helping families establish and pursue their unique financial goals through holistic financial planning.

Scott graduated from Arizona State University with a degree in Supply Chain Management in 2010. Drawn to the finance side of the industry, he began work as a credit analyst in the lending department with Alliance Bank of Arizona.

After four years with the bank, Scott pursued a career as a financial advisor with Merrill Edge. During his time there, Scott provided investment guidance and built effective long-term plans for clients located in all 50 states. He was recognized as a top advisor and attended the Pinnacle Club; a recognition program honoring the top 1% of advisors with the company.

In August of 2016, Scott joined Summit Wealth Group in order to provide a greater scope of wealth management services for clients. Scott is a CERTIFIED FINANCIAL PLANNER Professional and a registered representative with Commonwealth Financial Network® (a registered broker/dealer, member FINRA/SIPC).

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  Securities and Advisory Services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network®.

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The Transcript


"Scott Marks, Certified Financial Planner and Financial Advisor at Summit Wealth Group is the host of today's mini episode. Welcome to the Reach Your Summit Podcast."


"This week's financial tip is regarding Thrift Savings Plans or TSPs for short. And we work with a lot of government or agency employees here that have access to this Thrift Savings Plan, which is kind of like a 401k for a government employee.

It has all the same features of a 401k, if you're familiar with traditional contributions, the tax deductible form. You also have access, in most cases, to Roth contributions, which means they're not tax deductible, but also not taxable later. In most TSPs, there's also a matching system of 4%. And an agency match of 1 percent on top of that.

So in most cases, it makes sense to contribute at least 4 percent to make sure that you get the match. Now there's a lot of options inside of your TSP. Uh, there are five main investment options. The C fund, the S fund, the I fund, the F fund, and the G fund. All of those funds are specific to different sectors of the market.

And the combination of those funds is what you look for in a diversified portfolio. They also offer access to life cycle funds, which are effectively a target date retirement fund where you select the date at which you might like to retire. And the fund will be geared. Risk wise, based on that retirement date, the caution I would give you with using life cycle funds is that they are not specific to every individual.

And in general, when you have an advisor, build your portfolio inside of your TSP, it's going to look a whole lot different than what it looks like inside of one of those life cycle funds over time. So in most cases, you will be better off having an advisor. Put together a recommendation for you inside of that plan.

One of the unique things about summit wealth group and the services that we offer is our consulting arrangements with some of our clients allow us to provide advice on things like TSP allocations. So if you're struggling with deciding on what it is that you should be purchasing for investment inside of your TSP, please feel free to give us a call and we can definitely help you out."


"Thanks for listening to a mini episode of the Reach Your Summit podcast by Summit Wealth Group. If you'd like to help support the podcast, please share with others and subscribe so you don't miss an episode. Thanks again."