Potential Costs of a TSP Loan to Your Retirement Nest Egg
Many federal and postal employees consider borrowing from their TSP (Thrift
Savings Plan) -- to perhaps use as a down payment on a new home, to
remodel their current home, to pay off high interest debt, or to
use in a financial emergency.
But is a TSP loan a good idea? What will it cost you
in the long run? Will it jeopardize your future retirement
income? And, if so, by how much?
In response to many requests on this topic from My Federal
Retirement readers, here are some pointers (with a link below to a free
online calculator that might provide some help in making
the decision).
Free Online Calculator: Should You Borrow
from Your TSP?
BankRate.com has provided a free online calculator that can assist you in
making a decision. While the calculator is for a "401k loan", keep in mind
that a 401k savings plan in the private sector is very similar to the
government's Thrift Savings Plan for federal and postal employees.
Go here to use the calculator: http://www.bankrate.com/elink/calc/401kl.asp
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