Most FERS employees save and invest with every paycheck, but may question where the best place to be investing is. Is it the Thrift Savings Plan (TSP), Roth TSP, Roth IRA, IRA, HSA, or even a brokerage account or emergency fund. Here I share my thoughts in what accounts should be a priority and what order to put them in.

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Federal employees often have unique challenges when it comes to planning for their financial future, especially when it comes to investing. With so many moving parts, it can be hard to know where to start. This article will highlight some essential priorities for investing for federal employees.

First and foremost, federal employees must take advantage of their employer-sponsored retirement plan, known as the Thrift Savings Plan (TSP). This plan offers many advantages, including tax-deferred contributions and low fees. The earlier an employee starts contributing to their TSP, the more time their money has to grow and compound.

Secondly, federal employees should have an emergency fund. An emergency fund is a set amount of money that is set aside to cover unexpected expenses, like a car repair or medical bills. Having an emergency fund ensures that employees can cover these costs without taking on debt or withdrawing from their retirement savings.

Thirdly, federal employees should consider investing in a diversified portfolio outside of their TSP. This can include individual stocks, exchange-traded funds (ETFs), or mutual funds. Investing in a diversified portfolio can help employees spread out their risk and potentially earn higher returns.

Fourthly, federal employees should ensure that they have adequate insurance coverage. This can include health insurance, disability insurance, and life insurance. Having the right insurance coverage can protect employees and their families from financial hardship in the event of an unexpected illness, injury, or death.

Finally, federal employees should prioritize paying off high-interest debt, like credit card debt. Paying off high-interest debt can save employees thousands of dollars in interest charges and improve their overall financial wellbeing.

In conclusion, federal employees face unique challenges when it comes to investing. However, by prioritizing their employer-sponsored retirement plan, creating an emergency fund, diversifying their investments, having adequate insurance coverage, and paying off high-interest debt, federal employees can create a strong financial foundation for the future. By taking these steps, federal employees can achieve financial stability, and ultimately, financial freedom.