What Would I Do With TSP in Retirement? 

Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes .It's always good to have a financial plan,

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential best results and taxation

in my case CHRIS RYAN STEWART has assisted me in doing that effectively, I'm not an expert so I lack experience in investment strategies, I work and my consultant handles the rest.

indeed, most people downplay the roles of financial planners until burnt by there mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to navigate the volatilities and scaled up 880k from 220k with professional guidance.

impressive, I'll definitely check it out, I buy the idea of employing the services of a financial advisor because finding that balance between saving and living requires counsel. How can one get in touch?

I like that you have a plan. You may want to look up my video discussing the 5 year rule. If your IRA has been open for 5 years then you can move your Roth TSP into it and the 5 yr rule is satisfied.

Glad you enjoyed it

agreed, it has been going in the wrong direction

So I retire in about 9 months or so from VA hospital what should I do with my TSP roll it over to something else or keep it traditional TSP?

Before I retired, I changed my investment split within TSP to put 100% into the G Fund. This was to protect what I had in the event there was any risk of losing money in it. I don’t know your age, but it’s best not to retire until age 62, because it guarantees you will get a COLA applied to your pension. Retiring before that, you don’t get it. For your pension amount it is the same COLA that gets applied to Social Security, less 1%. Example, the SS COLA was 3.2% for 2024, so the pension amount applied was 2.2%. My strategy was to live off my government pension plus a TSP withdrawal until Social Security kicked in at age 66 1/2 (for me). That’s because at full retirement age, you get more SS than taking it at age 62, which decreases your SS by about 30%. At that point, I lowered my monthly TSP withdrawal amount so that the combined income for TSP, pension, and SS was the same total income as I had before with just TSP plus pension. Additionally, I make sure my combined income is less than $103,000 (single), so that the Medicare B premium deducted from SS is the minimum at $174.70 (currently). Because the more income you have, that premium increases incrementally. I should also add that I did not convert my TSP money into an annuity, because I choose to manage it myself. By doing so, I can increase or decrease the monthly amount as needed. I have found that by leaving the total amount in TSP at retirement, I have seen that because of its earnings (which I believe are tied to the S&P), my overall withdrawal annually is less than the actual annual amount. Meaning, if I took out about $40k annually, with earnings, the actual amount was closer to $28k. That meant my total earnings increased by $12k. I think this plan is working out very well!

Having to wait 7 days to do a transfer after putting all of your info in irks me every time!

negative, the rule of 55 allows you to access TSP without a penalty

A lot of times it is. U can choose if u want your distribution to come from Roth or traditional

Absolutely. Reqs for moving money out of TSP are that u have to be separated from service or age 59.5 if u are still working.

@@FederalRetirementPlanning Excellent. Thank you so much for the clarification. That is great information. Very helpful.

You can’t. If you rollover then you have to wait till 59.5. If you just leave federal service and you want to use the rule of 55, don’t do a rollover

@@itguru2037 So, I cannot do a partial rollover prior to 59.5 if I want to use the rule of 55? For example, what if I keep 30% in the G Fund and rollover (transfer) the remaining 70% to my IRA at age 57 (my MRA) and then just draw down from my G Fund between age 57 and 59.5? Can I do that?

@@benjaminjohnson1693 only if you leave federal service and yes

other custodians definitely have some lower fees

I’m in the same boat 🛥️. How many years federal service do you have?

@@itguru2037 31 years. Including 4 years military.

I was in your boat 9 years ago at 55 and 30 years service. I took a very limited side gig (did not exceed supplemental SS) and the wife was still working part time and the kid was starting college. We had funds set aside for college and emergency funds. I had about $1.2 million in the C Fund 100%. I knew I wouldn’t need to tap the TSP for several years and so I figured I could ride out a significant market downturn. Frankly, my TSP contribution was about 1.8% of my portfolio and so the absence wasn’t going to have a major effect after I retired. Kept 100% in the C Fund and for the last four years I’ve had to pull about $60K a year. Even with pulling the $60K my C Fund balance is now $3.35 million. Not for everyone as peoples risk tolerance is different, but the way I figured it as hopefully I had 30 years of market in front of me when I retired. My biggest concern now is tax implications when I have to take Required Minimum Distributions at 73.

If you have more than 30 years of federal service and are over 55 you do not have to wait till you are 59 and a half to withdraw from your TSP.

Not sure what you’re talking about here. There is no 5 year rule for accessing an IRA. There is for a Roth IRA but not traditional If u want to know how the 5 yr rule works, I have another video that discusses it

@@FederalRetirementPlanning When you transfer funds, whether it be direct or roll over, from your TSP to an IRA account. Each contribution has a five-year calendar on it. The five-year rule is just that. If I transfer funds from my TSP to an IRA I cannot touch those funds for five years without penalty. And the penalty is the amount of money is subject to income tax plus a 10% penalty. So when you're planning to do a transfer or a rollover you really need to understand all the rules and what you're getting into. Below is a link to the guide from TSP, it outlines all their requirements and rules for TSP transfers. www.tsp.gov/publications/tspbk26.pdf

I like a man with a plan!

Since you are still employed, how were you able to transfer your TSP to Fidelity?🤷🏽‍♀️ If you took a loan, this amount is capped.

It sounds like u are responsible with your spending and saving which is great! I would recommend education yourself on TSP, IRAs and investing or find an advisor u like and can trust to work with.

Interesting. So u are going to take your RMDs and invest them in treasuries?

No, but I was there last summer and loved it!

@@FederalRetirementPlanning I live nearby, about 30 mins away. Glad you liked it.

Incorrect on a number of points. IRAs are protected in most states just like TSP. U can get similar funds at most custodians at the same expense ratio or even lower. U can absolutely take funds from TSP after u turn 55 and separate from service without penalties. 59.5 is for IRAs

@@FederalRetirementPlanning After 55 only for excepted law enforcement officers.

New York taxes retirement income but excludes TSP.

@@densnow4816 wrong. Look up the rule of 55

@@densnow4816 I have heard of this, but they are the only one that I’m aware of

Correct

Well.. anyone that is nearing retirement and took full advantage of matching along with historical returns in TSP $900K should be very realistic.

@@bigblue3568how many years would they have been investing? The average TSP account is less than 200k

@@itguru2037 I had about 25 years in the C Fund and had $1.2 million at 55 when I retired in 2015. Always got matching and maxed out, but was not able to do catchup when I turned 50.

🤷🏻‍♂️ military retirement is a different animal

Hmmm, I guess I can’t tell u what the most common retirement age of a federal employee is but I can tell u that I talk to feds every week retiring under the age of 62 as well as ones with TSP balances north of 900k

Everyone is unique and personal regarding retirement and how much saved. I retired at 56 y/o with a very small federal pension, but my TSP was six figures as was my IRA from my years in Silly Valley here near Stanfurd University. I got screwed by the new owners regarding my stock options after my fmr CEO took me out to lunch to ask me "what I was doing with my stock options". My life is not perfect, but I don't consider myself an elitist socialist woke nut job. Anything worth doing takes effort, and if it were easy, we would have done it by now. As JFK said, ask what you can do for your country.

I know this is a old post, but I retired at 51 as a federal law enforcement officer, it's very common. Our agency has a mandatory retirement age 57. Our pension is 1.7% not 1.0 or 1.1%

@@b.coxemba6799 🤨 Are u talking about the video? The video is about TSP, not the different types of federal retirement.

51yrs now and well over $1 million... in TSP