L-Fund plus life insurance cash value to annuity


Q: I have $37,000 in my TSP L-Fund plus a $21,000 cash value on my life insurance policy. I plan to leave the USPS with 32 CSRS years of service soon when I turn 58. I have had a financial adviser suggest I put the combined money into an annuity-life insurance combination that he says will give me a better rate of return over a period of time. I have put the extra money into the TSP to use for extra expenses after retirement, (new roof, newer car, etc.) after I turn 59 1/2. I am afraid the annuity-life insurance will restrict my access to the needed money when the need arises. What is your advice?

A: Leave the money where it is and consider cashing in the life insurance policy if you don’t need the coverage.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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