Building up principle


Q: I would like to leave my money with TSP and receive monthly payments; however, I want to receive less than the monthly interest would be and let to rest go into my account so that my principle would increase. Is this possible? How do I go about finding out what the monthly interest would be?

A: You can’t.


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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 and view his blog at

1 Comment

  1. I would guess Mike Miles is right … but he never considered your intent … I am 7 years from retirement … but … I understand that once you get your TSP payment to you started you can change them once per year (its an open season of sorts) … so to be able to maintain an income and let your prinicple grow, you go the first year with you requested payments (say 4%) then check your rate of return before you establish the payments for the coming year, if you gain 8% but your happy with 4% then keep it the same … if your planning a big trip and need extra income, take 6% then a year later you see where you earned 6% you set your payments to 4 or 5% … and so on and so on … its easy to write two words in responce … its a little harder to understand a question and provide a real answer … I would assume the IRS has an age in your 70s where you have to do a life expectancy computation and take out more then … that is when you have to have a good savings plan in place for the rest of your life … for me … I will create an estate model by then and be funding it in accordance with my plan … if you did not live paycheck to paycheck while you worked why start bad habits when your retired … so start enjoying a lifetime income (I like to call retirement income that, since young folks don’t believe they will see any retirement income, and it makes you think about what your doing so you don’t outlive your TSP payments) … gary … does that meet your intent?

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