Q. Knowing that everything is a personal situation decision. I’ve gotten advice to take a TSP monthly payout versus the annuity or lump sum. What are the advantages of this action.
A. The advantage versus the lump-sum payout is that the monthly withdrawals will allow you to continue to invest the balance in the TSP until it is withdrawn. The advantage versus the annuity is that you retain control of the assets.
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I looked at an annuity when I retired. The interest earned was very little and would be locked in for the rest of my life plus be handled by an out of state bank. I chose instead to withdraw the entire amount and invest in the housing market (HUD) which will eventually recoup the taxes I had to pay plus value in the home(s). I’m very happy with that decision.