Q. I retired in 2011 and have $50,000 remaining in my Thrift Savings Plan. Would it be wise to rollover my TSP into a Roth IRA and pay the TSP taxes now in case the fiscal cliff threat worsens? A. It’s impossible to know for sure, but you’ll need to run pro-forma tax returns for the next few years to see the effects. If you’re not sure, I’d stay put in the TSP for as long as possible.
Monthly Archives: January, 2013
Q. I am a 47-year-old air traffic controller. I have completed my 25 years of service and retired Dec. 29. I have been investing in the Thrift Savings Plan my entire career. I want to draw a monthly payment of $1,500. If I do this, is it considered an annuity which I can claim under 72(t)? Or would it be better to buy an annuity equaling the amount I need and let the rest ride until I am 59½? A. The rules for satisfying the 72(t) exception to the early withdrawal penalty are complex and strict, so you should be…
Here are 12 things you can do in 2013 to improve your standard of living in retirement: 1. Determine and record your definitions of success and failure in retirement planning and investing. Good planning and management starts with an understanding of what constitutes success and failure from your efforts. To make the right decisions, you must know whether success means achieving a certain level of economic wealth or a certain standard of living, or some combination of the two. Does failure mean running out of money too soon, or failing to leave enough behind? Figure this out before you start…