Interest earned after retirement


Q. Say I have $100,000 in my TSP account when I retire. I decide to choose monthly payments for the entire $100,000 at a monthly rate of $500 a month. Does the $99,500  that is left in the TSP after the first month’s payment continue to earn interest, or is that $100,000 value locked into “stone” and I will  never earn another nickel on the money that is sitting there (i.e., after 200 monthly payments my TSP funds will be gone). I understand that once a year I can adjust the monthly payment amount. Assuming that I still do earn interest, can I also put that money into the different funds (e.g., G fund, C fund) like I can while I am still working?

A. Everything works just like it did while you were working.


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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

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