TSP and student loans


Q. I am retiring in a few months. My retirement plan includes a monthly pension (about equivalent to my current net pay) and the money saved in my 401(k) and TSP. I do not get Social Security. I put two children through college and have expensive loans (7 percent) and a 6-figure balance. Does it make sense to pull the money out of my TSP and use it to pay the student loans off? The monthly student loan payments are approximately $1,500.

A. It is certainly something to consider, but there is no generally applicable “right” choice based on the circumstances you describe.


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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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