Q. I just turned 60 and eligible for a one-time TSP withdrawal. My financial adviser is pressuring me now to do so. TSP says don’t do it! Where can I find an independent consultant to advise me what to do? Naturally, any financial adviser will recommend a TSP withdrawal so they can get their hands on my money. When I don’t know what to do or get conflicting advice, I don’t do anything! Is that the right approach? I would rather make an educated decision one way or the other.
A. Don’t do it! The TSP is the best retirement investment vehicle there is and you should maximize your use of it for as long as possible. I am a financial adviser and I have NEVER advised a client to move their money to another account to achieve better performance or obtain my advice. If all or part of an adviser’s compensation is dependent upon where your money is held, then the adviser has a conflict with your interests and should not be trusted.
Do yourself a favor and keep as much money as you can in your TSP account for as long as you can. If you’re not sure how to invest it, then put it in the L Fund that most closely corresponds to your life expectancy. It’s not a perfect solution, but it’s better than trusting an adviser who’s putting their interests ahead of yours.
