Q. I am a FERS employee and plan to retire next year when I turn 58 (with 33 years of service). I have a healthy TSP balance (approximately $1 million). I am married, and my husband will be in the workforce for at least eight more years. Upon retirement, I may withdraw 100 percent of the TSP funds and pay tax on it all next year. I would like to use the balance to pay off a mortgage on two rental homes I own with my husband ($330,000) and put aside another $100,000 in liquid cash for education for my boys. If anything is left at that point, I plan to invest it in a Roth IRA. Is this a foolish plan? What do you think?
A. It’s a reasonable thing to consider — carefully. The right decision will depend upon the particulars that apply in your case, however. There is no generally right or wrong choice.