TSP withdrawal strategy


Q. You’ve mentioned in the past that if a person does not know which funds are best to invest their TSP money, they should invest in the Lifecycle fund that closely matches their life expectancy. I’m 58, retired CSRS and currently in the L2030. I plan to start generating a monthly income stream from the $470,000 balance and begin payments of 3.5 percent of the balance to meet expenses. When commencing monthly payments, do you recommend keeping the funds in the corresponding L Fund or should I look at a more conservative strategy during the draw-down phase?

A. My very general recommendation stands unchanged.


About Author

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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