Q. I retired as CSRS in 2015 and have a TSP account. I’ve recently decided to hire a financial planner and he recommends to “link” my accounts (savings, IRA, TSP) to a financial management tool that consolidates & updates your investments in order to get a total view of your accounts in one location for analysis. This necessitates providing my user IDs and passwords via secure encryption. The tool does not “store” the user ID or passwords. These tools seem rather common in the financial planning profession. I still have hesitation in providing my info via a tool. Would you…
Q. I am 57 years old and relatively new to the federal work force, having been in it three years so far. I plan and frankly need to work until that golden age of 72 1/2. That leaves a whopping 15 years until retirement. I currently invest 80 percent of my contributions to the L2030 and 20 percent to the L2040. I am considering allocations into the L2050 funds. I am, of course, looking for the potentially biggest bang for the buck. What are your thoughts?
Q. I have recently retired ,and my TSP is allocated in the F, C, G and I funds. Should I now move all of them to the L Fund at once or in increments? What percentage should I be withdrawing if life expectancy is 20 years?
Q. For a typical retiree (or near retiree), we utilize the TSP funds as well as outside investments. Do you have a rule of thumb regarding how many funds to own for diversification, i.e., how many is too many? Also, what are the best asset allocation calculators to use (free, of course)? Lastly, for the G Fund, in an asset calculator, since that is unique to the TSP, what proxy ticker should I use to represent the G Fund in overall asset allocation evaluations?
Q. I’ll be eligible to retire in September 2021 when i reach age 56 years and 2 months, and have 34 years of service. I’ve been investing money in my TSP since I started working for the federal government, and I switched all of my TSP funds into the L2020 as suggested when the life cycle funds began. I never really thought about it until this year, so I probably won’t retire when i’m eligible since I’ll only be 56. At least that’s what I’m thinking now because I’ll have two kids in college. I know that in 2020, they’re…
Q. A newsletter I received states there are several TSP millionaires. What is the general characteristics of a TSP millionaire? Are they in management? Upper G-level ratings? Is it the amount that is allocated and the way in which it is invested? I have invested the total amount that I can, plus investing the total amount to catch up after 50 for 31 years, and I am not close to being millionaire.
Q. I’ll be turning 70½ in 2018 and will start withdrawing my required minimum distribution. My plan is to leave my funds with TSP, then receive the minimum monthly payment and the rest at the end of each year. I’m going to invest a small amount in a balance account. The rest of the money I would like to save for my family. Should I put it in a regular savings account to be safe, or would you suggest something different?
Q. The L funds such as L2020 are structured toward retirement dates such as 2020. After that date, your funds are moved to the L Income Fund. I’ve seen you mention several times that if you can’t decide how to allocate your funds after retirement that we should consider the fund that matches our life expectancy. Can you explain the reasoning behind this a little more? If I am currently 57, retired and my life expectancy is 85 years of age, are you saying I should consider the L2040 or L2050 funds?
Q. I have $600,000 in my TSP allocated as 41 percent in the C Fund, 6 percent in the S Fund, 22 percent in the I Fund, 23 percent in the G Fund and 7 percent in the F Fund. Is this an appropriate allocation for a 54-year-old retiring in two years? I need approximately $2,000-$3,000 a month for 25-30 years. If not, what allocation do you suggest?