Browsing: retirement

Q: I am aware of the passage of H.R. 2146 (TSP bill) which allow those under the law enforcement retirement system to access their TSP at age 50 without incurring the IRS’ 10 percent penalty. I retired from the military and was hired under an age waiver as a law enforcement office at the age of 43 (which would mean that if I want to retire under the federal law enforcement retirement system, I would need to complete 20 years of federal service — I have 6 more year before I can retire as a LEO). My question is: How often…

Q. I plan to retire under FERS in three years at age 65 with 10 years of federal service. My TSP balance is $130,000. I also have a rollover IRA with our financial adviser from a past employer with a value of $150,000. Would it make sense to roll over my IRA into a TSP now? I’m paying a 1.25 percent annual management fee on the $150,000 and earning about 4 percent annually. A steady 3-4 percent return would be my goal within TSP, as I am getting close to retirement. Would the age-appropriate L Fund be my best bet?

Q. I have 27 years as a federal law enforcement officer under my belt and four before I am mandatory. If I retired on disability, would it affect my 401k and health insurance? I had a kidney transplant in 2011 and open heart surgery for aortic sleeve and valve replacement. I need my current health insurance just to help me with medication costs. Could I access my 401k while waiting to be approved? How long does one receive disability retirement assistance?

Q. I am a 24-year-old male Marine. I have all my money in the G Fund ($2,500), but I never knew anything about TSP. I never knew the control I had over my portfolio. The only advice I have is what I can remember from my high school economics teacher back in 2010. He told me that while I am young I can afford to invest in riskier funds. As I grow older and get closer to retirement, I need to relocate those to something like the G Fund. So today I put my future investments to go 70 percent, 20 percent…

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.

Q. I am retiring at the end of January 2016 with 32 years in the work force. I’m turning 55 in February 2016. Can I take a TSP loan out in January 2016, not pay it back, but pay the taxes? Does this still conserve my partial withdrawal option down the road? I was told I would have to take a partial withdrawal in the year I turn 55 to avoid the penalty, but if I do that, I eliminate the option later, and the amount I need would bump into a higher tax bracket. I’d ultimately like to take…

With the end of another calendar year approaching, it’s a good time to reflect on the events of the past year and to formulate strategy for the year ahead. Over the next few months, the various popular media and anyone involved in personal finance will be publishing stories about new rules and limits, with advice on how to turn these rules to your advantage. The problem with this obsession with detail is that it encourages you, by example, to ignore the big picture. It pretends that everything is equally important and that context is irrelevant to financial decision making.…

Q. I am 62 and plan on retiring in the next few months. My goal is to have $4000 per month after taxes in retirement income. My FERS annuity and Social Security get me to about $4100, pre-tax. I have $350,000 in my TSP. I figure that if I can take out a partial withdrawal of $50,000 for emergency funds and liquidity purposes, stay invested in the G Fund with the remainder, take equal monthly payments of $1300 and meet my post-tax income goal, then my TSP should last at least until I’m 87, when I don’t expect to need it…

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