Q. I plan to retire under FERS in December 2020 at age 66. All my investment is in the G Fund, $350,000, as are my allocations at 100 percent. I was advised to move 60 percent to the C fund and 40 percent to the F fund ASAP with the same allocations. I consider this a risky and aggressive move considering my situation, the economy, and that the S&P is overdue for at least a 20 percent correction by the end of this year. What do the experts advise.
Browsing: TSP contribution
Q. I am a 55-year-old Postal employee planning to retire sometime in the next year under CSRS. Many years ago, I purchased a $2,000 Vanguard IRA that has grown to more than $40,000. I also have a separate similarly valued Roth IRA. I know that I can begin penalty-free withdrawals from TSP after separation, but can I roll my Vanguard IRA into TSP? I also know that I cannot roll my Roth into TSP. My desire is to have the money accessible before 59-1/2 and to avoid having three pots to withdraw MRDs when I’m 70-1/2. Any suggestions? A. You…
Q. I work for the BOP and I am 10 months away from being forced to retire with 20 years of service. A few years ago there was talk around work that the age restriction was going to be raised, and it seems that was wishful thinking. I just accepted it as a probability because it was raised in the past and that gave me the opportunity to get hired. I took out a loan against my TSP account anticipating the age requirement would go up and as a result, unless something does change, I will most likely have a…
Q. I am 65 years old. I have been employed in the federal government for nine years. At this late stage and age, should I join TSP. A. If you’d like to save money for your use later in retirement, yes.
Q. Can you roll an existing Roth IRA into you Roth TSP fund? A. No.
Q. I am almost 57-1/2 years old, and I have more than 30 years with the Defense Department. Can I roll my TSP into a self-directed IRA now without retiring or quitting? I want control over where it is and how it grows, and I am concerned about the government taking it to pay its debts before I can remove it normally at 59-1/2. A. No.
As a Thrift Savings Plan investor, what should you worry about? You might be surprised that my list doesn’t include whether to contribute to the Roth or traditional accounts, or that you’ll have to begin taking distributions someday, if you aren’t already. Here is my list of things worth worrying about: Political meddling. The greatest threat to the TSP, as an institution, comes from members of Congress. The TSP contains nearly $400 billion. It’s the juiciest single profit target for the financial services industry. So far, they’ve had to go after it one retired investor at a time, but they…
Q. I’m 53 with 30 years of government service. I’m invested at 15 percent to TSP. Looking at my account, I feel I am not going to have enough money in my TSP to retire comfortably. I have 6-1/2 years until I can retire without penalty to TSP. What can I do to maximize my investment? A. I suggest that you contribute as much as you can and direct all of your current and future investments to the L Fund that most closely corresponds to your life expectancy. If you’d like more certainty in predicting and producing the outcome of…
Q. I’m 53 years young with 30 years of government service. I’m invested at 15% to TSP. Looking at my account, I feel I am not going to have enough money in my TSP to retire comfortably. I have 6.5 years till I can retire without penalty to TSP. What can I do to maximize my investment (or get the most bang for my buck)?
Q. Federal employee age 58, retiring with 30 years’ service and would like to take $109K from my non-Roth TSP to pay off mortgage. Besides Federal tax, would I also have to pay a 10 % penalty because I am not 59 1/2 years old? Would the federal withhold 20 % tor taxes or would it be more?