Q. I recently attended a U.S. Postal Service retirement seminar not sponsored by the USPS. While good information was given relating to how FERS, the SRS and the TSP work, at the end of the meeting the speaker mentioned the option of rolling over your TSP into what he called a “G-C Fund” that he said will never lose money. Do you know about this? I can’t find anything online about it and I’m skeptical.
Q. I plan to retire in 2019 at age 62 with $1.3 million in my Thrift Savings Plan. I am thinking that I will withdraw from the TSP more heavily in my first 8 years of retirement and wait until 70 to collect Social Security, because of the guaranteed 8 percent return rate. But I realize Social Security benefits may decrease or be limited in the future. And, obviously, if I die sooner rather than later, my survivors take a hit and the government doesn’t pay anything. Thoughts?
Q. I noticed you always say employees should place their money in the L Fund that most closely corresponds to their life expectancy. However, on the TSP website shows you should invest in the L Fund that most closely corresponds to when you will withdraw the money. Can you elaborate on this issue?
Q. What is the difference between a Roth TSP and a Traditional TSP? I was listening to a person yesterday and she says to place your funds in a Roth TSP so you don’t suffer the penalty at withdrawal. The only problem, she says, is you have to leave them in the Roth TSP for five years. Please clarify.
Q. I am a federal employee (6+ years of service) making contributions into a TSP account. I plan on retiring from government service in December 2020. I also have funds in other IRAs. This year I turn 70 ½ years old. Can I still make contributions into my TSP account while I receive required minimum distribution money? Can I take in-service distribution not RMDs?
Q. I was recently hired as a GS employee and have a good amount of prior military time. I am in the process of saving up for the military buyback. I have money in a an IRA which I am no longer putting funds, due in part to the fact I am investing heavily in my TSP. Can I use the money in my IRA towards my military buyback?
Q. I currently have my TSP setup as a Roth account and I’m debating the MRA+10 option for retirement. If I take the early retirement option can I withdraw from my TSP or do I have to wait until I’m 59½ to avoid the penalty?
Q. I’m a 44-year-old federal employee with 20 years of service and hopes of retirement at age 62. This means 17 more years of TSP contribution and growth opportunity. I’ve been using the “How much will my savings grow?” calculator for several years now and I attempt to capture a best, medium and worst-case scenario when it comes to the percentages of expected annual rate of return and expected annual pay increase. From a financial advisor perspective, what would you consider a safe range of annual rate of return for TSP growth?