Q: I am a CSRS employee. When I decide to retire (possibly age 55 or 56), I’m not sure what to do (if anything) with my thrift savings account. I do not plan to rely on this savings as part of my living expenses during retirement. Do you recommend keeping in the thrift plan or place it in something else? A: What you do with the money should depend upon what you expect from it. Since you have no expectations for the money, there is no appropriate investment strategy and it doesn’t matter what you do with it.
Browsing: retirement planning
Q: How would I transfer money from one account to another, for example from the C-fund to the L-50 fund. A: Either through your account access at www.tsp.gov or by calling the ThriftLine at 877-968-3778.
Q. I am considering paying off my mortgage before I retire, but at the expense of my TSP catch-up. I know every case is different, but are there general rules of thumb for this scenario. If you need some specifics: seven years to retire and I save $51,000 in interest payments (6.125 percent annual rate). A. There are no rules of thumb that I would trust for this decision. You’ll have to grind out the math for the alternatives, including some predictions about the future, to decide. I will say that without further knowledge of your circumstances, I would tend…
Q: I hope to retire when I turn 56. I have been investing in TSP since 1987, contributing the maximum amount allowed (15 percent). My question is, at age 56, can I set up and annuity with TSP requesting a small amount a month and still receive interest on the amount left in my account? A: Yes, as long as you haven’t already taken a partial withdrawal. Use a partial withdrawal to purchase the annuity and leave the rest in your account until you need it.
Q: What are the benefits/options of waiting to retire in the year I turn 55 with my TSP funds? A: If you separate from federal service during or after the year in which you reach age 55, you will have access to your TSP funds without being subject to the early withdrawal penalty.
Q. I just read your article in today’s Federal Times. I just looked at my TSP account and I am investing in the G, F and C funds. As of June I will have 21 years of service. I asked my boss when will I be able to go to the Retirement Seminar and she informed me that there are six people ahead of me. Last year the office sent two people; at this rate I will be screwed because I am trying to prepare now for my retirement. After reading your article it has inspired me to invest in…
As a retirement investment adviser, I find the Thrift Savings Plan’s five basic funds to be the best examples of their kinds anywhere: • The C Fund is invested in the diversified group of stocks included in the Standard & Poor’s 500 Index and represents a diversified investment in the stock of large U.S. companies. • The S Fund provides investors with exposure to the performance of medium and small U.S. company stock. • The I Fund invests in the stock of companies in Europe, Asia and the Far East, the most developed foreign markets. • The G Fund is…
Q: What happens to IRA basis when a Traditional IRA is rolled into TSP and there was a basis of $18,000 that was put into IRA after taxes? A: In order to transfer an IRA balance into the TSP, you must sign a statement saying that it contains no basis. If you did this, you basis is lost and all withdrawals from the TSP are taxable income.
Q. I would like to know if there are financial adviser services knowledgeable in federal retirements that can review a person’s current situation on a one-time basis and make recommendations. What would be a ballpark price range for this type of service and do you think this type of review is worth the effort? Basically, I have been doing most of my own financial planning and I am about 10 years from retirement and would just like an expert to do a one-time review. A. There are financial planners who specialize in federal retirement planning (I’m one), but finding them…
Q. I am having a hard time finding a retirement calculator for a federal retiree that can help me determine if my current retirement income (from 30 years under CSRS), plus my investments, will be sufficient for me and my wife. Most calculators assume one is still working, contributing to a 401(k) etc., and they want to sell you their investments products. Could you direct me to a calculator (if one exist) for a retired federal employee that allows one to input his yearly retirement benefit plus having allowances for adding inputs for investments with future returns so that I…