Refinancing, paying off using TSP funds


Q. I am retired (68 years old) under CSRS. We are thinking of refinancing our home and paying off the line of credit. If we include the settlement fees, we will be saving $5,474 per year, recouping our settlement fee within 1½ years. However, if we refinance without including the fees, we will be saving $5,916 per year. My husband wants to draw $8,000 from either his 401(k) (he is 68 also), or draw $4,000 from his 401(k) and my Thrift Savings Plan. I don’t want to touch these for a $42 a year savings. Are there drawbacks at our age to taking money out of these accounts?

A. You should be careful not to diminish the liquidity of resources that might be needed for cash flow in the future. From the facts you provide, I see no other inherent drawback to withdrawing the money.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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