Follow-up to 'TSP advice'


Q. I am the CSRS retiree who turned 70 years old in July. My email was posted Aug. 19.

Boy, you have a way of really making a person feel small and stupid. I chose to start withdrawing my money so I wouldn’t have to be concerned about the 70½ deadline. These withdrawals were based on my life expectancy, and I knowingly started withdrawing my money a little ahead of time. I have not concluded that I am not receiving any gain from the G Fund with the Thrift Savings Plan. I wondered why I was taking such a significant hit from the fund with DWS Scudder, which is also a GNMA fund?

I have taken your advice, and my DWS Scudder IRA is now being processed to be transferred to my TSP account. I appreciate the advice, but you could have been a little less brutal.

A. Oh, please! There’s was nothing “brutal” about my answer. If you didn’t want an honest, direct answer to your question, you should have asked a banker, broker or insurance agent. Furthermore, I gave you good advice that you’re using to your advantage — for FREE! A simple thank-you would have been sufficient.

But I’m not one for carrying a grudge, so I’ll answer your additional question, which was not clear to me in your earlier question: The DWS Scudder fund lost money because it is a bond fund and is subject to losses in an environment of rising interest rates. The G Fund is not a bond fund and is not subject to the risk of loss. They are two different types of investments.


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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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