Q. I’m trying to decide how to withdraw my TSP. I really do not need the income at this time. I’m 60 years old with no dependents or heirs. I have about $240,000 in my TSP. Is it possible to buy a life annuity with half now and take monthly payments later? I was also considering a life annuity with increasing payments and 10-year certain. Or would it be better to do monthly payments? From what I understand, I can adjust the payment once a year.
A. You want to know how best to produce income that you don’t need? My advice is that you defer the decision about how best to withdraw your money until you need the income. This is an unattractive time to buy a life annuity, and the options may change by the time you need the money.