Stock risk


Q. I retired nine months ago after 35 years of federal service. I am a CSRS annuitant. I am unsure of the best avenue to take regarding the opportunity to withdraw all or some  of my TSP when I am 59-1/2 (I will be 56 in August). Like any investor, I am worried about the repeat of the 2008 stock market failure. I am considering withdrawing half of the balance and moving it into my money market account and converting the balance into a lifetime annuity.
A. I suggest that you use the TSP’s G Fund instead of money market, and delay purchasing a fixed annuity until interest and payout rates are higher. You should be concerned about a market crash, but the best way to defend your account against this risk is to use the G Fund as a safe harbor, and the F Fund as a hedge against stock risk. Do you even need to be invested in the stock or bond markets to safely achieve your financial goals? If you’re not sure, you can contact me directly at for help.


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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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