Drawing monthly payment from TSP in retirement


Q. I will not be retiring until somewhere between December 2018 and December 2019, but am thinking ahead and trying to plan how one should withdraw money from TSP in retirement if you want to use the monthly payment option. Can you specify that the monthly payment all comes from one particular fund? Does it make sense to put how much you expect to withdraw in a particular year in the L income fund and draw only from that fund and then adjust what you have in that fund annually? I would like to protect myself from market volatility but still have a significant portion of my TSP investments growing.

A. All TSP withdrawals are taken proportionally from the funds held in your account at the time the withdrawal is processed. You can closely “simulate” selective withdrawals by rebalancing your account allocation, immediately after a withdrawal, to what it would have been if you had been allowed to take the withdrawal as you liked.


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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 fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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