Q. I am 59 years of age and will retire with 35 years of federal service (FERS) in five years. I have approx $250,000 in TSP. An advisor wants me to rollover $200,000 of my TSP funds into a fixed index annuity with ATHENE. He states if the market goes down it will not affect my monthly allotment. Why would I do this if TSP offers an annuity as well (single life) with lower overhead and surrender fees? In other words, is a fixed index annuity a better option than TSP’s single life annuity?
Browsing: indexed annuity
Q. I’m a career fed with young adult daughters who took advantage of myRA accounts. With myRA accounts closing out, I wish they could move their money to a TSP Roth, but they didn’t follow in dad’s (Fed) footsteps. Could you provide some guidance on where to find low-cost L Fund equivalents? For extra credit: Roth accounts also work as secondary emergency funding accounts for them as young adults. That flexibility provides a opportunity to put more funds into retirement accounts than might otherwise be comfortable. Both are currently eligible for retirement savings tax credits. Options that maintain that flexibility…
Q. I just heard a presentation on a Nationwide indexed annuity and was impressed by the historical returns, insurance company, no annual loss guaranty and right of survivorship. How might I decide if an indexed annuity is the right choice for some of my TSP funds? How might I fund an external annuity with TSP funds? I’m a 63-year-old enrolled in FERS with nearly 30 years of federal service, and I am looking forward to retiring in the next couple of years.