Відео

Retired 3 years ago SCE firefighter at age 54y/11mo. Moved 70% out of TSP C Fund to Vanguard stock index funds. Left 30% in the G Fund. It's my cash bucket and can withdrawal from it without penalty.. It made over 4% this year. It's good for some things. Side note: I've pulled $88k out since retiring and my portfolio is still up $107k.

Automatically putting people into the G fund was a bad practice. Target Date fund much better.

Utter corruption

I contribute to a Roth IRA and traditional 401k on my job. Can I open another Roth IRA independent of that with a brokerage firm without being penalized. I edited this post.

Wish I started earlier, but i needed every extra cent I could get at that time. Have one now though.

Thanks for the tips!

Why not just put it into a brokerage account and invest in dividend growth stocks? That way you continue to grow your principal while collecting dividends?

Very clear. Thank you sir

The double taxation of interest is not a material cost & should be the criterion for whether to take a TSP loan. To me, the main criterion to decide whether to take a TSP loan is what you plan to do with the loan proceeds. If you plan to take a vacation or buy a boat with the 💰, then the answer is “NO.” But if you took the loan proceeds & invested them yourself - in exactly the same mutual fund or other mechanism you have in your TSP, you’d be generating the same return in both cases. BUT, in the case of the taxable investment account, you could sell your shares after 1 year & your proceeds would be taxed at the LTCG rate (15%). Whereas, if you did the same thing within your TSP, your proceeds would be taxed as income (22-24%). But the biggest point is in the taxable account, only your gains are taxed, whereas with a TSP, the entire distribution is taxed. So, for example, assuming return rate of 25% (for comparison: S&P return for 2024 will be ~28-30%) in 2025, $50000 in your TSP would generate $12,500 in gains. Taking that amount ($62,500) as a distribution at EOY would generate a tax bill of ~ $15K ($62.5K * .24), leaving you with $47.5K after tax. But taking a $50K TSP loan & investing it in the same S&P index fund, but in a taxable account, generates the same proceeds ($62,500), but your tax bill is only $1875 ($62.5K * 15%), leaving you with $60,625 after tax. That’s quite a difference. And with the TSP loan, you could pay the CG tax ($1875), then repay the entire loan to TSP ($50K minus the 10 monthly payments you’ve made over the loan period), and have (at least) $10,625 of pure, tax-free profit that you can then use to fund a self-directed ROTH IRA to generate tax-free returns forever. That seems to be a pretty low-risk, high-return investment strategy to me. Please feel free to check my math & my assumptions. I’d love someone to show me how this is wrong because I’m thinking of doing it myself & don’t wanna take a 🛁 if i’m wrong.

C fund all the way! I’m 18 years to retirement and have no plans to move the money out of C.

Does my special provision years of service limit ( have 25 years at 50 years old) can include my military buyback years ( 6 years) or is it just counting federal civilian work time only ??

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Great video. Thanks!

Nice, thanks! Please clarify if this 5% is of Gross Pay or Net Pay? Another $31000 Deferral Limit is for Gross Pay, not Net Pay. Correct? How much would a deferral limit be for Roth? Agencies do not match if it is Roth. Thanks

I use this tutorial every time I do a rollover. Thank you so much for making this available.

do you have to wait until you turn 60 to change the contribution amount or can you change it at the beginning of the year? (ie: turning 60 in June. do I change it Jan 1, or do I need to wait until June?)

Yes I want to. Next. lol

Retirement becomes truly rewarding when you have two key components: a solid financial foundation and a clear sense of purpose. Making wise investment decisions is crucial to achieving strong returns and enjoying a secure retirement.

You tell me what Centra fl would say

Roth part of the TSP is under the rule of 55 as well? Or just traditional?

Retirement becomes truly rewarding when you have two key components: a solid financial foundation and a clear sense of purpose. Making wise investment decisions is crucial to achieving strong returns and enjoying a secure retirement.

Rolled mine into a IRA then started backdoor Roth conversions. Been fully retired for 2 years, retired military at 47 and then from WA state at 54. Living off military retirement, VA and taxable savings till full retirement age for SS. Dumped TSP due to the horrible inheritance rules with it. Everything will be in Roth for leaving to the grandkids so they will have 10 years to withdrawal verse the huge tax burden they would be stuck with if left with TSP. Also rolled the WA PERS 2 plan into a IRA for backdoor Roth.

You could put in a lifecycle fund 10 years past retirement date to manage risk-reward. takes a lot of burden off of you trying to pick funds in a brokerage account. elect monthly distributions from tsp for steady income. you can leave in tsp past retirement to see how it works.

All the old guys would talk about retirement and they only live five years before they died

Brad, great info on this. It’s a topic that is rarely covered. The $37k looks to have grown to just over $40k. I joke that my survivors get more money if I pass before retirement. Another thing survivors can receive is the last pay check and payment for any unused annual leave.

one can enter the financial address for TSP rollovers on the TSP web site before doing the steps to request a rollover. Once logged in, go to "financial institutions" under the quick links, and the entered address can be used in 7 days. This way, one does not have to go through all the rollover steps twice.

100% C fund 7 years 7 months. Very happy with my balance

so 55 years old and 30 years service, I qualify? regardless of what year I was born, like 1970?

Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.

I think the expense ratios do change occasionally. I believe the old “I Fund” was much higher.

Hi, I retired at age 58. I withdrew $60,000 and they gave me $42,000 That was 30 percent. I have spent it. I didn't roll it over. Of that $6,000 extra I believe I have lost $1,200 in earnings from that extra $6,000. I told tsp that I thought I could withdraw my money without the irsb10 percent penalty by taking it before 59 1/2. They said I was wrong. Can you explain what happened to me perhaps?

How does TSP determine the funds (e.g., Fund F, Fund S) from which the transfer will be drawn? Thank you!

With a mix of stocks reits, cef, etf. That can avarage 9% return on dividens with out loosing the Nav. You could basicaly make twice that if draw down your nav over time. Or prserve it to pass on to survivors. Annuity no way! I'm making $800 a month now in dividens 150,000 invested.

within the year I turn 55? I turn 55 in December, but wait four months into the next year to retire. Is this rule meant while I'm the age of 55 with 30 years? Or does it mean I only have a couple weeks to withdraw my tsp?

Wyman Mountain

Good points, Brad.

Good video. Thank you!

Great video. Thank you.

Legros Viaduct

Help! Im a fed set to retire FERS on 12/28/24. Selling back 440 hrs leave but need that check into next tax year. But congress kicked Govt funding CR to 12/20/24 and must act again or govt shutdown threat (could happen who knows). If govt shuts down, OPM stops processing retirements, is it possible my retirement gets pushed involuntary to 2025 and then i may lose my 208 use/lose leave hrs due to not being able to retire end of this year? If threat is real, should i move retirement date to end of Nov24 instead? Not an issue but messes with IRMAA rules because 2024 tax income year is the 2 year look back year they will look at for Medicare payments when i turn 65 (in 2 yrs). I dont want more income this year so maxing out TSP for remainder of 2024 with entire paychecks. OPM retire papwrk enter next week. ... will post election fiasco shut govt down and delay my retirement processing??

Also, what’s the benefit of keeping of the TSP account? Thanks

Thanks for the info, you didn't mention anything about withdrawing money from an IRA after age 59.5. Is it possible to withdraw money from an IRA when needed? ?

Trying to rollover to fidelity. I added the institution waited seven days and went through the distribution. After submitting, I get a message to contact tsp and the process could not be done on line.

Thanks Brad. The most frustrating thing about the TSP is that inability to withdrawal from specific funds. Does this interfere with retirees Rule of 55 because you move funds to an IRA having to wait until 59 1/2? Do you have to wait to 59 1/2 to withdrawal from the IRA you transferred funds? Thanks!

Where on the LES i can see my overtime that Ive earned?

Taxes are low right now, so I'm investing in Roth TSP (not maxing) Roth IRA (maxing) and funding a brokerage account (bridge account).

1. This video is talking about "Tax Diversification". These are NOT "instruments" (instruments are specific financial investment). 2. Generally the decision to "Roth" or not is mostly a factor of the present tax rate (including fees, IRMAA, etc.). 3. Generally, as people progress in careers their income (hence their tax bracket) goes up, making "Traditional" a more cost effective option. Roths are usually more effective when earlier in your career (i.e. earning less income). 4. Roth IRAs can also have beneficial estate planning aspects. Remember: "Money Doesn't Grow on Fees".

Instead of maxing out your TSP, you could open a Roth IRA and put $7k or $8k in a year. That way you can invest in whatever you want with using the expensive TSP "window". It would also give you more flexibility investing and withdrawals. Of course, do this after you've reached your 5% matching.

We elected to do the SBP when my husband retired from the military. He is now getting ready to retire from the government and must elect for SBP. Can you recieve both if you pay into both?

Guillermo Harbors