The Best Place for Your TSP once You Retire

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  • Опубліковано 3 гру 2024

КОМЕНТАРІ • 300

  • @luckypenny4263
    @luckypenny4263 Рік тому +18

    I am 100% in agreement I am not a fan of annuity either

  • @g2u499
    @g2u499 2 роки тому +43

    thank u so much for all this infos... i retired at 57 yrs with 31 yrs of service.... TSP is my little wealth plus my home, so im glad you giving us all this free information. You're a blessing Sir.💕

  • @taijitu123
    @taijitu123 Рік тому +54

    One thing he did not mention. TSP and 401(k) accounts have protection from creditors and lawsuits that IRA's do not. have.

    • @ellenlundy747
      @ellenlundy747 8 місяців тому +4

      In Florida your IRA is also protected.

    • @CSCINF
      @CSCINF 6 місяців тому +3

      I didn't know that

    • @enr3334
      @enr3334 5 місяців тому +2

      Protections are state specific.

    • @michaelp.4831
      @michaelp.4831 3 місяці тому

      Exactly my thought....

    • @davejanas948
      @davejanas948 2 місяці тому

      I saw what you did. There.

  • @silkysmooth8165
    @silkysmooth8165 2 роки тому +55

    I always enjoy your videos because you explain things simple so everyone can understand. I will be retiring next year at age 57 with 35 years of government service and all your videos I'm taking notes. Keep up the good work and thank you.

    • @calvinhaynes5781
      @calvinhaynes5781 2 роки тому +4

      You have done a great job. Are you a TSP millionaire? If not how close did you get? What funds were you invested in?

    • @silkysmooth8165
      @silkysmooth8165 2 роки тому +5

      @@calvinhaynes5781 Stock market took me down just a little but I'm still good with the amount I have in it plus my savings are good as well. I invest in all the funds some will say oh no you should've did this or you should've done that but my amount shows me I did alright with my choices. That's why I don't have to wait and retire at 62-65 years old, you should always have more than one area with touchable funds.

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  2 роки тому +2

      That is awesome! Thanks for watching!

    • @vweary
      @vweary 2 роки тому +2

      Me too , 36 years !

    • @luckypenny4263
      @luckypenny4263 Рік тому +1

      Yes I feel the same way this guy is the best I have ever listen. So honest s d straight forward

  • @wt2351
    @wt2351 Рік тому +17

    This an excellent video. I didn't know Federal employees could take their TSP out without any penalties as long as they hit 55 years old and meet their retirement requirements. I had always thought we had to wait until 59.5 to start retrieving from the TSP.
    I can retire at 55, but I'm planning to wait until 57, so I don't get the 10% penalty taken out from my pension (5% per year). I always thought I would get my pension, plus the FERS supplement at 57, and then I had to wait until 59.5 to start retrieving money from my TSP. Extremely happy to learn that is not the case and I can get all three (3) out at the same time. Well, FERS and FERS supplement and start retrieving TSP as soon as I retire at 57.
    It is sad that Federal employees are not provided with this information. Thanks for your channel and all the excellent information you are providing for us.

    • @sammondaw
      @sammondaw Рік тому

      It is nice that we don't have to wait until age 59.5. I always thought that the only way to get it prior to that age with penalty would be with the IRS 72T provision/ rule.

    • @adrienneward3342
      @adrienneward3342 11 місяців тому +2

      You must be retired to avoid the early withdrawal penalty.

  • @joseCalderon1976
    @joseCalderon1976 Рік тому +9

    Once I retire at around 62, I'm 99% sure that I will roll over my TSP traditional and Roth to an IRA and a Roth IRA. After that, I would convert my traditional Roth to a Roth IRA slowly so that I wouldn't have to pay all the taxes at once or be thrown into a higher tax bracket by mistake. I only wished that all my TSP was in the Roth TSP, but that is not possible because I barely started the Roth TSP when my account was already around $60k. And the feds matching 5% always goes into the traditional. Thanks for the video! 8:28

  • @dmoon9037
    @dmoon9037 2 роки тому +9

    I liked your coverage of the rule of 55 (great to keep some TSP funds in place just for that purpose of pre-59.5 penalty-free withdrawals, a perfect way to spend down traditional dollars to get ahead of that RMD curve coming down the pike). You also mentioned trad-to-Roth IRA conversions, such an important facet of the long-term plan, especially for fed workers with taxable pensions. Thorough coverage, glad I subscribed!

  • @curtissmith7449
    @curtissmith7449 2 роки тому +7

    I appreciate the very thorough advice on where to put your money after retirement

  • @impala6464
    @impala6464 2 роки тому +19

    I can't wait to have these kind of problems.

    • @mattborden1816
      @mattborden1816 2 місяці тому +1

      You’ll have them before you know it…..Just make sure out TSP, and use the “catch up” provision to max. It. Out.

  • @rickevans3620
    @rickevans3620 2 роки тому +8

    A couple things he left out. If you retire under the Safety officer program you get your TSP penalty free if you retire in the year you turn 50 not 55. That is for Firefighters, Secret Service, Air Traffic Controllers... Also you don't have to do an all or nothing when transferring out of the TSP. When you retire you can get more free dinners from investment firm seminars that want your money. If you want to roll money out of your TSP for more flexibility such as a Traditional IRA or even a self directed IRA always keep a small amount in the TSP. As long as you do that you can always roll back in to the TSP. I have never seen less management fees than the TSP. They will always be low because the Federal Government wants TSP funds high to offset other Governmental areas. Edward D Jones, Thrivent, Ameriprise and all the others will charge a much higher fee.

  • @jonathanwallace6667
    @jonathanwallace6667 Рік тому +8

    Let's say you have a million in the traditional TSP. I'd direct rollover 75% into a traditional CD IRA. I've seen some at 5% for 5yrs. Have that interest deposited monthly in my checking account. Of course it would be with several credit unions for NCUA protection. Simple guaranteed income locked in for 5yrs so there's flexible without all the fees and commissions of annuities. The other 25% exposed to market for continued growth.. or whatever mix works for you. Then add SS and pension. Really great if your debt free also.

    • @sevenson99
      @sevenson99 Рік тому +2

      If you withdraw 75% after retirement, you will pay income taxes on the entire 75% for the year of withdrawal.

    • @notmeee7302
      @notmeee7302 Рік тому +4

      He said roll over not withdraw. When you roll it over you do not have income taxes.

  • @dorabradford4727
    @dorabradford4727 Рік тому +2

    Your videos are always helpful to me as a retired Federal Employee

  • @stevedavis3370
    @stevedavis3370 2 роки тому +7

    Very helpful and informative! Thanks for putting in the time to make these videos.

  • @tedsamson9152
    @tedsamson9152 2 роки тому +18

    I just retired from federal service and very much appreciate your videos. You have a great knack for untangling the nuances of investment opportunities and offer some great advice about how to make the best decisions based on our own personal circumstances. I honestly have found retirement much less stressful because I now possess so much more concrete knowledge of how to be smart with my money in retirement. That is in large part thanks to this channel! Thank you!

    • @paratroopergirl4064
      @paratroopergirl4064 2 роки тому +2

      Are they still backed up on processing retirement requests? How long did yours take? Thank you...

    • @s.c.6367
      @s.c.6367 2 роки тому

      @@paratroopergirl4064 Since the change of the TSP and requirement of the new login procedure May16. I have not been able to access my account. I am very recently retired. I need access to my life savings. I have spent 45 hours on the phone since June 7, 2022 with the helpline, still no resolution in sight, Any suggestions? You cannot get the form75 online to make withdraws or roll to IRA.form 99 after separation.. They said they would mail them to me on three separate occasions I have not received any. The first request was submitted on June 16 it is now July 6.

    • @paratroopergirl4064
      @paratroopergirl4064 2 роки тому

      @@s.c.6367 --- Just give tsp a call. They will walk you through the new process.

    • @paratroopergirl4064
      @paratroopergirl4064 2 роки тому

      @@s.c.6367 ---- Ask to speak to a supervisor and calmly explain your needs and verify your address.

  • @ivysapphire6944
    @ivysapphire6944 2 роки тому +4

    I have my Roth account with Fidelity for more flexibility and growth potential. More than likely I'll move my TSP to Fidelity. Good information Thanks!

  • @richardallen1816
    @richardallen1816 2 роки тому +6

    I am rolling some, but the majority of mine is staying with TSP. When insurance companies decide not to charge me anywhere from 15 to 35% in fees to annuitize, then I will consider them.

  • @rlloyd69
    @rlloyd69 2 роки тому +8

    Awesome info. This one is going in my favorites for future reference. I WILL retire at 56 and 10 months (my MRA). I’ll have 36 years. I never thought about the last thing you said. Thanks for the info.

  • @faustogonzalez8397
    @faustogonzalez8397 Рік тому +4

    Another outstanding video, thank so much !!

  • @gregthomas2448
    @gregthomas2448 2 роки тому +5

    The rule of 55 is like holding a winning lotto ticket. Thank you whoever designed this golden ticket.

  • @pennguino9137
    @pennguino9137 2 роки тому +6

    Great video. Picked up some great knowledge.

  • @benjaminjohnson1693
    @benjaminjohnson1693 2 роки тому +17

    Great video. An annuity is insurance, not an investment. I totally agree with you. I like the flexibility of a Roth IRA and Traditional IRA. There are some excellent low-cost Vanguard mutual funds similar to the C, S, and I Funds. Vanguard also has some excellent dividend-paying mutual funds. I'll probably keep in the G Fund whatever I leave in my traditional TSP and just use it as my cash bucket. I'll roll everything else into ROTH and Traditional IRAs. Thank you.

    • @lindad6223
      @lindad6223 2 роки тому +3

      I'm moving a chunk right now!

    • @ajwhite8235
      @ajwhite8235 2 роки тому

      I’m under mandatory distribution age, retired and not drawing Social Security yet. Am using this time to convert some of the Traditional portion of TSP to Roth at Vanguard. I wish the conversion can stay in TSP but that isn’t currently an option. At mandatory age, will roll the Roth TSP into Roth Vanguard, pay the minimum distribution amount and maybe convert over and above to Roth Vanguard. Unlike most Roth accounts, we HAVE to get a distribution or rollover outside TSP.

  • @404TRUCKERTV
    @404TRUCKERTV Рік тому +2

    Wow I was set on TSP but I'm convinced that I may roll it over to my old 401k when I worked in corporate. Everything is the same except it has more control.

  • @user-qd5tq1ck4w
    @user-qd5tq1ck4w Рік тому +3

    Had not thought about losing the benefits of the 55 rule if you rolled your TSP into an IRA. Thanks for the great info!

    • @studimeglio7110
      @studimeglio7110 10 місяців тому

      Look into it also. I believe tsp won’t allow you to transfer to an IRA until 59 1/2.

  • @RedEyeC
    @RedEyeC Рік тому

    Income (immediate) Annuities DO make sense, and are a great addition to a retirement - WHEN they aren't the only source of a retirement portfolio. Tip - do your annuity homework and research yourself to avoid a financial planner / broker making a commission. A good 20 year certain period Income Annuity right now will pay 50% over your initial investment amount over the 20 year course.

  • @dmoon9037
    @dmoon9037 2 роки тому +3

    Great play, leading with annuitization (totally didn’t expect to hear that).

  • @gonzalezwalter9799
    @gonzalezwalter9799 2 роки тому +2

    Thanks a lot for your videos that help us to make better decisions. I going to retire at the end of this year, I am 68 years old and I had been loosing money , And I feel confused to the next move I have to make , but this video show me that the right thing to do is move my tsp to the Ira. Thanks again for your great information

  • @67polara
    @67polara 4 місяці тому +1

    Super informative thank you. I’m 61 and learned a lot.

  • @qdog568
    @qdog568 9 місяців тому +2

    Just spoke with a retirement planner. Suggested I leave half of my tsp in the tsp, and the other half in a fixed deterred annuity. After watching your video and soon to be retiring at 56, I just may leave it all in the tsp. I want simplicity. I'll screw things up. What say you? Thanks for keeping it simple for me.

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  9 місяців тому +1

      Thanks for the feedback! Sometimes simplicity is a much better option. What's most important is that you're happy now and in retirement and that you find a plan that works for you.

  • @esteban1487
    @esteban1487 Рік тому +1

    When I retired I put it all in the G fund for safety pending my military reserve retirement kicking in. Then I'll reallocate it to the C. S, and I funds.

  • @sscrew3806
    @sscrew3806 2 роки тому +7

    I find it kinda sketchy how the TSP opened up the mutual fund window but we still can't get a TSP to TSP Roth conversion.

  • @Sean-jb5gi
    @Sean-jb5gi 2 роки тому +8

    Rental income comes in regardless? Ask Landlords about their 2020 and 2021 rental income.

    • @dirtfarmer7070
      @dirtfarmer7070 Рік тому

      This depends on the quality of tenants....no problems throughout the pandemic with rents from upstanding renters.

  • @puravida5683
    @puravida5683 2 роки тому +6

    I'm retired. I had great strategies and success investing in the TSP. One thing I and many others were not prepared for during retirement, the tax strategies of withdrawing from the TSP and other income streams. Which could effect your social security taxation and Medicare premiums. I had to get up to speed very quickly in terms of taxation education during retirement!

    • @hymntubeme
      @hymntubeme 2 роки тому +1

      Great info and can you provide an example?

  • @edmundfong7288
    @edmundfong7288 2 роки тому +2

    Agree best to keep TSP in place in current BEAR market, to have IRA and annuity Options. Agree MetLife offering only income/annuitzation products are poor choices. If we're lucky, the FERS pension and Social Security are better income annuities. Use my Fidelity IRA from non Federal work to buy "CD savings" in Accumulation annuities (MYGA/FIA) as well as make Roth Conversions in 12% bracket. Everyone's situation is unique, maybe the current TSP log in troubles remind us not to manage what we cannot control, but I am surprised that TSP stopped providing dollar estimate of annuitization of our TSP balances in the year end statement . Also, the new Mutual Fund window is a disincentive to keep TSP in place but wait after recession before moving to IRA.

  • @nuleafonlyfe04
    @nuleafonlyfe04 2 роки тому +13

    Just leave it in TSP. I never understood why ppl move their funds.

    • @DannyWalker247
      @DannyWalker247 2 роки тому +4

      Agree 100%. I retired at 55 and just left it there. I worked another job so I had enough income. Now I am fully retired and have started taking my RMD's. It just worked great for me. These financial advisors just complicate things and most people who go with them wish they hadn't.

    • @rogerdoger9939
      @rogerdoger9939 2 роки тому +2

      In the past, the TSP and rules that made withdrawals more difficult than money in an IRA. Things are getting better.

    • @ChrisWilliams5605LS
      @ChrisWilliams5605LS 2 роки тому +1

      As Dalan mentioned, if you have money in the tsp Roth, one will be required to take RMDs. However, if one rolls that to a Roth ira, then no rmds on those funds.

    • @lizamimi
      @lizamimi Рік тому

      I was told that leaving it in the TSP works against your beneficiaries. When paid, the beneficiaries must include the money as money earned on their taxes; they cannot receive the money in increments like a traditional IRA.

    • @willieb4287
      @willieb4287 2 місяці тому +1

      Trump said he will make social security tax free! That would be something if true!

  • @korinaruiz9735
    @korinaruiz9735 5 місяців тому

    thank you so much
    i am so grateful I found you. My husband is a federal employee and will retire in the next 3 1/2 years w 333 years of service
    your videos are extremely helpful

  • @margaretmarshall3645
    @margaretmarshall3645 2 роки тому +10

    It IS pretty annoying that the TSP doesn’t let you choose which fund to withdraw from. But it’s pretty easy to take a withdrawal and then promptly do an inter fund transfer to get the same result. So not really a big con.
    I DID move the Roth portion of my TSP into a Roth IRA though, to have more control over whether I withdraw from the tax-free Roth investments or the regular tax-deferred side where withdrawals are taxed at ordinary income rates. That’s where the TSP’s “pro rata” rule truly impacts your choices.

    • @Bandboxxer-v3n
      @Bandboxxer-v3n Рік тому +1

      Margaret, you cited my complaint with TSP withdrawals. When working and contributing to the TSP, you can designate which funds you contributions should be allocated to. The idea that when you start taking distributions from YOUR TSP, you lose control of YOUR TSP seems absolutely ludicrous. I understand your suggestion of rebalancing with an interfund transfer is not that difficult, The abundance of low fee equivalents to the TSP funds led me to entirely rollover to traditional and Roth IRAs.

  • @Ben78255
    @Ben78255 7 місяців тому +1

    one can address the pro-rata withdrawal (C fund and G fund example) by doing an allocation from G fund to C fund immediately following the withdrawal.

  • @karleenstamps8302
    @karleenstamps8302 Рік тому +1

    hI, I KNOW YOU SAID WITHDRAWS COME OUT PRO RATA BUT I JUST LOOKED AT THE TSP WITHDRAW OPTIONS AND IT DOES GIVE YOU THE CHOICE IF I COULD ATTATCH A PIC I WOULD.

  • @musataofikalabi.m.7140
    @musataofikalabi.m.7140 2 роки тому

    Thank you. My HOLY REGARDS to you JUMIAPAY in my COUNTRY NIGERIA.REGARDS.

  • @blade7658
    @blade7658 Місяць тому +1

    SPIAs do NOT have massive commissions. Also, 33% of retirees need secure, guaranteed income to sleep well at night (per Wade Pfau's research). For them, a SPIA could make sense. Yes an annuity doesn't bring the highest possible returns, but the reason you are making a higher return is you are taking on more risk. A lot of people think they have a high risk tolerance, until a big drop happens.

  • @creolelady182
    @creolelady182 10 місяців тому +1

    I had to take out about 4 thousand dollars out of my TSP but I am over 65. The taxes were 800 dollars but I received the 800 dollars back when I filed my taxes because I was under the threshold by he IRS of yearly income

  • @kevinmcnally3811
    @kevinmcnally3811 2 роки тому +4

    One more TSP rule that really bothers me if I pass on before my wife and how it works when she passes on. From the TSP beneficiary booklet, "Death benefit payments made from your beneficiary participant account must be paid directly to your beneficiary(ies). These payments are subject to certain tax restrictions and cannot be rolled over to an IRA or eligible employer plan. In addition, your beneficiary(ies) will have to pay the full amount of taxes on the taxable portions of the payment in the year it is received." My wife and I want to pass on an inheritance to our kids, but they would be hit with huge taxes all in one year. Isn't this also a good reason to move my money out of TSP and into a Vanguard or Fidelity IRA?

    • @calvinlim9485
      @calvinlim9485 2 роки тому

      I don't see that clause in there. The direct beneficiary (spouse and non spouse) can put it into an inherited IRA. There's no lump sum issue that I can spot. I think it's misinformation that IRA companies or "financial advisors" push so that they get their pound of flesh and convince people to pay them 1% AUM

    • @toddbaker9922
      @toddbaker9922 Рік тому +1

      I will be definitely scrutinizing how the TSP would be disbursed if I were to die before my wife because, at least initially, I expect to leave my retirement account invested in TSP to enable withdrawals before 59.5 years old.

  • @wallys7016
    @wallys7016 Рік тому

    Can you expound more on the Roth conversion please in a video from TSP? How does your firm work with Federal employees? Are you a fiduciary? How do you get paid? Do you specialize in dealing with Federal employees? What’s your strategy? Qualifications that make you able to work with Federal employees? References? Thanks

    • @alrocky
      @alrocky Рік тому

      @ 6:30 Traditional TSP conversion to Roth TSP is not allowed. Contributing to Roth TSP is effectively similar to t-TSP conversion to Roth TSP. Video references traditional IRA conversion to Roth IRA. Note as default it's likely better for most people to contribute to Roth IRA instead of traditional IRA.

  • @hangarby10
    @hangarby10 10 місяців тому

    Thank you; this is very helpful!

  • @davek7640
    @davek7640 Рік тому +3

    If you do shift to a Roth IRA, isn't there a "five-year rule" meaning that you cannot withdraw from that Roth without penalty unless you held it for more than 5 years??

    • @notmeee7302
      @notmeee7302 Рік тому +1

      That is what I understand as well. I rolled my TSP into self-directed IRA precious metals account. But there are ways to set up entities and leverage that as long as the money made goes right back into it

  • @freddyhollingsworth5945
    @freddyhollingsworth5945 Рік тому +1

    for Medicaid planning, if you dumped your $482,000 TSP into an irrevocable annuity, would the remaining balance still count as a resource?
    Also going into an annuity, if the market crashes down to almost nothing...2008/2009 again, you will still get your same monthly income for life with 100% certainty and not have to worry at all, or could the insurance companies go bankrupt and default, or is the money deposited into a safe "state regulated" account?
    Thank you!!

  • @MENTAW8
    @MENTAW8 Рік тому +3

    Your Option 2 is very smart. Glad you highlighted its simplicity (and I'd add that it has extremely low fees compared to so many other options). Also, we can balance withdrawal % between Traditional and Roth ... which is nice. We were able to fully retire at 42 thanks to TSP's no penalty monthly withdrawal option. Withdrawal amounts are based on a life expectancy calculation. "Give, save, then spend" is the best financial advice anyone ever gave us. TSP was a great way to save!

    • @Yette
      @Yette 9 місяців тому +1

      Maybe educated yourself, TSP fees used to be low. They are not low now compared to index funds at Fidelity or Vanguard. TSP fees are literally 7 times higher than an S&P 500 index fund

  • @randydeasy9049
    @randydeasy9049 Рік тому +1

    When you move a TSP over to say a Roth IRA you still have to pay taxes and now you are subject to the 10% fee when you withdraw as opposed to the TSP so I am not sure of the benefit other than a bit more flexibility.? Husband is retiring at 60 with 38 yrs in.

  • @SpaceTech54
    @SpaceTech54 2 роки тому +1

    Remember, Haws is still there to make money... (You may also make more money - with risk and stress - all a balance you must accept)

  • @fessit
    @fessit Рік тому

    Very Helpful. Thanks!

  • @dmoon9037
    @dmoon9037 2 роки тому +4

    What’s important to mention is that this isn’t necessarily a choose-one-of-these-3-places affair. A retiring fed employee with a TSP (perhaps a combination of traditional and Roth dollars) could do with all three options, some portion of the TSP source balance split among those three options. I’m tracking your point about annuitization not being a major priority for those with solid fed pension and SSA benefits, but an annuity choice doesn’t have to be an immediate/income annuity. When one is establishing or tweaking a post-retirement asset allocation, the fixed income allocation could include a fixed rate annuity (industry calls them MYGAs) and get a solid guaranteed fixed income return that contributes to that slice of the allocation pie. Commissions chap my hide as well, but MYGA commissions are low relative to those Byzantine variable and fixed index annuity commissions, and MYGA rates are superior to other guaranteed fixed rate deposit products, and certainly are not volatile like conventional bond products.

  • @DJAYFLY
    @DJAYFLY 2 роки тому +1

    I canceled a Insurance policy @304k with the 30 day no penalty return. They sent me a check of the full amount I rolled over. What do i do with it as far as taxes go. I would like to know more about IRA'S.

  • @emmagalicia7321
    @emmagalicia7321 8 місяців тому

    Love your videos. Content very useful and on point.

  • @RichardSpaller
    @RichardSpaller Рік тому

    Could you do option 4 which is a combination plan? Keep some in the tsp for immediate access in case you need some. After age 55 you can make penalty free withdrawals. You can also rollover a portion to turn it into guaranteed income down the road (deferred annuity) with no fees and rollover part into a Betterment IRA or Charles Schwab to continue growth of the TSP $$, once again low fee.

  • @markmurrell1894
    @markmurrell1894 Рік тому +5

    The new tsp website is horrendous

  • @billeagle51
    @billeagle51 Рік тому +1

    Good info👍👍👍

  • @exvan3571
    @exvan3571 2 роки тому +1

    McMissin' the G Fund interest calculator (stopped clock) 😀

  • @calvinhaynes5781
    @calvinhaynes5781 2 роки тому +4

    Haws; say I’m 65 and I have 1.6 million in my fund (C,S,I, & G). Can I move it all to the G fund and take my monthly contributions from there?

    • @calvinhaynes5781
      @calvinhaynes5781 2 роки тому +1

      @@erickarnell thank you…

    • @erickarnell
      @erickarnell 2 роки тому +4

      @@calvinhaynes5781 Having it all in G fund you lose opportunities for growth.

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  2 роки тому +1

      Feel free to submit your question here: hawsfederaladvisors.com/question-submission-page/
      This is where we get topics for future videos

    • @DannyWalker247
      @DannyWalker247 2 роки тому +1

      You can move into the L Income Fund. It is the most conservative of all funds and provides current income and some exposure to equities to take advantage of potential market growth. Of course if you like you could go with the G Fund solely. Interest rates are rising right now so you will not get hurt there.

    • @tenawoods
      @tenawoods 2 роки тому

      @@erickarnell what growth? There has been none since Nov 22

  • @dshep832
    @dshep832 23 дні тому

    Good information. Thanks for sharing. What’s the annual fee for TSP?

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  23 дні тому

      Great question. Here is a link to the fees for each TSP fund: www.tsp.gov/tsp-basics/expenses-and-fees/

    • @dshep832
      @dshep832 22 дні тому

      @ thank you!!

  • @barrysmith5143
    @barrysmith5143 2 роки тому +1

    what is your view of fixed index annuities, as opposed to a traditional annuity?

  • @md-crab7379
    @md-crab7379 2 місяці тому +1

    You can make withdrawals from tsp at age 55 and separated from federal service without a penalty but if I move the tsp to an IRA I would have to wait until 59 1/2 to avoid the penalty?

  • @PHargis670
    @PHargis670 2 місяці тому

    How does Pro-rata work when you have part of your TSP in roth, and most in traditional? Can you withdraw funds from the taxable accounts only? I am trying to use the Roth TSP for those unexpected expenses that come up in retirement.

  • @arnoldgonzalez9024
    @arnoldgonzalez9024 11 місяців тому +1

    If you're special category the rule of 55 doesn't apply. You can start collecting TSP penalty free with 25 years at any age or 20 at 50.

    • @DF-ec9de
      @DF-ec9de 7 днів тому

      Yes you’re correct I fall in that category.

  • @bryansmith9163
    @bryansmith9163 2 роки тому +2

    I have a roth IRA and tsp roth. When can you roll the tsp roth into the Roth IRA?

    • @benjaminjohnson1693
      @benjaminjohnson1693 2 роки тому +3

      When you turn age 59.5.

    • @bryansmith9163
      @bryansmith9163 2 роки тому +1

      @@benjaminjohnson1693 nice thanks

    • @aaront936
      @aaront936 2 роки тому +3

      @@bryansmith9163 you can roll it over as soon as you separate from federal service. Both roth tsp and roth iras can't be accessed until 59½. Plus the roth ira has to be opened for at least 5 years prior to withdrawal.

    • @rogerdoger9939
      @rogerdoger9939 2 роки тому +1

      @@bryansmith9163 you can roll it over after you leave government service. If you retire at 57, you can roll it. If you are still working at 61, you can not roll it.

    • @lindad6223
      @lindad6223 2 роки тому

      @@rogerdoger9939 are you sure about that? I'm 61 and setting that rollover up. (have to wait 7 days after setting up the transfer info... ugh!)

  • @ad70preterist
    @ad70preterist 8 місяців тому

    I like your tie.

  • @Batuki07
    @Batuki07 2 роки тому

    A little too late I am on my second paycheck from tsp and I wish I knew about that rule that you said about
    The annuity

  • @dianneluiz9284
    @dianneluiz9284 Рік тому

    Hi, thanks for the info. I did retire in the year I turned 55. I have an outstanding TSP loan what would be a smart strategy for this situation. With respect Thanks

  • @williamgallagher3278
    @williamgallagher3278 29 днів тому

    This is from the TSP web site "Also, your Roth balance isn’t subject to IRS required minimum distributions (RMDs), which means you can keep your Roth contributions and earnings in your TSP account as long as you want". Has this changed?

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  29 днів тому

      Great question. No, this has not changed.

    • @williamgallagher3278
      @williamgallagher3278 28 днів тому

      @@PlanYourFederalBenefits I thought the video said we would have to have RMDs from ROTH TSP...maybe I heard it wrong.

  • @dalecurtis5660
    @dalecurtis5660 Рік тому +1

    Let's see right now TSP 60% C and 40% G, $500,000 Fidelity (managed) $40,00 in ex employer 403b....am I set up for retirement @65... currently 62....oh yeah carrying way to much Credit Card debt (30,000)

  • @tyranlawson1088
    @tyranlawson1088 11 місяців тому

    Have You done a video on Samba term life

  • @michaelrusso8493
    @michaelrusso8493 2 роки тому +1

    What if I retired early on ssdi
    at 50 with a tsp. Do I still qualify for withdrawals at 55 with no penalty? I also put in 25yrs of service. Thanks

    • @gregthomas2448
      @gregthomas2448 2 роки тому +1

      Google 55 Rule. You can take it all out without 10% IRS penalty, however, you still pay income tax unless you roll into IRA.

  • @SteveF-ht9du
    @SteveF-ht9du Рік тому +1

    I am currently planning to retire at 62 which is also when I will have 10 yrs of federal service. If I roll my TSP to an IRA, at 59.5, will I incur the 10% penalty? Would it be better to leave my TSP alone and roll it when I retire?

    • @Yette
      @Yette Рік тому +1

      You can not take money from TSP until you retire, unless you take a loan which obviously must be repaid. If you plan to retire at 62, there is no penalty to roll your money from TSP to an IRA

    • @SteveF-ht9du
      @SteveF-ht9du Рік тому

      @@Yette you can withdraw at 59.5.

    • @Yette
      @Yette Рік тому

      @@SteveF-ht9du correct

    • @lizamimi
      @lizamimi Рік тому +1

      I was told the term is “transfer” not “roll over” as roll over will incur penalty, transfer will not.

  • @spencerrushin8896
    @spencerrushin8896 Рік тому

    Is it possible with the traditional tsp funds that are held to pull all of it in lump sum and pay the with the tax and be free and pull the rest that is tsp Roth at retirement at 65 or older and just pull all the money 💰 and put it in personal bank savings account then and not deal with any cons? Basically just take the money and run

  • @michaelvadney5803
    @michaelvadney5803 2 роки тому

    Thanks Dallen!

  • @davemelanson1837
    @davemelanson1837 3 місяці тому

    The financial planners that are fans of annuities tend to be the ones who sell annuities and make those massive upfront fees.

  • @Jimbo10250
    @Jimbo10250 2 роки тому +1

    I'm in Alabama. Do you provide service there? Great videos!

    • @scottschulte1157
      @scottschulte1157 2 роки тому +1

      He would work with you via Zoom or something similar I'm sure.

  • @jeannineandmarcmason5024
    @jeannineandmarcmason5024 2 роки тому

    Is it possible to migrate money from your TSP into a Roth IRA from age 62 thru age 72) that is part of a revocable family trust? If so, how would that best be accomplished?

  • @petervanhorn5441
    @petervanhorn5441 2 роки тому +9

    The best feature of the TSP is the G fund which has a risk-free rate of return better than any IRA money market fund. I plan to keep my cash in the G fund during retirement and move my stock and bond investments to IRAs.

    • @gieb6428
      @gieb6428 9 місяців тому

      I believe at the present (feb 2024), MM pays more than the G Fund. I also believe when the bond market becomes Un-Inverted then the G Fund probably pays more.

  • @PHargis670
    @PHargis670 2 місяці тому

    Also, does the RMD affect your roth TSP different than traditional? If you take taxable income during your retirement, but not your Roth TSP (unexpected expenses), will you have to take RMD's on Roth portion at 72?

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  2 місяці тому

      Great question. Roth is not subject to RMDs.

    • @PHargis670
      @PHargis670 17 днів тому

      @@PlanYourFederalBenefits So if I have some of my TSP in Roth and some in traditional, then can I take distributions in retirement using TSP from just my taxable accounts, and leave the roth balance for unexpected expenses?

  • @nicholasrunowich371
    @nicholasrunowich371 2 роки тому +3

    When you speak of pro-rata - you just discuss it with respect to the TSP funds - But can you specify which account Traditional or Roth - or is there some formula the TSP uses to take some out of Traditional and some out of Roth ?

    • @alrocky
      @alrocky 2 роки тому +1

      You may choose to withdraw from only your traditional TSP balance or only from your Roth TSP balance or pro rata from both.

  • @maggiroberts4749
    @maggiroberts4749 2 роки тому

    I didn’t know about these choices and requested an automatic fixed payment every month. Can I roll my account to a Roth IRA now? I began withdrawals last October. I am over 70 yrs.

  • @wambaofivanhoe9307
    @wambaofivanhoe9307 Місяць тому

    Question: If I have both traditional and Roth TSP savings, when I retire and want to withdraw some money from my TSP (say at an age before 72 so I am withdrawing before I am forced to), can I choose to withdraw from JUST my traditional savings or JUST or Roth savings, or does any TSP withdrawal before 72 get pulled out automatically from both?
    Thanks!

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  Місяць тому

      Great question. Feel free to schedule a meeting with us through this link to discuss your questions/concerns: app.hawsfederaladvisors.com/whatservicemakessense

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  Місяць тому

      Great question. Feel free to schedule a meeting with us through this link to discuss your questions/concerns: app.hawsfederaladvisors.com/whatservicemakessense

  • @aec062859
    @aec062859 7 місяців тому

    What do you think of investing it in a mutual fund such as Franklin Income Fund?

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  6 місяців тому

      Great question. There wouldn't be a simple answer to this. But, feel welcome to schedule an appointment with us to talk about it.
      hawsfederaladvisors.com/work-with-us/

    • @alrocky
      @alrocky 5 місяців тому

      Franklin Income A Fund? FKIQX has 0.71% Expense Ratio and 3.75% Front Load. Yikes!

  • @tjlazer71
    @tjlazer71 2 роки тому +1

    If someone retires at age 50 with 25 years of service under a discontinued service when can they use their TSP without penalty?

  • @geedubbya4432
    @geedubbya4432 8 місяців тому

    Couldn't you transfer everything to the G when you wanted to withdraw and then return it back the way you had it?

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  8 місяців тому +1

      Great question, this video might help:
      ua-cam.com/video/-m87vaPtQ88/v-deo.html&lc=UgxgWJP4Nt9M6aYHFst4AaABAg

  • @ArnoldScott-bh7vg
    @ArnoldScott-bh7vg Рік тому

    Should you withdraw money for home improvement at 59 and half? Where you can pay some back into tsp if you are going to retirement at 60 and half. Or just wait until you retire but you will not be able to money back into tsp.

    • @alrocky
      @alrocky Рік тому +1

      Consider taking home improvement TSP loan that you pay back before you retire.

  • @marlenemaymay128
    @marlenemaymay128 2 роки тому

    So what’s the best way? An IRA ? Should we leave some money in the TSP when we money to IRA?

    • @benjaminjohnson1693
      @benjaminjohnson1693 2 роки тому +1

      I'm not a financial advisor, but the G fund is great when used as a cash bucket, assuming you are fine with the automatic 20% withholding for taxes. My personal preference would be to leave 4 years of expenses in the G Fund, preferably the Traditional account. Roll over everything else into your Roth IRA and Traditional IRA. Never sell when the market is down. After stocks rebound - and they will eventually rebound - you can take some of your gains and replenish your cash bucket in the G Fund.

    • @resourcefulqueen
      @resourcefulqueen 2 роки тому +2

      If you move all of your funds out of TSP you will not have the option in the future of using it in the future. I plan to leave at least the requited minimum in TSP so I have options in the future.

  • @logdog3722
    @logdog3722 2 роки тому

    Thanx Dude.

  • @Skolgirl60
    @Skolgirl60 Рік тому

    I am newly retired and would like to know if I have to pay fees if all my money is in the G fund? How are these fees determined and where can I find the information on how much these fees are?

    • @alrocky
      @alrocky Рік тому +2

      At TSP site type "expense ratio" in search box at top right

  • @christinakrishnan9636
    @christinakrishnan9636 2 місяці тому

    I’m 57 and have 5 more years to retire, I’ll have exactly 20 years of service and 62. I started Roth in 2016 but have some Traditional. I’m very close to $1M.. but I want to keep maxing out and get to 1.5 which I think is possible. Single. No kids. Not sure what to do but I’m leaving it in Roth and will most likely take it out of TSP at 62 and move to Roth IRA

  • @Gary-uo6xd
    @Gary-uo6xd 2 роки тому +1

    Please do a segment on the new TSP website. It is terrible.

    • @PlanYourFederalBenefits
      @PlanYourFederalBenefits  2 роки тому +2

      Thank you for your suggestion Gary! It's in the works.

    • @mishka5706
      @mishka5706 2 роки тому

      The new website is fine I never have a problem with it.

    • @mishka5706
      @mishka5706 2 роки тому

      You just have to play a little with it and once you figure it out you will be fine. It was very easy to set it up by following the instructions. I agree it is not very well organized but it is getting better after congress woman got involved.

    • @lizamimi
      @lizamimi Рік тому

      I haven’t been able to revise or review my beneficiaries on the new website.

  • @kckuc310
    @kckuc310 2 роки тому +3

    The withdrawal options still suck, I should be able to say how much and traditional or Roth for tax purposes, until TSP realizes this a lot of people will take all of it out.

    • @rogerdoger9939
      @rogerdoger9939 2 роки тому +2

      Agree. I recommend that people only put the 5% match level into the TSP. Then contribute to an IRA/Roth IRA to the maximum. If you still have money left over, go back and contribute to the TSP.

  • @b.williams3095
    @b.williams3095 Рік тому +3

    Before making a withdraw, why not transfer all your money to G. After with draw reallocate ?

    • @calvinedwards8576
      @calvinedwards8576 Рік тому +1

      Exactly what I was going to ask. All you have to do is know enough to change funds and if that is too complicated I’d wonder what your position was in the federal government! :-)

  • @andreabranche6428
    @andreabranche6428 2 роки тому +1

    Hi I am one year from retirement and 63. I was strongly considering putting half of my tsp into an annuity that also has a rider of double payment annually for an extreme disability....what do you think???

    • @Grigsy
      @Grigsy 2 роки тому +4

      Don’t. You get 2 annuities already- social security and the pension. Your tsp is an investment. It’s supposed to have risk in it for potential growth. It’s probably better to buy an insurance plan for long term care disability

    • @scottschulte1157
      @scottschulte1157 2 роки тому +4

      Annuities are a bad option 99% of the time. Unless you have a very peculiar situation, I would not buy one. Just like Dallen says in this video, either keep everything in the TSP or do a direct transfer rollover to an IRA or Roth IRA or a combination of both. If you ever sit down with a "financial advisor" and they try to sell you an annuity....run....fast.

    • @blogo1111
      @blogo1111 2 роки тому +1

      @@scottschulte1157 I assume if you do a Roth IRA rollover you pay the tax on the whole balance up front?

    • @scottschulte1157
      @scottschulte1157 2 роки тому +2

      @@blogo1111 Of course you would have to pay the tax. But of course most ppl can't handle a big tax bill like that tho so they do it incrementally year by year until it's all in Roth.

  • @StephWantsHealth
    @StephWantsHealth Місяць тому +1

    I bought an annuity and couldn't be happier. I don't have to worry about the stock market going down at all. Guaranteed money for the rest of my life and then the rest of my spouse's life (who is younger). I didn't have enough in my tsp to do that without buying an annuity.

  • @ketdeeliss3985
    @ketdeeliss3985 Рік тому

    Is a tsp withdrawal added to my yearly earned income for taxes?

  • @JohnMartin-ze8cf
    @JohnMartin-ze8cf Рік тому

    Can I get back in TSP after getting out of it 15 years ago ?

    • @angelacross3109
      @angelacross3109 Рік тому

      I can't remember the amount but it's a minimum amount you have to leave. If I'm not mistaken, if you close it out, you can't.

    • @alrocky
      @alrocky Рік тому

      @@angelacross3109 For those wondering: If TSP account drops below $200, the account is closed and they mail you a check.

  • @randyscrafts8575
    @randyscrafts8575 2 роки тому +11

    Well here it is 5 months into retirement and I haven't gotten paid yet. 😂😂😂 Oh the incompetence of OPM.

    • @tonymosley6951
      @tonymosley6951 2 роки тому +1

      6 month retirement transition fund. Got it...

    • @dj5943
      @dj5943 2 роки тому +2

      Well, if it makes you feel better, I am in my 8th month and still waiting.

    • @pamelaproctor4637
      @pamelaproctor4637 2 роки тому

      @@dj5943 You need to contact OPM.

    • @dj5943
      @dj5943 2 роки тому +7

      @@pamelaproctor4637 LMAO… I am not laughing at you. I am laughing because I have called many times and they are worthless. And if OPM customer service is bad, the person processing my paperwork is even worse. I left her at least 15 to 20 voicemails and wrote her as many emails, and received no answer at all. When I called customer service, they have been very nasty and all they say is that they are working on my paperwork and to be patient… Eight months and they tell me to be patient? Lol. Thank God I was financially prepared and I can still survive for few more months, but not everyone has a year or more worth of savings to deal with this BS. You figured that after 35 years of service, OPM would treat you with a little more respect. But thank you for your message and solidarity.

    • @pamelaproctor4637
      @pamelaproctor4637 2 роки тому +2

      It took close to 6 months for them to finalize my annuity, and I thought that was a long time. Eight months? I know it's frustrating, but I reminded myself that it was better for them to be thorough than to rush and incorrectly process another retirement. Regardless, I can't imagine why it would take that long to finalize. Certain cases do take longer to complete than others, such as if you qualify for the FERS supplement, served in the military, worked part time, etc. I wish you the best.

  • @rupertj1346
    @rupertj1346 2 роки тому

    Can’t get my money out. They don’t answer phone. They don’t reall6 answer emails.

  • @mauricelabrie8509
    @mauricelabrie8509 11 місяців тому

    Also TSP will make your take your traditional money out in a lump some upon death. So, not counting a spouse, think kids they don't have the 10yr timeline to withdraw the money like an IRA. Same applies to the Roth. Think for a moment that your kids inherited you TSP they would have to take it all out and pay massive taxes at one time whereas if it's in your IRA it continues to grow, you'll have 10 yrs to withdraw and if it is Roth and they leave for 10 yrs it's all tax free!