The retiree didn’t understand that your portfolio ‘design’ should make it so you NEVER have to try and time the market to avoid losses. The market will go up and it will go down. Assuming most of his money was in the C Fund and his annual withdrawal was $60K, if he had stayed the course, he would have been fine.
Do you think that TSP will ever allow you to pull money from certain funds only and not a little from every fund you’re invested in? I’m 13 years away from retirement
Interesting question. I have seen TSP reps address this before, indicating that they do not see it as an issue for retired feds. Whether this is fully the TSP's position is up for debate. I think it could help, but wouldn't solve, the withdrawal challenges within the TSP. They're not unique though, many 401ks have the same kinds of challenges for retirees.
This idea of moving everything to the G fund is very tempting. I've heard of people doing this. But I've held off over years mostly because there is no way I can time the market properly. I've always felt the need to ride it out and not do anything knee jerk. I don't mind the risk, I can live pretty fugal when I have to. Just always thinking long term. Maybe a subject for a video - when to live frugal and when to live it up.
Great points! Good retirement plans build in contingencies for when markets take a big hit, and knowing how to cut back and where is important. Definitely hold off on using cash for renovations during massive bear markets. Some people choose to use OPM's money...(Other People's Money), that is, a bank in the form of a HELOC (that's my only federal employee joke!). Sometimes HELOC interest can be deductible, just make sure to check with your accountant.
@@eric2394 Probably not, but it depends on what you're trying to accomplish. 100% in any fund is likely not the best strategy. There is a blend of diversified funds that is best suited for a family when they're retired. Unfortunately it's slightly different for everyone, so take care not to use rules of thumb!
Smart financial commentary!
Great video!
Glad you enjoyed!
The retiree didn’t understand that your portfolio ‘design’ should make it so you NEVER have to try and time the market to avoid losses. The market will go up and it will go down. Assuming most of his money was in the C Fund and his annual withdrawal was $60K, if he had stayed the course, he would have been fine.
@@glasshalffull2930 correct. Just stay in c fund and stay the course
Do you think that TSP will ever allow you to pull money from certain funds only and not a little from every fund you’re invested in? I’m 13 years away from retirement
Interesting question. I have seen TSP reps address this before, indicating that they do not see it as an issue for retired feds. Whether this is fully the TSP's position is up for debate. I think it could help, but wouldn't solve, the withdrawal challenges within the TSP. They're not unique though, many 401ks have the same kinds of challenges for retirees.
Rebalancing after withdrawal effectively 'fixes' that problem otherwise just transfer portion of TSP to IRA and withdraw from IRA.
I provided feedback asking about this concern as well as doing Roth conversions. If enough people request this it might happen.
thanks
TSP is gravy money for fun. Your pension savings and social security should be enough. If not then don’t retire
Depends where you live. Thanks for tuning in!
@@TheFedCorner true. I’m retiring in Thailand
@@TheFedCorner my pension is worth 2million.
My TSP is at $3.5 million and certainly is the Big Dog as far as my assets.
@@glasshalffull2930 Love it! Make sure you start doing tax planning otherwise massive parts of it could be lost to taxes.
This idea of moving everything to the G fund is very tempting. I've heard of people doing this. But I've held off over years mostly because there is no way I can time the market properly. I've always felt the need to ride it out and not do anything knee jerk. I don't mind the risk, I can live pretty fugal when I have to. Just always thinking long term. Maybe a subject for a video - when to live frugal and when to live it up.
Great points! Good retirement plans build in contingencies for when markets take a big hit, and knowing how to cut back and where is important. Definitely hold off on using cash for renovations during massive bear markets. Some people choose to use OPM's money...(Other People's Money), that is, a bank in the form of a HELOC (that's my only federal employee joke!). Sometimes HELOC interest can be deductible, just make sure to check with your accountant.
@@TheFedCornerso is it best to leave 100% in C fund even after you retire from your job?
@@eric2394 Probably not, but it depends on what you're trying to accomplish. 100% in any fund is likely not the best strategy. There is a blend of diversified funds that is best suited for a family when they're retired. Unfortunately it's slightly different for everyone, so take care not to use rules of thumb!
Ran out of money, and thinking you are going to run out of money is not the same. Thumbs down.