It's always good to have a financial plan, I work with a portfolio manager and fixed income planner in the US. The fixed income serves as a buffer for the volatility of the equity and also bring legitimate returns.
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential best results and taxation
in my case CHRIS RYAN STEWART has assisted me in doing that effectively, I'm not an expert so I lack experience in investment strategies, I work and my consultant handles the rest.
indeed, most people downplay the roles of financial planners until burnt by there mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to navigate the volatilities and scaled up 880k from 220k with professional guidance.
impressive, I'll definitely check it out, I buy the idea of employing the services of a financial advisor because finding that balance between saving and living requires counsel. How can one get in touch?
It's such a shame to see the TSP decline so much. Since I've been a Fed, they've tripled their fees while the private companies have lowered them. They have limited investment options and withdrawal options. The website debacle was just shameful. I never thought I'd leave the TSP, but they've made the private companies more attractive in retirement.
Before I retired, I changed my investment split within TSP to put 100% into the G Fund. This was to protect what I had in the event there was any risk of losing money in it. I don’t know your age, but it’s best not to retire until age 62, because it guarantees you will get a COLA applied to your pension. Retiring before that, you don’t get it. For your pension amount it is the same COLA that gets applied to Social Security, less 1%. Example, the SS COLA was 3.2% for 2024, so the pension amount applied was 2.2%. My strategy was to live off my government pension plus a TSP withdrawal until Social Security kicked in at age 66 1/2 (for me). That’s because at full retirement age, you get more SS than taking it at age 62, which decreases your SS by about 30%. At that point, I lowered my monthly TSP withdrawal amount so that the combined income for TSP, pension, and SS was the same total income as I had before with just TSP plus pension. Additionally, I make sure my combined income is less than $103,000 (single), so that the Medicare B premium deducted from SS is the minimum at $174.70 (currently). Because the more income you have, that premium increases incrementally. I should also add that I did not convert my TSP money into an annuity, because I choose to manage it myself. By doing so, I can increase or decrease the monthly amount as needed. I have found that by leaving the total amount in TSP at retirement, I have seen that because of its earnings (which I believe are tied to the S&P), my overall withdrawal annually is less than the actual annual amount. Meaning, if I took out about $40k annually, with earnings, the actual amount was closer to $28k. That meant my total earnings increased by $12k. I think this plan is working out very well!
36 with $325k in retirement accounts, two paid off rental properties and plan to wirk in retirement too. $144k in TSP. Make a plan and stick to it. I plan on living off of rental income, FERS pension, and SS. I do not plan to touch TSP and IRAs unless I have to.
The comment below about the dreadful new TSP web site is very true. There's no way to securely email the TSP with a question from within your account, but years ago the TSP offered that valuable service. If you manage to get through to the TSP by phone, it is a miracle but the quality of their "customer service" is extremely low. Were it not for taxes, I'd leave the TSP despite the low ERs.
L income fund is an interesting idea for me. I should have 500K at 63 and 20 years of service. Gonna flip from 80/20 C and S soon and rake a 5% distribution and plan on it lasting 23 ish years and if I outlive it, so what. Wife and both have SS plus FERS pensions. L income is a mix of g,c,s,I and f, mostly g.
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.
I'm approaching retirement in 6 months at 56yrs, 8 months. Stressing a bit as to what to do with my TSP. This video has helped me quite a bit. Thank you.
I was in your boat 9 years ago at 55 and 30 years service. I took a very limited side gig (did not exceed supplemental SS) and the wife was still working part time and the kid was starting college. We had funds set aside for college and emergency funds. I had about $1.2 million in the C Fund 100%. I knew I wouldn’t need to tap the TSP for several years and so I figured I could ride out a significant market downturn. Frankly, my TSP contribution was about 1.8% of my portfolio and so the absence wasn’t going to have a major effect after I retired. Kept 100% in the C Fund and for the last four years I’ve had to pull about $60K a year. Even with pulling the $60K my C Fund balance is now $3.35 million. Not for everyone as peoples risk tolerance is different, but the way I figured it as hopefully I had 30 years of market in front of me when I retired. My biggest concern now is tax implications when I have to take Required Minimum Distributions at 73.
I plan on doing the same thing. Should be retiring this year. Was supposed to be this month but DFAS and DD214 issues is kicking me down the road for now. Age: 57 TSP: 900K FERS: Approx: 35K a year Supplement: Approx: 20K a year TSP ROTH: 200K > Rollover to Roth IRA -My understanding is that the rollover from TSP to IRA is not considered as contributions under the tax code. Therefore the 5 Year Rule will apply regardless how long I have been contributing to TSP Roth and my Roth IRA. This is a new allotment of funds and the 59.5 age will not apply. I will have to wait until 62 to get my Roth money. TSP Trad: 700K > Rollover to IRA (500K) -Same as you. Non-penalty money in the TSP to cover some expenses and possible Property/Home down payment for 2.5 years until I reach the age of 59.5 where I can tap into the IRA without penalty. TSP: 200K for expenses and to keep the account open Age 62 will be a big decision. Do I start taking SS? Do I take it even if I don't need it and invest it? Age 77 is my break even point from taking SS at age 62 or waiting until 67. If I take it at 62 and invest with an average 5% return it pushes my break even out to 90 something. Don't take it to allow more Roth conversion to reduce tax burden on heirs and reduce RMD concerns. If I can push as much as I can into Roth, I can then hopefully keep my tax liability in the 12% bracket(Depending on administration tax changes) which all of my capital gains and dividends will be tax free. Basically make $124K a year, take standard deduction and only pay less than $10K in taxes.
I like that you have a plan. You may want to look up my video discussing the 5 year rule. If your IRA has been open for 5 years then you can move your Roth TSP into it and the 5 yr rule is satisfied.
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.
Not sure what you’re talking about here. There is no 5 year rule for accessing an IRA. There is for a Roth IRA but not traditional If u want to know how the 5 yr rule works, I have another video that discusses it
@@FederalRetirementPlanning When you transfer funds, whether it be direct or roll over, from your TSP to an IRA account. Each contribution has a five-year calendar on it. The five-year rule is just that. If I transfer funds from my TSP to an IRA I cannot touch those funds for five years without penalty. And the penalty is the amount of money is subject to income tax plus a 10% penalty. So when you're planning to do a transfer or a rollover you really need to understand all the rules and what you're getting into. Below is a link to the guide from TSP, it outlines all their requirements and rules for TSP transfers. www.tsp.gov/publications/tspbk26.pdf
First thing you do if 59.5 move your money out, rollover. Example Fidelity no fees on 4 funds the same as C, S, I TSP funds. Other fees lower. TSP not a good deal anymore
I’m 60 and plan to retire at 62. I did exactly this same thing with my TSP when I turned 59-1/2 in my case to Fidelity as they have the best user interface I found. Also one slight difference is that I have the 200k left in TSP split between G and F funds. All the money continuing to be invested while I still work is going into the S fund for both Roth and Traditional money. It works for me so far and I plan to use the G fund as my cash bucket when I go into retirement in 2025.
Until I have to , my TSP is my final emergency , end of the road emergency account until I have to start taking RMD. Then I’ll take those funds and reinvest in Treasuries so it’s making money and I can get to it it the need arises🏖️
Great suggestion. Leaving some cash in the G fund is a great idea. I do have one question: Can you do a partial rollover from TSP to an IRA at 57 and continue to use the rule of 55 to access what remains in your TSP? I was under the impression that you cannot roll any money out of the TSP prior to 59.5 if you are using the rule of 55. Perhaps I misunderstood that particular stipulation. Thank you.
@@itguru2037 So, I cannot do a partial rollover prior to 59.5 if I want to use the rule of 55? For example, what if I keep 30% in the G Fund and rollover (transfer) the remaining 70% to my IRA at age 57 (my MRA) and then just draw down from my G Fund between age 57 and 59.5? Can I do that?
When you tie $ in G Fund, you automatically lose $ to inflation. When you xfer $ out of TSP, you lose protection vs court judgments and lose state tax privileges from many states, plus pay higher fees. Lastly, you can’t pull $ from TSP pre-59 without paying big penalties, unless you take 72(T) substantially equal periodic payments for 5 years.
Incorrect on a number of points. IRAs are protected in most states just like TSP. U can get similar funds at most custodians at the same expense ratio or even lower. U can absolutely take funds from TSP after u turn 55 and separate from service without penalties. 59.5 is for IRAs
Before you move money out of TSP to IRA review you states tax rules. In my state once moved any gain thereafter becomes taxable. Then there are rules on the gain. Must keep proof of distributions and amend 1099R because it is not fully taxable! How many paid tax because 1099R is wrong? The source informed me my responsibility to amend 1099R.
Yes, money moved to an IRA are not taxable. However, the distributions are now treated differently by my state. The "petitioner" must determine the portion that is a return of TSP contribution to IRA or any other contribution and appreciation (gain) since the original rollover. Why? Because the government ruled if you treat states 401K like a pension so be it for TSP.
@@Comut-d4m what u are referring to is a non deductible IRA. Only the growth is taxed when u take it out. That isn’t the case with TSP funds. States do tax IRA distributions differently but that is just a matter of if they tax the distribution or not.
@@itguru2037 I had about 25 years in the C Fund and had $1.2 million at 55 when I retired in 2015. Always got matching and maxed out, but was not able to do catchup when I turned 50.
@@itguru2037The average considers people who started yesterday as well as people who are nearing retirement. Making a wild generalization, $200k average is for someone mid career or 10ish years. Keep adding savings and compounding growth, $800k at retirement would be very reasonable. At 56 years old, mine is at $650k but I also have $350k in outside accounts. It wasn’t that hard, just took discipline to save and fortitude to put most of it in stocks.
Hello I’m divorced and never took the 17k the judge awarded me in my divorce from TSP. Can you help me execute that withdrawal and roll it into an account?
This is Greek to me. I'm retired and haven't got a clue what to do with my TSP. I have no mortgage or rent. I do not drive--no car payments. No kids nor a spouse. The money is mine. Bills are utilities, medical, food and pet care. You are talking about money that is far over my head.
It sounds like u are responsible with your spending and saving which is great! I would recommend education yourself on TSP, IRAs and investing or find an advisor u like and can trust to work with.
57? How about a more realistic and common age of 62. When the retiree gets 1.1% of their high three. 57? I don't know any federal employee retiring at 57....with $900k?...no way. And...you need $24k/month at 1:45...unrealistic. And you're not getting SS at 57 either.
Hmmm, I guess I can’t tell u what the most common retirement age of a federal employee is but I can tell u that I talk to feds every week retiring under the age of 62 as well as ones with TSP balances north of 900k
Everyone is unique and personal regarding retirement and how much saved. I retired at 56 y/o with a very small federal pension, but my TSP was six figures as was my IRA from my years in Silly Valley here near Stanfurd University. I got screwed by the new owners regarding my stock options after my fmr CEO took me out to lunch to ask me "what I was doing with my stock options". My life is not perfect, but I don't consider myself an elitist socialist woke nut job. Anything worth doing takes effort, and if it were easy, we would have done it by now. As JFK said, ask what you can do for your country.
I know this is a old post, but I retired at 51 as a federal law enforcement officer, it's very common. Our agency has a mandatory retirement age 57. Our pension is 1.7% not 1.0 or 1.1%
It's always good to have a financial plan, I work with a portfolio manager and fixed income planner in the US. The fixed income serves as a buffer for the volatility of the equity and also bring legitimate returns.
Honestly this cannot be overemphasized, helping people mitigate unforseen circumstances and mistakes .It's always good to have a financial plan,
Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential best results and taxation
in my case CHRIS RYAN STEWART has assisted me in doing that effectively, I'm not an expert so I lack experience in investment strategies, I work and my consultant handles the rest.
indeed, most people downplay the roles of financial planners until burnt by there mistakes. Productivity is optimized and keeping up to date strategies and analysis makes it more lucrative. I've been able to navigate the volatilities and scaled up 880k from 220k with professional guidance.
impressive, I'll definitely check it out, I buy the idea of employing the services of a financial advisor because finding that balance between saving and living requires counsel. How can one get in touch?
Question: If you retire at 57 and access or withdraw from your TSP aren’t you are still subject to 10% penalty for early withdrawal (below 59 1/2)?
negative, the rule of 55 allows you to access TSP without a penalty
It's such a shame to see the TSP decline so much. Since I've been a Fed, they've tripled their fees while the private companies have lowered them. They have limited investment options and withdrawal options. The website debacle was just shameful. I never thought I'd leave the TSP, but they've made the private companies more attractive in retirement.
agreed, it has been going in the wrong direction
So I retire in about 9 months or so from VA hospital what should I do with my TSP roll it over to something else or keep it traditional TSP?
Before I retired, I changed my investment split within TSP to put 100% into the G Fund. This was to protect what I had in the event there was any risk of losing money in it.
I don’t know your age, but it’s best not to retire until age 62, because it guarantees you will get a COLA applied to your pension. Retiring before that, you don’t get it. For your pension amount it is the same COLA that gets applied to Social Security, less 1%. Example, the SS COLA was 3.2% for 2024, so the pension amount applied was 2.2%.
My strategy was to live off my government pension plus a TSP withdrawal until Social Security kicked in at age 66 1/2 (for me). That’s because at full retirement age, you get more SS than taking it at age 62, which decreases your SS by about 30%.
At that point, I lowered my monthly TSP withdrawal amount so that the combined income for TSP, pension, and SS was the same total income as I had before with just TSP plus pension.
Additionally, I make sure my combined income is less than $103,000 (single), so that the Medicare B premium deducted from SS is the minimum at $174.70 (currently). Because the more income you have, that premium increases incrementally.
I should also add that I did not convert my TSP money into an annuity, because I choose to manage it myself. By doing so, I can increase or decrease the monthly amount as needed.
I have found that by leaving the total amount in TSP at retirement, I have seen that because of its earnings (which I believe are tied to the S&P), my overall withdrawal annually is less than the actual annual amount. Meaning, if I took out about $40k annually, with earnings, the actual amount was closer to $28k. That meant my total earnings increased by $12k.
I think this plan is working out very well!
36 with $325k in retirement accounts, two paid off rental properties and plan to wirk in retirement too.
$144k in TSP.
Make a plan and stick to it. I plan on living off of rental income, FERS pension, and SS. I do not plan to touch TSP and IRAs unless I have to.
The comment below about the dreadful new TSP web site is very true. There's no way to securely email the TSP with a question from within your account, but years ago the TSP offered that valuable service. If you manage to get through to the TSP by phone, it is a miracle but the quality of their "customer service" is extremely low. Were it not for taxes, I'd leave the TSP despite the low ERs.
Having to wait 7 days to do a transfer after putting all of your info in irks me every time!
L income fund is an interesting idea for me. I should have 500K at 63 and 20 years of service. Gonna flip from 80/20 C and S soon and rake a 5% distribution and plan on it lasting 23 ish years and if I outlive it, so what. Wife and both have SS plus FERS pensions. L income is a mix of g,c,s,I and f, mostly g.
This is a great idea. I'll just need 21 months of income until Soc Sec kicks in. Thanks!
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.
I'm approaching retirement in 6 months at 56yrs, 8 months. Stressing a bit as to what to do with my TSP. This video has helped me quite a bit. Thank you.
I’m in the same boat 🛥️. How many years federal service do you have?
@@itguru2037 31 years. Including 4 years military.
I was in your boat 9 years ago at 55 and 30 years service. I took a very limited side gig (did not exceed supplemental SS) and the wife was still working part time and the kid was starting college. We had funds set aside for college and emergency funds. I had about $1.2 million in the C Fund 100%. I knew I wouldn’t need to tap the TSP for several years and so I figured I could ride out a significant market downturn. Frankly, my TSP contribution was about 1.8% of my portfolio and so the absence wasn’t going to have a major effect after I retired. Kept 100% in the C Fund and for the last four years I’ve had to pull about $60K a year. Even with pulling the $60K my C Fund balance is now $3.35 million. Not for everyone as peoples risk tolerance is different, but the way I figured it as hopefully I had 30 years of market in front of me when I retired. My biggest concern now is tax implications when I have to take Required Minimum Distributions at 73.
If you have more than 30 years of federal service and are over 55 you do not have to wait till you are 59 and a half to withdraw from your TSP.
I plan on doing the same thing. Should be retiring this year. Was supposed to be this month but DFAS and DD214 issues is kicking me down the road for now.
Age: 57
TSP: 900K
FERS: Approx: 35K a year
Supplement: Approx: 20K a year
TSP ROTH: 200K > Rollover to Roth IRA
-My understanding is that the rollover from TSP to IRA is not considered as contributions under the tax code. Therefore the 5 Year Rule will apply regardless how long I have been contributing to TSP Roth and my Roth IRA. This is a new allotment of funds and the 59.5 age will not apply. I will have to wait until 62 to get my Roth money.
TSP Trad: 700K > Rollover to IRA (500K)
-Same as you. Non-penalty money in the TSP to cover some expenses and possible Property/Home down payment for 2.5 years until I reach the age of 59.5 where I can tap into the IRA without penalty.
TSP: 200K for expenses and to keep the account open
Age 62 will be a big decision. Do I start taking SS? Do I take it even if I don't need it and invest it? Age 77 is my break even point from taking SS at age 62 or waiting until 67. If I take it at 62 and invest with an average 5% return it pushes my break even out to 90 something. Don't take it to allow more Roth conversion to reduce tax burden on heirs and reduce RMD concerns.
If I can push as much as I can into Roth, I can then hopefully keep my tax liability in the 12% bracket(Depending on administration tax changes) which all of my capital gains and dividends will be tax free. Basically make $124K a year, take standard deduction and only pay less than $10K in taxes.
I like that you have a plan.
You may want to look up my video discussing the 5 year rule. If your IRA has been open for 5 years then you can move your Roth TSP into it and the 5 yr rule is satisfied.
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.
Thanks Brad for a very practical explanation 👍
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.
Isn't the strategy to withdraw from traditional TSP before the ROTH. I believe when you withdraw from the TSP it is done in equal amounts from each.
A lot of times it is. U can choose if u want your distribution to come from Roth or traditional
That is me. I have over 950k, and is not retiring any time soon.
Excellent info Brad. Thank you.
Glad you enjoyed it
Hi, you didn't talk about the IRA 5 year rule. It's a significant factor when converting TSP to an IRA account.
Not sure what you’re talking about here.
There is no 5 year rule for accessing an IRA. There is for a Roth IRA but not traditional
If u want to know how the 5 yr rule works, I have another video that discusses it
@@FederalRetirementPlanning When you transfer funds, whether it be direct or roll over, from your TSP to an IRA account. Each contribution has a five-year calendar on it. The five-year rule is just that. If I transfer funds from my TSP to an IRA I cannot touch those funds for five years without penalty. And the penalty is the amount of money is subject to income tax plus a 10% penalty. So when you're planning to do a transfer or a rollover you really need to understand all the rules and what you're getting into. Below is a link to the guide from TSP, it outlines all their requirements and rules for TSP transfers.
www.tsp.gov/publications/tspbk26.pdf
First thing you do if 59.5 move your money out, rollover. Example Fidelity no fees on 4 funds the same as C, S, I TSP funds. Other fees lower. TSP not a good deal anymore
other custodians definitely have some lower fees
I’m 60 and plan to retire at 62. I did exactly this same thing with my TSP when I turned 59-1/2 in my case to Fidelity as they have the best user interface I found. Also one slight difference is that I have the 200k left in TSP split between G and F funds. All the money continuing to be invested while I still work is going into the S fund for both Roth and Traditional money. It works for me so far and I plan to use the G fund as my cash bucket when I go into retirement in 2025.
I like a man with a plan!
Since you are still employed, how were you able to transfer your TSP to Fidelity?🤷🏽♀️ If you took a loan, this amount is capped.
Until I have to , my TSP is my final emergency , end of the road emergency account until I have to start taking RMD. Then I’ll take those funds and reinvest in Treasuries so it’s making money and I can get to it it the need arises🏖️
Interesting. So u are going to take your RMDs and invest them in treasuries?
Ocoee River? You in South East TN area?
No, but I was there last summer and loved it!
@@FederalRetirementPlanning I live nearby, about 30 mins away. Glad you liked it.
Great suggestion. Leaving some cash in the G fund is a great idea. I do have one question: Can you do a partial rollover from TSP to an IRA at 57 and continue to use the rule of 55 to access what remains in your TSP? I was under the impression that you cannot roll any money out of the TSP prior to 59.5 if you are using the rule of 55. Perhaps I misunderstood that particular stipulation. Thank you.
Absolutely. Reqs for moving money out of TSP are that u have to be separated from service or age 59.5 if u are still working.
@@FederalRetirementPlanning Excellent. Thank you so much for the clarification. That is great information. Very helpful.
You can’t. If you rollover then you have to wait till 59.5. If you just leave federal service and you want to use the rule of 55, don’t do a rollover
@@itguru2037 So, I cannot do a partial rollover prior to 59.5 if I want to use the rule of 55? For example, what if I keep 30% in the G Fund and rollover (transfer) the remaining 70% to my IRA at age 57 (my MRA) and then just draw down from my G Fund between age 57 and 59.5? Can I do that?
@@benjaminjohnson1693 only if you leave federal service and yes
Question: if you've never contributed to the TSF, and the money in it was contributed by the employer. Can you withdraw that money?
Would you advise this for someone retiring with 20 plus years of military service. Also I don’t plan on working for the government.
🤷🏻♂️ military retirement is a different animal
When you tie $ in G Fund, you automatically lose $ to inflation. When you xfer $ out of TSP, you lose protection vs court judgments and lose state tax privileges from many states, plus pay higher fees. Lastly, you can’t pull $ from TSP pre-59 without paying big penalties, unless you take 72(T) substantially equal periodic payments for 5 years.
Incorrect on a number of points.
IRAs are protected in most states just like TSP.
U can get similar funds at most custodians at the same expense ratio or even lower.
U can absolutely take funds from TSP after u turn 55 and separate from service without penalties.
59.5 is for IRAs
@@FederalRetirementPlanning After 55 only for excepted law enforcement officers.
New York taxes retirement income but excludes TSP.
@@densnow4816 wrong. Look up the rule of 55
@@densnow4816 I have heard of this, but they are the only one that I’m aware of
Before you move money out of TSP to IRA review you states tax rules. In my state once moved any gain thereafter becomes taxable. Then there are rules on the gain. Must keep proof of distributions and amend 1099R because it is not fully taxable! How many paid tax because 1099R is wrong? The source informed me my responsibility to amend 1099R.
@@Comut-d4m money being transferred from TSP to an IRA is not taxable regardless of the state.
Yes, money moved to an IRA are not taxable. However, the distributions are now treated differently by my state. The "petitioner" must determine the portion that is a return of TSP contribution to IRA or any other contribution and appreciation (gain) since the original rollover. Why? Because the government ruled if you treat states 401K like a pension so be it for TSP.
@@Comut-d4m what u are referring to is a non deductible IRA. Only the growth is taxed when u take it out. That isn’t the case with TSP funds.
States do tax IRA distributions differently but that is just a matter of if they tax the distribution or not.
900k? who has that? can you give a more realistic example?
Well.. anyone that is nearing retirement and took full advantage of matching along with historical returns in TSP $900K should be very realistic.
@@bigblue3568how many years would they have been investing? The average TSP account is less than 200k
@@itguru2037 I had about 25 years in the C Fund and had $1.2 million at 55 when I retired in 2015. Always got matching and maxed out, but was not able to do catchup when I turned 50.
@@bigblue3568 Took full advantage of matching? If you were active duty for 20 years their is no matching....
@@itguru2037The average considers people who started yesterday as well as people who are nearing retirement. Making a wild generalization, $200k average is for someone mid career or 10ish years. Keep adding savings and compounding growth, $800k at retirement would be very reasonable. At 56 years old, mine is at $650k but I also have $350k in outside accounts. It wasn’t that hard, just took discipline to save and fortitude to put most of it in stocks.
Isn’t it the TSP Social Security and Federal Tetirement that’s the three part
Correct
Hello I’m divorced and never took the 17k the judge awarded me in my divorce from TSP. Can you help me execute that withdrawal and roll it into an account?
I'll get out of that paper form 20th century dinosaur
All the old guys would talk about retirement and they only live five years before they died
Oh it's all decreasing in value.
This is Greek to me. I'm retired and haven't got a clue what to do with my TSP. I have no mortgage or rent. I do not drive--no car payments. No kids nor a spouse. The money is mine. Bills are utilities, medical, food and pet care. You are talking about money that is far over my head.
It sounds like u are responsible with your spending and saving which is great!
I would recommend education yourself on TSP, IRAs and investing or find an advisor u like and can trust to work with.
57? How about a more realistic and common age of 62. When the retiree gets 1.1% of their high three. 57? I don't know any federal employee retiring at 57....with $900k?...no way. And...you need $24k/month at 1:45...unrealistic. And you're not getting SS at 57 either.
Hmmm, I guess I can’t tell u what the most common retirement age of a federal employee is but I can tell u that I talk to feds every week retiring under the age of 62 as well as ones with TSP balances north of 900k
Everyone is unique and personal regarding retirement and how much saved. I retired at 56 y/o with a very small federal pension, but my TSP was six figures as was my IRA from my years in Silly Valley here near Stanfurd University. I got screwed by the new owners regarding my stock options after my fmr CEO took me out to lunch to ask me "what I was doing with my stock options". My life is not perfect, but I don't consider myself an elitist socialist woke nut job. Anything worth doing takes effort, and if it were easy, we would have done it by now. As JFK said, ask what you can do for your country.
I know this is a old post, but I retired at 51 as a federal law enforcement officer, it's very common. Our agency has a mandatory retirement age 57. Our pension is 1.7% not 1.0 or 1.1%
@@b.coxemba6799 🤨 Are u talking about the video?
The video is about TSP, not the different types of federal retirement.
51yrs now and well over $1 million... in TSP