chief731ss account talk

[chief731ss]

I just joined this forum so I hope I'm in the right area for this question. I retired in Feb 09. I am so confused about what to do with my TSP account. I currently have 100% in I fund. I want to know if I should transfer to a IRA or other investment strategy. I realize that this is a very vague question but maybe some recommendations or options would be in order. Thanks for anyone willing to respond and for your patience with my grade school investment knowledge.

 

[tsptalk]

Hi chief! Welcome.

If you are no longer contributing, the matching benefit is obviously out so an IRA is an option. You can do a partial withdrawal if you'd prefer to leave some in the TSP.

The pros of an IRA are basically that you get more investment options. You can be more aggressive with stocks or ETF's, or protect your account with gold, etc. Since you are 100% in the I-fund, I'm guessing you are not afraid to mix it up a bit.

The cons of leaving the TSP is that you will likely pay higher transaction costs if you do any trading.

Good luck whatever you decide.

 

[nnuut]

chief731ss welcome to the Board! You can leave it in the TSP and take monthly distributions until you are 70 1/2 years old. You can change it yearly, no charge!
Best of luck
Norman

 

[chief731ss]

Tom, thanks so much for your feedback. Just for the record, I'm retired Navy so I never had the benefit of the matching contribution. I guess one of my biggest concerns about leaving the money in the TSP is hearing that the government may be going after some of these funds. Also, the fact that I can no longer contribute is another concern. Just wondering what a seasoned investor would do given my situation. I will still continue to work for at least another 20 yrs or so and not looking to use this money for anything else. I only have about 20k but that is my entire personal retirement savings. Again thanks for your response and any future recommendations.

 

[chief731ss]

Norman, I understand that I can leave it alone and start taking funds out at 591/2 and before 701/2. What I was wondering is there something that makes more since (ie, IRA, 401k, etc)? I'm 46 so Im planning on working another 20 yrs at least. What would you do in my situation? Thanks for your response.

 

[tsptalk]

Just wondering what a seasoned investor would do given my situation.

I made a partial withdrawal. Left some in TSP but rolled most into an IRA.

 

[nnuut]

Norman, I understand that I can leave it alone and start taking funds out at 591/2 and before 701/2. What I was wondering is there something that makes more since (ie, IRA, 401k, etc)? I'm 46 so Im planning on working another 20 yrs at least. What would you do in my situation? Thanks for your response.

Your in a different situation than I am so I really can't be much help. Take into consideration the 20% Tax levy and the possibility of an additional 10% penalty for early withdrawal. You can roll it over when you get the age and I understand there may be other ways you can get it out with no penalty. Lots of info on the subject here, I really don't know all of your options when you were in the Military I retired from Civil service under the old system, CSRS. The way I think is that I can invest in equities here with NO COST to me, which is a BIGGIE!

 

[nasa1974]

chief731ss,

You mentioned that you are 100% I fund and that you didn't have all that much invested. Unless you like taking high risk, the I fund might not be the place to be right now. But that all depends on how you view the TSP for retirement purposes.
For me I am high risk with my account even though I am looking at retiring in just over two years. Fortunately I do not have to depend on my TSP for retirement because like nnuut I am also CSRS. As long as the government doesn't go bankrupt I will have a pension for life. :suspicious:
Good luck, no matter what you decide to do with your TSP. There are some pretty smart people on this MB.

 

[Birchtree]

I'm a dollar short and a day late - but I'd plan a DCA strategy out of the I fund and move slowly over time towards the C fund. That way your money is still working and you are modestly hedged incase the dollar rally continues - which I think it will. I'm doing something very similar in my account - slowly moving money to the G fund in preparatrion for the big 10% correction - gee this may be it a little early but probably not. My time horizon is around the end of June.