Decisions - Decisions -

[angel1955]

I am 73 - will have 40 years in July of gov't service. I know I do not want an annuity - one financial planner was too anxious to get a hold of my money - another one highly recommended told me to just keep my money in and use it as a emergency fund. I know I will have to withdraw something at some point - the more I read the more confused I get - my tsp would more then pay off my house but use that interest for taxes - the reason I bought the house - is there anything I should be doing now with my TSP - all are now in G funds - -

 

[grandma]

I am 73 - will have 40 years in July of gov't service. I know I do not want an annuity -

It seems you do have to have some withdrawal every month. I mis-spoke when I mentioned `annuity' in another post - what comes out is like a MRD, our Blessings when we `hit a certain age.' !.
The TSP folks sometimes have good advice - anyone out there remember what Spaf wrote about his initial bulk withdrawal, then a 4 or 5% monthly when he talked with them about his retirement funds??
Also, using pen to paper is a good way to figure what you are saving by using your house interest as tax deduction vs the amount of interest you'd save by getting the place paid for. Being out of debt is a biggie in these times.
Another thought - considering your age, have you checked with Soc Sec to see about getting your w/d there started now... it doesn't/ won't affect your Soc Sec when you retire - however - that depends on if you switched to FERS or are still CSRS.
You are to be envied if you are in a position where you won't need those funds to fill out other income when the paychecks quit!!
Pulling them would be, for me, the Greatest Boo-Boo I've pulled in my life - as yet....:nuts:
Good luck & God Bless !
Those with The Knowledge you need will be along shortly !!!

 

[nnuut]

I am 73 - will have 40 years in July of gov't service. I know I do not want an annuity - one financial planner was too anxious to get a hold of my money - another one highly recommended told me to just keep my money in and use it as a emergency fund. I know I will have to withdraw something at some point - the more I read the more confused I get - my tsp would more then pay off my house but use that interest for taxes - the reason I bought the house - is there anything I should be doing now with my TSP - all are now in G funds - -

It seems you do have to have some withdrawal every month. I mis-spoke when I mentioned `annuity' in another post - what comes out is like a MRD, our Blessings when we `hit a certain age.' !.
The TSP folks sometimes have good advice - anyone out there remember what Spaf wrote about his initial bulk withdrawal, then a 4 or 5% monthly when he talked with them about his retirement funds??
Also, using pen to paper is a good way to figure what you are saving by using your house interest as tax deduction vs the amount of interest you'd save by getting the place paid for. Being out of debt is a biggie in these times.
Another thought - considering your age, have you checked with Soc Sec to see about getting your w/d there started now... it doesn't/ won't affect your Soc Sec when you retire - however - that depends on if you switched to FERS or are still CSRS.
You are to be envied if you are in a position where you won't need those funds to fill out other income when the paychecks quit!!
Pulling them would be, for me, the Greatest Boo-Boo I've pulled in my life - as yet....:nuts:
Good luck & God Bless !
Those with The Knowledge you need will be along shortly !!!

Angel1955, welcome to the Message board! I Retired effective Jan 2, 2010 and am dealing with all of this stuff at this time. I've decided to leave my TSP funds in the system and try and build my balance, I may take Monthly Distributions that will be only the amount the "G" fund is paying at that time. One thing you have to take into consideration is:


Required Minimum Distribution —The

amount of money, based on a participant ’s age

and previous year ’s TSP account balance, that the

IRS requires be distributed to a TSP participant
each year, beginning in the year he or she has​

​

reached age 70½ and is separated from service.

When you are less than 70 1/2 years old you have a choice to take Monthly Distributions, and One time Partial Withdrawal, Transfer to an IRA, or an Annuity, but at 70 1/2 and after you can only Transfer all funds out, withdraw 100% or take Required Minimum Distribution which is usually a much greater amount than 4 % to 5% that Grandma mentioned.

I agree that an Annuity is not the way to go, at least for me, they charge you fees for the annuity and they are high, and to me not worth the money.​

Go to the TSP web Site and you can calculate your Required Minimum Distributions, annuity costs and Withdrawal options. I would suggest that if you have any questions to give them a call, here is a link to that page: ​

http://www.tsp.gov/forms/publications.html

I'm open for questions, if I don't know I'll find out!!
Best of luck
Norman ​

 

[Buster]

Hey Norm..

Can I keep my FEGHI?..I have BCBS and was wondering, will I have to pay full premium after I retire, or will it be status quo, as if still full time employed?

 

[Warrenlm]

Hey Norm..

Can I keep my FEGHI?..I have BCBS and was wondering, will I have to pay full premium after I retire, or will it be status quo, as if still full time employed?

Sorry to interrupt if not helpful.
If FEGHI = Federal Employee Group Health Insurance (usually "FEHB"), your annual premium stays the same but moves to a monthly cost and is deducted from your annuity. The USG continues to pay its percentage of the total premium as if you are still active.

Of course that can change, in light of the EEOC ruling that two tier premium structures are not age discrimination, the continued public highlighting of this program's benefit and the public need to increase cash input to medicare B.

 

[nnuut]

What Warrenlm said, and your premiums are NOT TAX exempt as they are before retirement. They seem to think that retirees have too much money and can afford to pay taxes on their health care premiums where Gov't workers need the Tax break.:suspicious:

 

[Buster]

Okay Thanks Guys..much appreciated.