My TSP Account is taking a beating. I have been forced into retirement so Should I Go

[Big_Sarge]

Should I Roll over my TSP account by taking All , Partial or leaving it all in TSP?

I need help with this Question asap.

Thanks

Bigsarge
USArmy/DOD RET.

 

[Intrepid_Timer]

Should I Roll over my TSP account by taking All , Partial or leaving it all in TSP?

I need help with this Question asap.

Thanks

Bigsarge
USArmy/DOD RET.

Hi Sarge, if you are taking a beating with TSP, what makes you think you won't outside of TSP? To answer your question, I would definitely move at least some of my TSP to a self directed IRA, but I don't like to leave all my eggs in one basket either, so leaving some in TSP might be worth while. That is provided you learn to trade it properly. If you plan on "setting it and forgetting it", remaining in TSP is likely a good choice.

 

[Birchtree]

A self-directed IRA has the potential to make money two ways - you can build a dividend income stream and build some capital gains. Having an IRA is purrfect for taking capital gains without tax consequences. At some point you might want to roll money out of your IRA into a conversion Roth IRA and pay your upfront taxes to save on the the later years of tax free gains and income. Just do your conversion in small pieces to keep your AGI away from obama. You have time to familiarize yourself with equities.

 

[Stoplight]

Sarge,

A LOT of variables in that question that you need to consider carefully !!! How old are you ? What are you planning to do "for a living" now ??

I'm with Intrepid and Birch...leave it alone for now ; don't lock in your "beating" ; and take some time to research the options further...this Board is a good place to start ! DON'T make any snap judgements you may regret later, like at tax time, etc

Best of luck in whatever you decide to do, and thank you for your service...


Stoplight...

 

[Kaufmanrider]

I rolled all of mine in February after I retired. Ultimately its a personal choice. My decision was because I wanted to diversify beyond what TSP offers and I wanted to buy some individual dividend paying stocks and I can buy and sell on any day and more than twice a mobth

The question is why are you taking a beating? Are you trying to time the market or are you a buy and holder who needs to diversify more to reduce risk?

 

[Cactus]

Sarge, what you describe is what terrifies me. I have to agree with what's been said so far. I would stress that this is your retirement we are talking about. If you are not truly going to retire, i.e. you are looking for another job now, don't just take the money out now to live on until you find another job. If you do that, you are going to take a big tax/penalty hit and it won't be there when you really do retire.

If you are someone like me who thinks they will never retire, remember your health may eventually force you to whether you can afford it or not.

I wish you the best.

 

[Boghie]

Sit on it and hold an allocation reasonable to your situation.
Contact a viable financial adviser. I think I will personally deal with Ric Edelman or Pure Financial.
Do not simply set up an annuity till you get advice and think it through - that is a one way move, maybe right, maybe wrong.

My money is that the end result will be a self-directed IRA with some sort of monthly Systematic Withdraw Plan - or something...

You do not have to make this decision right now. And, how are you losing gobs of cash with the C Fund gaining over 2% so far? My guess is that you are 100% in the S-Fund and have lost about 10% since the highs. If you are retiring than 100% in the S-Fund is definitely not an appropriate allocation... Talk to an adviser...

 

[PessOptimist]

Should I Roll over my TSP account by taking All , Partial or leaving it all in TSP?

I need help with this Question asap.

Thanks

Bigsarge
USArmy/DOD RET.

Big deep breaths Sarge. Then more info please. Retirement, especially if you're not really ready for it is truly terrifying.

Are you retired Army or DOD civilian or both? What is your retirement status such as age, years of service and circumstances of the forced retirement? What funds do you have your TSP in? Is this beating recent? How did your TSP do last year?

Please do not withdraw it all and give it to some "fund manager" who promises to make you a rich man.

Leave it in TSP for now, if you are worried about losing money put it in G fund and investigate your options.

Best of luck.

PO

 

[nasa1974]

Sarge, You have heard from some pretty smart folks here. We can only offer information it is up to you to decide what to do. But the best thing you can do is talk to a reputable financial adviser for help.

 

[markmars]

TSP offers the advantage of very low fees, but you don’t have a lot of diversification.
The advantage of an IRA is more diversification, but higher fees. Look at Vanguard for your IRA they have some of the cheapest fees out there.
No one can compete with a fee of .075% for the TSP.

 

[Stoplight]

Okay, Big Sarge...you started this thread, and posted, in what appeared to be "panic mode"...ya got several reasoned responses...but have not responded !!! So...what did you decide to do, and why ??? This Group is only as strong as ALL it's Members !!! Just sayin'...

Stoplight...