Retirement - CSRS & TSP

[ekoncepts]

Hello,
My name is Harry. This is actually my first post, so bear with me. I am looking for some advice/suggestions or just plain comments.

I retired under CSRS in January 2019 with 39 years (4 Military & 35 USPS) at the age of 59. I have a very modest balance in my TSP account. I wasn't very pro-active during my working years, and it may bite me in the butt in retirement, but it's a little to soon to know for sure. My CSRS pension fully covers all my expenses in retirement with enough money left over to do the things I want to do, minus any "large" expenses.

I don't see needing to access my TSP anytime soon, but you never know. I just turned 60, and was hoping to not withdraw any TSP funds until I reach the 70 or so.

My questions are:

• How should I distribute my money within the TSP, what's a good rule of thumb?
• Should I be investing my leftover CSRS money also, or save it in a "rainy day fund"?

Any comments are greatly appreciated, along with any links that might be helpful.

Thanks :smile:

 

[James48843]

Hello,
My name is Harry. This is actually my first post, so bear with me. I am looking for some advice/suggestions or just plain comments.

I retired under CSRS in January 2019 with 39 years (4 Military & 35 USPS) at the age of 59. I have a very modest balance in my TSP account. I wasn't very pro-active during my working years, and it may bite me in the butt in retirement, but it's a little to soon to know for sure. My CSRS pension fully covers all my expenses in retirement with enough money left over to do the things I want to do, minus any "large" expenses.

I don't see needing to access my TSP anytime soon, but you never know. I just turned 60, and was hoping to not withdraw any TSP funds until I reach the 70 or so.

My questions are:

• How should I distribute my money within the TSP, what's a good rule of thumb?
• Should I be investing my leftover CSRS money also, or save it in a "rainy day fund"?

Any comments are greatly appreciated, along with any links that might be helpful.

Thanks :smile:

My 2 cents: if you don’t think you’ll need the money before 2030, and you aren’t comfortable moving things yourself, then using an age appropriate L fund might be right for you- either the L2030 or L2040, and park it there. At this pony, it’s a valid place to be for mid-term purposes.!


Sent from my iPhone using TSP Talk Forums

 

[ekoncepts]

My 2 cents: if you don’t think you’ll need the money before 2030, and you aren’t comfortable moving things yourself, then using an age appropriate L fund might be right for you- either the L2030 or L2040, and park it there. At this pony, it’s a valid place to be for mid-term purposes.!


Sent from my iPhone using TSP Talk Forums

Thanks for the reply. I probably should of clarified a little. I don't have any issues moving between funds myself, I am actually a new subscriber to TSP Talk Plus. I had subscribed to Intrepid Timer's service awhile back. I have followed the tracker and talks in the forum off and on over the last few years. But as I navigate and learn more about what I'm trying to accomplish your suggestion of using an L-fund might be a solid choice.

Just kinda regretting not being more "invested" in my investments over the last 30+ years. But here I am ... :embarrest:

 

[evilanne]

ekoncepts,
How do you currently have your TSP invested? What have you been doing to determine your moves within your TSP Accounts. Following a paid service is an option to maximize your returns I'm not sure that I would use one of the L-Funds but you might want to use them as a guide. Personally, I think they have too much in the I Fund. I just think that you should know exactly what you are investing in. https://www.tsp.gov/InvestmentFunds/FundOptions/fundPerformance_L2030.html . TSP shows you quarterly how they change from inception. Over time they reduce percentage of stock, moving more towards G/F or the Income Fund. Since you have a CSRS Pension which covers your expenses, you may want more exposure in stock. It all depends on your risk tolerance and how active you want to be with your TSP.

 

[ekoncepts]

@evilanne, thank you for your reply.

How do you currently have your TSP invested?

Before I reply, I know I am being way too cautious, but my TSP account is just barely 6 figures. Not much, but better than nothing. So I am being very "protective" of my balance at the moment while I get a better feeling for what I am doing. Currently, I'm 95%G - 5%C. I know way too conservative! But I'm easing into it, especially the way the market has been the last week or so. Probably not the best time to start this journey.

What have you been doing to determine your moves within your TSP Accounts.

Before now, just minimal moves. Mostly just dumped in the G fund and left it, and my balance reflects that. Right now I'm following along with the paid service recommendations, reading a lot and factoring in my risk comfort level and making adjustments accordingly.

After @James48843 suggested possibly an L fund, I went and reviewed how each one is invested in the particular funds and at what %. I too found that I didn't like the percentage that they placed in the I fund. So maybe an L fund is not the best option for me, but hey I'm learning! See you can teach and old dog new tricks.

you may want more exposure in stock. It all depends on your risk tolerance and how active you want to be with your TSP.

I do believe as I learn more, my risk tolerance will adjust to where I feel more comfortable with putting a larger portion into stocks. Just not quite there yet, baby steps.

I appreciate your interest and value all input. :smile:

 

[nnuut]

TAX FREE Earnings!!
Trump's tax cuts 2.0 could include this retirement savings perk

The president is aiming to introduce the package by September

The Trump administration is aiming to introduce another middle-class tax cut before the November election, and the package could include a measure that would give larger tax breaks to certain retirement savings.
The administration is considering including a proposal known as USA accounts – which would combine and simplify all existing savings accounts that give tax breaks (401(k)s, IRAs), a senior administration official told FOX Business on Friday. There may be limits, however, as to how large the tax break could extend through these vehicles.
The idea is popular among lawmakers on Capitol Hill, according to the same official, who cautions that no final decisions have been made.
The idea of a Universal Savings Account has been floated by Republicans before, under the guise that contributions would be taxed but earnings would grow tax-free and would be easier to withdraw than a traditional retirement account.[more]

https://www.foxbusiness.com/economy/trump-tax-cuts-retirement-savings-tax-break