roll over to Edward Jones or simular

[jkat1966]

I read on our union website that the union is starting to push congress to do away with the 10% penalty for LEO's that retire at 50. Let's hope it makes its way through before we retire!!!

 

[Rick]

Just pay the 10% penalty!
I am a ATC FERS, I will retire @50 witk 600K in TSP 10% for 9 years (until 59 1/2) is well worth it to keep control of my money that I worked hard to amass. I will not turn over my money to Edward Jones or any other broker to lose for me.

 

[Rick]

$600,000 at 5% Interest =
$3000 month or $36,000 Year
for 36 Years
$36,000 x 10 Years = 360,000
10% penalty = $36,000
$36,000 is cheap to allow me control of my money.
Edward Jones wants 2.5% of my $600,000 plus .5% each year to manage my money.
Thats 2.5 plus .5 for 10 years = 7.5% for Edward Jones to manage my money just the first 10 years!

 

[TSPinWV]

Edward Jones wants 2.5% of my $600,000 plus .5% each year to manage my money. Thats 2.5 plus .5 for 10 years = 7.5% for Edward Jones to manage my money just the first 10 years!

Are you comfortable with managing your own investments? On-line trading can be significantly cheaper, especially if you are going to be very active with your buying and selling. The competition is up, which works to our benefit, and many brokerages are offering more and better technical analysis tools as well.

You can compare brokers here: http://www.smartmoney.com/brokers/ :toung:

 

[Rick]

Re: roll over to Edward Jones or similar

Lets see... I have been managing my own money in the TSP for 24 years and have amassed over 600K.....Yes I am very comfortable managing my own money. What I am uncomfortable with is handing over my hard earned cash to someone that is just looking for a quick buck at my expense. We all should look hard at just what we are doing to try and escape the 10% penalty... A bird in the Hand is worth......................

 

[Birchtree]

Rick,

Welcome to the power club membership - there are several on this board that are in your accumulated wealth status. We'll watch to see how a heavy hitter manages his funds and the thought processes that are inherrent in making those important decisions.

 

[clester]

$600,000 at 5% Interest =
$3000 month or $36,000 Year
for 36 Years
$36,000 x 10 Years = 360,000
10% penalty = $36,000
$36,000 is cheap to allow me control of my money.
Edward Jones wants 2.5% of my $600,000 plus .5% each year to manage my money.
Thats 2.5 plus .5 for 10 years = 7.5% for Edward Jones to manage my money just the first 10 years!

Have you thought about leaving your money in TSP and taking monthly payments based on 72t amoritization rules? I'm also ATC and will retire next year at 49. What are your plans for your funds?

 

[Rick]

For those of you that are just starting out investing in the TSP, Keep at it, do not take out any TSP loans, invest in the C-S and I funds and after 25 years you too will have a large nest egg to take into retirement. The toughest decision you will make is how to get your money out of the TSP! It is not a simple decision so forgive us that struggle with this decision, and post so many Q&A's on the subject..

 

[Rick]

Clester
I cant help but think this is my money.. and I want control of it. So I probably will keep the money in the TSP funds and take monthly payments over 30 years.
Yes that includes paying the 10% penalty from 50 to 59 1/2.