separating (not retiring) and TSP

[va.gov]

Hi, everyone--

I am escaping the wacky world of federal employment this Friday! --at least temporarily. I am still waiting (ha) for HR to send my materials on what I can do with my TSP account. As I understand it, I can keep it all in there, take it all out and roll it over into a 401(k), or take part out and roll it over into a 401(k). Maybe. And I'm not clear if I can only do the partial w/d once, or repeatedly.

I'm pondering pulling out my G funds and investing them in TIPS, and leaving X amount in F, C, S, and I to chug along in the background, mainly because the funds are so dang cheap. But every time I try to figure out what TIPS are currently paying, my eyes cross, so I can't figure out if the cash portion of my retirement money would do better in G or in TIPS.

Just to add to the excitement, I may well wind up rejoining federal service after an interlude, and after memories dim. :toung: If I do that, it would be useful to have a chunk of retirement money somewhere other than TSP, so that I had access to more than the 5 funds.

I've thought about all this until my thinker is thunk out. Any advice, any hell no's, any personal experience with this situation? Thanks for any ideas.

Oh, and I'm not interested in a Roth 401(k). I already have a Roth IRA. My TSP account isn't that big (~$70K), but I'm not about to try to pay taxes on that!

 

[va.gov]

Whoops, where I wrote 401(K), I meant to say IRA.

I saw that there are a few posts similar to this on the Questions board. If a mod thinks this thread would do better over there, please feel free to move it. thanks!

 

[nnuut]

va.gov welcome to the the Message board and best of luck with your separation.
So basically you are quitting? I really never dealt with a separation and don't know the policies, but as your say there is much info here and many of the situations have been talked about lots of Members that have retired or are thinking about retiring, they should be posting on your thread and I hope they can help more than I did.
Norman

 

[FAB1]

Why not just leave it all and let it work for you? Have you been the the TSP.gov
website? Whatever amt. you cash out, you pay taxes on. Ouch.

 

[Rustynutt]

Looking forward to seeing answers to your question about the TIPS. You're statement leaving X amount in F, C, S, and I to chug along in the background, mainly because the funds are so dang cheap", controversial statement and also interesting opinion the I fund is cheep. Those funds were cheep in Oct-Nov of 08. Euro market volatility is beginning to look like the U.S. market. I'm sure the day-week traders are doing well, but if this baby comes down again even from current position, it could hurt. Short of complete collapse, depending on your age, long term in those accounts as you say are likely to float along as they are now. I guess in the long run, it's not really investing, it's hedging a dollar against inflation as the only real money being put into market now has all just currently been printed, and has yet to be earned. IMHO. I was only stung for 10k during the last big drop, sat to long thinking this isn't happening. Now, on the other side of the fence. Viewpoints surely affect outlook, I'm looking out the window at the Sierras in the middle of the high desert on 3 acres. No real local crash, this town other than a couple of new huge Hotels hasn't changed in 25 years. Neither has my TSP account considering the term of investment with respect to Wall Street bonuses. But your right, ya gotta do something.

Adding this. Yesterday posted about dropping 100k into I, but I didn't mean "right now"
And this. The bears are restless, but it's still cold in the mountains and a lot of fat left to burn.
Branch meeting in 75 minutes! So many new, young, lost looking faces at the work place. Never thought I'd be a "gray beard"!

 

[va.gov]

Why not just leave it all and let it work for you? Have you been the the TSP.gov
website? Whatever amt. you cash out, you pay taxes on. Ouch.

Lord, no, I'm not planning to cash it out. I'm wondering about putting part of it into an IRA, just as if I were leaving one civilian job for another and deciding whether to move my retirement funds or leave them where they are.

Any thoughts here as to whether the G fund is safer or less safe than TIPS? I know I can always move funds over to the G fund when things start to crash (and I'll do it sooner this time), but I'm wondering how they will do against inflation, once it starts back up again.