Tsunami's Account Talk

[JTH]

I'm starting this process too. Retired 12/31 (ATC). Opened Schwab acct. Now initiating rollover. Talked to TSP specialist because I didn't feel the site was that intuitive and wanted some guidance. Specialist had no idea about special rules regarding penalties on early withdrawals before 59 1/2 for ATC, LEO, FF, etc. The new site is a disaster and at least one person at TSP doesn't know the rules. I'm going to leave some in TSP but most of it is going to an IRA. Time to get the money away from the Government...

Not to hijack Tsunami's thread (as I hijack it). Many of these .gov websites suck ballz, I can honestly say TSP's is the the worst website I've encountered maybe ever. Nothing is easy to find, some things are downright confusing.

 

[WorkFE]

Many of these .gov websites suck ballz, I can honestly say TSP's is the the worst website I've encountered maybe ever. Nothing is easy to find, some things are downright confusing.

By design

 

[papahotel66]

Yup!
I am on the site now and when I initiate the Partial Distribution up comes a blank page. The specialist walked me through getting to the page to enter the account information and address for the IRA transfer but now I get nothing on the page. The day I talked to them the monthly payment option was down. Can't wait to get out from under this mess!

 

[Tsunami]

Yup!
I am on the site now and when I initiate the Partial Distribution up comes a blank page. The specialist walked me through getting to the page to enter the account information and address for the IRA transfer but now I get nothing on the page. The day I talked to them the monthly payment option was down. Can't wait to get out from under this mess!

The easiest way to navigate to the page where you add the address of the broker you will rollover to is to click on your account/profile icon in the upper right of your account page, then choose Financial Institutions.
In the dropdown menu choose "Rollover mailed to institution 1" or whichever option you're doing.

By the way, in Peter Eliades software...last night a new projection on the daily charts popped up. This is "preliminary" and would be "confirmed" if SPX can get through both the red/blue offset lines.
If that happens over the next week or two then there's a decent chance the market is headed to 4700+, gulp...every day more and more gurus are predicting a bull market and record highs are ahead, so...hmmm...

 

[Tsunami]

Things are steadily looking more bullish, but Sven points out a major hurdle the market needs to get through just overhead at 4217.
I'll be moving to G soon regardless, ahead of my rollover to an IRA, but if the market is down hard Monday that move will be sooner than I planned on...

https://www.youtube.com/watch?v=NDEaOs0J2lM

 

[JTH]

This a good guide on what to expect for the process...

https://www.barfieldfinancial.com/new-blog/tsp-to-ira-transfer-a-how-to

Things are steadily looking more bullish, but Sven points out a major hurdle the market needs to get through just overhead at 4217.
I'll be moving to G soon regardless, ahead of my rollover to an IRA, but if the market is down hard Monday that move will be sooner than I planned on...

https://www.youtube.com/watch?v=NDEaOs0J2lM

Thank your for the link, great info, and I didn't know you must have a Roth IRA open for 5 years to avoid taxes on withdrawals, good info for anyone close to taking payments.

Special Roth 5 year rule. Please read this carefully. In order for your Roth IRA earnings distributions to be completely “qualified” (in other words, tax-free), you have to have had a Roth IRA open for 5 years. And the time you had the Roth TSP doesn’t count. So if you transfer your Roth TSP that you’ve had for 15 years to a Roth IRA and this is your first Roth IRA you’ve ever contributed to, then you have to wait 5 years for everything to be able to be withdrawn completely tax-free. However, if you already have a Roth IRA opened and funded, then the clock started when that one was opened. Moral of the story? Open a Roth IRA ASAP if you’re planning on transferring your Roth TSP to a Roth IRA down the road. Once the initial 5 year period is up, you’re good for future Roth IRAs that you open.

 

[papahotel66]

The easiest way to navigate to the page where you add the address of the broker you will rollover to is to click on your account/profile icon in the upper right of your account page, then choose Financial Institutions.
In the dropdown menu choose "Rollover mailed to institution 1" or whichever option you're doing.

By the way, in Peter Eliades software...last night a new projection on the daily charts popped up. This is "preliminary" and would be "confirmed" if SPX can get through both the red/blue offset lines.
If that happens over the next week or two then there's a decent chance the market is headed to 4700+, gulp...every day more and more gurus are predicting a bull market and record highs are ahead, so...hmmm...

View attachment 57188

Thanks Tsunami!

 

[Kinetic]

Thanks for the information. Not all of the distribution would be taxed under the Roth 5 year rule.

From irs.gov - [h=3]What happens if I take a distribution from my designated Roth account before the end of the 5-taxable-year period?[/h][FONT=&quot]If you take a distribution from your designated Roth account before the end of the 5-taxable-year period, it is a nonqualified distribution. You must include the earnings portion of the nonqualified distribution in gross income. However, the basis (or contributions) portion of the nonqualified distribution is not included in gross income. The basis portion of the distribution is determined by multiplying the amount of the nonqualified distribution by the ratio of designated Roth contributions to the total designated Roth account balance. For example, if a nonqualified distribution of $5,000 is made from your designated Roth account when the account consists of $9,400 of designated Roth contributions and $600 of earnings, the distribution consists of $4,700 of designated Roth contributions (that are not includible in your gross income) and $300 of earnings (that are includible in your gross income).[/FONT]

 

[Tsunami]

Well, I finally pulled the plug today and moved to G, and tomorrow I plan to complete the rollover to my new traditional IRA account at TD Ameritrade.
I was waiting for this months monthly withdrawal to happen (today), and also trying to wait until the market finally finishes this rally, but it's just dragging on forever and the seasonality turns negative after today.
So, goodbye TSP, a 31-year marriage ending in divorce LOL...I won't miss you.


I'll be around and keep posting on occasion.

 

[tsptalk]

I'll be around and keep posting on occasion.

Thanks for sticking around! I'll be curious to know how you approach the IRA.

I seem to have had the most success in my IRA when I stick with index ETF's rather than individual stocks.

 

[Tsunami]

Thanks for sticking around! I'll be curious to know how you approach the IRA.

I seem to have had the most success in my IRA when I stick with index ETF's rather than individual stocks.

I plan to put most of it in the same portfolio of high dividend stocks that I have in my Roth IRA.
That's a big collection of 44 different types of stocks selected from Rida Morwa's High Dividends Opportunities service on SeekingAlpha.com, which I really really love.
They do a fantastic job at deep diving into the universe of high paying dividend stuff, including various types of REITs, business development companies, preferred stocks, "baby" bonds, closed-end funds and more, stuff I knew little about until I subscribed. They stay on top of them for you, so if any company is getting into trouble they issue a sell before most of the world finds out, and they have a mix of stuff that does well in both rising and falling-rates environments.
I bought most of my Roth IRA stocks in October, so got great prices and the overall yield of the portfolio is 10.67% if I don't touch it, not including the "special" dividends that a bunch of them pay at the end of each year, so I'll make over 11% this year, tax free since it's a Roth. Some of them have already raised their dividends since I bought them.
For the new traditional IRA (my TSP has no Roth component), if I bought them all today I'd have a yield of about 9.6%, way more than my annual goal of 7% gains, and without the stress of worrying about the market's ups and downs. It takes some time getting used to the idea that the price of the stock is irrelevant once you buy it...though when they get really overpriced Rida sometimes issues sells just for that reason alone, and there are plenty of others to choose from in his universe of over 100 equities. Rida's rule of thumb is to take 25% of your dividends and plow them back into more shares, and my account is just the right size for me to be able to do that. That way I can keep growing the dividends each year, faster than the inflation rate hopefully.

The service isn't cheap, I'm locked in at $510/year for life, but since I'm putting it to full use, it's totally worth it for me. I believe now they charge $550/year for the full service, with the first year being cheaper, and they give a 2-week free trial as well.
For my new IRA I have 50 equities picked out, which I'm hoping to buy after a coming pullback in the market into March/April....yes 50 is a lot, but you don't buy/sell them, just hold them and rake in dividends like crazy, and per Rida's "Rule of 42" his belief is 42 or more is the right number to own...plus there are so many types, and so many great things to buy, you'll just want to add more and more.

 

[tsptalk]

Great info, thanks!

 

[weatherweenie]

I'm not sure if the negative reviews are mainly due to the Covid collapse, but there are quite a few negative reviews, at the bottom of this page: https://seekingalpha.com/checkout?service_id=mp_1006

I plan to put most of it in the same portfolio of high dividend stocks that I have in my Roth IRA.
That's a big collection of 44 different types of stocks selected from Rida Morwa's High Dividends Opportunities service on SeekingAlpha.com, which I really really love.
They do a fantastic job at deep diving into the universe of high paying dividend stuff, including various types of REITs, business development companies, preferred stocks, "baby" bonds, closed-end funds and more, stuff I knew little about until I subscribed. They stay on top of them for you, so if any company is getting into trouble they issue a sell before most of the world finds out, and they have a mix of stuff that does well in both rising and falling-rates environments.
I bought most of my Roth IRA stocks in October, so got great prices and the overall yield of the portfolio is 10.67% if I don't touch it, not including the "special" dividends that a bunch of them pay at the end of each year, so I'll make over 11% this year, tax free since it's a Roth. Some of them have already raised their dividends since I bought them.
For the new traditional IRA (my TSP has no Roth component), if I bought them all today I'd have a yield of about 9.6%, way more than my annual goal of 7% gains, and without the stress of worrying about the market's ups and downs. It takes some time getting used to the idea that the price of the stock is irrelevant once you buy it...though when they get really overpriced Rida sometimes issues sells just for that reason alone, and there are plenty of others to choose from in his universe of over 100 equities. Rida's rule of thumb is to take 25% of your dividends and plow them back into more shares, and my account is just the right size for me to be able to do that. That way I can keep growing the dividends each year, faster than the inflation rate hopefully.

The service isn't cheap, I'm locked in at $510/year for life, but since I'm putting it to full use, it's totally worth it for me. I believe now they charge $550/year for the full service, with the first year being cheaper, and they give a 2-week free trial as well.
For my new IRA I have 50 equities picked out, which I'm hoping to buy after a coming pullback in the market into March/April....yes 50 is a lot, but you don't buy/sell them, just hold them and rake in dividends like crazy, and per Rida's "Rule of 42" his belief is 42 or more is the right number to own...plus there are so many types, and so many great things to buy, you'll just want to add more and more.

 

[Tsunami]

I'm not sure if the negative reviews are mainly due to the Covid collapse, but there are quite a few negative reviews, at the bottom of this page: https://seekingalpha.com/checkout?service_id=mp_1006

The very few negative reviews are from people that just don't understand the income method. It's not a growth stock picking strategy!
I wouldn't want to just blindly hold everything through a crash though. The preferred stocks and baby bonds can be held, but I'll sell the other types of holdings and instead just hold something like SVWXX, or even short the market with SH.

Today's market drop will be bought one more time, I think...still should touch 4200 this month...I think...don't much care though since I'm in G.

 

[Tsunami]

A status update on my rollover to an IRA...to sum it up, argh...
I called this morning to ask about the timing of doing it today and if it could affect my monthly installment payment.
I was told to be safe, since the payment was still in "pending" status, I should wait another day.
They also said that the check wouldn't be sent until the next business day after I do it, if all goes well.
Well, that would mean the check won't go out until next Tuesday, but since I will have requested the rollover tonight or tomorrow, it will be based on the balance after I get today's G fund money, which is about $72/day for my current balance.
So that would mean I'd be cheated out of the $72/day for Friday...Saturday...Sunday...and the holiday Monday!...that's $278...argh.
Not acceptable, that's a bunch of pina colada's...so I'll wait until next Wednesday morning to do it, after all that G fund money is finally in my account.
Man I'll be glad to be rid of the TSP.
This all means that my new IRA won't get funded until I'm somewhere in the Caribbean...

Great stuff from Cem Karsan. If the market doesn't collapse over the next few days, looks for FOMO to take over. If it does, blame Carl Icahn LOL...
https://twitter.com/TDANetwork/status/1626241991393570816

 

[JTH]

A status update on my rollover to an IRA...to sum it up, argh...
I called this morning to ask about the timing of doing it today and if it could affect my monthly installment payment.
I was told to be safe, since the payment was still in "pending" status, I should wait another day.
They also said that the check wouldn't be sent until the next business day after I do it, if all goes well.
Well, that would mean the check won't go out until next Tuesday, but since I will have requested the rollover tonight or tomorrow, it will be based on the balance after I get today's G fund money, which is about $72/day for my current balance.
So that would mean I'd be cheated out of the $72/day for Friday...Saturday...Sunday...and the holiday Monday!...that's $278...argh.
Not acceptable, that's a bunch of pina colada's...so I'll wait until next Wednesday morning to do it, after all that G fund money is finally in my account.
Man I'll be glad to be rid of the TSP.
This all means that my new IRA won't get funded until I'm somewhere in the Caribbean...

Great stuff from Cem Karsan. If the market doesn't collapse over the next few days, looks for FOMO to take over. If it does, blame Carl Icahn LOL...
https://twitter.com/TDANetwork/status/1626241991393570816

Thanks for the update, I had my own issues as well. I submitted a full withdrawal on Sunday 12-Feb. I had planned to do a partial withdrawal, so the funds could be disbursed into 2 IRA accounts. Problem was I couldn't do a partial withdrawal without them withholding 20% taxes. I changed my tax bracket setting, but still had issues. I must say they have this website setup shady, as if attempting to scare you away from rolling out your money.

Either ways it's done, now I pray and hope, a paper check doesn't get lost and/or my broker doesn't screw anything up....

 

[LTJPFED]

I sure hope by the time I retire and have to move my funds they get all these issues worked out. At this rate I'll be working until I'm 80 and by then I'm sure they will create a new and better web site ROFL. :laugh::lmao:

I wish you the best! Hope it all works out for you, hang in there!

 

[WorkFE]

At this rate I'll be working until I'm 80 and by then I'm sure they will create a new and better web site ROFL.

While I certainly have no intentions of doing it, if I worked until I was 80 I most likely would not need my TSP.
1. I would be to old to enjoy it.
2. My GS retirement would be insane, current inflation not withstanding.

 

[nasa1974]

I'm fortunate that I haven't had to tap into my TSP. Hopefully when I roll my TSP into my 401k next year it won't be like pulling teeth without anesthesia.

 

[Tsunami]

I submitted my TSP full withdrawal today...my wife has "acknowledged" it in DocuSign...so now I just wait for the check to be mailed out (should be tomorrow) and get to the brokerage.

I'm free!