Where to move your TSP funds in retirement.

[Cactus]

When I retire I was planning on leaving my money in TSP. Now, like Finland on the NATO question, I have done a complete 180. My only question is where to put it. I'm looking for recommendations.

I don't want anything fancy. I just want low cost index funds like the TSP has, only without the train wreck. Give me something like the S&P500 index, US small caps and the G Fund. I'm thinking that last one will be the hardest to match. Fortunately I still have a few years left to decide.

 

[Bullitt]

There is nothing like the G fund outside of TSP. You would have to keep some in TSP for the G fund and use another brokerage for everything else, but then you'd still have to deal with TSP to withdraw from the G.

 

[Cactus]

That's what I was afraid of.

 

[Bullitt]

One positive with a separate brokerage is the ability to draw funds from the fund of your choice. TSP doesn't give that option and instead draws from all holdings equally.

Sequence of return risk is a big one. If you're drawing down from your equities while the market is tanking, you're burning the candle at both ends. Though not as big a problem because you can always rebalance gains into cash, you'd be best served drawing from equities and not cash in a year where there is a big run up.

 

[Bullitt]

Fortunately I still have a few years left to decide.

Open a Roth IRA tomorrow and fund with a few bucks if you haven't already to get the five year clock ticking. Having a Roth IRA will give you a conversion option when you retire.

 

[Epic]

When I retire I was planning on leaving my money in TSP. Now, like Finland on the NATO question, I have done a complete 180. My only question is where to put it. I'm looking for recommendations.

I don't want anything fancy. I just want low cost index funds like the TSP has, only without the train wreck. Give me something like the S&P500 index, US small caps and the G Fund. I'm thinking that last one will be the hardest to match. Fortunately I still have a few years left to decide.

I've often wondered the same thing. I left Federal Service not quite 2 years ago. I'm still in TSP, but maybe one day I'll move it to another Financial Institution.
In any event, I stumbled across this vid a few months ago, and it's a very well explained comparison. I found it helpful, and maybe you and some others will as well.

 

[Valkyrie]

into a highly rated annuity fund is where mine is in the process of going. will make money, never lose any money, and I don't have to worry about it.
this is my advisor
https://www.mikewilsonfinancialadvisorygroup.com/

 

[Bullitt]

annuity fund

Smart decision. Many less things to worry about in retirement - especially longevity risk, which is the insurance company's problem now.

One big argument against annuities is if you do there's nothing to pass on. If this bothers you, there's probably a rider for purchase that will fix that, or you can leave a small percent you'd like to pass on in the TSP. It blows my mind with how many times I hear, "I plan on leaving with around $1M and then I'm going to live off the interest", or "I just want to get a little bit more in my TSP before I go", or "I want to get a job in retirement so I can delay TSP." Once you have enough, how much more do you need?

 

[Valkyrie]

Smart decision. Many less things to worry about in retirement - especially longevity risk, which is the insurance company's problem now.

One big argument against annuities is if you do there's nothing to pass on. If this bothers you, there's probably a rider for purchase that will fix that, or you can leave a small percent you'd like to pass on in the TSP. It blows my mind with how many times I hear, "I plan on leaving with around $1M and then I'm going to live off the interest", or "I just want to get a little bit more in my TSP before I go", or "I want to get a job in retirement so I can delay TSP." Once you have enough, how much more do you need?

the companies I got into wouldn't even open a account with me unless I provided beneficiaries.
https://www.fglife.com/annuities.html
“When I die, the insurance company keeps my remaining money.” Fixed and fixed indexed annuities that haven’t been annuitized have surrender charges waived if the annuitant dies. Any remaining account value is passed to the beneficiaries you named and usually avoids probate.

 

[evilanne]

I just opened a Fidelity Roth. Where I'm thinking about transferring some of my TSP once I reach 59.5

[FONT=&quot]"For a limited time we'll give you $100 if you deposit at least $50 into your new account."
[/FONT]https://www.fidelity.com/go/special-offer