thank u so much for all this infos... i retired at 57 yrs with 31 yrs of service.... TSP is my little wealth plus my home, so im glad you giving us all this free information. You're a blessing Sir.💕

One thing he did not mention. TSP and 401(k) accounts have protection from creditors and lawsuits that IRA's do not. have.

I am 100% in agreement I am not a fan of annuity either

I always enjoy your videos because you explain things simple so everyone can understand. I will be retiring next year at age 57 with 35 years of government service and all your videos I'm taking notes. Keep up the good work and thank you.

This an excellent video. I didn't know Federal employees could take their TSP out without any penalties as long as they hit 55 years old and meet their retirement requirements. I had always thought we had to wait until 59.5 to start retrieving from the TSP. I can retire at 55, but I'm planning to wait until 57, so I don't get the 10% penalty taken out from my pension (5% per year). I always thought I would get my pension, plus the FERS supplement at 57, and then I had to wait until 59.5 to start retrieving money from my TSP. Extremely happy to learn that is not the case and I can get all three (3) out at the same time. Well, FERS and FERS supplement and start retrieving TSP as soon as I retire at 57. It is sad that Federal employees are not provided with this information. Thanks for your channel and all the excellent information you are providing for us.

I can't wait to have these kind of problems.

I just retired from federal service and very much appreciate your videos. You have a great knack for untangling the nuances of investment opportunities and offer some great advice about how to make the best decisions based on our own personal circumstances. I honestly have found retirement much less stressful because I now possess so much more concrete knowledge of how to be smart with my money in retirement. That is in large part thanks to this channel! Thank you!

I liked your coverage of the rule of 55 (great to keep some TSP funds in place just for that purpose of pre-59.5 penalty-free withdrawals, a perfect way to spend down traditional dollars to get ahead of that RMD curve coming down the pike). You also mentioned trad-to-Roth IRA conversions, such an important facet of the long-term plan, especially for fed workers with taxable pensions. Thorough coverage, glad I subscribed!

I appreciate the very thorough advice on where to put your money after retirement

Once I retire at around 62, I'm 99% sure that I will roll over my TSP traditional and Roth to an IRA and a Roth IRA. After that, I would convert my traditional Roth to a Roth IRA slowly so that I wouldn't have to pay all the taxes at once or be thrown into a higher tax bracket by mistake. I only wished that all my TSP was in the Roth TSP, but that is not possible because I barely started the Roth TSP when my account was already around $60k. And the feds matching 5% always goes into the traditional. Thanks for the video! 8:28

I'm retired. I had great strategies and success investing in the TSP. One thing I and many others were not prepared for during retirement, the tax strategies of withdrawing from the TSP and other income streams. Which could effect your social security taxation and Medicare premiums. I had to get up to speed very quickly in terms of taxation education during retirement!

Your Option 2 is very smart. Glad you highlighted its simplicity (and I'd add that it has extremely low fees compared to so many other options). Also, we can balance withdrawal % between Traditional and Roth ... which is nice. We were able to fully retire at 42 thanks to TSP's no penalty monthly withdrawal option. Withdrawal amounts are based on a life expectancy calculation. "Give, save, then spend" is the best financial advice anyone ever gave us. TSP was a great way to save!

Super informative thank you. I’m 61 and learned a lot.

A couple things he left out. If you retire under the Safety officer program you get your TSP penalty free if you retire in the year you turn 50 not 55. That is for Firefighters, Secret Service, Air Traffic Controllers... Also you don't have to do an all or nothing when transferring out of the TSP. When you retire you can get more free dinners from investment firm seminars that want your money. If you want to roll money out of your TSP for more flexibility such as a Traditional IRA or even a self directed IRA always keep a small amount in the TSP. As long as you do that you can always roll back in to the TSP. I have never seen less management fees than the TSP. They will always be low because the Federal Government wants TSP funds high to offset other Governmental areas. Edward D Jones, Thrivent, Ameriprise and all the others will charge a much higher fee.

The rule of 55 is like holding a winning lotto ticket. Thank you whoever designed this golden ticket.

Awesome info. This one is going in my favorites for future reference. I WILL retire at 56 and 10 months (my MRA). I’ll have 36 years. I never thought about the last thing you said. Thanks for the info.

It IS pretty annoying that the TSP doesn’t let you choose which fund to withdraw from. But it’s pretty easy to take a withdrawal and then promptly do an inter fund transfer to get the same result. So not really a big con. I DID move the Roth portion of my TSP into a Roth IRA though, to have more control over whether I withdraw from the tax-free Roth investments or the regular tax-deferred side where withdrawals are taxed at ordinary income rates. That’s where the TSP’s “pro rata” rule truly impacts your choices.

Your videos are always helpful to me as a retired Federal Employee

Great video. An annuity is insurance, not an investment. I totally agree with you. I like the flexibility of a Roth IRA and Traditional IRA. There are some excellent low-cost Vanguard mutual funds similar to the C, S, and I Funds. Vanguard also has some excellent dividend-paying mutual funds. I'll probably keep in the G Fund whatever I leave in my traditional TSP and just use it as my cash bucket. I'll roll everything else into ROTH and Traditional IRAs. Thank you.

What’s important to mention is that this isn’t necessarily a choose-one-of-these-3-places affair. A retiring fed employee with a TSP (perhaps a combination of traditional and Roth dollars) could do with all three options, some portion of the TSP source balance split among those three options. I’m tracking your point about annuitization not being a major priority for those with solid fed pension and SSA benefits, but an annuity choice doesn’t have to be an immediate/income annuity. When one is establishing or tweaking a post-retirement asset allocation, the fixed income allocation could include a fixed rate annuity (industry calls them MYGAs) and get a solid guaranteed fixed income return that contributes to that slice of the allocation pie. Commissions chap my hide as well, but MYGA commissions are low relative to those Byzantine variable and fixed index annuity commissions, and MYGA rates are superior to other guaranteed fixed rate deposit products, and certainly are not volatile like conventional bond products.

The best feature of the TSP is the G fund which has a risk-free rate of return better than any IRA money market fund. I plan to keep my cash in the G fund during retirement and move my stock and bond investments to IRAs.

I have my Roth account with Fidelity for more flexibility and growth potential. More than likely I'll move my TSP to Fidelity. Good information Thanks!

one can address the pro-rata withdrawal (C fund and G fund example) by doing an allocation from G fund to C fund immediately following the withdrawal.

Let's say you have a million in the traditional TSP. I'd direct rollover 75% into a traditional CD IRA. I've seen some at 5% for 5yrs. Have that interest deposited monthly in my checking account. Of course it would be with several credit unions for NCUA protection. Simple guaranteed income locked in for 5yrs so there's flexible without all the fees and commissions of annuities. The other 25% exposed to market for continued growth.. or whatever mix works for you. Then add SS and pension. Really great if your debt free also.

Great play, leading with annuitization (totally didn’t expect to hear that).

thank you so much i am so grateful I found you. My husband is a federal employee and will retire in the next 3 1/2 years w 333 years of service your videos are extremely helpful

Very helpful and informative! Thanks for putting in the time to make these videos.

Thanks a lot for your videos that help us to make better decisions. I going to retire at the end of this year, I am 68 years old and I had been loosing money , And I feel confused to the next move I have to make , but this video show me that the right thing to do is move my tsp to the Ira. Thanks again for your great information

Had not thought about losing the benefits of the 55 rule if you rolled your TSP into an IRA. Thanks for the great info!

I am rolling some, but the majority of mine is staying with TSP. When insurance companies decide not to charge me anywhere from 15 to 35% in fees to annuitize, then I will consider them.

Just leave it in TSP. I never understood why ppl move their funds.

When I retired I put it all in the G fund for safety pending my military reserve retirement kicking in. Then I'll reallocate it to the C. S, and I funds.

Great video. Picked up some great knowledge.

I find it kinda sketchy how the TSP opened up the mutual fund window but we still can't get a TSP to TSP Roth conversion.

Agree best to keep TSP in place in current BEAR market, to have IRA and annuity Options. Agree MetLife offering only income/annuitzation products are poor choices. If we're lucky, the FERS pension and Social Security are better income annuities. Use my Fidelity IRA from non Federal work to buy "CD savings" in Accumulation annuities (MYGA/FIA) as well as make Roth Conversions in 12% bracket. Everyone's situation is unique, maybe the current TSP log in troubles remind us not to manage what we cannot control, but I am surprised that TSP stopped providing dollar estimate of annuitization of our TSP balances in the year end statement . Also, the new Mutual Fund window is a disincentive to keep TSP in place but wait after recession before moving to IRA.

Rental income comes in regardless? Ask Landlords about their 2020 and 2021 rental income.

Another outstanding video, thank so much !!

Just spoke with a retirement planner. Suggested I leave half of my tsp in the tsp, and the other half in a fixed deterred annuity. After watching your video and soon to be retiring at 56, I just may leave it all in the tsp. I want simplicity. I'll screw things up. What say you? Thanks for keeping it simple for me.

The financial planners that are fans of annuities tend to be the ones who sell annuities and make those massive upfront fees.

hI, I KNOW YOU SAID WITHDRAWS COME OUT PRO RATA BUT I JUST LOOKED AT THE TSP WITHDRAW OPTIONS AND IT DOES GIVE YOU THE CHOICE IF I COULD ATTATCH A PIC I WOULD.

Wow I was set on TSP but I'm convinced that I may roll it over to my old 401k when I worked in corporate. Everything is the same except it has more control.

Great info! When I retired I rolled over most of my TSP to an IRA because of the IRA’s flexibility and broad choices for investments. I’m about to liquidate my TSP completely as I’m now 60 so no longer have to worry about the rule of 55. Additionally, the TSP’s website has always been cumbersome and the new website is a mess. I’ll be happy to not have to deal with that any longer.

Thank you. My HOLY REGARDS to you JUMIAPAY in my COUNTRY NIGERIA.REGARDS.

I had to take out about 4 thousand dollars out of my TSP but I am over 65. The taxes were 800 dollars but I received the 800 dollars back when I filed my taxes because I was under the threshold by he IRS of yearly income

Can you expound more on the Roth conversion please in a video from TSP? How does your firm work with Federal employees? Are you a fiduciary? How do you get paid? Do you specialize in dealing with Federal employees? What’s your strategy? Qualifications that make you able to work with Federal employees? References? Thanks

One more TSP rule that really bothers me if I pass on before my wife and how it works when she passes on. From the TSP beneficiary booklet, "Death benefit payments made from your beneficiary participant account must be paid directly to your beneficiary(ies). These payments are subject to certain tax restrictions and cannot be rolled over to an IRA or eligible employer plan. In addition, your beneficiary(ies) will have to pay the full amount of taxes on the taxable portions of the payment in the year it is received." My wife and I want to pass on an inheritance to our kids, but they would be hit with huge taxes all in one year. Isn't this also a good reason to move my money out of TSP and into a Vanguard or Fidelity IRA?

The new tsp website is horrendous

McMissin' the G Fund interest calculator (stopped clock) 😀

If you do shift to a Roth IRA, isn't there a "five-year rule" meaning that you cannot withdraw from that Roth without penalty unless you held it for more than 5 years??

Let's see right now TSP 60% C and 40% G, $500,000 Fidelity (managed) $40,00 in ex employer 403b....am I set up for retirement @65... currently 62....oh yeah carrying way to much Credit Card debt (30,000)

Remember, Haws is still there to make money... (You may also make more money - with risk and stress - all a balance you must accept)

Love your videos. Content very useful and on point.

If you're special category the rule of 55 doesn't apply. You can start collecting TSP penalty free with 25 years at any age or 20 at 50.

Rolled over my TSP and Roth TSP to Fidelity. TSP has cheap fees but they still have fees. Fidelity now has 4 funds similar to C fund, S fund that are 100% free. No TSP funds are free.

Thank you; this is very helpful!

I canceled a Insurance policy @304k with the 30 day no penalty return. They sent me a check of the full amount I rolled over. What do i do with it as far as taxes go. I would like to know more about IRA'S.

Income (immediate) Annuities DO make sense, and are a great addition to a retirement - WHEN they aren't the only source of a retirement portfolio. Tip - do your annuity homework and research yourself to avoid a financial planner / broker making a commission. A good 20 year certain period Income Annuity right now will pay 50% over your initial investment amount over the 20 year course.

I am thinking of rolling my tsp to Vanguard IRA. Inhave called yhe the TSP several times with questions. Sorry to say, the employees are not professional, some are not articulate with explainations, and i get this initution that when you talk about rolling your money out of the TSP they seem to hold back on info. Another reason for me tonlrave the new website is a total disaster, and for yiur monthly installments the TSP tells you when you get your money monthly. Before you had your choice as to when u wanted you money, not anymore. So, i am leaving. Maybe fine yrs ago the TSP was great. Admin fees were low, and the previous website was easy to work with and the calulators were great just for estimates...thats gone!

for Medicaid planning, if you dumped your $482,000 TSP into an irrevocable annuity, would the remaining balance still count as a resource? Also going into an annuity, if the market crashes down to almost nothing...2008/2009 again, you will still get your same monthly income for life with 100% certainty and not have to worry at all, or could the insurance companies go bankrupt and default, or is the money deposited into a safe "state regulated" account? Thank you!!

Very Helpful. Thanks!

Could you do option 4 which is a combination plan? Keep some in the tsp for immediate access in case you need some. After age 55 you can make penalty free withdrawals. You can also rollover a portion to turn it into guaranteed income down the road (deferred annuity) with no fees and rollover part into a Betterment IRA or Charles Schwab to continue growth of the TSP $$, once again low fee.

All you need is the S&P 500 fund.

I like your tie.

A little too late I am on my second paycheck from tsp and I wish I knew about that rule that you said about The annuity

Good info👍👍👍

When you move a TSP over to say a Roth IRA you still have to pay taxes and now you are subject to the 10% fee when you withdraw as opposed to the TSP so I am not sure of the benefit other than a bit more flexibility.? Husband is retiring at 60 with 38 yrs in.

Well here it is 5 months into retirement and I haven't gotten paid yet. 😂😂😂 Oh the incompetence of OPM.

The withdrawal options still suck, I should be able to say how much and traditional or Roth for tax purposes, until TSP realizes this a lot of people will take all of it out.

Haws; say I’m 65 and I have 1.6 million in my fund (C,S,I, & G). Can I move it all to the G fund and take my monthly contributions from there?

what is your view of fixed index annuities, as opposed to a traditional annuity?

Hi, thanks for the info. I did retire in the year I turned 55. I have an outstanding TSP loan what would be a smart strategy for this situation. With respect Thanks

Thanks Dallen!

My main complaint is you cannot adjust monthly TSP payments on website. You have to call to do this. The old website allowed you to make changes online.

When you speak of pro-rata - you just discuss it with respect to the TSP funds - But can you specify which account Traditional or Roth - or is there some formula the TSP uses to take some out of Traditional and some out of Roth ?

I didn’t know about these choices and requested an automatic fixed payment every month. Can I roll my account to a Roth IRA now? I began withdrawals last October. I am over 70 yrs.

Thanx Dude.

Is it possible to migrate money from your TSP into a Roth IRA from age 62 thru age 72) that is part of a revocable family trust? If so, how would that best be accomplished?

Is it possible with the traditional tsp funds that are held to pull all of it in lump sum and pay the with the tax and be free and pull the rest that is tsp Roth at retirement at 65 or older and just pull all the money 💰 and put it in personal bank savings account then and not deal with any cons? Basically just take the money and run

What if I retired early on ssdi at 50 with a tsp. Do I still qualify for withdrawals at 55 with no penalty? I also put in 25yrs of service. Thanks

The annuity is the best choice for someone who might not be in the best position to have full control over their financial choices: people suffering from cognitive issues (permanently, dementia, injury, etc), or someone who may be suffering from financial abuse--spousal abuse, eldercare abuse, romance scams, etc. The annuity would prevent an outside actor from stealing all of the retiree's money as a monthly annuity will always come in for the rest of the retiree's life. If you're afraid someone has or will have more control over your money than you, then consider the annuity.

I'm in Alabama. Do you provide service there? Great videos!

If the TSP would allow Roth conversions, it would be perfect.

Have You done a video on Samba term life

Also TSP will make your take your traditional money out in a lump some upon death. So, not counting a spouse, think kids they don't have the 10yr timeline to withdraw the money like an IRA. Same applies to the Roth. Think for a moment that your kids inherited you TSP they would have to take it all out and pay massive taxes at one time whereas if it's in your IRA it continues to grow, you'll have 10 yrs to withdraw and if it is Roth and they leave for 10 yrs it's all tax free!

So!!! Let continue with my SALES and return my INWARDS back into my STORE in PERSON ON PHONE CALL .REGARDS

Before making a withdraw, why not transfer all your money to G. After with draw reallocate ?

How do you find your tsp

Do what your conscience suggests, their are No experts who can predict the future. Explain the cons of removing from TSP.

Can’t get my money out. They don’t answer phone. They don’t reall6 answer emails.

If someone retires at age 50 with 25 years of service under a discontinued service when can they use their TSP without penalty?

I am 57 years old and just retired 35 years in federal service. I kept my money in TSP 80% G fund and 20% L fund. Comments are welcome...

I am currently planning to retire at 62 which is also when I will have 10 yrs of federal service. If I roll my TSP to an IRA, at 59.5, will I incur the 10% penalty? Would it be better to leave my TSP alone and roll it when I retire?

Please do a segment on the new TSP website. It is terrible.

Quite animated fella

So what’s the best way? An IRA ? Should we leave some money in the TSP when we money to IRA?

Should you withdraw money for home improvement at 59 and half? Where you can pay some back into tsp if you are going to retirement at 60 and half. Or just wait until you retire but you will not be able to money back into tsp.

What do you think of investing it in a mutual fund such as Franklin Income Fund?

I am newly retired and would like to know if I have to pay fees if all my money is in the G fund? How are these fees determined and where can I find the information on how much these fees are?

I have a roth IRA and tsp roth. When can you roll the tsp roth into the Roth IRA?

Couldn't you transfer everything to the G when you wanted to withdraw and then return it back the way you had it?