Planning for retirement is a big deal. It is often compared to climbing a mountain and getting to the top (aka retirement) is a big accomplishment.
But like all hikers and adventurers know, the journey isn’t over once you get to the top of the mountain. You still got to make it down.
Taking money out of your TSP is part of coming down the mountain and there are a number of things that you need to know to do so safely.
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Dallen Haws at Haws Financial Planning
Sierra Vista, AZ
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I am a practicing financial planner, but I’m not your financial planner. Don’t take what I say as specific advice for your situation. Please consult with your own tax, legal and financial advisors.
Dallen Haws at Haws Financial Planning
Sierra Vista, AZ…(read more)
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I separated before retirement. Does anyone have advice on how to take out the money? Can you STOP the monthly fixed withdrawals once you elect that option?
This video skips over the TSP installment plan calculated on life expectancy and the size of the account. It dynamically adjusts for age and stock market flucuations so you won't run out of money. Downside is that the installments will fluctuate so you might feel uneasy if it drops. Best option for me would be monthly fixed installments using the 4% rule and adjusting as needed. Setting this up would only require one notarized spouse signature form (unless adjustment is needed with another form submitted later).
Metlife is a stock company. What are your thoughts about doing an annuity using a mutual company instead?
can i withdraw early?
I'm getting out of the military can I or should I take the money out of my tsp ?
My husband died 2 months ago and I am going to set up installment payments to supplement my income. I know I will get taxed 20% on each withdrawal, correct? Then is my monthly installment going to be counted as income and will I have to pay taxes on it again when I file my taxes at year end? Also, I live in a state with no state income tax. Does this affect anything? Trying to get thru on the phone to TSP right now is impossible as they are in the midst of switching to a new system so you can't get anyone on the. phone. I've been trying daily for 3 weeks, sometimes even being on hold for 3+ hours, to no avail.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
My wife and I will be retiring by the end of the 2022. We are looking to downsize our home and wanting to purchase a new home. I will be receiving a post office annuity and social security supplemental(obviously until 62). I also have about $500k in my TSP. I wanted to just take a scheduled set amount out of my TSP every month. While applying for a mortgage. Can the scheduled monthly TSP payments be recognized as a defined benefit and used in calculating my monthly income? I don't see myself purchasing a Met life annuity. Thanks in advance for any help or suggestions you may have on this issue. Keep up the great work educating us federal employees..
You're right on target about annuities – I want the flexibility that comes with the TSP fixed monthly payment, plus I want all of my TSP (not just part of it) to go to my spouse when I die. I visited with a financial advisor pre-retirement who presented me with 3 ways they could manage my Federal retirement – al three involved annuities which they called "IRAs". They only admitted they were annuities when I asked them directly – they said it stands for Individual Retirement Annuity. In reality, they were set to make a tidy % of fees off of my money!
59 and 1/2?? Tsp g fund = -15% per yr. All others, worse. I n f l a t i o n = 15% today, so every 100k in tsp is worth 85k in 12 months ie; you’re losing a grand+ per month. Rollover that 100k into a Self Directed ira account and buy Commodities. I’m up 6k in 8 weeks. Tsp sux. If under 59 1/2 consider taking the 10% tax hit and put your money to work to beat inflation. Yes, the tsp matching is still a good thing but eventually inflation will make it worthless. Most usps workers will lose half their savings because they spent more time learning about sports, porn, and video games than they did about how fiat money, gold, and oil work. 😉
Hello. I want to retire in 14 yrs. At that time I will be 57 with 34 yrs of federal service. I would like to take some of my TSP at that time to pay my mortgage off. But, will I get penalized due to not being 59 and a half? Or is there a way to withdraw at my MRA with 34 yrs one time to pay off my mortgage? Appreciate your time and advice.
I'm active duty in the army but I'm getting out soon.. I'm in Georgia, where do I go to withdraw my tsp?
Yeah…it's easy to be thankful when you're Oprah. ✋ Anyway…yes, the bulk option is least desirable under most cases, but think of these two scenarios: one, the stock market is more nervous than a captured racoon, so many feel it's safer to take it all out and stand the hit rather than take the risk, especially if they have other retirement options; two, what about the married couple who have two retirees or one soon to retire, and both have the TSP option. It might be prudent to cash out the one account and, say, pay off a mortgage, while keeping the other as payments for the couple.
I am retiring as a federal doctor at 30 years of service end of June because that was when I started at the beginning of the academic year 30 years ago. That means for 2022 I will have made a high MD's salary for half the year and will be in a fairly high tax bracket for 2022. So my strategy is to draw from my cash checking and savings accounts or taxable investment account (if I need more money than my pension and FERS supplement) and NOT draw from my TSP until 2023 when I will drop into a much lower tax bracket, just avoiding higher taxes on my TSP withdrawals. Am I correct?
I think there are many choices better than taking an annuity and since knowing that MetLife is the people who manage the annuities I would never ever ever take an annuity because I have my dental insurance through the voluntary benefits program that is managed by MetLife and the way they handle my dental claims I would never ever do business with them.
Hello there, I have a question for you, that I’m hoping you can answer for me. I heard you say taking the 3rd option wasn’t ever done and didn’t make sense for any of your clients. If the client was terminally ill and given a prognosis of only a few months. Would then be a good idea? And if not, what options are left for the beneficiary? Thank you, I sure appreciate it.
Quoting O… gimme a break !!!
Your clock needs a new battery
is this ONLY after retirement or for someone still wotking also???
Options start at 3:51
What about the 4 percent rule? Isn't that just withdrawing the gains every year? And not touching your balance ?
He gets to the point around the 4 min mark
Can I take it all at one time? I like to take it all to pay off my house and pay off car payments. I will have enough money to live on with SSI and VA disability. I will still make over 4k a month and that is good for me. my wife is 21 years younger then me and has her own TSP she is building.
If I choose to take a fixed amount out of my TSP, monthly or quarterly etc, do they automatically deduct the taxes or will I have to figure out what I owe and set that aside?
Could I take it all out at once and reinvest it in solid stocks that provide dividends?
My ? Is. Are the withdrawals be considered income for that year. I plan on retirement at 65 and waiting 1 year 10 months to get 100% social security. I have a sizable mortgage(divorce) which would take most of the pension. I had an idea of withdrawing the amount I’d need this year (have 28 months till retirement)to make the payment till I filed for social security.
What do you think?
Oprah…. Really. Unsubscribe.
LoL
I agree with Hawes that most people who have a federal Pension and Social Security should not need an Immediate Annuity,—– better to use TSP Installments. But if you can successfully manage your retirement until after 70 years old, the Qualified Longevity Annuity Contract (QLAC) option might be worthwhile to defer RMDs of the TSP and IRA until 85 years old! Of course, MetLife is not only safe, safe insurance carrier that offers QLAC, but you might ask for a quote before moving all TSP into IRA. Mutual of Omaha offers very competitive quotes right now, but Stan the A-Man believes QLAC will make more sense as people start to become more aware and understand the pro/con. (A key indicator of how well you manage your retirement is your ability to keep annual Roth Conversions to small partial amounts within a sweat tax bracket knowing that breakeven might take 20 years and it is highly likely that Roth will go to your beneficiaries.)
TSP "customer service" has proven so slow, arrogant, and incompetent that I am directly transferring every penny of my TSP into my Schwab self-directed Traditional IRA. When I pass away I do not want my heirs to have to get "the TSP exerience" (read, garbage).
The TSP funds to me are lacking a bit. There should be funds that allow you to invest into current markets like technology, Healthcare, biotechnology, etc…
Could the annuity add up to more than what is in the account, ever? I'm 59 and my husband just died. Better to roll over to IRA and contribute 7k/year?
I'm taking mine all out to further invest on my own. Will be adding to my Tesla position. No brainer.
Your clock needs new Batteries
How about: take care of your money so it can take care of you
Almost left at the 40 sec mark. No need for the self aggrandizing peptalk…just the info.
I liked the inspirational quote at the beginning. Would like to hear some Warren Buffett quotes too or other investors. Don't listen to the whole starts at 3 minutes in. This video started at 0 people, watch the whole thing, Dallen does a good job. Love your videos.
when retired, at age 62….can you make withdrawls to invest in your buisness on the farm, looking at tapping my fund, not looking at repaying it.
Will the new 5.9 COLA increase effect your TSP annuity interest rate index?
I had a friend that found out she made more money getting an annuity, than she would get from her RMD withdrawal. I also found out you can not withdraw less than $1000 at a time if you want to transfer money from a TSP to a Roth, you also have to have met your RMD for the year before you can do the transfer.
Starts at 3:48
I just got done with a 3 year term would it be smart to take what I have in my tsp
I have a question >>> lets say somebody has just retired at age 62 & collecting social security & government pension & they have $500k in TSP & they want to WITHDRAW it all & use that money to invest somewhere else….How much EXACT TAXES do they pay on the $500k…I've heard its %20 & i've heard its %30 …nobody seems to know for sure…..lets say its %20 …will TSP write me a CHECK FOR %20 OF $500K = $400K ? IS THAT HOW IT WORKS? THANKS IN ADVANCE….
What is the earliest age or maybe i should say "right" age to draw from your TSP without penalties? Or is there penalties?
i want to quit my job,im not retitement eligible,i just want to move along,i read that i can withdrawl "my" contributions with a penalty and then also have to pay tax on that amount,is this accurate? if so when do i do the withdrawl? after seperation?
Have you noticed on all the videos the clock always stays the same time.
Agreed. See no point in an annuity. Better off just leaving the money in and pulling it out as needed. Good info though. Thanks.