One of the perks of employment with the federal government is a retirement plan known as the Thrift Savings Plan. The question is what you should do with it once you retire. Dave Ermlick, a financial planner from Washington DC, discusses some retirement options federal employees have with this plan.
Dave Ermlick
(703) 338-7103
d.ermlick@cornerstonesenior.com…(read more)
LEARN MORE ABOUT: Thrift Savings Plans
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
As retirement approaches, one of the most important considerations for federal employees is what to do with their Thrift Savings Plan (TSP). The TSP is a retirement savings plan offered to federal employees and members of the uniformed services, and it’s often considered the cornerstone of the retirement package offered by the federal government. Here are a few things to consider as you determine what to do with your TSP when you retire.
Withdrawals
The easiest option for many retirees is simply to withdraw their TSP savings in a lump sum. While this can be tempting, it can also be risky. Taking a lump sum can leave you vulnerable to unexpected expenses or a longer retirement than you’d planned for. A better option for most retirees is to set up a systematic withdrawal plan, which allows you to receive regular payments from your TSP over a set period of time.
Annuity
Another option is to use your TSP savings to purchase an annuity. An annuity is essentially an insurance product that pays out a fixed stream of income for a set period of time. This option can ensure that you have a reliable source of income for the rest of your life, no matter how long you live.
Transfer to an IRA
If you’re looking for more options and flexibility with your retirement savings, you may want to consider transferring your TSP savings to an Individual retirement account (IRA). By doing so, you’ll be able to choose from a wider range of investment options and have more control over your retirement savings. Additionally, transferring your TSP to an IRA can help you avoid certain fees and taxes that may be associated with withdrawing your money in a lump sum.
Keep it in the TSP
Believe it or not, keeping your money in the TSP may also be a viable option for some retirees. The TSP offers low fees and some of the best investment options available, and many people find that they’re happy to leave their money in the plan. Additionally, leaving your TSP where it is can help you avoid the temptation to withdraw your savings prematurely or make other rash decisions with your money.
Ultimately, the best option for your TSP will depend on your individual circumstances, investment goals, and financial needs. As you approach retirement, it’s important to carefully weigh your options and consult with a financial advisor to determine the path that’s best for you. With the right approach, you can ensure that your TSP will be an important part of your retirement plan for years to come.
Yes, get it out of the TSP when you retire and pick the IRA you want it to go to
im a former postal employee of 31 yrs im 55 yrs old i would like to know when i can take money out of my thrift without being penalized
@ 44 seconds regarding TSP Dave E. says: "…and quite frankly don't offer much in terms of returns…' That's a bald face untruth.
s s st st sttutterrr
What a shitty video. Rehearse your shit.
I'm going to blow my tsp on booze and hookers!!
Look into moving your TSP, traditional and roth, into an IRA. Don't believe me, research it.
MOVE YOUR MONEY OUT AT RETIREMENT !!! There is not enough options to make money..Roll it over to an IRA. Learn to trade yourself through a online stock company like Scottrade or whatever. What are you going to do when the markets TANK (and they will ) sit in the crappy TSP…You can make money in a DOWN (bear) market if you know how to SHORT.
This is by far one of the best programs the military offers and I was glad that they finally offered it to the military family as this use to be a civilian program only for many years.
Sounds like snake oil to me.
TSP is a great investment, I would never move that money to a guy like this. His grubby fingers would be all over my life savings, and he'd be lining his pockets.
Move your money out of TSP? Handling fees are extremely low in TSP and there are plenty of options to move money to spouse and kids. You just want to line your pockets.
I would like to know what are my options for withdrawal,when I retire. I plan to retire at at age fifty-six years of age, with thirty years of service. My question stems from the fact that I will be under the age of fifty nine and a half. How can I make a withdrawal without, the ten percent penalty??
Thank you,
Sgtoli