Unsustainable per GAO

[Scarfinger]

Any advice for rolling TSP to an out side account? Did you have Roth and traditional TSP to roll over?

[mhende2]

Scarfinger, I had previously opened a joint Fidelity brokerage account around 30 years ago with my wife. About 5 years later we each opened a Roth account with Fidelity. We both had Retirement savings plans through our employers matching 401k type plans. She was a state employee.

I did not have any Roth savings with tsp, only traditional type.

First step was open a Rollover IRA acount with Fidelity. Since we had accounts already, it was just a matter of logging into our account, and adding a rollover IRA account.

The more challenging part was getting the funds rolled out of tsp. On tsp website the choices of things to do are in banner along upper portion, you need to click on "more" at right end to find the 'roll out" tab. Seems like they tried to hide it. You need to start completing the document, and have the financial institution (Fidelity in my case) address and your rollover IRA account number where tsp will need to mail funds. You must wait 7 days after entering the above financial institution information before you can complete the remaining steps and execute the rollover transaction. I guess the 7 day wait period is to give you time to maybe change your mind. I'm pretty sure they are trying to make it cumbersome in hopes you keep your funds with tsp.

Then I think it said allow 10 - 15 days for check to reach financial institution. It just seemed like a rather excessive long time window to arrive. Once Fidelity received the check it was posted to the rollover account. At that point I could start selecting what stocks and funds I wanted to purchase.

In comparison, My wife had a Fidelity agent assist her on a 3 way call with her state run retirement plan and was able to have her transaction completed the next day, and mailed check out to Fidelity. Her new Rollover account had the funds in 5 days.

Hope that answers your question.
Mike

[12squared]

I pulled the lever and rolled my tsp over to my Fidelity Rollover IRA as I stated I would earlier in this thread a couple weeks ago.

I have no regrets of investing in TSP throughout my working career, I ended up with far higher balance than I ever imagined I would attain. Now that I'm retired and able to spend time managing my own investments in what I want, and make changes as often as I want, the decision was the right one for me.

Did you consider keeping a portion in the TSP G fund as a place to take mandatory withdrawals during a downturn? As I recall, you could later transfer funds from an outside brokerage back into it to shore it up after a recovery.

12²

[Bubba]

I pulled the lever and rolled my tsp over to my Fidelity Rollover IRA as I stated I would earlier in this thread a couple weeks ago.

I have no regrets of investing in TSP throughout my working career, I ended up with far higher balance than I ever imagined I would attain. Now that I'm retired and able to spend time managing my own investments in what I want, and make changes as often as I want, the decision was the right one for me.

Did you consider keeping a portion in the TSP G fund as a place to take mandatory withdrawals during a downturn? As I recall, you could later transfer funds from an outside brokerage back into it to shore it up after a recovery.

12²

12 squared,

Great point! Many don't realize how amazing the G Fund is for investing. Yes, the interest rate is super tiny, but it's like a money market account, but with higher interest. According to a law in Congress, the G fund cannot lose value. Pretty cool!

My suggestion to all is to use a certain amount (around retirement) that you intend to use for "cash" purposes and leave that in the G fund. It'll mean a bit more paperwork than a regular investment account for distributions, but also means you cannot lose value. Yes, some money market funds (not accounts) come with risk...just ask those that invested in 2008.

Oh and one last point. The G Fund is why (via TSPCalc) you see such a low SD because it provides shelter during times of trouble. What I'm saying here is that the G Fund is an awesome thing not to lose AND how cool TSPCalc is for investing purposes.

Good luck to all!

[mhende2]

I considered keeping some of my funds in TSP G Fund. It's an excellent choice for most people.

Currently many money market funds are also paying around 5% to park your funds, and I can move in and out whenever I want. I am a more active trader and still prefer to invest on the agggresive side even after retiring. Most people are going to lean toward more cautious investments during retirement, and G fund is going to provide that security.

I took nearly three years making my decision so it was not a hasty decision.

[Scarfinger]

Hope that answers your question.
Mike

Yep it did. For the most part it sounds painless but slow. I already have a Fidelity IRA and Roth IRA started for my potential retirement in 10 years.

I have TSP Traditional and TSP Roth which I am guessing may make it slightly more cumbersome to transfer out.

I am considering withdrawing all of the Roth portion and most of the tradition but leaving some traditional in the "G" fund.

Thanks.

[IRQVET]

I did this with my CalPERS retirements when the politicans began eyeing state employees retirement funds as a method to bail out poorly conceived welfare policies. I moved my vested funds into a private account. Is this happening to the FED now? In the back of my mind I’m concerned but also not all that suprised if this turns out to be ture . . .

[mhende2]

An FYI, it took 12 calendar days from time I requested Rollover withdrawl from TSP before funds arrived at Fidelity. Funds were shown withdrawn from my TSP next day following request. Seems like they take their sweet time sending it, and was only going to Ohio. At least transaction is complete.