Retiring Dec. 31, 2014, But My Plan Isn't Working

Managing your TSP and alternate investment options after retirement or separation from service.

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skiehawk11
Posts: 2116
Joined: Wed Jan 05, 2011 2:32 pm

Re: Retiring Dec. 31, 2014, But My Plan Isn't Working

Post by skiehawk11 »

crondanet5 wrote:Agreed. He could learn. I was going to present to him the idea of buying a thousand shares and not placing another order until those shares he has sell. Using this method I have increased a small brokerage account 35% so far this year. My key point is that when a TSPer leaves federal employment the value of having a TSP Account greatly diminishes and more money is to be made in a rollover brokerage account.

New question for Lafrinere: Have you created a Living Trust for you and your wife?

_____________________________________________________________
May you always be in the top tax bracket and may it never interfere with your lifestyle.


Well said! I may have to contact you on some trading advice too! :)

TSPBuilder
Posts: 259
Joined: Tue Jun 19, 2012 2:14 pm

Re: Retiring Dec. 31, 2014, But My Plan Isn't Working

Post by TSPBuilder »

Lafrinere wrote:Thanks, Cron. Thats the advice I am looking for.

I am FERS
Business is pretty steady
Wife works the business with me
Taxes? yes
Health and life insurance is the same as now
Only owe on one vehicle
over 423k in TSP now and have earned about 9% average last few years
only about 20k in other savings :(
Yes, I do get the penalties if I take out from TSP before age 55 1/2.

The house was for sale about a year ago, but didnt sell. We have put some money into improvements and landscaping to make it more desireable and to get what we need from it when it does sell. It is just now going back on the market, but I dont expect it to sell before I retire.


Michael,

I had a Financial adviser tell me when I was in CSRS say that you can take the money without penalty if you take it as an annuity paid out over a specified life expectancy. I am too lazy to re-read the documentation again (it did apply to FERS also because I confirmed before I switched).

I like Crondanet's thought's on the trading too. Good Luck! Tim

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: Retiring Dec. 31, 2014, But My Plan Isn't Working

Post by crondanet5 »

If your certified financial planner recommends an annuity get away from him as quickly as you can.

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RGEN
Posts: 228
Joined: Sun Jan 27, 2013 12:12 am

Re: Retiring Dec. 31, 2014, But My Plan Isn't Working

Post by RGEN »

Amen Cron! Best advice for any Fed.
RGEN

User avatar
Lafrinere
Posts: 175
Joined: Thu May 29, 2014 2:17 pm

Re: Retiring Dec. 31, 2014, But My Plan Isn't Working

Post by Lafrinere »

crondanet5 wrote:If your certified financial planner recommends an annuity get away from him as quickly as you can.

Yes, yes, yes!!! I will NOT take an annuity. You never get all your money and in the beginning it is much less than later years (and that is a BIG "IF" I live that long to see it).
Michael

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: Retiring Dec. 31, 2014, But My Plan Isn't Working

Post by crondanet5 »

How about the Living Trust?

EpicWin
Posts: 45
Joined: Fri Sep 10, 2010 10:17 am

Re: Retiring Dec. 31, 2014, But My Plan Isn't Working

Post by EpicWin »

You can also follow IRS rule 72(t) to avoid paying a penalty on TSP withdrawals before reaching the age of 55 if you wanted to stay in the TSP.

Under rule 72(t), if you base your monthly payments on the IRS life expectancy table and continue following the table for the longer of reaching age 59 ½ or five years, you are exempt from the penalty. But, you will be limited to how much you can withdraw for those first 9.5 years by whatever that monthly amount comes to.

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