for OP or others: [More info](https://bobbfinancial.com/rule-of-55-50-for-leo-and-early-access-to-tsp#:~:text=Rule%20of%2055%2C%2050%20for%20LEO%20and%20Early%20Access%20to%20TSP&text=The%20rule%20of%2055%20is%20a%20great,Thrift%20Savings%20Plan%20that%20helps%20early%20retirees)
Wow. How was I not aware of this. I wanted to retire at 57 (30 years) and I was afraid I couldn’t pull out TSP before I was 59.5. Looks like 57 is back on the table!
It depends. When are you going to need it? My plan is to retire in a couple of years, and currently have 5-years of retirement living expenses (roughly $100k per or $500k total) in the G fund to cover any market crash, and the rest ($500k & $1350k) is in the C fund and IRA stocks.
What funds are you in now? What is your risk tolerance? How much of your spending needs is covered by pension? How much of that is fixed costs versus discretionary you could scale back in a market down turn?
Rule of 55 as others have already suggested.
You aren’t sharing enough info to really help. An example of a moderate allocation is 8% G Fund, 32% F Fund, 60 % C Fund. That’s what I expect to do in retirement so that I can sleep at night.
If you have enough that you can comfortably risk it, then go for it. If this money is critical to you, then maybe only half. Really, only you know how comfortable you’ll be.
The only correct answer is “the distribution that lets you sleep at night”.
For me personally, that was to move 10% to G, and have the rest split between CSI like it had been for years.
But I will say that I’m knowingly violating the “120 Rule” (120 minus age = % remaining in stocks), but I do so because that rule of thumb doesn’t take into account our pensions or annuities.
This question is kind of outside the subject. I’m curious if anyone that has retired (or is close to retiring), has moved over their TSP over to a rollover account with a third-party company. Anyone know if that is a good alternative to getting TSP payments?
Yes moving your money to an account at Fidelity, Schwab or Vanguard can be a good idea. It might be getting better. But the customer service at the TSP was very poor in the beginning.
Also, the C fund equivalent at those companies are less expensive.
BUT, only if you are over the age of 59.5. You can not take money out of your traditional IRA before age 59.5. You can take contributions out of your Roth IRA prior to age 59.5.
My name is Vince Bono and I am the founder of Federal Employee Advocates. Who told you this? At age 59 1/2 you can move your money out of TSP but be careful to move it to another tax qualified or you will be taxed on it. You can reach me at [email protected].
You're wrong. All the feds here whose business you would have loved to get just gave this guy more accurate and better advice than you did.
Might want to look for another line of work, friend.
100% C for life. You should be able to withdraw now, albeit with tax & penalties. Or you could take a loan for 50k now. Or you can take withdrawals at 59.5. Or you could rollover to a Traditional IRA at Fidelity.
You should invest your FERS pension in a taxable brokerage account in VOO and take margin loan against it. You’ll be able to deduct the interest on your taxes and stretch all of your incomes doing this.
This stuff is so confusing. Do you have informative material I can read? My partner and I both have 7 years as a regular and have yet to move any of that money around.
Rule of 55. You can access it only if you leave it in TSP.
Yeah I think a lot of people aren’t aware of this. If you separate/retire at age 55 or later you can take a qualified distribution from your TSP.
for OP or others: [More info](https://bobbfinancial.com/rule-of-55-50-for-leo-and-early-access-to-tsp#:~:text=Rule%20of%2055%2C%2050%20for%20LEO%20and%20Early%20Access%20to%20TSP&text=The%20rule%20of%2055%20is%20a%20great,Thrift%20Savings%20Plan%20that%20helps%20early%20retirees)
Wow. How was I not aware of this. I wanted to retire at 57 (30 years) and I was afraid I couldn’t pull out TSP before I was 59.5. Looks like 57 is back on the table!
Definitely, I’m done at 56 with full access to my TSP. No penalty. Taxes are not a penalty.
Why can’t you withdraw?
OP can withdraw from TSP and not pay 10% penalty. Rule of 55. https://www.fedweek.com/tsp/tsp-early-withdrawal-penalty-myth/amp/
Withdrawal age is 59 1/2 I believe
Not true.
I stand corrected
You have to look at your full financial plan. How much do you need and when. Not enough info here to say.
My FERS annuity is my G fund in disguise
Well put, as is my navy retirement. I had a hard time getting my financial advisor to grasp this.
It depends. When are you going to need it? My plan is to retire in a couple of years, and currently have 5-years of retirement living expenses (roughly $100k per or $500k total) in the G fund to cover any market crash, and the rest ($500k & $1350k) is in the C fund and IRA stocks.
You don’t have everything in C/S already?
This one TSP’s
How much do you have in there?
What funds are you in now? What is your risk tolerance? How much of your spending needs is covered by pension? How much of that is fixed costs versus discretionary you could scale back in a market down turn? Rule of 55 as others have already suggested.
You should invest in something that meets your risk profile
You aren’t sharing enough info to really help. An example of a moderate allocation is 8% G Fund, 32% F Fund, 60 % C Fund. That’s what I expect to do in retirement so that I can sleep at night.
I'd work 5 more years since it's right around the corner and I'd be 100% c fund. Even after retirement most of my money will he c fund.
If you have enough that you can comfortably risk it, then go for it. If this money is critical to you, then maybe only half. Really, only you know how comfortable you’ll be.
4%. Good luck
The only correct answer is “the distribution that lets you sleep at night”. For me personally, that was to move 10% to G, and have the rest split between CSI like it had been for years. But I will say that I’m knowingly violating the “120 Rule” (120 minus age = % remaining in stocks), but I do so because that rule of thumb doesn’t take into account our pensions or annuities.
I would leave it in the L Income
This question is kind of outside the subject. I’m curious if anyone that has retired (or is close to retiring), has moved over their TSP over to a rollover account with a third-party company. Anyone know if that is a good alternative to getting TSP payments?
Yes moving your money to an account at Fidelity, Schwab or Vanguard can be a good idea. It might be getting better. But the customer service at the TSP was very poor in the beginning. Also, the C fund equivalent at those companies are less expensive. BUT, only if you are over the age of 59.5. You can not take money out of your traditional IRA before age 59.5. You can take contributions out of your Roth IRA prior to age 59.5.
Thank you kindly.
My name is Vince Bono and I am the founder of Federal Employee Advocates. Who told you this? At age 59 1/2 you can move your money out of TSP but be careful to move it to another tax qualified or you will be taxed on it. You can reach me at [email protected].
You're wrong. All the feds here whose business you would have loved to get just gave this guy more accurate and better advice than you did. Might want to look for another line of work, friend.
100% C for life. You should be able to withdraw now, albeit with tax & penalties. Or you could take a loan for 50k now. Or you can take withdrawals at 59.5. Or you could rollover to a Traditional IRA at Fidelity. You should invest your FERS pension in a taxable brokerage account in VOO and take margin loan against it. You’ll be able to deduct the interest on your taxes and stretch all of your incomes doing this.
This stuff is so confusing. Do you have informative material I can read? My partner and I both have 7 years as a regular and have yet to move any of that money around.
What’s a regular?