Looking for a financial advisor who has knowledge of the FERS retirement system and TSP options.
Recommendations are greatly appreciated.
Very Respectfully,
DW
I think your questions are more geared to a planner.What kind of questions??
I keep getting messages in my Facebook feed specific to TSP fund allocation. They provide information on a monthly (I think) basis as to where to move your funds to maximize your returns. They claim to have beaten EVERY TSP funds performance in the last 5 years. I keep pinging them for more information, my latest question is how would I pay for the service and how is the fee calculated??
You're a LOT older than me, so I'm not sure this is what you're looking for.
Have you considered e-mailing Reg Jones? fedexperts@federaltimes.com. From website: "Reg Jones was head of retirement and insurance policy at the Office of Personnel Management."Looking for a financial advisor who has knowledge of the FERS retirement system and TSP options.
Recommendations are greatly appreciated.
Very Respectfully,
DW
I think your questions are more geared to a planner.
I am thinking about retiring at 56 with 36 yrs.
Questions regarding best options on TSP annuity options that would benefit the household.
One lump sum payout, partial payout? Investments with lump sum.
Pension options. Wait till 59, 60.
Annuity supplement.
SS options.
At 56 (assume your MRA) with 36 years will give you an annuity equal to 36% of your high-three (remember that locality pay is not computed into this). Additionally, until you reach 62 you can get the Annuity Supplement, based on your 36 years (military service, not included) you can max the supplement at 75% of your projected SS payment expected at 62 years of age. For accuracy HR can run the numbers for you.I think your questions are more geared to a planner.
I am thinking about retiring at 56 with 36 yrs.
Questions regarding best options on TSP annuity options that would benefit the household.
One lump sum payout, partial payout? Investments with lump sum.
Pension options. Wait till 59, 60.
Annuity supplement.
SS options.
At 56 (assume your MRA) with 36 years will give you an annuity equal to 36% of your high-three (remember that locality pay is not computed into this). .
I think your questions are more geared to a planner.
I am thinking about retiring at 56 with 36 yrs.
Questions regarding best options on TSP annuity options that would benefit the household.
One lump sum payout, partial payout? Investments with lump sum.
Pension options. Wait till 59, 60.
Annuity supplement.
SS options.
At 56 (assume your MRA) with 36 years will give you an annuity equal to 36% of your high-three (remember that locality pay is not computed into this). Additionally, until you reach 62 you can get the Annuity Supplement, based on your 36 years (military service, not included) you can max the supplement at 75% of your projected SS payment expected at 62 years of age. For accuracy HR can run the numbers for you.
As to your TSP, that is all on you as to how you want to handle it; cash it in, roll it over, whatever.
As to SS, if you don't start to draw it at 62 you still lose the Annuity Supplement.
Here's some free advice, avoid the TSP annuity altogether. The rates are lower than the G fund.
Whether you leave the funds in the TSP for the low management overhead, or take it out and dump it into index funds, or buy blue chips with a history of good dividend growth really depends on how long you need that money to last vs how much you need to be comfortable now (which is where the planner comes in, but doesn't need to be TSP specific).
I didn't have much in TSP when I retired (no matching option given to CSRS) but If I did I would take a bulk payment and drop 1/3rd into IVV, 1/3rd into a premium dividend fund like PDT (since premium dividends are so hard to track and buy individually), and then park the rest into a couple of blue chips with good dividend growth like Coca Cola, Proctor & Gamble, WalMart.
Some of the blue chips pay a lower dividend of only 3-4%, but that is pegged to their current stock price. If you buy $100k and they go up in value over 10 years to $175k, the dividend you get will be based on the $175k and not your initial investment so it will be 5.5-7% of your initial investment.
This is the type of info that I am interested in and the advice that I am seeking.Here's some free advice, avoid the TSP annuity altogether. The rates are lower than the G fund.
Whether you leave the funds in the TSP for the low management overhead, or take it out and dump it into index funds, or buy blue chips with a history of good dividend growth really depends on how long you need that money to last vs how much you need to be comfortable now (which is where the planner comes in, but doesn't need to be TSP specific).
I didn't have much in TSP when I retired (no matching option given to CSRS) but If I did I would take a bulk payment and drop 1/3rd into IVV, 1/3rd into a premium dividend fund like PDT (since premium dividends are so hard to track and buy individually), and then park the rest into a couple of blue chips with good dividend growth like Coca Cola, Proctor & Gamble, WalMart.
Some of the blue chips pay a lower dividend of only 3-4%, but that is pegged to their current stock price. If you buy $100k and they go up in value over 10 years to $175k, the dividend you get will be based on the $175k and not your initial investment so it will be 5.5-7% of your initial investment.
There are several things wrong with what Ken is telling you.
First, the regular annuity goes to 33% not 36%, it's 1 percent a year up to a max of 30 years, and if you are over 62 when you retire, they give you an extra 0.1% (so max of 33%). If you retire at your MRA of 56 with 30 or more years, you will get 30%.
Additionally, locality is absolutely figured into your high 3. Special locality adjustments for AK and HI are not, but regular locality is along with differentials (shift work), premium, and hazard pay. No overtime though.
And military time can be included as long as it is not included in a military retirement or was purchased back.
This is the type of info that I am interested in and the advice that I am seeking.
I want advice on TSP withdrawal methods since I will have a rather high dollar figure in the account.
And I want to try and avoid as much taxes as possible.
I've read that transferring your TSP funds to something like; but not necessarily; a Roth IRA; or buy gold maybe. One or both of these may prevent withdrawal penalties, if any.This is the type of info that I am interested in and the advice that I am seeking.
I want advice on TSP withdrawal methods since I will have a rather high dollar figure in the account.
And I want to try and avoid as much taxes as possible.
Well there ya go, DoWhat.I've read that transferring your TSP funds to something like; but not necessarily; a Roth IRA; or buy gold maybe. One or both of these may prevent withdrawal penalties, if any.