Search found 306 matches

by MichDad
Fri Mar 24, 2017 9:23 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 144
Views: 22205

Re: Improving the TSP [for current participants]

MnD, Here's how I've been thinking about my TSP account and Required Minimum Distributions. I've got about $1.5 million in the regular TSP. That represents about 25 years of lowering my taxable income as I made those investments. I've been investing into the Roth TSP since that option was first made...
by MichDad
Mon Mar 20, 2017 11:22 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 144
Views: 22205

Re: Improving the TSP [for current participants]

I like the TSP just the way it is. Kathy, Unlike most 401(k) plans, the TSP does not permit participants to convert any regular TSP assets to Roth TSP assets. Similarly the TSP does not permit participants to hold their regular TSP assets in different funds and in different proportions than their R...
by MichDad
Fri Mar 17, 2017 8:41 am
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawal
Replies: 17
Views: 1690

Re: TSP withdrawal

MichDad, what does "established" mean? Like how I set up contribution allocation? I'm not contributing any more since I've left the federal government but I'm considering transferring Vanguard IRA to TSP. I think my question is also how you're going to do step 2. I'm about 20 years from r...
by MichDad
Thu Mar 16, 2017 2:44 pm
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawal
Replies: 17
Views: 1690

Re: TSP withdrawal

Upon withdrawal, how does TSP determine the proportion of traditional vs. Roth? Is it based on contributions from way back when? Until you modify the percentages of your TSP holdings, assets in your TSP account will be held in the proportions you established. The same applies to your TSP contributi...
by MichDad
Thu Mar 16, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawal
Replies: 17
Views: 1690

Re: TSP withdrawal

What are the purposes of the 1st and 3rd steps? I'll make step one so I'll know exactly how much I have in my TSP account the moment I make the transfer to Vanguard. If all TSP assets are not in the G Fund, the total account balance could decrease during the few days it takes to make the transfer. ...
by MichDad
Wed Mar 15, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: TSP interfund transfer
Replies: 14
Views: 641

Re: TSP interfund transfer

I have L2040 from the default when I joined (first pay period before I had a chance to allocate my own). Once I got access, I contributed Roth to I. Are you saying now I have both L2040 and I in traditional and both L2040 and I in Roth? It's messed up. So basically, I can only have the same funds a...
by MichDad
Wed Mar 15, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: TSP interfund transfer
Replies: 14
Views: 641

Re: TSP interfund transfer

Now I have L 2040 in traditional and I in Roth. And I want to rebalance the L2040 to C, S, and F/G (L2040 is too conservative for me) and leave I untouched. Can I do that? The bigger plan is to transfer Vanguard rollover IRA to TSP traditional and have the same allocation of C, S, and F/G. And reba...
by MichDad
Wed Mar 15, 2017 12:31 pm
Forum: Investing - Help with Personal Investments
Topic: TSP interfund transfer
Replies: 14
Views: 641

Re: TSP interfund transfer

TSP does not allow traditional to Roth conversions at this time. It's high on my wish list, but the TSP board does not seem in a hurry to oblige. :sharebeer weedf16 is correct and I also would like to see the FRTIB change the TSP to permit regular-to-Roth TSP conversions. Of course, if that ever ha...
by MichDad
Wed Mar 15, 2017 11:50 am
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawal
Replies: 17
Views: 1690

Re: TSP withdrawal

Hopefully, this will be corrected before you retire, but the TSP is in serious need of updating and improvement. Take a look at this post for a sense of the machinations TSP participants nearing retirement must consider: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=140180&start=50#p...
by MichDad
Wed Mar 15, 2017 11:44 am
Forum: Investing - Help with Personal Investments
Topic: TSP interfund transfer
Replies: 14
Views: 641

Re: TSP interfund transfer

1. Interfund transfers within the TSP are not taxable events and do not trigger any taxes. 2. One of the shortcomings of the TSP is that you cannot hold regular TSP assets in different funds or in different proportions than your Roth TSP assets. This is a particular problem for those who want, as I ...
by MichDad
Wed Feb 22, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: TSP Participant Account Balances
Replies: 43
Views: 8373

Re: TSP Participant Account Balances

Mike Causey has provided some useful, but estimated, figures about TSP participant account balances. His figures are as of mid-December 2016. The latest numbers show 9,599 TSP participants with account balances of $1 million or more. Their average time in government service is 29.2 years. http://fed...
by MichDad
Tue Dec 13, 2016 9:51 am
Forum: Investing - Help with Personal Investments
Topic: TSP Allocations 43 yr old
Replies: 47
Views: 4267

Re: TSP Allocations 43 yr old

Ok guys, Based on your advise and the simplicity factor I have decided to just go with the L2040 fund for my TSP. I appreciate everyone's input. I would like your opinion on my Vanguard Roth side to supplement my TSP. I was thinking of going with a fund of funds "Lifestyle Growth" for my ...
by MichDad
Tue Nov 22, 2016 8:53 am
Forum: Investing - Help with Personal Investments
Topic: TSP or Vanguard
Replies: 17
Views: 1925

Re: TSP or Vanguard

Some (like I) would like to hold Roth assets in different, more aggressive funds than non-Roth assets. This can be, as in my case, because they plan on spending their Roth assets later than their non-Roth assets. Not only does the TSP not allow its participants to make Roth conversions, but partici...
by MichDad
Mon Nov 21, 2016 1:01 pm
Forum: Investing - Help with Personal Investments
Topic: TSP or Vanguard
Replies: 17
Views: 1925

Re: TSP or Vanguard

You are comparing apples and oranges unless you have your TSP funds and Vanguard funds invested the same way. The concerns about the limited withdrawal option in TSP are overblown. Leave your money in the TSP. If at some point you decide that you need more flexibilty than the ability to change your...
by MichDad
Fri Nov 18, 2016 1:52 pm
Forum: Investing - Help with Personal Investments
Topic: 100% Total Stock Market portfolio
Replies: 31
Views: 4254

Re: 100% Total Stock Market portfolio

I started investing for retirement in 1987, at age 32. With the exception of a short period (~ 1 year) in the beginning when the Thrift Savings Plan required federal employees to invest in its G Fund (akin to a bond fund), My wife and I invested at least 98 percent of our portfolio only in US and in...
by MichDad
Mon Oct 24, 2016 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: Roth 'conversion' from TSP - Is this plan possible?
Replies: 13
Views: 1010

Re: Roth 'conversion' from TSP - Is this plan possible?

Annie, As you probably know, the TSP withdrawal rules are prohibitively restrictive and will not be modernized for the foreseeable future. This topic has been discussed on this forum. I'd like to direct you to a post on how I'll deal with withdrawals when I retire. https://www.bogleheads.org/forum/v...
by MichDad
Wed Oct 19, 2016 11:07 am
Forum: Investing - Help with Personal Investments
Topic: Roth TSP vs. Traditional TSP
Replies: 12
Views: 1209

Re: Roth TSP vs. Traditional TSP

Between my TSP and my wife’s 401(k) plans, we’ve saved about $1.6 million in tax-deferred investments (regular TSP and regular 401(k)s). Because of my future FERS pension, our future Social Security benefits (when I turn age 70), and our tax-deferred investments, I’m concerned about our Required Min...
by MichDad
Thu Oct 06, 2016 11:06 am
Forum: Investing - Help with Personal Investments
Topic: TSP Allocations
Replies: 15
Views: 1592

Re: TSP Allocations

Foremost, thank you for your service! Last time I checked, which was over a year ago so you'll want to recheck this, if you later want to roll accounts such as a traditional IRA into the TSP (for example if you earn a lot in the future and want to do a backdoor Roth then), you have to have an exist...
by MichDad
Wed Oct 05, 2016 12:41 pm
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 144
Views: 22205

Re: Improving the TSP [for current participants]

If nothing changes, my tentative plan is to roll everything out (except $1 or whatever) whenever I need to start drawing on the money as my first partial withdrawal, and then roll back in to just pre-tax with maybe just what I want in the G Fund. Hopefully they'll have it figured out in 20-30 years...
by MichDad
Wed Sep 07, 2016 10:44 am
Forum: Personal Finance (Not Investing)
Topic: FERS retirement: Final taxes and TSP
Replies: 51
Views: 5923

Re: FERS retirement: Final taxes and TSP

Alternatively, the TSP may relax the withdrawal rules by 2018, and starting in 2018 I will be taking annual withdrawals while waiting for possible future in-plan Roth conversions. Victoria, I'm writing just to see whether you have timing information regarding the expansion of TSP withdrawal options...
by MichDad
Thu Sep 01, 2016 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Premium increase for federal employee long term care insurance
Replies: 69
Views: 6161

Re: Premium increase for federal employee long term care insurance

The deadline is getting closer and I still haven't made a decision. I still feel we need to have LTC because I don't feel that DH and I have enough assets to self insure. Here is my rant. Apparently, OPM gets bids from insurance companies to provide LTC for a set period (7 years?)-not forever. Here...
by MichDad
Fri Aug 12, 2016 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: TSP withdrawl
Replies: 4
Views: 459

Re: TSP withdrawl

TSP withdrawal options are woefully inadequate. You can withdraw the amount of money you need and then rebalance your remaining TSP portfolio to put you back to whatever percentages you desire for each fund.

MichDad
by MichDad
Thu Aug 11, 2016 10:05 am
Forum: Investing - Help with Personal Investments
Topic: Federal Couple - Financial Independence? Early Retirement?
Replies: 15
Views: 2151

Re: Federal Couple - Financial Independece? Early Retirement?

[. Also remember that your unused sick leave will be added in monthly increments to your federal service to further increase your FERS pension. I tend to not use all my vacation leave each year so when I'm sick, I use vacation leave rather than sick leave. I also work for the Feds and I believe its...
by MichDad
Wed Aug 10, 2016 1:27 pm
Forum: Investing - Help with Personal Investments
Topic: Federal Couple - Financial Independence? Early Retirement?
Replies: 15
Views: 2151

Re: Federal Couple - Financial Independece? Early Retirement?

The FERS pension benefits figures Engineer250 provided in his message did not take into account the 10 percent reduction to fund the spousal benefit.

MichDad
by MichDad
Wed Aug 10, 2016 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: Federal Couple - Financial Independence? Early Retirement?
Replies: 15
Views: 2151

Re: Federal Couple - Financial Independece? Early Retirement?

Chindsey, You're doing a very nice job. Like you, I'm a federal employee. Unlike you, my wife is not. I have a federal colleague whose wife is also a federal employee. He and I have discussed their financial situation. One idea I posed for them to consider that may apply to you and your wife is as f...
by MichDad
Mon Aug 08, 2016 12:01 pm
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 144
Views: 22205

Re: Improving the TSP [for current participants]

Here's a quote from the recently-published minutes from the Federal Retirement Thrift Investment Board's May 23, 2016 meeting: "Mr. [James] Courtney [Director, FRTIB's Office of Communications and Education] also reported the results of a survey on the Stay microsite, which had over 130,000 vie...
by MichDad
Tue Jul 26, 2016 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: TSP only or TSP and Outside IRA Mix?
Replies: 11
Views: 955

Re: TSP only or TSP and Outside IRA Mix?

bdrolan, Like you, I didn't begin saving for retirement until age 32. For me that was in 1987. My most significant retirement savings vehicle has been the TSP. In 1987 and 1988, there were restrictions that required all TSP participants to invest into the G Fund. As soon as those restrictions were l...
by MichDad
Tue Jul 26, 2016 11:04 am
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 71
Views: 7809

Re: TSP to Vanguard?

If you are a retired government employee with a pension, that money is guaranteed. To my way of thinking, that is my guaranteed income like the G fund. Thus, I have less of a need for guaranteed money that a bond fund (or G Fund) would provide. Thus, I'm still 100% in equitites. After 40 years of i...
by MichDad
Fri Jul 22, 2016 4:04 pm
Forum: Personal Finance (Not Investing)
Topic: Heads up: LONG rollover TSP to Vanguard
Replies: 29
Views: 4205

Re: Heads up: LONG rollover TSP to Vanguard

We were considering waiting it out a bit to see if TSP offers a Roth conversion option soon, but that seems like a bad reason to wait! CCRewards, I've been following the Federal Retirement Thrift Investment Board's activities pretty closely for the past few years. It seems to me that the Board's ac...
by MichDad
Fri Jul 22, 2016 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Heads up: LONG rollover TSP to Vanguard
Replies: 29
Views: 4205

Re: Heads up: LONG rollover TSP to Vanguard

We were considering waiting it out a bit to see if TSP offers a Roth conversion option soon, but that seems like a bad reason to wait! CCRewards, I've been following the Federal Retirement Thrift Investment Board's activities pretty closely for the past few years. It seems to me that the Board's ac...
by MichDad
Wed Jul 20, 2016 2:43 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 71
Views: 7809

Re: TSP to Vanguard?

I like the low fees and fund choices of the TSP, but I dislike the inability to Roth convert. Maybe this will change in time. I agree with you that the inability to convert regular TSP assets to Roth TSP assets is a significant drawback of the TSP. Unfortunately, unless TSP participants make their ...
by MichDad
Wed Jul 20, 2016 1:53 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 71
Views: 7809

Re: TSP to Vanguard?

I like the low fees and fund choices of the TSP, but I dislike the inability to Roth convert. Maybe this will change in time. I agree with you that the inability to convert regular TSP assets to Roth TSP assets is a significant drawback of the TSP. Unfortunately, unless TSP participants make their ...
by MichDad
Wed Jul 20, 2016 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: TSP to Vanguard?
Replies: 71
Views: 7809

Re: TSP to Vanguard?

Thanks. I can't believe I never thought of this. You just blew my mind. I was exactly trying to figure out how to get out all/most of my Roth (I mean, in 30 years, I plan ahead) and still have some pre-tax left in the TSP and this method is beautiful. I can't claim credit for this - it's been poste...
by MichDad
Mon Jun 20, 2016 10:22 am
Forum: Investing - Help with Personal Investments
Topic: roth IRA vs roth TSP?
Replies: 12
Views: 1305

Re: roth IRA vs roth TSP?

I'm contributing to the Roth TSP for a couple of reasons: 1. Pension plus many-year TSP IRA (plus eventually SS) draws and Calif State taxes plus wife's income/retirement will always keep us in at least 25% tax bracket (Fed) plus 9.3% CA (CA exempts SS but not pension). 2. Likely future tax rates a...
by MichDad
Wed Jun 08, 2016 11:46 am
Forum: Personal Finance (Not Investing)
Topic: Why should FEHB members buy Medicare Part B?
Replies: 85
Views: 7482

Re: Why should FEHB members buy Medicare Part B?

I'm a federal employee. When I took a retirement training course a few years ago, the trainer's advice to the class was to not purchase Medicare Part B insurance. If I recall correctly, that course took place before 2007, when Medicare Part B premiums increased according to income. One of my colleag...
by MichDad
Tue May 24, 2016 10:49 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 144
Views: 22205

Re: Improving the TSP [for current participants]

Saw this article today: TSP Board Still Seeking Lawmaker to Sponsor Its Proposal to Ease Withdrawals Quote: "Despite receiving approval from the Senate-confirmed overseers last year, Thrift Savings Plan officials are still seeking a champion in Congress to sponsor legislation that would make i...
by MichDad
Tue May 03, 2016 8:31 am
Forum: Personal Finance (Not Investing)
Topic: FERS best day to retire usually 12/31 advice
Replies: 8
Views: 2042

Re: FERS best day to retire usually 12/31 advice

Leaning towards Sept 29, 2018 (another 2018 best date) as I still like the idea of not paying SS payroll tax on the leave distribution, almost maximizing my take from the FERS annuity supplement (eligible August 2018) and retiring early enough in the year that I can do some camping and yard/garden ...
by MichDad
Mon May 02, 2016 8:46 am
Forum: Investing - Theory, News & General
Topic: Improving the TSP [for current participants]
Replies: 144
Views: 22205

Re: Improving the TSP [for current participants]

MichDad, Nothing on these issues in the November 2015 through February 2016 FRTIB minutes. It would sure help us plan if we knew more flexible TSP withdrawal options were going to be available. mrc, I'm afraid the news is worse. In April, I corresponded with FRTIB staff about the Board's plan to ad...
by MichDad
Wed Apr 20, 2016 3:50 pm
Forum: Investing - Help with Personal Investments
Topic: When to start Social Security. A different take
Replies: 107
Views: 11426

Re: When to start Social Security. A different take

OP, From your post, I see you've qualified for a FERS pension after 30 years of service and you have a Thrift Savings Plan account with a high six figure balance. If your average high three salary was $100,000, your FERS pension is about $27,000 per year after taking the ten percent spousal pension ...
by MichDad
Mon Apr 18, 2016 11:53 am
Forum: Personal Finance (Not Investing)
Topic: FERS best day to retire usually 12/31 advice
Replies: 8
Views: 2042

Re: FERS best day to retire usually 12/31 advice

A couple sites track best dates for FERS and CERS. One is here http://www.myfederalretirement.com/public/Best-Dates-to-Retire-CSRS-FERS-2016-2017-2018.cfm . Be careful that any accumulated sick time paid as a lump sum doesn't kick you into a higher tax bracket for that year. Personally, we'll aim t...
by MichDad
Mon Apr 18, 2016 9:44 am
Forum: Personal Finance (Not Investing)
Topic: FERS best day to retire usually 12/31 advice
Replies: 8
Views: 2042

Re: FERS best day to retire usually 12/31 advice

While I'm not there yet, I like the idea of retiring at the very end of the year, even though I'll have reached the maximum income for Social Security taxes before the end of the year. Here's my rationale in order of importance: 1. I don't mind paying into Social Security the year after I retire bec...
by MichDad
Tue Mar 29, 2016 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Taxes and when to switch from Roth TSP to Traditional?
Replies: 24
Views: 1382

Re: Taxes and when to switch from Roth TSP to Traditional?

As usual, I agree with Retiredjg. The most important point is to save as much as you can as early as you can. Compounding is a wonderful thing. Take a look at this calculator: http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php By way of example, if your investment ea...
by MichDad
Mon Mar 28, 2016 10:04 am
Forum: Personal Finance (Not Investing)
Topic: Taxes and when to switch from Roth TSP to Traditional?
Replies: 24
Views: 1382

Re: Taxes and when to switch from Roth TSP to Traditional?

The approach that makes sense to me right now is to use traditional TSP enough to drop into the 15% bracket, then use Roth TSP and Roth IRA for all other contributions. Many couples, even with a pension, fall into the 15% bracket in retirement. Are you thinking your pensions will push you into the ...
by MichDad
Fri Mar 11, 2016 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: TSP Participant Account Balances
Replies: 43
Views: 8373

Re: TSP Participant Account Balances

I started maximum contributions into the TSP as soon as I was able -- so around April 1987. As many know, at first we could invest only into the G Fund. The C Fund was opened later and we were limited in terms of what percentage of our investments we could invest and hold there. The I and S Funds we...
by MichDad
Thu Mar 10, 2016 10:05 am
Forum: Personal Finance (Not Investing)
Topic: TSP Participant Account Balances
Replies: 43
Views: 8373

Re: TSP Participant Account Balances

These latest figures are very interesting, particularly because they include the "Average Years of Participation" column. Thank you for posting them. It was interesting to see how people with TSP account balances of between $750,000 and $999,000 had a slightly higher average years of parti...
by MichDad
Wed Mar 09, 2016 9:13 am
Forum: Personal Finance (Not Investing)
Topic: need $35,000 , where to take from TSP, Brokerage account, Home equity loan?
Replies: 5
Views: 773

Re: need $35,000 , where to take from TSP, Brokerage account, Home equity loan?

It might make a difference how far you are from retirement and how quickly you could pay back a loan taken from your TSP account. Also, would a loan from your TSP account reduce your ability to fully fund your TSP during the period your loan is outstanding? If the answer is "yes," don't bo...
by MichDad
Wed Jan 13, 2016 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity has updated their guidelines on saving
Replies: 15
Views: 2458

Re: Fidelity has updated their guidelines on saving

We're all screwed. I just barely achieved 2x income in retirement savings at age 35, and I saved far more heavily than my peers. Most folks do not have 2x income in retirement savings by 35. Betterfinances, No, you're not screwed. I didn't start saving for retirement until I turned 32. I probably d...
by MichDad
Wed Jan 13, 2016 1:45 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity has updated their guidelines on saving
Replies: 15
Views: 2458

Re: Fidelity has updated their guidelines on saving

Here's a quote from the Fidelity article: "Still, this is just one guideline. And it is meant for people who plan to retire at 67 and who want to have their savings provide at least 45 percent of their pre-retirement pay. Those people who plan to work longer, or who expect to have fewer expense...

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