TSP: the more I learn the less I know II: Yet Another TSP Question
TSP: the more I learn the less I know II: Yet Another TSP Question
Hello,
I am still trying to understand the nuances of the TSP fund compared to IRA/401K accounts outside of the TSP. I have some questions, but thought I would give some history for context. I would really like to hear from retired Government workers who have experience with the TSP.
Preamble:
I am struggling with the concept of how I plan to manage my withdrawal strategy in retirement. Up until about 18 months ago, I had a nice 401K/403B account that I had worked out over the course of several years. Recently, I have taken a Gov. job that has given me access to the TSP accounts. At first glance, the accounts mimic the passive funds I had with Fidelity with one big exception—access to the G fund.
I am intrigued with the G fund which is basically a bond fund that won’t lose principal. In my view, this is an ideal fund to house safe money to support my lifestyle in retirement. My intent is to house a few years spending in the G fund, a few more years spending in the F fund and the rest in equities. With healthy rebalancing, this makes for a nice “bucket-like” retirement fund. I can house the funds I need within the G fund, selectively transfer from the G fund to my checking account and live life.
However, there are several issues with this approach. One, I can’t selectively move funds from my G fund to my checking account. I can only move a specific amount of funds, which are take from a balance of ALL my TSP funds, requiring a tiresome rebalancing prior to our just after fund transfer. I say tiresome, because I don’t want to have fund removed from my C or I fund if that one is down. This will require me to figure out how to transfer money from my G fund to the poorly performing fund. Maybe this will be taken care of with rebalancing, but I am not smart enough to figure that out.
There are also other quirks with the TSP that reduce my enthusiasm for using it as my sole retirement account.
Questions:
Who has had a good record of optimizing the TSP fund during retirement? What are your tips for optimizing my plan, above? What mistakes did you make? What should I be wary of (e.g. not being able to selectively withdraw from a specific fund)? What are the benefits that I am overlooking? Does anyone have a good strategy for incorporating the TSP funds into an overall retirement plan that involves separate IRA/401K funds?
I am really having difficulty working through the best way to use the TSP during retirement. I would hate to move all my money out of the TSP and into appropriate IRA’s only to lose out on a big asset.
Again, thank you for your patience and helpful information. One of these days, I hope I can get this through my thick skull!!
Ben
I am still trying to understand the nuances of the TSP fund compared to IRA/401K accounts outside of the TSP. I have some questions, but thought I would give some history for context. I would really like to hear from retired Government workers who have experience with the TSP.
Preamble:
I am struggling with the concept of how I plan to manage my withdrawal strategy in retirement. Up until about 18 months ago, I had a nice 401K/403B account that I had worked out over the course of several years. Recently, I have taken a Gov. job that has given me access to the TSP accounts. At first glance, the accounts mimic the passive funds I had with Fidelity with one big exception—access to the G fund.
I am intrigued with the G fund which is basically a bond fund that won’t lose principal. In my view, this is an ideal fund to house safe money to support my lifestyle in retirement. My intent is to house a few years spending in the G fund, a few more years spending in the F fund and the rest in equities. With healthy rebalancing, this makes for a nice “bucket-like” retirement fund. I can house the funds I need within the G fund, selectively transfer from the G fund to my checking account and live life.
However, there are several issues with this approach. One, I can’t selectively move funds from my G fund to my checking account. I can only move a specific amount of funds, which are take from a balance of ALL my TSP funds, requiring a tiresome rebalancing prior to our just after fund transfer. I say tiresome, because I don’t want to have fund removed from my C or I fund if that one is down. This will require me to figure out how to transfer money from my G fund to the poorly performing fund. Maybe this will be taken care of with rebalancing, but I am not smart enough to figure that out.
There are also other quirks with the TSP that reduce my enthusiasm for using it as my sole retirement account.
Questions:
Who has had a good record of optimizing the TSP fund during retirement? What are your tips for optimizing my plan, above? What mistakes did you make? What should I be wary of (e.g. not being able to selectively withdraw from a specific fund)? What are the benefits that I am overlooking? Does anyone have a good strategy for incorporating the TSP funds into an overall retirement plan that involves separate IRA/401K funds?
I am really having difficulty working through the best way to use the TSP during retirement. I would hate to move all my money out of the TSP and into appropriate IRA’s only to lose out on a big asset.
Again, thank you for your patience and helpful information. One of these days, I hope I can get this through my thick skull!!
Ben
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
No suggestions or insights?!
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
I am retiring this coming year and have the same question about TSP withdraw strategy. My thoughts are that I will just annually adjust my TSP accounts to my desired asset allocation.
For example withdraw my annual or maybe semi-annual amount from traditional TSP only and then immediately reset my AA.
For example withdraw my annual or maybe semi-annual amount from traditional TSP only and then immediately reset my AA.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
See this thread: viewtopic.php?f=2&t=140180
And the wiki:
https://www.bogleheads.org/wiki/Thrift_Savings_Plan
https://www.bogleheads.org/wiki/TSP_withdrawals
And the wiki:
https://www.bogleheads.org/wiki/Thrift_Savings_Plan
https://www.bogleheads.org/wiki/TSP_withdrawals
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
If you want the withdrawal to come from the G fund only, just rebalance your funds the day after the money comes out. In essence, if you take out $1,000 and $250 came out of G, F, C, and S funds each, transfer $750 from G and evenly distribute to the other funds.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
I am years from retirement.
My thinking is that when the time comes, I will roll out of the TSP to traditional and Roth IRAs because at the moment expenses are lower in the private sector. I will leave only my allocation to “G” fund in the TSP. IIRC, someone pursuing your strategy could do likewise. When you want to rebalance into the G fund you simply do a trustee-to-trustee transfer into the TSP from your outside IRAs. The big downside: once your Roth balance leaves the TSP, it cannot be rolled back in later under current rules.
Does that help?
My thinking is that when the time comes, I will roll out of the TSP to traditional and Roth IRAs because at the moment expenses are lower in the private sector. I will leave only my allocation to “G” fund in the TSP. IIRC, someone pursuing your strategy could do likewise. When you want to rebalance into the G fund you simply do a trustee-to-trustee transfer into the TSP from your outside IRAs. The big downside: once your Roth balance leaves the TSP, it cannot be rolled back in later under current rules.
Does that help?
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.
- HMSVictory
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
The above referenced post about rolling the stock funds to the IRA's is a very good idea. Leave only the G fund in the TSP.
For the record the "guarantee" on the G fund isn't worth much (or anything). You will get the same performance from the VSIGX. 0.39% yield!
If you are > 59.5 years old roll everything to IRA's and be done with the TSP plan.
Who wants to deal with government buracracy when you don't have too????
For the record the "guarantee" on the G fund isn't worth much (or anything). You will get the same performance from the VSIGX. 0.39% yield!
If you are > 59.5 years old roll everything to IRA's and be done with the TSP plan.
Who wants to deal with government buracracy when you don't have too????
Stay the course!
- SquawkIdent
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
+1 I'm starting to strongly agree. Not yet a factor for me but in 5-10 years it will be.HMSVictory wrote: ↑Sun Dec 27, 2020 6:25 am The above referenced post about rolling the stock funds to the IRA's is a very good idea. Leave only the G fund in the TSP.
For the record the "guarantee" on the G fund isn't worth much (or anything). You will get the same performance from the VSIGX. 0.39% yield!
If you are > 59.5 years old roll everything to IRA's and be done with the TSP plan.
Who wants to deal with government buracracy when you don't have too????
IMHO - active and contributing employee to the TSP - A-
Retired employee and withdrawing funds - C-
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
i too am following this, turned 62 Nov 12 and retired on Nov 13
My thoughts have been either to move to my fidelity rollover I have OR move it all into the L Income fund. Its 71.92 % comprised of G fund.... Then just do a monthly allotment from there...
Its 10year return is 4.32%
My thoughts have been either to move to my fidelity rollover I have OR move it all into the L Income fund. Its 71.92 % comprised of G fund.... Then just do a monthly allotment from there...
Its 10year return is 4.32%
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Suffering through any sort of hassles just to make use of the G Fund probably isn’t optimal: it’s arguably the most over-rated fund we discuss in this forum.
Not because the G fund is “bad” (it’s not), but because it’s a lot less useful than many people seem to believe.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
TSP is very good at what it does. (They don't make changes quickly, but that's for good reason.) In my experience, TSP does its job more accurately than Vanguard.HMSVictory wrote: ↑Sun Dec 27, 2020 6:25 am If you are > 59.5 years old roll everything to IRA's and be done with the TSP plan.
Who wants to deal with government buracracy when you don't have too????
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
You're overthinking this. Rebalancing is as easy as as a few clicks (TSP calls it an "interfund transfer"). Transfers into most funds are limited to twice a month (IIRC), but transfers into the G Fund are unlimited.cresive wrote: ↑Mon Mar 16, 2020 10:29 am However, there are several issues with this approach. One, I can’t selectively move funds from my G fund to my checking account. I can only move a specific amount of funds, which are take from a balance of ALL my TSP funds, requiring a tiresome rebalancing prior to our just after fund transfer. I say tiresome, because I don’t want to have fund removed from my C or I fund if that one is down. This will require me to figure out how to transfer money from my G fund to the poorly performing fund. Maybe this will be taken care of with rebalancing, but I am not smart enough to figure that out.
There are also other quirks with the TSP that reduce my enthusiasm for using it as my sole retirement account.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
I agree with SquawkIdent that the TSP deserves an "A" during the accumulation phase and a "C" during the decumulation phase. I might even give the TSP a C- for its decumulation phase.
I retired in 2018. Over my 35+ year federal career, I accumulated over $1.8 million in my TSP account. Just over $200,000 of that was in the Roth TSP. Until one year before I retired, I invested only in the C, S, and I Funds. I stayed the course even during severe market downturns. My wife made maximum contributions to her private 401(k) plans and we both made maximum Roth IRA contributions. All of our investments were made into low cost, highly diversified US and international equities funds. No bond funds, except as described in the next paragraph.
When the TSP commenced in 1987, all participants were required to invest into the G Fund. That requirement was eased gradually and was ended, I think, in 1988 or so. With that exception and until one year before I retired, I never owned any assets in the G, F, or L Funds. One year before I retired, I moved over $1 million into the G Fund. All the remainder of my and my wife's portfolio remained and remains in low cost, highly diversified US and international equities funds.
After the new withdrawal rules were implemented in September 2019, I moved my Roth TSP to a rollover Roth IRA and collected a nice transfer bonus for that move. I also moved all my non-G Fund TSP assets to another brokerage rollover tIRA account and earned another transfer bonus for that. Beginning with my retirement in 2018, I've been making substantial annual Roth conversions from my old TSP assets (not my G Fund) that I had rolled over to a tIRA. I'll continue to do that at least until I turn age 70 and will begin to collect my maximum Social Security benefits. I may well continue to make Roth IRA conversions at least until I turn age 72, when my Required Minimum Distributions will commence, but those conversions will have to be smaller amounts due to our Social Security benefits.
Most of our non-TSP assets are held in funds that have slightly lower expense ratios than the TSP. [By the way, the TSP's expense ratios have been creeping up over the past few years while expense ratios from major brokerages, such as Fidelity, Schwab, and Vanguard have been declining.] We even hold some assets in Fidelity's zero expense US and international equities funds. The exception is some of our international equities funds, which have slightly higher expense ratios than the TSP. However, our international equities funds are far more diversified than the TSP's I Fund.
I think that the I Fund is the poorest designed of all of the TSP funds due to its lack of diversification (e.g., no Canadian holdings, no emerging markets holdings, and no small cap holdings). Efforts to further diversify the I Fund have been delayed significantly and mired in controversy.
Since January 2020, I've been making monthly withdrawals from my G Fund to help fund our ordinary living expenses. At our budgeted spend rate, I've got enough in the G Fund to last beyond the time I'll turn age 80. That's fifteen years from now. I figure (and hope) that our US and international equities funds will grow during those fifteen years. Also, I expect that they'll all be tax free Roth assets by the time we'd begin to withdraw from them. Even if they don't grow, we'll still have my FERS pension and our Social Security benefits to fall back on.
I hope you find this helpful and useful. Good luck!
MichDad
I retired in 2018. Over my 35+ year federal career, I accumulated over $1.8 million in my TSP account. Just over $200,000 of that was in the Roth TSP. Until one year before I retired, I invested only in the C, S, and I Funds. I stayed the course even during severe market downturns. My wife made maximum contributions to her private 401(k) plans and we both made maximum Roth IRA contributions. All of our investments were made into low cost, highly diversified US and international equities funds. No bond funds, except as described in the next paragraph.
When the TSP commenced in 1987, all participants were required to invest into the G Fund. That requirement was eased gradually and was ended, I think, in 1988 or so. With that exception and until one year before I retired, I never owned any assets in the G, F, or L Funds. One year before I retired, I moved over $1 million into the G Fund. All the remainder of my and my wife's portfolio remained and remains in low cost, highly diversified US and international equities funds.
After the new withdrawal rules were implemented in September 2019, I moved my Roth TSP to a rollover Roth IRA and collected a nice transfer bonus for that move. I also moved all my non-G Fund TSP assets to another brokerage rollover tIRA account and earned another transfer bonus for that. Beginning with my retirement in 2018, I've been making substantial annual Roth conversions from my old TSP assets (not my G Fund) that I had rolled over to a tIRA. I'll continue to do that at least until I turn age 70 and will begin to collect my maximum Social Security benefits. I may well continue to make Roth IRA conversions at least until I turn age 72, when my Required Minimum Distributions will commence, but those conversions will have to be smaller amounts due to our Social Security benefits.
Most of our non-TSP assets are held in funds that have slightly lower expense ratios than the TSP. [By the way, the TSP's expense ratios have been creeping up over the past few years while expense ratios from major brokerages, such as Fidelity, Schwab, and Vanguard have been declining.] We even hold some assets in Fidelity's zero expense US and international equities funds. The exception is some of our international equities funds, which have slightly higher expense ratios than the TSP. However, our international equities funds are far more diversified than the TSP's I Fund.
I think that the I Fund is the poorest designed of all of the TSP funds due to its lack of diversification (e.g., no Canadian holdings, no emerging markets holdings, and no small cap holdings). Efforts to further diversify the I Fund have been delayed significantly and mired in controversy.
Since January 2020, I've been making monthly withdrawals from my G Fund to help fund our ordinary living expenses. At our budgeted spend rate, I've got enough in the G Fund to last beyond the time I'll turn age 80. That's fifteen years from now. I figure (and hope) that our US and international equities funds will grow during those fifteen years. Also, I expect that they'll all be tax free Roth assets by the time we'd begin to withdraw from them. Even if they don't grow, we'll still have my FERS pension and our Social Security benefits to fall back on.
I hope you find this helpful and useful. Good luck!
MichDad
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
TSP G Fund yield is 0.85% right now which is the same as a 3 year CD at my credit union. Agree it is not as useful as people believe, especially for retirees who have the ability to roll money out of the TSP into IRA accounts.vineviz wrote: ↑Sun Dec 27, 2020 7:32 amSuffering through any sort of hassles just to make use of the G Fund probably isn’t optimal: it’s arguably the most over-rated fund we discuss in this forum.
Not because the G fund is “bad” (it’s not), but because it’s a lot less useful than many people seem to believe.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
That's the biggest divergence between g fund and megacorp's stable value which had an annualized return rate of about 2.16% based on the past 30 day return of 0.18%.
- SquawkIdent
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Check my grade again...withdrawal phase...C -MichDad wrote: ↑Sun Dec 27, 2020 11:17 am I agree with SquawkIdent that the TSP deserves an "A" during the accumulation phase and a "C" during the decumulation phase. I might even give the TSP a C- for its decumulation phase.
I retired in 2018. Over my 35+ year federal career, I accumulated over $1.8 million in my TSP account. Just over $200,000 of that was in the Roth TSP. Until one year before I retired, I invested only in the C, S, and I Funds. I stayed the course even during severe market downturns. My wife made maximum contributions to her private 401(k) plans and we both made maximum Roth IRA contributions. All of our investments were made into low cost, highly diversified US and international equities funds. No bond funds, except as described in the next paragraph.
When the TSP commenced in 1987, all participants were required to invest into the G Fund. That requirement was eased gradually and was ended, I think, in 1988 or so. With that exception and until one year before I retired, I never owned any assets in the G, F, or L Funds. One year before I retired, I moved over $1 million into the G Fund. All the remainder of my and my wife's portfolio remained and remains in low cost, highly diversified US and international equities funds.
After the new withdrawal rules were implemented in September 2019, I moved my Roth TSP to a rollover Roth IRA and collected a nice transfer bonus for that move. I also moved all my non-G Fund TSP assets to another brokerage rollover tIRA account and earned another transfer bonus for that. Beginning with my retirement in 2018, I've been making substantial annual Roth conversions from my old TSP assets (not my G Fund) that I had rolled over to a tIRA. I'll continue to do that at least until I turn age 70 and will begin to collect my maximum Social Security benefits. I may well continue to make Roth IRA conversions at least until I turn age 72, when my Required Minimum Distributions will commence, but those conversions will have to be smaller amounts due to our Social Security benefits.
Most of our non-TSP assets are held in funds that have slightly lower expense ratios than the TSP. [By the way, the TSP's expense ratios have been creeping up over the past few years while expense ratios from major brokerages, such as Fidelity, Schwab, and Vanguard have been declining.] We even hold some assets in Fidelity's zero expense US and international equities funds. The exception is some of our international equities funds, which have slightly higher expense ratios than the TSP. However, our international equities funds are far more diversified than the TSP's I Fund.
I think that the I Fund is the poorest designed of all of the TSP funds due to its lack of diversification (e.g., no Canadian holdings, no emerging markets holdings, and no small cap holdings). Efforts to further diversify the I Fund have been delayed significantly and mired in controversy.
Since January 2020, I've been making monthly withdrawals from my G Fund to help fund our ordinary living expenses. At our budgeted spend rate, I've got enough in the G Fund to last beyond the time I'll turn age 80. That's fifteen years from now. I figure (and hope) that our US and international equities funds will grow during those fifteen years. Also, I expect that they'll all be tax free Roth assets by the time we'd begin to withdraw from them. Even if they don't grow, we'll still have my FERS pension and our Social Security benefits to fall back on.
I hope you find this helpful and useful. Good luck!
MichDad
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Thanks everyone for the valuable and thorough feedback! I have a lot to think about between now and April.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
That is true for the individual funds but not for target date funds. At least with Vanguard which applies investor-share fees to its target date funds. There are no Admiral shares with the Vanguard target date funds. So if you choose to invest in target date funds, the TSP fees will still be slightly lower than the Vanguard equivalents.MichDad wrote: ↑Sun Dec 27, 2020 11:17 amMost of our non-TSP assets are held in funds that have slightly lower expense ratios than the TSP. [By the way, the TSP's expense ratios have been creeping up over the past few years while expense ratios from major brokerages, such as Fidelity, Schwab, and Vanguard have been declining.] We even hold some assets in Fidelity's zero expense US and international equities funds. The exception is some of our international equities funds, which have slightly higher expense ratios than the TSP. However, our international equities funds are far more diversified than the TSP's I Fund.
Due to a career change, I left Federal service in 2003 but still have about 1/3 of our total retirement portfolio in the TSP because I rolled some higher priced 401(k) funds into it after subsequent job changes. It is all just sitting in the L2030 fund.
As for withdrawal strategy? With just one fund, I'll probably just set up a monthly withdrawal and call it good when we get to that point in a few years or more. If I don't roll it into Vanguard. The only real reason I'm keeping the TSP active is sentimentality and because of the G fund which was great decades ago when interest rates were high. It was paying 7-8% in the late 80s and early 90s and 6.42% as late as 2000.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
I agree with everything MichDad said except I'd give them a D- for the decumulation phase!
Just wanted to share two fairly recent articles about the G fund. Great place to duck to for safety, but you don't want to camp out there:
https://www.fedweek.com/tsp/the-g-fund- ... inflation/
https://federalnewsnetwork.com/tsp/2020 ... stability/
- SquawkIdent
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
One of the problems with the TSP and the literature they publish is they do not know what other assets I have. Maybe I’mPaul69 wrote: ↑Mon Dec 28, 2020 6:52 am
I agree with everything MichDad said except I'd give them a D- for the decumulation phase!
Just wanted to share two fairly recent articles about the G fund. Great place to duck to for safety, but you don't want to camp out there:
https://www.fedweek.com/tsp/the-g-fund- ... inflation/
https://federalnewsnetwork.com/tsp/2020 ... stability/
very, very heavily invested in my taxable accounts in equities and I’m trying to use my TSP as my bond/cash portion of my portfolio. But again, TSP doesn’t know that and I’m “chastised” for being all in on the G fund. They don’t seem to take that into consideration but it is what it is.
They could make so many improvements in the withdrawal phase. That way they would keep more of the assets there. We’ll see...
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
I do know they are super slow to update your employment status.
I retired from the Army on 30 November, and just today the TSP has updated me to Separated. Now I get to deal with the trial and error fun of rolling 3 pots of TSP money out into either my Fidelity or Vanguard accounts.
I'll close it afterwards. Way too clunky for me and I'm not concerned with losing the G Fund.
I retired from the Army on 30 November, and just today the TSP has updated me to Separated. Now I get to deal with the trial and error fun of rolling 3 pots of TSP money out into either my Fidelity or Vanguard accounts.
I'll close it afterwards. Way too clunky for me and I'm not concerned with losing the G Fund.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Are you sure you want to move out of the TSP? Once you close the account you are not able to reopen it. If you do decide to move your money, leave at least $250.00 in the TSP. By doing that you can move money back into the TSP if you decide to. I have both a TSP and a Roth IRA with Vanguard. I would not even think of closing my TSP. For what it does and what it charges you will not beat it anywhere.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
After reading thru the postings, I noticed that few commented on which federal retirement system they are under. I am a federal retiree under CSRS, and this affects how I handle my investments versus a FERS retiree. CSRS retirees receive a much larger pension (versus FERS) but little to no Social Security. FERS retirees may have much larger TSP accounts (versus CSRS).
TSP G fund is a riskless investment, much like a insured savings account or a CD. For FERS retirees this may be important. Since my main source of income is from my riskless pension, the TSP G fund was unimportant. Even when I was contributing toward TSP, I had hardly any amount in the G fund. Moreover, outside investment companies are just as cheap. TSP offered no advantages over an outside investment companies. Consequently, after retiring I eventually rolled my entire TSP portfolio into Vanguard. I liked the ease of use (versus TSP), the flexible withdrawal options to be a major advantage, and the ability to convert into a Roth IRA.
I do not use target dated funds, but rather, I use the 3 & 4 fund portfolios presented in the wiki here. The proportions allotted fit my comfort zone, which again is reflected by my pension income. Finally, we should understand that going too conservative in retirement is also a problem. If you expect to live another 20 years, then invest accordingly.
TSP G fund is a riskless investment, much like a insured savings account or a CD. For FERS retirees this may be important. Since my main source of income is from my riskless pension, the TSP G fund was unimportant. Even when I was contributing toward TSP, I had hardly any amount in the G fund. Moreover, outside investment companies are just as cheap. TSP offered no advantages over an outside investment companies. Consequently, after retiring I eventually rolled my entire TSP portfolio into Vanguard. I liked the ease of use (versus TSP), the flexible withdrawal options to be a major advantage, and the ability to convert into a Roth IRA.
I do not use target dated funds, but rather, I use the 3 & 4 fund portfolios presented in the wiki here. The proportions allotted fit my comfort zone, which again is reflected by my pension income. Finally, we should understand that going too conservative in retirement is also a problem. If you expect to live another 20 years, then invest accordingly.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
100% positive. Zero desire to keep an account there or have access to the TSP and its proprietary funds. If it was more user friendly like a typical brokerage and got out of the Pony Express dark ages AND had funds which could be tracked by external portfolio aggregators, I would consider it. Considering I have to snail mail them notarized forms and find alternative means to track my money there, I can't leave it fast enough.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
It's been several years since I left TSP completely and have not had second thoughts.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
FYI, the G Fund is our only bond fund and it represents just under 30 percent of our combined portfolio. The other 70+ percent is in very low cost, widely diversified US and international equities index funds all outside the TSP. I'm spending down the G Fund slowly by using it to fund some of our monthly living expenses. At my planned spend rate, the G Fund will last at least 15 more years, until after I turn age 80. I hope and expect our significant equities holdings will increase in value over those 15 years. But, even if they decline from their present value, we should be fine with our FERS pension and our Social Security benefits. Our downside risk is very very low but our upside possibilities are quite high.Paul69 wrote: ↑Mon Dec 28, 2020 6:52 am
I agree with everything MichDad said except I'd give them a D- for the decumulation phase!
Just wanted to share two fairly recent articles about the G fund. Great place to duck to for safety, but you don't want to camp out there:
https://www.fedweek.com/tsp/the-g-fund- ... inflation/
https://federalnewsnetwork.com/tsp/2020 ... stability/
MichDad
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
The TSP G-fund is essentially a fund that gives you the 10-year Treasury rate but on a daily basis. So in times like today when rates are low and falling it is going to be anemic. On the other hand, if rates rise in the future the G-fund will rise lock-step and could easily out-perform bond funds in a rising interest rate environment.
I'm 56 and still plan to be retired and living off my retirement savings in 2050 which is a LONG time from now and may be an entirely different investing environment. So I'm planning to keep my TSP account active just in case I decide that the G-fund is exactly what I need in the year 2050 when I am 86. I don't see the downside in doing so. But honestly, were it not for the G-fund I'd probably just roll it all into Vanguard and done with it. Which I could do now if I wanted since I'm long separated from Federal employment, just not yet retired.
I'm 56 and still plan to be retired and living off my retirement savings in 2050 which is a LONG time from now and may be an entirely different investing environment. So I'm planning to keep my TSP account active just in case I decide that the G-fund is exactly what I need in the year 2050 when I am 86. I don't see the downside in doing so. But honestly, were it not for the G-fund I'd probably just roll it all into Vanguard and done with it. Which I could do now if I wanted since I'm long separated from Federal employment, just not yet retired.
Last edited by texasdiver on Mon Dec 28, 2020 6:12 pm, edited 1 time in total.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
I also have a CSRS pension, but I don't see the TSP G Fund as unimportant, though it's not a major part of my retirement fund allocation. I don't see my CSRS pension, which covers all my living expenses (including tax withholding from large Roth conversions), has permitting me to invest entirely in equities. There are perhaps two alternating ways of viewing the CSRS pension as an anchor to financial independence in terms of risk and asset allocation for a retirement investment portfolio: on the one hand, the pension permits you to take on more risk in your portfolio, perhaps even going to 100 equities allocation; on the other hand, since you've "won the game" and the pension takes care of most, if not all, living expenses, then you don't have to take on any risk and perhaps should be in a more conservative portfolio, decisively skewed towards Government bonds, which is where the G-Fund might be helpful. I think where you come out on the risk and investment allocation scheme is also dependent on whether you're safeguarding the retirement funds for heirs, as well. My own risk allocation across all accounts, taxable and deferred retirement (TSP, Roth IRA and 401K) accounts is around 78% equities and 22% fixed income, including a chunk of cash.Daddio1949 wrote: ↑Mon Dec 28, 2020 8:29 am After reading thru the postings, I noticed that few commented on which federal retirement system they are under. I am a federal retiree under CSRS, and this affects how I handle my investments versus a FERS retiree. CSRS retirees receive a much larger pension (versus FERS) but little to no Social Security. FERS retirees may have much larger TSP accounts (versus CSRS).
TSP G fund is a riskless investment, much like a insured savings account or a CD. For FERS retirees this may be important. Since my main source of income is from my riskless pension, the TSP G fund was unimportant. Even when I was contributing toward TSP, I had hardly any amount in the G fund. Moreover, outside investment companies are just as cheap. TSP offered no advantages over an outside investment companies. Consequently, after retiring I eventually rolled my entire TSP portfolio into Vanguard. I liked the ease of use (versus TSP), the flexible withdrawal options to be a major advantage, and the ability to convert into a Roth IRA.
I do not use target dated funds, but rather, I use the 3 & 4 fund portfolios presented in the wiki here. The proportions allotted fit my comfort zone, which again is reflected by my pension income. Finally, we should understand that going too conservative in retirement is also a problem. If you expect to live another 20 years, then invest accordingly.
Unlike you, the TSP does offer unique advantages to me from other outside investment companies in that distributions from TSP (including funds rolled into TSP from other qualified retirement programs) in North Carolina are not subject to NC state income tax under the so-called Bailey Settlement rulings. (My CSRS pension is also not subject to state income taxes under the Bailey Settlement.) This year I started the process of rolling over funds from a 401K to TSP, and then will convert TSP funds into a Roth IRA starting next year. I guestimate over the next 10 years that I'll save around $150K in state income taxes from conversions and distributions I'll take from TSP -- that's not chump change! I don't know about the ease in which I can take transfers from TSP to my Roth IRA but I was encouraged by a phone call I had with a TSP Service Rep the other day, especially since the recent modernization rules for TSP appear to make it so much easier to do single withdrawals and transfers to IRAs-- I can tell you that TSP was so much easier to deal with on the receiving end of a $500K rollover I did this year, despite having to deal with TSP Forms 60 and 60-Rs, than my 401K custodian, which screwed up the initial transfer big time, resulting in cancelling a check and rescinding a mistaken order to empty my entire retirement account at the 401k -- not something I requested!
BTW, I do use target retirement funds in my 401k, though it's likely I won't be doing this once I hit RMD stages 5 years from now and when my 401K has been completely rolled over to TSP for distributions and Roth conversions. Two of my children, with modest amounts in TSP from very brief stints in Federal civilian and military service, are in the Lifecycle funds at TSP; I advise them to keep their TSP accounts -- they might wind up in Federal service later in their careers, though unlikely, and the Lifecycle funds are good places to park funds for them.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Chris Barfield of Barfield Financial wrote a very detailed and helpful article called the Barbell Book that details exactly this scenario with real numbers. Good read, Chapter 4 is the example.
https://www.barfieldfinancial.com/new-b ... rbell-book
https://www.barfieldfinancial.com/new-b ... rbell-book
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
As long as we're reviving this thread, worth mentioning the G is now yielding 1.5% with no risk to principal. Hard to beat that anywhere.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
One good thing about the TSP is that if you separate from federal service in the year you reach 55+, there is no early withdrawal penalty. Since my wife is "planning" to separate this year but postpone her pension (based on Minimum Retirement Age + 12 yrs of service) until 62, she can take TSP withdrawals as needed. I'm not sure if she will take advantage of it as I have some Roth conversions to do out of my TSP and need to watch marginal tax brackets.
BTW, someone fits into one of the public safety categories, you can do this at 50.
BTW, someone fits into one of the public safety categories, you can do this at 50.
The destination matters. |
"Life moves pretty fast. If you don't don't stop and look around once in a while - you could miss it." -- Ferris Bueller
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
This is indeed the most mind-boggling thing about TSP. It's just nuts.brokendirtdart wrote: ↑Mon Dec 28, 2020 8:41 am Considering I have to snail mail them notarized forms and find alternative means to track my money there, I can't leave it fast enough.
Also the idea that you have to get your spouse's notarized "permission" each time you make a change to withdrawals is just, well, degrading and insulting.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Well, inflation just may "make the G fund great again," since its rate closely matches the 10 year treasury's rate.texasdiver wrote: ↑Mon Dec 28, 2020 3:39 am The only real reason I'm keeping the TSP active is sentimentality and because of the G fund which was great decades ago when interest rates were high. It was paying 7-8% in the late 80s and early 90s and 6.42% as late as 2000.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
+1namajones wrote: ↑Thu May 20, 2021 7:14 amThis is indeed the most mind-boggling thing about TSP. It's just nuts.brokendirtdart wrote: ↑Mon Dec 28, 2020 8:41 am Considering I have to snail mail them notarized forms and find alternative means to track my money there, I can't leave it fast enough.
Also the idea that you have to get your spouse's notarized "permission" each time you make a change to withdrawals is just, well, degrading and insulting.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Why is that? I'm only a TSP accumulator and it's no different than a 401k anywhere else in terms of ease of use (so far) . What or when would one need notarized forms for?namajones wrote: ↑Thu May 20, 2021 7:14 amThis is indeed the most mind-boggling thing about TSP. It's just nuts.brokendirtdart wrote: ↑Mon Dec 28, 2020 8:41 am Considering I have to snail mail them notarized forms and find alternative means to track my money there, I can't leave it fast enough.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Because it is required by law.namajones wrote: ↑Thu May 20, 2021 7:14 amThis is indeed the most mind-boggling thing about TSP. It's just nuts.brokendirtdart wrote: ↑Mon Dec 28, 2020 8:41 am Considering I have to snail mail them notarized forms and find alternative means to track my money there, I can't leave it fast enough.
Also the idea that you have to get your spouse's notarized "permission" each time you make a change to withdrawals is just, well, degrading and insulting.
“A spouse of a FERS or uniformed services TSP participant has an automatic legal entitlement to a survivor annuity. Annuities are purchased with the balance of the participant's TSP account, and such purchases are made pursuant a withdrawal election. Consequently, the default TSP withdrawal election is a joint life annuity with the 50% survivor benefit. The participant cannot make any other type of withdrawal unless the participant's spouse signs a written statement waiving his or her entitlement to a survivor annuity. This signed, written waiver (“spousal consent”) is a statutory requirement. 5 U.S.C. 8435(b) and (c).”
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
They really know how to ruin a marriage.HueyLD wrote: ↑Thu May 20, 2021 7:45 amBecause it is required by law.namajones wrote: ↑Thu May 20, 2021 7:14 amThis is indeed the most mind-boggling thing about TSP. It's just nuts.brokendirtdart wrote: ↑Mon Dec 28, 2020 8:41 am Considering I have to snail mail them notarized forms and find alternative means to track my money there, I can't leave it fast enough.
Also the idea that you have to get your spouse's notarized "permission" each time you make a change to withdrawals is just, well, degrading and insulting.
“A spouse of a FERS or uniformed services TSP participant has an automatic legal entitlement to a survivor annuity. Annuities are purchased with the balance of the participant's TSP account, and such purchases are made pursuant a withdrawal election. Consequently, the default TSP withdrawal election is a joint life annuity with the 50% survivor benefit. The participant cannot make any other type of withdrawal unless the participant's spouse signs a written statement waiving his or her entitlement to a survivor annuity. This signed, written waiver (“spousal consent”) is a statutory requirement. 5 U.S.C. 8435(b) and (c).”
So if we transfer to Vanguard or another brokerage, we don't have to deal with that nonsense?
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
i believe you will have to do it once, to get the money out, so that you can roll it over to an IRA.namajones wrote: ↑Thu May 20, 2021 7:56 amThey really know how to ruin a marriage.HueyLD wrote: ↑Thu May 20, 2021 7:45 amBecause it is required by law.namajones wrote: ↑Thu May 20, 2021 7:14 amThis is indeed the most mind-boggling thing about TSP. It's just nuts.brokendirtdart wrote: ↑Mon Dec 28, 2020 8:41 am Considering I have to snail mail them notarized forms and find alternative means to track my money there, I can't leave it fast enough.
Also the idea that you have to get your spouse's notarized "permission" each time you make a change to withdrawals is just, well, degrading and insulting.
“A spouse of a FERS or uniformed services TSP participant has an automatic legal entitlement to a survivor annuity. Annuities are purchased with the balance of the participant's TSP account, and such purchases are made pursuant a withdrawal election. Consequently, the default TSP withdrawal election is a joint life annuity with the 50% survivor benefit. The participant cannot make any other type of withdrawal unless the participant's spouse signs a written statement waiving his or her entitlement to a survivor annuity. This signed, written waiver (“spousal consent”) is a statutory requirement. 5 U.S.C. 8435(b) and (c).”
So if we transfer to Vanguard or another brokerage, we don't have to deal with that nonsense?
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Thanks. I will call the TSP to confirm. But this spousal consent silliness is a deal killer for me. I have one of these newfangled spouses who feels that our money and money decisions should remain separate. Works for me.Soon2BXProgrammer wrote: ↑Thu May 20, 2021 8:08 ami believe you will have to do it once, to get the money out, so that you can roll it over to an IRA.namajones wrote: ↑Thu May 20, 2021 7:56 amThey really know how to ruin a marriage.HueyLD wrote: ↑Thu May 20, 2021 7:45 amBecause it is required by law.namajones wrote: ↑Thu May 20, 2021 7:14 amThis is indeed the most mind-boggling thing about TSP. It's just nuts.brokendirtdart wrote: ↑Mon Dec 28, 2020 8:41 am Considering I have to snail mail them notarized forms and find alternative means to track my money there, I can't leave it fast enough.
Also the idea that you have to get your spouse's notarized "permission" each time you make a change to withdrawals is just, well, degrading and insulting.
“A spouse of a FERS or uniformed services TSP participant has an automatic legal entitlement to a survivor annuity. Annuities are purchased with the balance of the participant's TSP account, and such purchases are made pursuant a withdrawal election. Consequently, the default TSP withdrawal election is a joint life annuity with the 50% survivor benefit. The participant cannot make any other type of withdrawal unless the participant's spouse signs a written statement waiving his or her entitlement to a survivor annuity. This signed, written waiver (“spousal consent”) is a statutory requirement. 5 U.S.C. 8435(b) and (c).”
So if we transfer to Vanguard or another brokerage, we don't have to deal with that nonsense?
There are actually times when we're working on separate continents, too, so notarization to implement MY decisions about MY MONEY is just beyond unacceptable for us. The nerve of these people who came up with such TSP rules!
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
its not TSP rules, it is the law. I had the same issue with a different retirement plan. You can thank Congress, because they wrote the law.namajones wrote: ↑Thu May 20, 2021 8:17 amThanks. I will call the TSP to confirm. But this spousal consent silliness is a deal killer for me. I have one of these newfangled spouses who feels that our money and money decisions should remain separate. Works for me.Soon2BXProgrammer wrote: ↑Thu May 20, 2021 8:08 ami believe you will have to do it once, to get the money out, so that you can roll it over to an IRA.namajones wrote: ↑Thu May 20, 2021 7:56 amThey really know how to ruin a marriage.HueyLD wrote: ↑Thu May 20, 2021 7:45 amBecause it is required by law.
“A spouse of a FERS or uniformed services TSP participant has an automatic legal entitlement to a survivor annuity. Annuities are purchased with the balance of the participant's TSP account, and such purchases are made pursuant a withdrawal election. Consequently, the default TSP withdrawal election is a joint life annuity with the 50% survivor benefit. The participant cannot make any other type of withdrawal unless the participant's spouse signs a written statement waiving his or her entitlement to a survivor annuity. This signed, written waiver (“spousal consent”) is a statutory requirement. 5 U.S.C. 8435(b) and (c).”
So if we transfer to Vanguard or another brokerage, we don't have to deal with that nonsense?
There are actually times when we're working on separate continents, too, so notarization to implement MY decisions about MY MONEY is just beyond unacceptable for us. The nerve of these people who came up with such TSP rules!
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
You think that is bad, see what happens to military pensions if there is a divorce.namajones wrote: ↑Thu May 20, 2021 7:56 amThey really know how to ruin a marriage.HueyLD wrote: ↑Thu May 20, 2021 7:45 am
Because it is required by law.
“A spouse of a FERS or uniformed services TSP participant has an automatic legal entitlement to a survivor annuity. Annuities are purchased with the balance of the participant's TSP account, and such purchases are made pursuant a withdrawal election. Consequently, the default TSP withdrawal election is a joint life annuity with the 50% survivor benefit. The participant cannot make any other type of withdrawal unless the participant's spouse signs a written statement waiving his or her entitlement to a survivor annuity. This signed, written waiver (“spousal consent”) is a statutory requirement. 5 U.S.C. 8435(b) and (c).”
You need the notary to roll the funds out. The TSP functions OK while you're still employed. After that, it is liking taking a step back 50 years to snail mail them stuff that you printed out and went notary shopping with.dukeblue219 wrote: ↑Thu May 20, 2021 7:28 am
Why is that? I'm only a TSP accumulator and it's no different than a 401k anywhere else in terms of ease of use (so far) . What or when would one need notarized forms for?
My TSP went to zero balance on the 11th day of this year and I'm happy to be out of their proprietary and politically influenced* system.
*see international index drama over the last couple years.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
I have some money left in TSP and may be returning to the government for a job before I retire but geez it does sound like a painful system. My original thought was to use the TSP for one of my "buckets" of money. i was thinking of leaving money in it and only use it in the event of a major emergency (medical/assisted living,etc.) but after seeing some of the comments, I may change my thinking if things stay the same.
I quickly left Vanguard because I thought they had some very strange policies. And as you get older, you usually prefer less hoops to jump through and prefer to minimize stress in your life.
I quickly left Vanguard because I thought they had some very strange policies. And as you get older, you usually prefer less hoops to jump through and prefer to minimize stress in your life.
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Re: TSP: the more I learn the less I know II: Yet Another TSP Question
In my opinion, the only reason to remain in the TSP post retirement is to take advantage of the G Fund. With the exception of the G Fund, you can find equivalent funds with equal or lower expense ratios than the C, S, I, and F Funds. And the I Fund isn't as comprehensive as it should be.
The TSP's spousal notarization requirement is overly burdensome. Since I retired in 2018, I've had to bring my wife to a notary four times as we've made TSP withdrawals. We'll have to repeat that drill this coming December as I increase my monthly TSP installment withdrawals effective in January 2022. I've asked the TSP to allow my wife to sign a document before a notary authorizing me to make withdrawals from my TSP account with notice to my wife and allowing her to revoke her authorization any time. She would prefer to sign such a document than have to go with me to have her signatue notarized time and again. The TSP refuses to do this but hasn't explained why it cannot do it.
The TSP was an excellent savings vehicle during my long career with the federal government. However, it's not very good in retirement.
MichDad
The TSP's spousal notarization requirement is overly burdensome. Since I retired in 2018, I've had to bring my wife to a notary four times as we've made TSP withdrawals. We'll have to repeat that drill this coming December as I increase my monthly TSP installment withdrawals effective in January 2022. I've asked the TSP to allow my wife to sign a document before a notary authorizing me to make withdrawals from my TSP account with notice to my wife and allowing her to revoke her authorization any time. She would prefer to sign such a document than have to go with me to have her signatue notarized time and again. The TSP refuses to do this but hasn't explained why it cannot do it.
The TSP was an excellent savings vehicle during my long career with the federal government. However, it's not very good in retirement.
MichDad
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
If you have a target allocation, you can just rebalance to that target allocation after every withdrawal. If your target is 50% G and the market has made your portfolio 45% G or 55% G, you move back to 50% G as soon as the withdrawal processes. Thus, if the market moved you to 55% G, you took the whole withdrawal from the G fund and sold more to rebalance; if it moved you to 45% G, you took the whole withdrawal from the stock funds and sold more stock to rebalance.cresive wrote: ↑Mon Mar 16, 2020 10:29 am However, there are several issues with this approach. One, I can’t selectively move funds from my G fund to my checking account. I can only move a specific amount of funds, which are take from a balance of ALL my TSP funds, requiring a tiresome rebalancing prior to our just after fund transfer. I say tiresome, because I don’t want to have fund removed from my C or I fund if that one is down. This will require me to figure out how to transfer money from my G fund to the poorly performing fund. Maybe this will be taken care of with rebalancing, but I am not smart enough to figure that out.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
Things are unlikely to change, since the TSP just recently underwent a "modernization" that took them years to complete.rich126 wrote: ↑Thu May 20, 2021 12:30 pm I have some money left in TSP and may be returning to the government for a job before I retire but geez it does sound like a painful system. My original thought was to use the TSP for one of my "buckets" of money. i was thinking of leaving money in it and only use it in the event of a major emergency (medical/assisted living,etc.) but after seeing some of the comments, I may change my thinking if things stay the same.
https://www.fedweek.com/tsp/spousal-con ... thdrawals/
The "modernization" brought the thing up to about, oh, let's say the 1950s in terms of the spousal notarization requirement--which is to say, nothing changed at all in this regard.
Deal killer. I'm out.
Last edited by namajones on Fri May 21, 2021 6:44 am, edited 1 time in total.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
This feature is probably one of the best things about the TSP/FERS system. Had a relative in a city pension system opt out of the 50% spousal pension without knowledge of the spouse. Needless to say the relative died first leaving the spouse nothing. "Automatic legal entitlement" means something, and I'm glad the TSP protects beneficiaries.Soon2BXProgrammer wrote: ↑Thu May 20, 2021 8:30 amits not TSP rules, it is the law. I had the same issue with a different retirement plan. You can thank Congress, because they wrote the law.namajones wrote: ↑Thu May 20, 2021 8:17 amThanks. I will call the TSP to confirm. But this spousal consent silliness is a deal killer for me. I have one of these newfangled spouses who feels that our money and money decisions should remain separate. Works for me.Soon2BXProgrammer wrote: ↑Thu May 20, 2021 8:08 amnamajones wrote: ↑Thu May 20, 2021 7:56 amThey really know how to ruin a marriage.HueyLD wrote: ↑Thu May 20, 2021 7:45 am
Because it is required by law.
“A spouse of a FERS or uniformed services TSP participant has an automatic legal entitlement to a survivor annuity. Annuities are purchased with the balance of the participant's TSP account, and such purchases are made pursuant a withdrawal election. Consequently, the default TSP withdrawal election is a joint life annuity with the 50% survivor benefit. The participant cannot make any other type of withdrawal unless the participant's spouse signs a written statement waiving his or her entitlement to a survivor annuity. This signed, written waiver (“spousal consent”) is a statutory requirement. 5 U.S.C. 8435(b) and (c).”
So if we transfer to Vanguard or another brokerage, we don't have to deal with that nonsense?
i believe you will have to do it once, to get the money out, so that you can roll it over to an IRA.
There are actually times when we're working on separate continents, too, so notarization to implement MY decisions about MY MONEY is just beyond unacceptable for us. The nerve of these people who came up with such TSP rules!
Last edited by Tdubs on Fri May 21, 2021 6:48 am, edited 1 time in total.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
If you are a current or former Fed or Military member just go ahead and sign up for the TSP Webinars:
https://www.tsp.gov/agency-service-reps ... resources/
You can sign up for a learning session and talk with a TSP expert. I've been going through these lately myself and they also have a good amount of information on FERS as well. They will be conducted in WebEx.
https://www.tsp.gov/agency-service-reps ... resources/
You can sign up for a learning session and talk with a TSP expert. I've been going through these lately myself and they also have a good amount of information on FERS as well. They will be conducted in WebEx.
Re: TSP: the more I learn the less I know II: Yet Another TSP Question
For those that dislike this spousal provision, I believe this goes back years ago when government retirees (civilian and military, predominantly males with spouses with no work history) were choosing to select the maximum pension with no survivor benefits without their spouses knowledge. This left a lot of women without financial support in their later years.Tdubs wrote: ↑Fri May 21, 2021 6:42 amThis feature is probably one of the best things about the TSP/FERS system. Had a relative in a city pension system opt out of the 50% spousal pension without knowledge of the spouse. Needless to say the relative died first leaving the spouse nothing. "Automatic legal entitlement" means something, and I'm glad the TSP protects beneficiaries.Soon2BXProgrammer wrote: ↑Thu May 20, 2021 8:30 amits not TSP rules, it is the law. I had the same issue with a different retirement plan. You can thank Congress, because they wrote the law.namajones wrote: ↑Thu May 20, 2021 8:17 amThanks. I will call the TSP to confirm. But this spousal consent silliness is a deal killer for me. I have one of these newfangled spouses who feels that our money and money decisions should remain separate. Works for me.Soon2BXProgrammer wrote: ↑Thu May 20, 2021 8:08 am
i believe you will have to do it once, to get the money out, so that you can roll it over to an IRA.
There are actually times when we're working on separate continents, too, so notarization to implement MY decisions about MY MONEY is just beyond unacceptable for us. The nerve of these people who came up with such TSP rules!