What the Smartest Feds Do with Their TSP at Retirement

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[danjuhas]

finally: Please hear him, YouTube watchers: When Dallon says (paraphrasing) The bigger risk is "not being aggressive enough in investing". I was "Reckless": I invested 100% S&P for 27 years. I did NOT play with pulling in and out of the market (including through and after the 2008/09 crash). I was Very. Handsomely. Rewarded. (SEE: buying stock at bottom)

[Milkman]

My Dad survived the Great Depression.. #1 Lesson, live within your means ( modest) #2 dont put all your eggs in one basket. Dont 100% rely on the tsp or the government. Having multiple income streams. #3, Garden. Healthy food is so much tastier

[WisdomRanger]

The 4% rule comes with the caveat of a 30 year retirement window. Longer retirements than the 30 year assumed retirement period (by the original study) runs the risk of running out of money. If you retire early (say a 52 in a voluntary retirement RIF), a more conservative 3% figure is usually recommended. Many people life longer than they expect in retirement (just as many that live shorter than expected).

Additionally, if you intend to leave money behind to your children/grandchildren, a 4% withdrawal rate might leave them with 0 inheritance if the market is down or stagnant for extended periods of time..

[GracieValenti]

I've been retired for two years and along with my pension a 4% withdrawal from TSP has allowed me to keep about 85% of my pre-retirement income. TSP invested in C/S 80% and G 20%. I currently have more in TSP than the day I retired. I did have to up the amount of withdrawal as things have gotten so expensive lately. Hoping to wait until 70 to take SS as have fairly long lives in my family. Hope this strategy will work for the long term. Fingers crossed.

[David-cvbp]

The tsp was not meant to be day trader fund. Very few Federal employee retirees are knowledgeable enough to put money into a fund where they need to know how to trade, THIS IS WHAT MAKES THE TSP GREAT!

[danjuhas]

Can"t say how "smart " I am, but the best thing I did (about 3 years ago now) was consult with Haws.I spoke to you, Dallon, personally. Among your strongest suits, you give "after- tax/ after- (say) medical-deductions" figures. I am up over 300k from when we spoke. I retired july 2024, better all the way bc of haws. LOTS more to say, but: Thank You Dallon & co

[pattyk]

I would never buy an annuity, it just does not make sense to buy one. Great video, thank you!

[jenneville]

Thank you!! You know your stuff and the way you explain it really helps!

[larriveeman]

fortunately I've been retired for 2 years, my pension (larger) and the wife's pension(smaller) covers all expenses, wife took SS at 63.8 I won't take SS until FRA or later, don't need TSP/IRA except converting to roth I moved most of my TSP to an IRA before I retired.

[EatLeadPal]

I'm 63 and retired last year. I have a friend who spent the last 20 years of his career in CS. He kept all of his TSP in the G fund and retired with very little over what he contributed. I spent the last 16 years of my career in CS and kept my money in the C and S funds. The amount I ended with is far above what my friend ended with. I'm now in the process of moving my money slowly to an outside account so I can do Roth Conversions. If TSP allowed these, I would keep my money right where it is.

[dale]

Hi Mr. Haws -- Can you go over approximately what percent of TSP funds should be kept in the G Fund and what percent in the C fund at retirement?

[bleebu]

Retired over a year agp (1 year, 2 months) haven't touched my TSP, or other IRAs, yet. Pensions rock.

[joeschmoe]

Annuities are a total rip off. These companies are basically just paying you your own gains each year and keeping your principle. Don’t do it.

[jerrys]

One of the best parts about federal retirement is the guaranteed pension income allows you to be more aggressive with investing TSP. I've never agreed with the idea of getting super conservative at the point you retire. That limits your upside way too much.

[rev]

I get the two bucket strategy, but the TSP doesn't allow you to choose where your disbursement comes from, so are you basically having to go and transfer money back into the G fund every month when the market is performing well?

[danjuhas]

My biggest "problem" has become: Taxes. How to stay below certain thresholds. A good problem to have.

[markmurrell]

First thing I think I will do at retirement is move the tsp to an Ira. So many more choices for investments and you can actually build more “buckets” of money.

[spacericky]

but … if you make a TSP withdrawal, it takes equal amounts from each fund … so if the SP500 is down you are selling the C Fund at a loss

[jamesvaughn]

Really like this video. Like to see video expanding on these concepts. An investment strategy I was thinking, using your easy math. Balance $2M, take $1M or similar and place in F fund for living expenses and place $1M in C fund. If there is down year move money into C fund for potentially recovery growth. I would use this strategy first 10 years of retirement.

[kckuc]

Yep, that’s one of the issues with TSP withdrawals. I plan on moving all the monies out. Even if I just left in g fund some monies, the g fund pays less then vanguards cash reserves.