Anonymous wrote:My biggest question about TSP vs transferring out:

I know that with TSP you cannot take money out of just one fund (i.e. from the G fund when equities are down, or from the C fund when equites are high). Vanguard or the like would allow you to take RMDs out of your fund of choice. So how do savvy people structure their investments and RMDs when they keep some money in the G fund and the rest goes to Vanguard.

I know someone has figured this out. You have to take RMDs from each account (i.e. both TSP and Vanguard).

Anonymous wrote:What's the benefit of the G fund vs a money market account at Vanguard (or other)? Yes, I know there's a little bit of risk to MM but is it worth staying in G just to avoid it?

Anonymous wrote:My biggest question about TSP vs transferring out:

I know that with TSP you cannot take money out of just one fund (i.e. from the G fund when equities are down, or from the C fund when equites are high). Vanguard or the like would allow you to take RMDs out of your fund of choice. So how do savvy people structure their investments and RMDs when they keep some money in the G fund and the rest goes to Vanguard.

I know someone has figured this out. You have to take RMDs from each account (i.e. both TSP and Vanguard).

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a great question. We would like the same.

In answer to the PP:
the big questions are about timing, Roth conversion, keeping everything in the TSP vs moving it out. So many possible scenarios in terms of retirement dates, especially given uncertainty and it's easier to have the conversation with someone who understands the rules and considerations.

Roth conversion = camel's back period (i.e., between retirement and RMD)
Keeping it in TSP vs Moving it out = depends on what it is you are looking for that is not offered by TSP

I agree it's a lot easier to have the discussion with a live person but they usually charge pretty $$.

I have pretty much decided I will roll over my TSP to Vanguard (no particular reason for V, but I have an account with them already--Schwab or Fidelity are other good choices):

1) TSP can't handle charitable donations from your RMDs. Donating this way reduces your income for tax purposes by the amount of the donation.
2) I want to split heirs on my savings, with one heir solely receiving the Roth portion. This isn't possible in the TSP.

Anther reason for rolling over that isn't mine: you can buy individual stocks or even crypto and aren't just limited to TSP funds

Reasons to not roll over:

1) You lose the G Fund. However, you can always choose to not roll over a certain portion and keep that portion in G.
2) Low fees. But now, fees at Vanguard et al are almost as low.
3) If you plan on working after retirement and contribute to an IRA, you can't do a backdoor Roth without paying all the taxes on the non-Roth TSP you have rolled over to the IRA.

This may not be a complete list, but they are things I have thought of.

Do the tap Roth conversions that are new this year factor in? Does that provide anything that wouldn’t be available if I moved out?

Don't know what this is referring to. Typo?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a great question. We would like the same.

In answer to the PP:
the big questions are about timing, Roth conversion, keeping everything in the TSP vs moving it out. So many possible scenarios in terms of retirement dates, especially given uncertainty and it's easier to have the conversation with someone who understands the rules and considerations.

Roth conversion = camel's back period (i.e., between retirement and RMD)
Keeping it in TSP vs Moving it out = depends on what it is you are looking for that is not offered by TSP

I agree it's a lot easier to have the discussion with a live person but they usually charge pretty $$.

I have pretty much decided I will roll over my TSP to Vanguard (no particular reason for V, but I have an account with them already--Schwab or Fidelity are other good choices):

1) TSP can't handle charitable donations from your RMDs. Donating this way reduces your income for tax purposes by the amount of the donation.
2) I want to split heirs on my savings, with one heir solely receiving the Roth portion. This isn't possible in the TSP.

Anther reason for rolling over that isn't mine: you can buy individual stocks or even crypto and aren't just limited to TSP funds

Reasons to not roll over:

1) You lose the G Fund. However, you can always choose to not roll over a certain portion and keep that portion in G.
2) Low fees. But now, fees at Vanguard et al are almost as low.
3) If you plan on working after retirement and contribute to an IRA, you can't do a backdoor Roth without paying all the taxes on the non-Roth TSP you have rolled over to the IRA.

This may not be a complete list, but they are things I have thought of.

Do the tap Roth conversions that are new this year factor in? Does that provide anything that wouldn’t be available if I moved out?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a great question. We would like the same.

In answer to the PP:
the big questions are about timing, Roth conversion, keeping everything in the TSP vs moving it out. So many possible scenarios in terms of retirement dates, especially given uncertainty and it's easier to have the conversation with someone who understands the rules and considerations.

Roth conversion = camel's back period (i.e., between retirement and RMD)
Keeping it in TSP vs Moving it out = depends on what it is you are looking for that is not offered by TSP

I agree it's a lot easier to have the discussion with a live person but they usually charge pretty $$.

I have pretty much decided I will roll over my TSP to Vanguard (no particular reason for V, but I have an account with them already--Schwab or Fidelity are other good choices):

1) TSP can't handle charitable donations from your RMDs. Donating this way reduces your income for tax purposes by the amount of the donation.
2) I want to split heirs on my savings, with one heir solely receiving the Roth portion. This isn't possible in the TSP.

Anther reason for rolling over that isn't mine: you can buy individual stocks or even crypto and aren't just limited to TSP funds

Reasons to not roll over:

1) You lose the G Fund. However, you can always choose to not roll over a certain portion and keep that portion in G.
2) Low fees. But now, fees at Vanguard et al are almost as low.
3) If you plan on working after retirement and contribute to an IRA, you can't do a backdoor Roth without paying all the taxes on the non-Roth TSP you have rolled over to the IRA.

This may not be a complete list, but they are things I have thought of.

Do the tap Roth conversions that are new this year factor in? Does that provide anything that wouldn’t be available if I moved out?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a great question. We would like the same.

In answer to the PP:
the big questions are about timing, Roth conversion, keeping everything in the TSP vs moving it out. So many possible scenarios in terms of retirement dates, especially given uncertainty and it's easier to have the conversation with someone who understands the rules and considerations.

Roth conversion = camel's back period (i.e., between retirement and RMD)
Keeping it in TSP vs Moving it out = depends on what it is you are looking for that is not offered by TSP

I agree it's a lot easier to have the discussion with a live person but they usually charge pretty $$.

I have pretty much decided I will roll over my TSP to Vanguard (no particular reason for V, but I have an account with them already--Schwab or Fidelity are other good choices):

1) TSP can't handle charitable donations from your RMDs. Donating this way reduces your income for tax purposes by the amount of the donation.
2) I want to split heirs on my savings, with one heir solely receiving the Roth portion. This isn't possible in the TSP.

Anther reason for rolling over that isn't mine: you can buy individual stocks or even crypto and aren't just limited to TSP funds

Reasons to not roll over:

1) You lose the G Fund. However, you can always choose to not roll over a certain portion and keep that portion in G.
2) Low fees. But now, fees at Vanguard et al are almost as low.
3) If you plan on working after retirement and contribute to an IRA, you can't do a backdoor Roth without paying all the taxes on the non-Roth TSP you have rolled over to the IRA.

This may not be a complete list, but they are things I have thought of.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My biggest question about TSP vs transferring out:

I know that with TSP you cannot take money out of just one fund (i.e. from the G fund when equities are down, or from the C fund when equites are high). Vanguard or the like would allow you to take RMDs out of your fund of choice. So how do savvy people structure their investments and RMDs when they keep some money in the G fund and the rest goes to Vanguard.

I know someone has figured this out. You have to take RMDs from each account (i.e. both TSP and Vanguard).

I think the tsp will automatically send you the RMD? Then you just simply rebalances ASAP. If you hold all of your bonds in the TSP (not a bad idea) and the stock market goes up, then you would have to transfer money from your Vanguard IRA to the TSP so you can buy more bonds. You could also just buy more bonds within your vanguard account.

If you are at the age of RMDs, can you put money INTO the TSP from your Vanguard account? That would seems to counter-act the RMDs, no? If RMDs say you have to take 1/27th out of your TSP (G fund) and 1/27th out of your rollover 401k (Vanguard equitites) -- then is it allowed to put more money into either one?

TSP allows roll over of your "like" accounts providing their meet certain requirements (e.g., pretax retirement fund vs post tax, 401k type vs investment funds). You may consider merging to make things simpler.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My biggest question about TSP vs transferring out:

I know that with TSP you cannot take money out of just one fund (i.e. from the G fund when equities are down, or from the C fund when equites are high). Vanguard or the like would allow you to take RMDs out of your fund of choice. So how do savvy people structure their investments and RMDs when they keep some money in the G fund and the rest goes to Vanguard.

I know someone has figured this out. You have to take RMDs from each account (i.e. both TSP and Vanguard).

I think the tsp will automatically send you the RMD? Then you just simply rebalances ASAP. If you hold all of your bonds in the TSP (not a bad idea) and the stock market goes up, then you would have to transfer money from your Vanguard IRA to the TSP so you can buy more bonds. You could also just buy more bonds within your vanguard account.

If you are at the age of RMDs, can you put money INTO the TSP from your Vanguard account? That would seems to counter-act the RMDs, no? If RMDs say you have to take 1/27th out of your TSP (G fund) and 1/27th out of your rollover 401k (Vanguard equitites) -- then is it allowed to put more money into either one?

Anonymous wrote:

Anonymous wrote:My biggest question about TSP vs transferring out:

I know that with TSP you cannot take money out of just one fund (i.e. from the G fund when equities are down, or from the C fund when equites are high). Vanguard or the like would allow you to take RMDs out of your fund of choice. So how do savvy people structure their investments and RMDs when they keep some money in the G fund and the rest goes to Vanguard.

I know someone has figured this out. You have to take RMDs from each account (i.e. both TSP and Vanguard).

I think the tsp will automatically send you the RMD? Then you just simply rebalances ASAP. If you hold all of your bonds in the TSP (not a bad idea) and the stock market goes up, then you would have to transfer money from your Vanguard IRA to the TSP so you can buy more bonds. You could also just buy more bonds within your vanguard account.

Anonymous wrote:My biggest question about TSP vs transferring out:

I know that with TSP you cannot take money out of just one fund (i.e. from the G fund when equities are down, or from the C fund when equites are high). Vanguard or the like would allow you to take RMDs out of your fund of choice. So how do savvy people structure their investments and RMDs when they keep some money in the G fund and the rest goes to Vanguard.

I know someone has figured this out. You have to take RMDs from each account (i.e. both TSP and Vanguard).

Anonymous wrote:When we retired we rolled our funds over to be managed by Eric Lantz:

https://www.ameripriseadvisors.com/eric.w.lantz/

There’s a lot of moving parts to retirement and they need to be carefully managed and structured. We are now 70 and he has done an amazing job for us. We are in a much better position than our friends who did not use a FA.

Anonymous wrote:What's the benefit of the G fund vs a money market account at Vanguard (or other)? Yes, I know there's a little bit of risk to MM but is it worth staying in G just to avoid it?