Originally Posted by packrat44
You can't beat the low ER of a TSP account. I am 63 and therefore in a different position than you. While I really like the low maintenance cost, I like getting the $ into a ROTH even more. My TSPs have been rolled into a TIRA and are being aggressively converted to RIRAs (along with my DW 403(b)) prior to turning 70.
This^^ makes so much sense. The TSP does work but I learned this, They teach you how to save save save and then one day it comes Harvest time.
Well they do NOT tell you how to do that. The TSP pre-tax is so rule
intensive with your money. The Roth came along only recently and I
did open one just to begin the 5 year time rule. I wish I had been able
to put more funds into the Roth because fact of the matter is, Taxes are
going to go up and believe me, the IRS is going to get their share from
your pre-tax pile of money.
An annuity is NOT the way to go IMO as there may actually come a day
when investment returns are in the double digits and if you annuatize your TSP, you become locked in to the lower rate...fin...there you are locked in.
So back to getting your funds into the Roth arena where taxes are all paid
in today's' dollars. Caution is warranted due to the disbursement of funds
in a year and there-by putting you into a Much higher tax bracket.
I see the need to develop a strategy to keep you in a comfortable tax bracket
where you take sums of TSP pre-tax up to that comfort zone and convert
them into the Roth. Enter the Roth rules....you have to be working to contribute.