jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
W2R and Zinger
Thanks!
Thanks!
My only advice would be to keep at least a small amount in your TSP. That way you can roll money back into your account in the future when more liberal withdrawals are allowed (pending the new law). Once you close out your TSP account you are out for good and cannot take advantage of the extremely low fees or the unique G fund.
I got out of the TSP when I found out the government was using/robbing G funds. The day I did it the word was you could not take money out of these funds for a certain length of time since the money was being used. If any other business took money out of retirement funds they would go to jail. Took the money out almost 7 years ago and never looked back! BTW put in Vanguard.
I got out of the TSP when I found out the government was using/robbing G funds. The day I did it the word was you could not take money out of these funds for a certain length of time since the money was being used. If any other business took money out of retirement funds they would go to jail. Took the money out almost 7 years ago and never looked back! BTW put in Vanguard.
The government robs the G fund in the same manner it robs the funds invested in Treasuries or in the SS trust fund - to fund current obligations. That doesn’t mean you couldn’t get your money out or that the obligation would not be met. Would you run away from TIPs because the government is using the funds you invest in them?I got out of the TSP when I found out the government was using/robbing G funds. The day I did it the word was you could not take money out of these funds for a certain length of time since the money was being used. If any other business took money out of retirement funds they would go to jail. Took the money out almost 7 years ago and never looked back! BTW put in Vanguard.
For those of you who are staying in the TSP primarily for the advantages of the G fund, the following was just published in the Concurrent Budget Resolution for FY 2018. This is a summary and you need to read the entire report for the exact language. This is a low hanging fruit item that, I believe, has a good chance of making it into the final budget. Better than limits to what the government will contribute to our help plan or other equally draconian proposals.
Change Rate of Return in the TSP’s G Fund
The Report also targets the interest rate currently being paid to investors by the G fund in the Thrift Savings Plan. The Report notes that the interest rate now being paid by the G fund (the most popular fund in the Thrift Savings Plan) is is a rate more appropriate for a security that is for a longer term. In effect, “those who participate in the G Fund are rewarded with a long-term rate on what is essentially a short-term security.”
The Report proposes to save money by “correctly aligning the rate of return on U.S. Treasury securities within the Federal Employee Retirement System’s Thrift Savings Plan with its investment risk profile. Securities within the G-Fund are not subject to risk of default. Payment of principal and interest is guaranteed by the U.S. Government. Yet the interest rate paid is equivalent to a long-term security.”
The most popular fund in the Thrift Savings Plan is the G fund. According to the latest TSP figures, the rate of return for the G fund in 2017 has been 2.23%. The proposed change would reduce this interest rate so that those investing in the G fund would receive a smaller return. That would probably encourage more TSP investors to put their money into alternative funds. It would, however, certainly reduce the popularity of the G fund which is a unique fund that is not available to the general public. It was created as a unique part of the Thrift Savings Plan as part of changing the Federal retirement program from CSRS to FERS.
The one good mechanism about ensuring that you are making RMD payments to avoid the penalty is that TSP will automatically send a 13th direct deposit to hit the RMD total for the year, if you are withdrawing too little.