TSP to IRA

[MohammadXX]

Why do so many members intend to move their funds out of the TSP and into an IRAwhen they retire? I thought you could leave your money in the TSP after you retire. I understoodTSP to be a good deal even after retirement because it has low management costs and allows you to adjust your allocations daily as you did before retirement. What's the advantage of moving funds to an IRA, and why do it at the time of retirement?

Welcome MohammadXX,
There's so many issues involved with IRAs. Below are a few postings from this forum that will get you started. But there are so many more. Suggestion: Use the Search feature on the top of the forum's pages and type in "IRA" > then read to your heart's content. Come back and ask questions as you go along if something is too confusing...... good luck
http://www.tsptalk.com/mb/view_topic.php?id=198&forum_id=25&highlight=IRA
http://www.tsptalk.com/mb/view_topic.php?id=191&forum_id=26&highlight=IRA
http://www.tsptalk.com/mb/view_topic.php?id=435&forum_id=19&highlight=IRA

[Spaf]

Mohammad

When U retire the TSP becomes a retirement fund. U transfer it to a IRA buying and holding moderately conservative funds, drawing 4% annually to supplement the Govt annuity retirement + SS. Now you could leave it in TSP if U want to.

Everyone has their own plan. Mine is to go fishing and hunting. Now I could put my laptop next to my fish finder. I could get a BIG reel and a LONG modem cable and run it back to my house. Now we have to make change allocations before 12 noon EST. If I'm out fishing and changing allocations, and another boat comes along and cuts my modem cable. When I'm out hunting I have similar problems. Well I guess U get the drift.

Spaf,

When did U turn into Prince? "I could get a BIG reel and a LONG modem cable and run it back to my house". I guess you never heard about this brand new tech invention called - wireless? Geez. Go to a freaky Starbucks.

Welcome Moh XX - are you like a Arab Action Star?

The TSP is a retirement fund it does not convert into a retirement plan. "When U retire the TSP becomes a retirement fund." IT IS A RETIREMENT FUND.

You need to be half stock and half bond fundsor your money will run out. You need exposure to stocks to keep up with inflation. I can provide you a solid game plan where you can withdraw more then 4% and keep up with inflation.

All and all the index funds are total and complete crap and as soon as your retire get the heck out of the clingers.

Send me an e-mail and I will send you some stuff to chew on. Now I am going to run my long modem cable over to my dog and kick it.

"When I'm out hunting I have similar problems. Well I guess U get the drift." Yes, like your advice you are a decadeold in your thought process.

If you follow Spafs plan you will be eating cat food in your golden years but hey maybe you could learn to hunt and fish to - but do not trip on the modem cable.


I am sure Spaf will prove me wrong. Wring, wring, wring.

[MohammadXX]

To those that replied--thanks.

M.T.

Are you saying to get out of TSP C-S-I- funds at retirement ? If so, why and where to go ? My knowledge of the market is very limited and I'm not sure I trust mutual funds. Btwn preservation on the one hand and profit with risk on the other, I lean to 10-15% risk and 85-90% safety (I'm near retirement eligibility).

Also concerned that income tax rates will rise and I'll eventually pay more on my "tax deferred" funds than I would have had I had simply paid income tax when I was working. ConsideringTSP periodic payments and paying the taxes as I go along.

Input is appreciated.

MarketTimer wrote:
Spaf,

When did U turn into Prince? "I could get a BIG reel and a LONG modem cable and run it back to my house". I guess you never heard about this brand new tech invention called - wireless? Geez. Go to a freaky Starbucks.

Welcome Moh XX - are you like a Arab Action Star?

The TSP is a retirement fund it does not convert into a retirement plan. "When U retire the TSP becomes a retirement fund." IT IS A RETIREMENT FUND.

You need to be half stock and half bond fundsor your money will run out. You need exposure to stocks to keep up with inflation. I can provide you a solid game plan where you can withdraw more then 4% and keep up with inflation.

All and all the index funds are total and complete crap and as soon as your retire get the heck out of the clingers.

Send me an e-mail and I will send you some stuff to chew on. Now I am going to run my long modem cable over to my dog and kick it.

"When I'm out hunting I have similar problems. Well I guess U get the drift." Yes, like your advice you are a decadeold in your thought process.

If you follow Spafs plan you will be eating cat food in your golden years but hey maybe you could learn to hunt and fish to - but do not trip on the modem cable.


I am sure Spaf will prove me wrong. Wring, wring, wring.

Look all, "sybil" is back............ So MT, what if your making over 100% in the so called "Crappy" index funds? You only gonna withdraw 4%? Too funny...........My personal plan is to re-invest 50% of my earnings, pull out the other 50%, pay taxes on it and the 10% penalty , then live on what is left in my retirement. This happens when I'm 46 by the way......ater I'm 59 and a half, no taxes and no penalties.........

Someone is starting to sound like a "money manager". The book Rod mentioned says that all money managers and market analysts suck............nuff said.

MarketTimer wrote:

Send me an e-mail and I will send you some stuff to chew on. Now I am going to run my long modem cable over to my dog and kick it.

Careful with that, my personal opinion is make sure you have good virus protection.

[coolhand]

MT,

Much ofwhat you have had tosay in the forum has weight. And it isyour opinion that I value. But I also value what other peoplehave to say as well.We all come to this board seeking insight and we each possess variouslevels of knowledge across a wide spectrum of topics.

In addition to seeking knowledge, wealsowant to help each other out. We know we are not all-knowing, but we are trying to do better. Your input is valuable. But we have to respect each others opinion. To do otherwise is to suppressthe exchange of thoughts and ideasand that my friend, would be tragic.

Amen!

[Spaf]

MarketTimer wrote:
Spaf,

When did U turn into Prince? "I could get a BIG reel and a LONG modem cable and run it back to my house". I guess you never heard about this brand new tech invention called - wireless? Geez. Go to a freaky Starbucks.

All and all the index funds are total and complete crap and as soon as your retire get the heck out of the clingers.

"When I'm out hunting I have similar problems. Well I guess U get the drift." Yes, like your advice you are a decadeold in your thought process.

If you follow Spafs plan you will be eating cat food in your golden years but hey maybe you could learn to hunt and fish to - but do not trip on the modem cable.

I am sure Spaf will prove me wrong. Wring, wring, wring.

Marketimer I don't have anything to prove. If you see a different side, I respect that.

Rgds :) Spaf

[pyriel]

MarketTimer wrote:
Spaf,

When did U turn into Prince? "I could get a BIG reel and a LONG modem cable and run it back to my house". I guess you never heard about this brand new tech invention called - wireless? Geez. Go to a freaky Starbucks.

The TSP is a retirement fund it does not convert into a retirement plan. "When U retire the TSP becomes a retirement fund." IT IS A RETIREMENT FUND.

You need to be half stock and half bond fundsor your money will run out. You need exposure to stocks to keep up with inflation. I can provide you a solid game plan where you can withdraw more then 4% and keep up with inflation.

All and all the index funds are total and complete crap and as soon as your retire get the heck out of the clingers.

"When I'm out hunting I have similar problems. Well I guess U get the drift." Yes, like your advice you are a decadeold in your thought process.

If you follow Spafs plan you will be eating cat food in your golden years but hey maybe you could learn to hunt and fish to - but do not trip on the modem cable.

I am sure Spaf will prove me wrong. Wring, wring, wring.

MT,

Hope you are doing great. I really value your opinion, however, I feel that your input, although well meaning, may be construed by others as offensive. Do we really need to go that route? I thought Spaf was just trying to add humor to his reply. Yours too is kind of funny, in some way... I like reading everyones input and hopes to see more participation from others. Itreally helps those people like me who knows very little about this kind ofinvesting. God Bless...

Pyriel

[Spaf]

pyriel wrote:
MarketTimer wrote:
Spaf,

When did U turn into Prince?


Didn't turn to anything. Nothing to prove. Just the way I see it.

We disagree.

Freedom of speech! :? Rgds Spaf