Thread: Annuity Vs Withdrawal

Butch,

in FERS you already have an annuity, then social security, then TSP. A annuity is a insurance contract. They are going to make money.
IMHO, your TSP is worth a heck of a lot mor than another annuity.

However, you will have to do the math, and personal consideration.

Rgds Spaf

And when you annuitize your defined benefit plan your contractor gets to keep what you don't live long enough to spend - at least your TSP plan remains yours and has the potential to grow with active management if you so choose. There are many different strategies that can be used to transfer funds into tax free plans that make it very simple for any heirs.

Birchtree wrote:

And when you annuitize your defined benefit plan your contractor gets to keep what you don't live long enough to spend - at least your TSP plan remains yours and has the potential to grow with active management if you so choose. There are many different strategies that can be used to transfer funds into tax free plans that make it very simple for any heirs.

But most likely notby you...........

It depends on whether you want to make the effort required to manage your money. I guess with the L Funds though, it's really almost effortless now. That is unless you want to make even more money. Personally I'm not settling for 4 or 4.3 percent interest rate you get with an annuity. I know I must be doing better than that, although I don't keep track that way. I retired in Jan 2004, have drawn $1K/mo from TPS since I retired and my balance is $6K less than when I started. That's got to be better that 4%/year. If you want to make money leave it in TSP and manage it yourself.
Good Luck