theoguins,

First and foremost - welcome to the site. The fact that you engaged this lot tells me you are interested in independent thinking along with self preservation. You are still young at 58 - you run the risk of being retired more years than you worked. Your defined benefits plan has become an annuity - why take another?

Everything you do financially from now on will impact your AGI (adjusted gross income) and your AGI will impact everything you do. So anything you can do to control your AGI will save you money. For example, don't take early social security if you don't need the extra money. Idealy you should work toward a 15% tax bracket - that level will impact other financial decisions. Foe example, stock capital gains and dividends are taxed at 5% if you are in the 15% bracket. Currently if married and AGI is under $59,000. you are in the 15% bracket.

Leave your money in the TSP awhile and see how comfortable you are as your own money manager - the potential for some good gains in the years ahead are at your finger tips. My suggestion is to absorb as much bull manure from these guys as possible - that's what makes things grow. Moving money from your TSP to an IRA of your choice is a good idea - just do it in increments over several years - like a monthly dollar cost averaging strategy. Watch the fees and try to stay online and seriously consider going with individual stocks for the dividend reinvestments they offer - that way your money is always working. At a later date when you have that AGI under your thumb start the process of moving funds to a Roth IRA. If you open the Roth IRA with the same company you can simply transfer any stock position without a selling fee.

I know this is a lot of turf to cover and it does get complicated when dealing with the thought of potential heirs - but there is so much flexibility available to help you work around the hungary IRS. Take care

Dennis