Thread: Life after TSP 3

You're right, both have some great options. Again, if you want a completely fire and forget, one fund for all, i'd probably just pick USAA's Balanced Fund. I see Vanguard has a "balanced index" with a low expense ratio, but despite that it seems to underperform USAA's selection.

Those asset allocation funds are just another form of "balanced" funds, so those would also be nice too.

Shoot for roughly 110- your age in stock. Remember, you're hoping you'll live another 30 years or more, so to keep up with inflation, you should maintain a minimum of 30% stock, but i recommend something closer to the formula.

If you'd prefer not to have to shuffle around money to keep the percentages the same, then just pick one fund like a balanced fund that approximates that percentage. USAA tends to hover close to 60-70% stock in their balanced fund, but they mitigate that by holding a great deal of stable blue chips.

Boring portfolios are some of the best around.

Thanks azanon!

I need a boring portfolio for my IRA. I don't want to be greedy. I just want it to work! My other investments I can play with, I just don't want to have to play with my the TSP transfer to a IRA.

USAA gave me a mix for a Mod/Conservative and a Moderate allocation of funds. My rough estimate indicated a 1 yr return of M/C=9.85%, the M=8.55%. Nothing in the M/C showed a loss of over 3% for the last 5 yrs. The M had one loss for 2 yrs over 3%, this was in their large cap growth fund.

Vanguard gave me a mix for a Life Strategy portfolio and a Individual portfolio. My rough estimate indicated a 1 yr return of LS=10.82%, the Individual =10.38%. Both mixes had high returns on international funds, and the Individual fund had a high return on the Windsor II fund. Long term 5 or more years, these funds were not returning that much.

I guess this represents your comments on performance!

Thanks again, and have a great day!

Those sound about right, and would roughly represent the performance you could expect from one balanced fund too if you went that route.

Thanks AZ and Spaf. I'm in a similar time frame for retirement. However, I know nothing about IRAs. Would I do better transferring my TSP to USAA or taking an annuity from TSP? Any advice you can offer will be appreciated. :?

jeeperspeepers wrote:

Thanks AZ and Spaf. I'm in a similar time frame for retirement. However, I know nothing about IRAs. Would I do better transferring my TSP to USAA or taking an annuity from TSP? Any advice you can offer will be appreciated. :?

You transfer your TSP into a IRA of mutual funds, You take $ out, and you still have your investment. Annuity is a insurance product, You buy it with your TSP funds. (several models to choose from). Annuities are pricy (my opinion) but very little risk. IRA's always some risk (because you are in the market). At TSP you can figure out your annuity return and options in their calculator. With an IRA you can safely withdraw 4%-5% annually, plus add 3% inflation. So the IRA needs to increase at least 7% on average. However, there are good years, bad years, and average years. Decisions, decisions!

My retirement - TSP, Roth IRA, investment????? I just retired with 19+ years with the government - I had an opportunity to work for a private company making alot more money, with better benefits, retirement etc....therefore I took an MRA, which cost me 25% in retirement. I had my accountant look at the options before I retired and this looked like the best thing to do. Now here is my question - I have an Roth IRA which is in an investment (Dodge and Cox Balanced and also in some oil stock)....I also have USAA Balanced Strategy - should I roll my TSP into one of those, leave it until I retire from my current position, then cash it out - take an annunity or...? I want to have my home paid off when I retire ( in 5 years) and was planning on taking the money to finish paying it off... HELP!!!

Patricia

Everone need to analyze their retirement based on their own situation. What I have been told is that a Roth IRA is tax paid. Your USAA funds could be tax paid or deferred. Your TSP is tax deferred. It's best to transfer deferred accounts to a traditional IRA, generally. If you take the money, you are gonna owe US about 20%.

Paying off your home can be good or bad. Can you itemize your IRS or will you have to take a standard deduction. Here you (and your accountant) need to crunch the numbers. Married? Spouse working? Other income?

Paying off other bills is my plan i.e., credit cards, cars, etc. Have refinanced my home to a lower rate and paid it down to have the lowest payment but still be able to itemize. Would like to have 20K in emergency, and 100K just to play in the market, plus the FERS to use for my retirement. Most folks say that you can withdraw about 4% from a TSP/IRA transfer and have your principal+inflation in tact (they say this).

Good luck, and have a good day .

I am planning to KEEP THE CASH...

andpaywhat I have to pay from the returns... 10% - 20%...

withdrawthe maximum the lowest bracket allow you... $58,600 a year today

at !5% fro couples...

Ialso will receive as FERS the1%government pention and the not much

social security... ;-)and hope it still includes medicare, medicaid... etc... ;-)

BOTTOMLINE... I am planning to capiltalize on the TSP and continue investing the

cash...

Leon

HOLD THE CASH !!!

I wouldinvest itin similar Funds like the TSP plan

Dow... DIA

S&P... SPY

S Fund... IWM

Leon

:uthanx for the info. I guess I need to have a detailed discussion with my tax accountant.

Patricia

Yea!

Seeing your accountant for your situation is the best thing to do.

Ikatteng talks about cash. I was told that you need at least 20K in a liquid account for emergency (money Mkt, mutuals, etc). Once you get your retirement set up, give us some feed back. Like we can compare accountants?