Allocation; dropping out for temporary cash, getting back in before open season deadline.

[Brian Willett]

I ama retiring fulltime from the Postg Office on Friday and beginning part time foir the PO Saturday with all the same benefits avaiulable to me, including tsp despoits and withdrawals, etc.



I currently have an ample amount in the fund, but until Socical Securfity pops in in February I will need approximately $1600 a month, because of my dropofdf in income because of the part time job, going from 40 to 20 hours a week. Would I be smart to stop contributing (now at maximum) or find that $ somewhere in another savings account. Also, when I get back to full income (SS and Part time work) should I continue to contribute the maximum amount if I can swing it?

Lastly, I have 95% of my $ in the G Fund but all contributions are going to the C Fund--does that sound sensible, at least until my wife, with no appreciable retirement other than SS, retires in three years.



Hope this is something you can help with but know I am treading on unknown waqters as this is the first message board, or any kind, that I have ever used. Probablly something to do with 'senior with a fear of the computer.



Thanks in Advance.



Brian:)

[tsptalk]

Welcome Brian!
If you are still able to get agency matching funds, contribute at least the minimum needed to get the match. After that, consider your tax situation. I'll leave the rest to the experts out there. Check out some of their retirement talk .... http://www.tsptalk.com/mb/forum19/ (http://www.tsptalk.com/mb/forum19/)

[Safetyguy]

I dunno if this helps --

If you have a break in service, you can take your TSP account and roll it into an IRA. You can also leave it there, take an annuity, etc.

BUT --

If youcome back to fed service (say years later even or in your case a day later) and you are eligible for TSP again, the money that you COULD have taken out and invested elsewhere CANNOT be rolled over into an IRA after you come back. In other words, reinstatement has the same effect as never having left gov't service.

Remember TSP is limited in its investment options and you may be able to do better on the outside -- if you have the ability to. If this makes sense, maybe you should take some time off between your postal careers that will allow you to free up your TSP account balance and allow for investing elsewhere.

In other words, you should close out your TSP account during your break in service. Then follow Tom's advice to put in at least whatever amount is needed in your "new" TSP account to get a full match.