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Thread: New Member with a couple questions....

  1. Default New Member with a couple questions....

    Hello,

    I am a retired CSRS employee, 60 years old. I have been dealing with a Midland Life specialist for 20 years that I trust. They are offering a 7% bonus to rollover TSP to their company. I will not be touching the money for several years and possibly not till RMD at 70 years old. I'm required to leave the money for 1 year before I start drawing on it which is not a problem. I've talked to others which indicate they have not had a problem getting their money. I've also talked to others who indicated they are getting over 3% on their money which is better than G Fund which is where I had planned to leave my money. Their Fund is guaranteed to not lose money. The salesman does not draw a commission from my fund, he gets his money from the company. They used to offer a slightly higher rollover percent but drew commission from fund but have changed in order to take the salesman commission from company, I suspect.

    I've read the fine print. I've done a search for complaints against the company. Seems the complaints I can find, people bought who shouldn't have bought when they might need their money to get by on and should have never bought in the first place because they had limited funds. They did not realize the amount they would surrender should they try to access the entire amount before the penalty period.

    So couple questions:

    1. What am I missing and what is the downside to this?

    2. My original plan was to leave my TSP in the G Fund and at about 65 start taking a check for about $500 a month and every year to increase that by about $100 to offset the lack of COLA. But I've hear you cannot change the amount of TSP that often. Is that true?


    Thanks in advance.


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  3. #2

    Default Re: New Member with a couple questions....

    Quote Originally Posted by Ozarkharleyguy View Post
    Hello,

    I am a retired CSRS employee, 60 years old. I have been dealing with a Midland Life specialist for 20 years that I trust. They are offering a 7% bonus to rollover TSP to their company. I will not be touching the money for several years and possibly not till RMD at 70 years old. I'm required to leave the money for 1 year before I start drawing on it which is not a problem. I've talked to others which indicate they have not had a problem getting their money. I've also talked to others who indicated they are getting over 3% on their money which is better than G Fund which is where I had planned to leave my money. Their Fund is guaranteed to not lose money. The salesman does not draw a commission from my fund, he gets his money from the company. They used to offer a slightly higher rollover percent but drew commission from fund but have changed in order to take the salesman commission from company, I suspect.

    I've read the fine print. I've done a search for complaints against the company. Seems the complaints I can find, people bought who shouldn't have bought when they might need their money to get by on and should have never bought in the first place because they had limited funds. They did not realize the amount they would surrender should they try to access the entire amount before the penalty period.

    So couple questions:

    1. What am I missing and what is the downside to this?

    2. My original plan was to leave my TSP in the G Fund and at about 65 start taking a check for about $500 a month and every year to increase that by about $100 to offset the lack of COLA. But I've hear you cannot change the amount of TSP that often. Is that true?


    Thanks in advance.
    3% return is not so hot if inflations exceeds 3%, as it has before and probably will again.

    rest assured you are still paying the salesman's commission, just via the company's now modified compensation structure.

    is there a chance you may want to 'borrow' some of the funds to help a grandchild with college, pay off the blackmailers from ashley madisson,.etc. because you can do that in tsp.

    tsp g fund rates can't get much lower than they are now. now would be a good time to lock in a forever rate for a mortgage, not an annuity in my opinion. during the fed money monkey games like this 'tis better a borrower than a lender to be.
    100g

  4.  
  5. Default Re: New Member with a couple questions....

    At 60 years old with no Grandchildren and not going to have any I will not be borrowing from TSP. At this point even if I stayed in the TSP I will not be moving out of the G Fund because I believe the market to be over-bought and as a CSRS employee that has made some good returns due to past market returns I suspect I will not be buying back in any time soon.

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  7. #4

    Default Re: New Member with a couple questions....

    Quote Originally Posted by Ozarkharleyguy View Post
    Hello,

    I am a retired CSRS employee, 60 years old. I have been dealing with a Midland Life specialist for 20 years that I trust. They are offering a 7% bonus to rollover TSP to their company. I will not be touching the money for several years and possibly not till RMD at 70 years old. I'm required to leave the money for 1 year before I start drawing on it which is not a problem. I've talked to others which indicate they have not had a problem getting their money. I've also talked to others who indicated they are getting over 3% on their money which is better than G Fund which is where I had planned to leave my money. Their Fund is guaranteed to not lose money. The salesman does not draw a commission from my fund, he gets his money from the company. They used to offer a slightly higher rollover percent but drew commission from fund but have changed in order to take the salesman commission from company, I suspect.

    I've read the fine print. I've done a search for complaints against the company. Seems the complaints I can find, people bought who shouldn't have bought when they might need their money to get by on and should have never bought in the first place because they had limited funds. They did not realize the amount they would surrender should they try to access the entire amount before the penalty period.

    So couple questions:

    1. What am I missing and what is the downside to this?

    2. My original plan was to leave my TSP in the G Fund and at about 65 start taking a check for about $500 a month and every year to increase that by about $100 to offset the lack of COLA. But I've hear you cannot change the amount of TSP that often. Is that true?


    Thanks in advance.
    Hi, this link to TSP brochure page 20 answers question on how often you can change amount...once yearly.

    https://www.tsp.gov/PDF/formspubs/tspbk08.pdf
    Please don't take my comments as trading advice /IFTs: 2-1-21=50%S-50%G//1-25-21=G100%//1-19-21=20S, 80G/ ChartLinks=Pg241-242,#2892-2895// www.theepochtimes.com

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  9. #5

    Default Re: New Member with a couple questions....

    Regarding your other question, The downside is only earning 3% per year. That seems low. If you can grow it for five or more years, you might consider rolling over to a Traditional or Roth IRA, and invest in a mix of different types of mutual funds that would provide more earnings. If you invest in a mix of various funds including stock and other types of mutual funds, you should be able to grow it by more than 3% per year on average.

    Lots of folks on this site can offer better information on this than I can, as I've not yet examined my options closely. But Ive always liked Vanguard and their funds. But....I would carefully read all terms about TSP rollovers before moving forward.

    Here is a link to Vanguard. They offer both traditional and Roth IRAs. The "balanced retirement" group of funds are interesting.

    https://investor.vanguard.com/mutual...ual-funds-list

    P.S. Not sure how anyone can "guarantee" 3%. Curious about that and how it wrks.
    Please don't take my comments as trading advice /IFTs: 2-1-21=50%S-50%G//1-25-21=G100%//1-19-21=20S, 80G/ ChartLinks=Pg241-242,#2892-2895// www.theepochtimes.com

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  11. #6

    Default Re: New Member with a couple questions....

    Quote Originally Posted by DreamboatAnnie View Post
    P.S. Not sure how anyone can "guarantee" 3%. Curious about that and how it wrks.
    oh that's the the easy part, they just write down 'guaranteed' on a piece of paper and then you sign it and hand over the money forever, or until you die whichever comes first, which proabably feels like forever anyways.

    two things make this possible: actuary tables and life expectancy because while you may live to 120 someone else is going to get hit by a bus tomorrow, and the fact that any monkey can throw a dart at the wall street journal and beat 3%, especially since at historic and unprecedented low interest rates you can still clear 2.25% in guaranteed 10 year treasury bills.
    100g

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  13. #7

    Default Re: New Member with a couple questions....

    Uhhhhh.... That was meant more for those odd years when the market is hit hard, and goes negative.
    Bottom line... 3% is not enough and someone else would be using your $$$ to make more.
    Please don't take my comments as trading advice /IFTs: 2-1-21=50%S-50%G//1-25-21=G100%//1-19-21=20S, 80G/ ChartLinks=Pg241-242,#2892-2895// www.theepochtimes.com

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  15. Default Re: New Member with a couple questions....

    Annie, first thanks for the links to the TSP brochure and Vanguard. Btw, I love your music; its got good "Heart".

    I'm skeptical about Vanguard because I've tried Mutual Funds and they always make money TILL I invest in something. TSP has always been the best money maker for me. The main reason I'm thinking of rolling this over is that initial 7% bonus they add up front I'll probably never make back hiding in the G Fund at this point in my life. My reluctance is the TSP has always been such a good program to me.

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  17. #9

    Default Re: New Member with a couple questions....

    Thanks. Heres sweet little tune I like a lot. Enjoy!
    Best wishes on your invesments!!!!!

    Please don't take my comments as trading advice /IFTs: 2-1-21=50%S-50%G//1-25-21=G100%//1-19-21=20S, 80G/ ChartLinks=Pg241-242,#2892-2895// www.theepochtimes.com


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  19. #10

    Default Re: New Member with a couple questions....

    Quote Originally Posted by Ozarkharleyguy View Post
    Annie, first thanks for the links to the TSP brochure and Vanguard. Btw, I love your music; its got good "Heart".

    I'm skeptical about Vanguard because I've tried Mutual Funds and they always make money TILL I invest in something. TSP has always been the best money maker for me. The main reason I'm thinking of rolling this over is that initial 7% bonus they add up front I'll probably never make back hiding in the G Fund at this point in my life. My reluctance is the TSP has always been such a good program to me.



    Hi, I can definitely understand wanting to stay under TSP. It is safe. If you choose to move your money elsewhere, I would make sure it was a large well known company. USAA, VanGuard, etc.

    I thought to google on the company you mentioned. I searched Midland Life Reviews and saw lots of complaints in consumer sites and something about a multi million dollar lawsuit, and persons not getting paid annuities or having to wait 14 years for payouts, etc. the company was called Midland National Life and reportedly located in 48 States....

    Here are a few links. Not sure this is the same company you are looking at. I keep thinking about that 7% signing bonus you mentioned. Seems too good to be true, and it just maybe. I think further investigations is warranted. The one link below talks about guaranteed 3%.... Not paid and fine print too confusing and 14 year wait period. But read all the artcles here..all the way to the bottom.....looks like you might be looking at a fixed annuity.

    Ripoff Report | Midland National Life Insurance Company Complaint Review West Des Moines, Iowa: 393834

    midland life reviews
    Last edited by DreamboatAnnie; 07-23-2015 at 11:18 PM.
    Please don't take my comments as trading advice /IFTs: 2-1-21=50%S-50%G//1-25-21=G100%//1-19-21=20S, 80G/ ChartLinks=Pg241-242,#2892-2895// www.theepochtimes.com

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  21. #11

    Default Re: New Member with a couple questions....

    TSP also has annuities you can buy. Here is link.
    https://www.tsp.gov/planparticipatio.../options.shtml
    Please don't take my comments as trading advice /IFTs: 2-1-21=50%S-50%G//1-25-21=G100%//1-19-21=20S, 80G/ ChartLinks=Pg241-242,#2892-2895// www.theepochtimes.com

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  23. #12

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    Default Re: New Member with a couple questions....

    Just a thought. L Income isn't a bad option for you to consider: basically 80% in G and the rest in conservative amounts in equities and bonds that appear to provide positive results over the long term. There is a "slight" risk but it is marginal. Best of luck to you in your decision making.

    FS
    FogSailing
    Try to learn something about everything and everything about something.

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