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Thread: Lucky 91 Account Talk

  1. #1

    Default Lucky 91 Account Talk

    Colleagues,
    I am new to this website, and look forward to sharing insights with other TSP account holders.
    I am retired from the Federal government, with some 33 yearsin the Navy, the Foreign Service and the Civil Service. I paid in to the TSP from the day it opened in 1988 until the day I retired in 2013. Inever missed a matching dollar from the government, although I contributed atdifferent levels, between 5 and 10 percent. I paid in the extra amounts allowed once Iturned 50. I once borrowed from my TSP accountfor a down payment on a house, but paid it back as soon as I could. I have not yet drawn down on my TSP account. I am 62.

    For the past ten years I have followed a buy low, sell highstrategy, switching back and forth between the G fund and the 2013 Fund. This year I used the C Fund instead of the2030 Fund due to the high unpredictability of the other funds.

    My January-November 2015 rate of return is 13.54%. My 2014 rate was 10.25%. My 2013 rate was 12.36%.

    My balance as of this morning, all in the G Fund, is$1,281,455.96. I made two IFTs in December, 12/3 all into the C Fund and 12/4 all into the G Fund, for a gain of over $26,000.

    I have recently spoken to a financial advisor who sang the praises of taking money out of the TSP in tranches and to convert the sums withdrawn into a Roth IRA, to save on taxes which could be substantial, given the required minimum withdrawals that will apply when I am in my mid-80's. I am not so sure. I am thinking instead of drawing down the TSP over several years, starting at 65, and putting the money into tax-free municipals.

    Insights welcome.


  2.  
  3. #2

    Join Date
    Jun 2014
    Location
    Virginia
    Posts
    680

    Default Re: Lucky 91 Account Talk

    Welcome aboard! You are in a great spot with 1.2 M. I'm not sure about the wisdom of converting to a ROTH but I know you have to wait 5 years to withdraw after doing it. More important is to study the TAX costs of converting large sums each year which will be income you have to pay.


    A very common guideline is that if you have 1 M you can take 4% a year easily for the rest of your life.

    Most important is that you should know that Minimum Required Distributions start at 70 and half not the mid-80s.


    Good luck

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  5. #3

    Default Re: Lucky 91 Account Talk

    do you have any daughters? there is no way you can spend all that unless you are a glutton and i am a nice guy?
    100g

  6.  
  7. #4

    Join Date
    Jan 2006
    Location
    Phoenix, AZ
    Posts
    3,024

    Default Re: Lucky 91 Account Talk

    Welcome L91!. There are a number of folks on the Forum who have moved some or all from TSP into the private sector. I hope they will read your post and give you their views. If you search the forum you will find a number of discussions regarding the ins and outs, etc. of this strategy.

    All the best to you.

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

  8.  
  9. #5

    Join Date
    Jun 2004
    Location
    Boiled Peanut, Georgia, USA
    Posts
    76,383

    Default Re: Lucky 91 Account Talk

    Welcome to the Forum Lucky 91, I to am retired as of 2010 CSRS I can't give you investment advise, I should have talked to you in the 1980s and contributed more, but I'm doing well and taking Mandatory Monthly Distributions and living comfortably.
    Best of luck
    Norman
    Last edited by nnuut; 12-29-2015 at 09:37 PM.



  10.  
  11. #6

    Default Re: Lucky 91 Account Talk

    Dear Friend,

    I have two daughters and no sons. One of my daughters is a nun who has taken a vow of poverty. I keep both daughters aware of my finances.

    Regards, Lucky91

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  13. #7

    Default Re: Lucky 91 Account Talk

    Dear pmaloney,

    Thanks for the insight. I am aware of the 4% guideline and of the 70 and 1/2 rule. My goal is to minimize tax consequences of TSP withdrawals. Insights most welcome. Regards, Lucky91

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  15. #8

    Default Re: Lucky 91 Account Talk

    God Bless!

  16.  
  17. #9

    Default Re: Lucky 91 Account Talk

    Welcome to the TSP boards. Looking forward to your insights and ideas in the future. Have a great 2016!
    My posts are not advice. It's just my ideas from stuff I read, open to feedback from others. Be critical. Do your homework. // Currently: 50C/50I; 12-mo PIP: 12.05%.


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  19. #10

    Default Re: Lucky 91 Account Talk

    Many thanks!

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  21. #11

    Default Re: Lucky 91 Account Talk

    Quote Originally Posted by Lucky91 View Post
    Dear Friend,

    I have two daughters and no sons. One of my daughters is a nun who has taken a vow of poverty. I keep both daughters aware of my finances.

    Regards, Lucky91
    well if she ever changes her mind, i wouldn't mind buying the nun dinner. i apparently have taken a vow of poverty too, but i didn't mean to.
    100g

  22.  

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