Thread: Stoplight's Retirement Story (FERS, Gap in Service, Military Buy-Back)

Originally Posted by Elgallo

Remember it took me close to 6 weeks to free my money from the TSP. I did this about 2 months ago when the market was quite abit higher than it is at the moment.

Once you start the transfer process, you have no way to control the date the transfer will occure, so be careful. Don't want to sell low now do we!

My mistake back then, when the market was HIGHER, was to leave my CSI positions in effect. When I decided to start the transfer I should have moved everthing to the G fund Lilly Pad for the time prior to the actual transfer. That cost me about $13-15K ouch eh.

Thanks for the "reminder", Elgallo ! I was watching your posts about rolling your funds over, and I've been wondering how long MY process will be !

Right now, I have almost everything in G, with just a tiny percentage that was DCA'd into C and S during my last year or so. There's not enough there to even worry about whether it's a gain or loss, at this point...nothing like losing $13 K !!! Sorry you took that hit...I'll be sure to go 100% G before I apply for any rollover...

I have a new wrinkle, however...see next post !


Stoplight...

I Didn't Do My "Due Diligence" Homework !

Okay, so I received my letter from TSP saying I'm separated...now I can roll my TSP into my USAA IRA, IAW my "Plan", and invest it wherever I choose, right ?

But wait a minute ! While reading through the TSP withdrawal options and tax implications, and checking out some IRS Publications, it dawns on me that I have made an incorrect "assumption"...I had planned that funds from my TSP would not be available without the 10% penalty before I turned 59 1/2, and we'd have to hit the Wife's IRA until that time (I'm 57 ; she's (almost) 60...). However, that's not the case...being over 55, it appears I can take withdrawals from my TSP now without incurring the penalty ! If I roll everything over to my IRA now, I can't touch it for a few more years !

Many others here on TSP Talk have discussed this, but I guess I didn't pay much attention about TSP withdrawals before now, when it became really relevant to me

It doesn't really change our retirement "Big Picture", but it opens up a whole new set of "What If's ?" that I hadn't considered before...the "timing" and "method" and "amounts" of withdrawals, and the tax implications of each alternative...

Probably the biggest implication is whether or not to pay off the mortgage now. Based on my previous "Plan", that wasn't an option...but now it is !

I'm going to start another thread on that subject, and go sit in the corner with my dunce cap on, for not taking this into consideration until now


Stoplight...

Originally Posted by Stoplight

Well, the first retirement check is posting today...the $$$ number is exactly what the OPM web site said it would be...and it's going in the "old" account

Nothing much new to report on my retirement journey ! My second retirement payment posted 3 July, with the same amount as before, and into the same (wrong !) bank.

I haven't made any decisions regarding my TSP yet. I've been tracking expenses, and so far, I don't need to hit the Wife's IRA, either...the lump sum annual leave payment is covering my checks. It'll probably all depend on just when OPM finalizes my payment...I'm spending way less on gas and taxes, but way more on beer...go figure...

We had a long weekend reunion with some old friends in central FL...rented a beautiful 4 bedroom house with 3 other couples. Two of the couples are still working, but the other couple is retired, like us...felt sorry for the ones who had to leave early, to go to work.


Stoplight...

Originally Posted by Stoplight

...I'm spending way less on gas and taxes, but way more on beer...go figure... Stoplight...

To bad beer isn't a deductable expense. We would all have a little extra money come tax time.

Interesting conundrum, 57 is okay with TSP but not IRA. Lucky you to have this problem! So retain enough in the TSP account to provide a fixed monthly income for three years, shift the rest to the IRA where it can grow and grow and grow....

I just checked today and for the 18 months I have been retired the L-Income fund (my natural choice had I stayed) is returning about 2% annually. That would NOT have kept up with my withdrawal schedule and I would be down net 3% today. My IRA has paid its expenses and my withdrawal schedule and has grown 2%. The TSP is just too limited in its choices. Most of my gains have been from corporate preferred stocks, for example. You need that IRA.

Interesting conundrum, 57 is okay with TSP but not IRA. Lucky you to have this problem! So retain enough in the TSP account to provide a fixed monthly income for three years, shift the rest to the IRA where it can grow and grow and grow....

I just checked today and for the 18 months I have been retired the L-Income fund (my natural choice had I stayed) is returning about 2% annually. That would NOT have kept up with my withdrawal schedule and I would be down net 3% today. My IRA has paid its expenses and my withdrawal schedule and has grown 2%. The TSP is just too limited in its choices. Most of my gains have been from corporate preferred stocks, for example. You need that IRA.

Agreed. I retired 2/29/12 @ 57 and left enough for 2 years possible needs in TSP which I can withdraw with no penalty. Rolled over the rest to Scott Trade IRA which I am happly trading now with much more flexibility....

Jimijr and Dutchy,

I like the way both you people think ! My "problem" (and you're right...I'm glad to have this "problem" !) is trying to figure out how much to leave in TSP for the next couple of years. I've crunched the numbers, and in the overall scheme of things, I'm probably over-thinking it...just wish I knew what my final OPM retirement numbers will be ! In the meantime, I'm "losing" money I could be earning on my self-directed IRA.

Dutchy, just curious...do you have your final OPM number yet ?


Stoplight...

No change in my retirement situation yet...got my 3rd interim check, deposited in the "old" account. I guess I'll change the direct deposit on the OPM web site rather than waiting to see if they get it right when they finalize my numbers !

Stoplight...

Originally Posted by Stoplight

Jimijr and Dutchy,

I like the way both you people think ! My "problem" (and you're right...I'm glad to have this "problem" !) is trying to figure out how much to leave in TSP for the next couple of years. I've crunched the numbers, and in the overall scheme of things, I'm probably over-thinking it...just wish I knew what my final OPM retirement numbers will be ! In the meantime, I'm "losing" money I could be earning on my self-directed IRA.

Dutchy, just curious...do you have your final OPM number yet ?


Stoplight...

I've decided to go the same route and transfer all but 3 years to my IRA. Just to get the process right, I have a couple of questions : Did you guys submit 2 forms, a one-time partial withdrawal (for the IRA transfer) and then a "full" withdrawal form, with a specified dollar amount, for the 3 years ? Did you submit both forms at the same time to TSP ?

Any help is appreciated !!!


Stoplight...

Jimijr and Dutchy,

I like the way both you people think ! My "problem" (and you're right...I'm glad to have this "problem" !) is trying to figure out how much to leave in TSP for the next couple of years. I've crunched the numbers, and in the overall scheme of things, I'm probably over-thinking it...just wish I knew what my final OPM retirement numbers will be ! In the meantime, I'm "losing" money I could be earning on my self-directed IRA.

No Stoplight, No final OPM number yet... I was notified my packet was on a "specialist desk" 6/20/12 due to previous divorce degree... I will start calling 8/20/12 to follow up and put a small burr under their saddle... Good Luck!
Dutchy, just curious...do you have your final OPM number yet ?

No Stoplight, No final OPM number yet... My packet is still sitting on a desk as of 6/20/12... Previous divorce decree is stalling it.. Good Luck!

[QUOTE]I've decided to go the same route and transfer all but 3 years to my IRA. Just to get the process right, I have a couple of questions : Did you guys submit 2 forms, a one-time partial withdrawal (for the IRA transfer) and then a "full" withdrawal form, with a specified dollar amount, for the 3 years ? Did you submit both forms at the same time to TSP ?

Any help is appreciated !!! [quote]

I did partial withdrawal ( 1 form) for what I wanted to do IRA Rollover to Scottrade. Will submit a final and full withdrawl form to TSP later when I need it.