Re: [TSP_Strategy] retired

 

I understand and agree. I have funds outside the TSP at much higher fees because of higher yield.

My confusion about Ralph's suggestion to move the money to an IRA relates to why pay for those fees if you're taking the money immediately anyway. You aren't avoiding the tax - it's the same.

My point is that the one-time partial withdrawal can do both - take cash and move some to an IRA.  If you plan immediate withdrawal of some cash, why move it to an IRA first?

I'm giving myself maximum flexibility by choosing all options - take some cash, move some to IRA, and leave some in TSP.

The option to change when you take funds and how much is a key reason to have some in an IRA.

I'm also glad the TSP Board is in the process of offering better withdrawal options. 

One key idea I learned from someone on this group for funds outside the TSP was to look for Advantage funds.  Fidelity, for example, will have two funds that are identical except one requires a minimum base of $10,000. The difference in fees is .07% compared to .95%.  Fees aren't a sole criteria but should be part of the decision process.

On Thursday, August 27, 2015, charleswsmith1@yahoo.com [TSP_Strategy] <TSP_Strategy@yahoogroups.com> wrote:

 

Cindy,

Yes you will pay higher fees but in reality it's not that high. We are just spoiled with the TSP. certain funds are worth paying a little more. SWHFX is one of my core holdings in my Roth. It has a .8 % fee. But has a much higher Yearly return then TSP funds so more then makes up for it.

Till they change the withdrawal options and I have 21 more years to go till then. I say IRA for me. If my investments do better one year I can take more out or less.

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-- Cindy King

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Posted by: Cindy King <cindy.kingde@gmail.com>

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