Description: The following passage is talking about tsp login, which shows you what a thrift savings plan withdrawal is and the best types of ways to take TSP withdrawals for retirement. You will know how to avoid the most common mistakes when looking to withdraw money from the TSP retirement accounts.
My name is Derrick Ifasi, owner of the Ifasi Financial Group, today I want to discuss with you Thrift Savings Plan, in particular I want to discuss withdrawals with their savings plans and some of the risks that are involved and how to essentially avoid those risks making sure that you’re leveraging those dollars in the correct way that’s specific to your retirement situation and your specific goals.
When somebody has a thrift savings plan set up, this is mainly set up through a federal or governmental agency, every single year this individual would go work for this agency, they would be offered a Thrift Savings Plan, this is like a bucket of money.
When individuals would place dollars from their salary or certain portions of their income every year aside to this thrift savings plan, it didn’t matter how much money was placed into that bucket, what mattered was what was the amount of money placed in, what was any matching contributions that were also placed in and then most importantly what was the percentage rate that came back.
If you place money into to any retirement account, you have certain negatives that occur, certain downward market loss that occur and certain negatives to that portfolio, obviously that bucket is going to be smaller at the end of the day at the end of the year.
With these TSP plans you need to make sure that when it comes for the most crucial part of your life in retirement or when you’re looking to withdraw that money, you’re doing it in a very safe consistent way, you’re doing it properly.
The largest risk that we see with the receiving plan when somebody’s trying to take that out is that this individual would outlive their money, when individuals leave their money into our savings plan, they decide to take out withdrawals.
They have certain benefits of a Thrift Savings Plan, you have over types of retirement accounts, there are certain ways on how you can leverage those dollars making sure that if you’re taking out their withdrawal, it correlates properly for your goals.
If you leave your money in the bucket, you have certain mutual fund related charges, you have certain TSP related fees, if you’re leveraging a financial advisor, that advisor can charge you something known as a wrap fee which is an additional fee to help you pick your different funding options, your limited funding options within the TSP account.
All those fees are not guaranteed to make your account go up, if there is a way on how to maximize and what this withdrawal is, what you can do is to make sure that you’re never outliving your money, the way that individuals outlive their TSP accounts is that they try to take out money from an account, you may leave that money at risk.
They’re taking money from an account that’s now getting hit with mutual fund related fees, TSP related fees, advisor fees, if the market has a reset, there is a way on how you can take a portion if you’re eligible for it, you have to hit certain years of service, you have to be at a certain age.
You have to have an retirement criteria, you could take a portion or all of your TSP plan and essentially roll it over into a specifically designed contract, it would be specifically designed IRA contract that allowed you to maximize those withdrawals and have that withdrawal come to you like a personal pension plan income that you could never outlive.
But unlike certain pension plans out there if something happens to you, whatever is remaining in that bucket will go to your beneficiaries, so you’re able to leverage certain contractual guarantees that you can place on to these IRA contracts.
You can make sure that you are leveraging that full bucket of money to leave it as an inheritance to your beneficiaries, the most important thing is outliving your money, the reason why people outlive your money is that they’re paying the fees, they’re paying the mutual fund and these different advisor fees, then they’re also susceptible to that downward market loss.
When you have all three of those negatives happening and you’re also pulling out money for income, that could deplete that bucket a lot faster, there are two different ends of the spectrum, for individuals I want to take the withdrawal.
Somebody says that I’m eligible to do a rollover in my TSP account and make sure that it goes into a specifically designed IRA contract, I might not be so interested in lifetime income but I want to have an IRA contract that’s going to gain a bucket.
But now that bucket has a little bit of the lid over it, every year that goes by depending on whatever the stock market index is linked to that IRA account, if it goes up, we’re going to open up the game, we’re going to open up the lid and pour the game inside.
If the next year the market goes down, your lid is going to remain closed, you don’t have any fees, you don’t have mutual fund related fees and your advisor fees, you don’t have that downward market loss, if you want to play it by year, you could do that.
If some people like to have fixed accounts, fixed accounts are five years fixed accounts, they’re paying 3% depending upon what the interest rates are at that time, there’s a whole slew of different angles that you could take, you need to make sure that you’re going with the correct company.
Most importantly you need to make sure that you’re dealing with an agency that knows how to set up these plans properly, knows how to get your goals in place and correlates precisely to those individual retirement accounts so that you’re making sure that that TSP is being rolled over properly, it’s being transferred properly.
We have the risk without lending your money, you’ll have that downward market loss potential, you have fees and then you also have limited funds, individuals like to take out their withdrawals, individuals that have Thrift Savings Plan most likely could be offered pension income.
They have the trifecta of income that could essentially come to them in retirement, they can have their pension income based on that federal agency, they can also have social security income depending upon how much they place to Social Security, then they can have that third income stream that could work as a portion of the TSP money bucket.
While you have the other portion of money, that’s growing on a very safe consistent basis, that is how individuals are able to properly retire and leverage their money in the best possible route, one of the things that we have set up is that we deal a lot with Thrift Savings Plan members, we deal a lot with individuals that are looking to do rollovers from their savings plans.
We have something known as the retire planning system, it’s specific to our company, what happens is based upon the individuals’ age, based upon their income goals and their spouse that they want to leave inheritance, they want to have safe accumulation.
Those are all specific criteria that have to be met and have to go within our planning system, on average we go through over 1200 different products and scenarios before we give our top three recommendations, so it’s something that’s very unique out there.
We know that a lot of agencies don’t do that, that’s why we have a lot of national volume that comes in, we are A plus rated on the Better Business Bureau, we’ve always had very good reviews, we’ve never had any complaints because of this methodical process to educate you first and foremost.
You can be confident in retiring, you don’t want to worry, if you like that aspect of the trifecta of lifetime income that’s coming to you through sources of pension, Social Security, that personal pension aspect and specific riders that we could attach to IRA contracts, feel free to give us a call. It’s 1-800-566-1002, thanks for reading.