Where Should I Put My TSP When I Retire?

Shawn Plummer

CEO, The Annuity Expert

Where Should I Put My TSP When I Retire?

When considering where to put your Thrift Savings Plan (TSP) upon retirement, a popular option is to roll it over into an Individual Retirement Account (IRA) Fixed Indexed Annuity, possibly with a Guaranteed Lifetime Withdrawal Benefit (GLWB). This choice offers multiple benefits tailored for a secure retirement.

Benefits of Rolling TSP into an IRA Fixed Indexed Annuity

  1. Protection from Stock Market Loss: Your investment is shielded from direct market downturns, providing a more stable financial foundation in retirement.
  2. Growth Potential: The FIA is linked to a stock market index, offering growth opportunities without the risk of losing principal due to market declines.
  3. Guaranteed Lifetime Income: With the option of a GLWB, you can receive steady, guaranteed withdrawals for life, ensuring a consistent income stream.
  4. Lump Sum Death Benefit: It provides a death benefit to your beneficiaries, which can be a crucial aspect of your estate planning.

Considerations Before Making a Decision

  • Understand Fees and Terms: Carefully review any fees associated with the FIA and GLWB. Understand the terms and conditions to ensure they align with your retirement goals.
  • Consult with a Financial Advisor: It’s advisable to consult with a financial advisor to understand how this decision fits into your overall retirement plan.
  • Compare with Other Options: Weigh this option against others, such as keeping your TSP account or rolling it into a different type of IRA.

Comparison of Retirement Options

OptionMarket RiskGrowth PotentialGuaranteed IncomeDeath BenefitLiquidity
TSP AccountModerateHighNoNoHigh
IRA Fixed Indexed AnnuityLowModerateYes (with GLWB)YesModerate
Traditional IRAModerateHighNoNoHigh
Roth IRAModerateHighNoNoHigh

Conclusion

Rolling your TSP into an IRA Fixed Indexed Annuity with or without a GLWB can be a strategic move for securing a stable and predictable retirement income. It’s essential to consider your financial situation and retirement goals and seek professional advice to make an informed decision. Remember, a careful plan now can lead to a more comfortable and secure retirement.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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