Investing

Posted on Apr 6, 2017

Has anyone had issues rolling their military TSP account into a civilian TSP account? Any thoughts, tips, tricks?

SGT Dave Tracy

5.32K

I have a small Military TSP account (though I haven't gotten a statement in a couple years) and currently work for the federal government and have a civilian TSP account. I looked into rolling my military TSP into the civilian, and it seemed like a hassle. Anyone here have thoughts on this?
Thanks.

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Investing

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Retirement

Posted 7 y ago

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Responses: 4

CAPT Kevin B.

Posted 7 y ago

Within the Fed side, it's a matter of filling out a form. You are free to roll it all to a commercial account when you hit 59 1/2 as well. Keep an eye out for that as there's thousands of mix/matches which will perform 2% better at the same risk. I always advise a good financial advisor/planner. It will get more problematical if the Obama era new rules for financial advisors kicks in (next month?) which places a cap on the amount small account commission. Lots of smaller account folk are being let go because the $100-200 annual commission doesn't cover the cost of services provided. It was a stupid attempt to force providers to charge the small investors the same percentage as the rich folk. Now the blinding flash of the obvious that providers won't expend $1000 while netting $100. So if you have a portfolio, you get to call Fidelity or whoever to make changes and all the other up/down lifting that used to be done for you. If you put 10% into TSP it with the matching 5% will accumulate well and will be worth it for a financial house to manage more effectively for you. Looks like you're doing Res/NG. Keep it up if you can. You'll need 3 or so "retirements" to quit later on and not notice a change in salary. Good place to be.

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SGT Dave Tracy

7 y

This Fed thing is a short term employment solution for me while I work on my MBA, so since my intention is not to remain a government employee, I will eventually lose out on contributions (and matching), which I am maximizing now. Luckily I have seen decent growth in in my civilian TSP of late. Perhaps if managed retirement options for portfolio sizes like mine wont be so managed in the future as you mentioned, I may as well take up day trading. ;-)

I have the shell of an IRA from years back (indexed funds mostly if I remember my mix right) but it was decimated by the combined effects of the great recession itself and the need to draw on what was left to keep a roof over my head due to said recession. The fees & penalties to draw on the desiccated remains of my portfolio were a killer-and an insult on top of (financial) injury!

I contacted TSP last night and will be sent all my info for both accounts and my intent will be to roll over the military into my civilian, and at some point down the road--depending on economic and employment conditions of course--roll that over into a new plan. It sucks essentially starting over my retirement planning in my mid 40s, when I make less now then when I was younger, and still years away from making any real money.

It is what it is. No sense in crying over it right Sir? LOL

Thanks for the thoughts.

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CAPT Kevin B.

7 y

I recall running some of my "what if" numbers way back when. I started TSP at 37. If I started at 45, I'd be in a similar spot at 65 instead of 59. It's not a linear function but a matter of having more money growing longer. However, the key thing is to get it going and keep it going. BTW, don't casually discard the Fed opportunities. Use that as a baseline for accepting something better in the long term.

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