Posted on Oct 31, 2014
CPL(P) Cyber Threat Intelligence Consultant
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Traditional retirement plans,TSP,401K gives very little flexibility and low returns ifor their money in their chosen retirement account. There are ongoing fee overhead associated with these retirement plan unlike a self directed 401K and little to no transparency.

Discussion:
1. Retirees- After leaving military, did you roll over the TSP into something else or leave it in TSP ? If so, why ? If you moved it out, where did you move it and why ?

2. All- Does anyone use self directed IRA with checkbook facility and have FULL control over their own retirement account.? ( This kind of control, where the account holder is also the trustee permits one to purchase gold and explore other investments unlike traditional IRA/TSP)
Posted in these groups: Investing logo Investing
Edited >1 y ago
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Responses: 4
MAJ Raúl Rovira
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The term rollover is often missus. The term "Transfer" is more suitable as we are talking about moving funds from a retirement account inside the TSP and "transferring" the money into a traditional IRA in some other financial institution. From financial institution to financial institution.
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1SG Financial Advisor
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To be honest, your post doesn't make any sense. I'm not sure what you were trying to get at? You can buy practically any investment in an IRA, in using real estate. And if you had low returns, it's most likely because You were buying poor investments.
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Col Robert Nuanes
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Like most answers in life ... it depends--

I received this advice from a financial planner I trust (Curt Sheldon)

1. How will youaccount for your tax-exempt (contributions made in a combat zone) balances (you may end up with an unwanted distribution of the tax-exempt balance)
2. Do you need/want access to asset classes that are not available through TSP?
3. Do you want access to the G Fund (which can be a good cash alternative) as a possible asset class?
4. Do the TSP distribution rules work for you(this may not drive a decision for a while)?
5. Is there a more tax efficient way for you to allocate my assets?
6. Do you want to keep the TSP door open (so that I can roll-over 401(k) funds into TSP in the future)?

The TSP expense ratios are very low and expenses do matter. But, there are Exchange Traded Funds that mirror what TSP does with similar expense ratios.

I am a fan of TSPs and left mine alone

Curt has another rule: "Never, never, never do an indirect roll-over (where you take possession of the funds and then deposit them to an IRA). The tax laws are likely to trip you up. Do a direct roll-over (where the funds go from TSP to the IRA custodian directly) instead."
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