I am still 12 years from 57.5 MRA. By that time, i should be very comfortable with my Roth and brokerage account outside of TSP. I am looking at the following cash flow streams in retirement:Josh, I’m the same as you and am going to do the same thing once I retire within next few years. I’m going to make rollovers from TSP into a Trad IRA at either Vanguard or Fidelity and then figure out the right amount to convert each year. I want to have it all converted before I begin taking SS so that money can grow tax free for decades which my kids will eventually inherit tax free. All of this is to avoid RMD’s and to avoid my heirs having to pay the taxes. I just wish I would have started the Roth TSP the pay period it started instead of waiting 5 years to switch from Trad to Roth.
As an aside, I have my personal and wife and kids ROTH’s at Vanguard so I’m thinking of putting my TSP money into Fidelity just to play a game over the rest of my life of knowing what my balance grew to without commingling the money. And, of course, I’ll use some of my TSP money for life, but like you, my pension will cover my month to month expenses. Good luck.
1) Pension - Spend it all and live comfortably payback to paycheck because I deserve it.
2) TSP - Find a way to convert to Roth and leave it for grandkid(s).
3) Roth - Leave it to grandkid(s)
4) Brokerage accounts - Leave to grandkid(s)
5) SS - Either spend it all or supplement my HSA to be started this year. I know I am 25 years late but better late than never.
6) HSA - Starting it this year and will max it and invest in REIT, KO, PG, and essential goods and service companies
7) Sale of house - I have 1 house and my wife has 2 rental condos. We’ll rent my house out and move into an RV so I can be a nomad I always wanted. The grandkid(s) can use the rental income for their mortgage or figure out how to get along and live in that house. It is a 5-bedroom without counting the basement and there is a decent backyard that can accommodate an extension or a detached living quarter.
Depends on how old the grandkid(s) will be when i get much older but if I am lucky enough to see them being in teenagers years, I’ll try to convince them to set up a trust so their inheritance from me goes to their kids or even further down the line instead of wasting it away. I know people who liquidate their grandparents’ KO stocks and life insurance and blew it all on Disney cruises that costed over $40k since they grabbed all the relatives and in-law not on the will.
Statistics: Posted by Josh5000 — Sun Mar 17, 2024 10:24 pm — Replies 11 — Views 620