I figured this would be the best place to post this since everyone here should know about the TSP. I was in for 12 years and kept the majority of my money in the C and S fund (should have went all in on C). Since I can't contribute to my TSP anymore since I am not federal or in the military anymore I figure I would roll over my TSP into an IRA and Roth IRA.
I am trying to convince my wife that this would be a smart change and that I would be putting my funds into an ETF that is similar to the C fund. Going with SPLG due to the low costs of participating in the fund. Both retirement accounts would be following the S&P 500 index. I am currently 31 and still have quite a bit until I retire. As a bonus, in the new IRAs our bank would recognize the new balance and upgrade us to the next rewards tier, increasing our savings interest and cashback on all purchases.
TLDR; Need to convince my spouse to move money out of the TSP to an IRA since I can't contribute anymore, any opinions appreciated!
Rollover From TSP to IRA
byu/TSPtoIRAThrowaway inMilitaryFinance
Posted by TSPtoIRAThrowaway
4 Comments
I don’t see a downfall in your logic. There is no cost for a transfer and you have more investment options. Also you might be able to make contributions depending on your AGI.
> since I can’t contribute anymore
Well I mean that particular point doesn’t really matter.
You can’t contribute anymore, but it’ll continue to grow exactly the same anyway.
The primary benefit to rolling the account over is you can manage your funds in one place. IRAs can have lower fees than TSP….so you could compare the fees of what you plan to hold in your IRA to what TSP has. That may be enough to convince your spouse, but if not I wouldn’t stress it too much.
You should print out the funds that the TSP offers, then print out funds from a company like Vanguard, and tell how which company can you diversify more with. Also, highlight the fees so that she can see they’re very competitive.
VOO has lower fees and you can sell covered calls to generate extra income.