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Speaking of TSP... Coworker 1 (8 years ago, after severe market correction): My TSP is invested totally into the G fund (T-bills) because Coworker 2 said that the G fund never loses money and it's the safest option. Me: That barely keeps up with inflation, you need something more balanced Coworker 1: Thanks for the info, I'm going all in on the C fund (stocks) now Me: No.... keep it balanced, you know you can just pick a target fund... Coworker 1: Can't, I need to make up for the losses and don't have much time. Coworker 2 (today): I won't do an annuity, I'm going to withdraw it all when I retire Me: I'm confused by your statement, based on my understanding of FERS and TSP (turns out he calls TSP withdrawals an annuity) Coworker 2: I don't trust the government to manage my money, so when I retire, I'm going to withdraw all of my TSP and invest it in CDs Me: The entire balance will be taxed as income and you will be taxed as such. Coworker 2: Oh. Me: Also, if you're 100% G fund, then there's no better option, but you could roll things over to Vanguard if you're concerned about the government controlling the account. Coworker 2: Who's Vanguard? Coworker 1 is 5 years from retirement, #2 is 1 year away. Needless to say, I'm not worried about either of them seeing this post. I'm just glad that at least for now Coworker 1 has gotten decent returns despite Coworker 2's advice and his own over-correction in the other direction.
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May 5, 2017 01:47
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| # ¿ May 4, 2024 17:32 |
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