Ask Terry Questions Investment of IRA

Investment of IRA

By Terry Savage on November 23, 2017 | Financial Planning / Retirement

I've been retired from USPS now going I to my 3rd year. I have 243,816.00 in my TSP. I withdraw $860 each month from my TSP and I have them take $200 for federal taxes. I receive $825 from my postal RETIREMENT based on my 26 yrs,10 months and 5 days. My Social Security is$1448 . I have to take 20% off that a month because my wife still works. Her 401k $178,298 at 14.23% growth for the year my TSP was a little over 3%. We have $40,000 in an IRA ,which our tax preparer told us to stop putting money into that. We were only putting in $600 A year. In my TSP I put 75% into my L2020 which is a little over $26 A share. I also in my TSP put the remaining 25% into the G fund ,at $15 A share. I have 2 questions, (1) My PROJECTED RETIREMENT was 2018 so I put my money into the 2020 fund. When I reach 2020 will all my 2020 funds be put into L2020 income and not allow me to CHANGE my DISTRIBUTION of funds? (2) Should we meet with a financial advisor like Edward Jones and allow them to INVEST that money instead of just start withdrawing it at 70? Thank you!

Terry Says

Whew -- my first impression is that you have done a GREAT job of saving.  My second thought is that you need to meet with a CERTIFIED FINANCIAL PLANNER to go over your entire picture -- not only investments, but taxes.  And also an estate plan.  That is NOT something that a stockbroker at any firm, including Edward Jones, can do for you.  You want a FIDUCIARY -- someone who will put your interests first, and fully disclose all fees and commissions.  And, you want someone with a breadth of financial planning knowledge. I'd suggest a CFP who charges only fees for advice, no commissions.   Start your search at   Take the time to interview several and find a good fit.  Nothing urgent to do right now, so get started and treat it as a project.  If you get stuck please write back and I will point you in a more specific direction.

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