Ask Terry Questions Thrift saving plan

Thrift saving plan

By Terry Savage on July 13, 2019 | Financial Planning / Retirement

Hi Ms. Savage, I’m a 68 y/o retired Federal Government employee. I all my retirement money in my thrift account. I recognize that at 70 1/2 the Plan will began sending me checks. Also, I understand that I must withdraw all the funds at some point, and that I will have to pay twenty percent tax upon withdrawal. Can you advise me on how best to withdraw or invest these funds. I’m almost at a total loss.

Thank you

Terry Says

Well, this is called financial planning!  Most people need to spend these withdrawals for living expenses.  If you don’t need them, I suggest you just put the money in a bank account for emergencies.  But you should also examine how your TSP is invested. This is a good time to make sure you have more conservative investments chosen inside your plan.  And it’s also a good time to make a spending plan for retirement — including planning for future healthcare costs.  I suggest finding a FIDUCIARY financial planner — one who will put your interests first, and will fully disclose all fees and commissions. Find one at, where all the planners meet these criteria.  You might only need a meeting or two to make sure everything is in order, including your estate plan.

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