As the title says I (39) will be retiring in 6 months from the military. I have a TSP set up and I’m wondering if, after I retire, I should keep that money there or transfer it into a civilian retirement account.

The tsp doesn’t have a whole lot on it, the military was, and still is, shit at educating people on retirement options. As of today it has about 65k in a variety of funds.

I’m recovering from cancer at the moment so I’m not entirely certain what my job prospects will be when I get out. Debating on going to college to get a degree, or maybe picking up another government job. But I don’t want to commit to a job while I’m still dealing with this cancer.

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EWCM t1_je9sr3w wrote on March 30, 2023 at 1:36 PM

You might be interested in r/MilitaryFinance.

I’d just leave it. The TSP has great basic investment options at an extremely low cost.

barnsmell_1138 t1_je9sbvi wrote on March 30, 2023 at 1:32 PM

Due to it's low fees, the TSP is one of the most sought after retirement account vehicles. Leave that money there.

I812B4U t1_jea2hm9 wrote on March 30, 2023 at 2:47 PM

If you are not the type to research and invest on your own you may want to leave your money in the TSP account. If your investment mix is doing well there is really no need to change it. The fees are low. Make sure you know all your options in regards to the TSP and withdrawal options, at what age, etc.

If you are the type to research and invest on your own then you may want to consider rolling it over into a Rollover IRA. If you invest/manage it yourself you can save on fees and you will have many more investment options.

My husband is a gray area retiree and we chose to do a rollover of his TSP when he retired from the military back in 2017. We have no regrets and are quite happy with how things have turned out in our investment accounts because I researched before investing and I actively monitor/manage our accounts to keep them on track. He personally has no interest or desire to learn about investing.

People get into trouble when they do a rollover and they really are not the type to do the research in order to self manage their accounts. Do your due diligence.

Good luck with whichever path your choose.

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lovepig1337 t1_je9tep2 wrote on March 30, 2023 at 1:41 PM

Def get a job with the Federal government. Veterans get preference in hiring, so you'll have a good chance of landing a job. Also, a lot of the jobs align with military careers. ADA will protect you for some cancer types (look into it).

As for retirement. I'm assuming you served 20 years and will be getting disability on top of that. So you'll be making 40%+ of your highest military pay. I think you'll be fine in terms of retirement (especially if you work).

Also, veterans get free schooling. So feel free to get a degree if you want it.

Xaihe t1_jebizqg wrote on March 30, 2023 at 8:28 PM

To be honest, it is not the military's job to educate you about retirement accounts. They are there to fight wars/keep the peace.

Any adult, military or not, should be able to learn at a very minimum the basics of investment.

Sorry, it just rubs me the wrong way when people complain about things that aren't legitimate. Any new accession nowadays is taught enough about the BRS and TSP to get them started.

We as adults should have educated ourselves long ago, on our own. Just wait until you get out and see how much the military did in fact hold your hand for.