LTC

40

#40 – Burn or Save, Who Pays, IRA vs TSP ( Part 3)

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Burn or Save, who pays? IRA and TSP Part three.

This is Fednobabble.com, where Kevin and Cassie make federal retirement benefits understandable for humans like you. These two don’t hold back as they answer questions from the Fed Pilot workshops and webinars or from questions submitted by you at Fednobabble.com. Hey, hey, hey, hey. OK, I have to ask everybody what oh, what are you doing? I don’t know.

I had a question, too, up there. I did. I’m a mess right now, so. OK, it’s clear. Ready? Set. Go Cassie. My I can’t stop looking at your face.

And so I’m not looking at the camera. And so people are probably thinking like I’m all over the place.

I just want to say I get that all the time. People looking at my face. Oh, ha ha. No, no, I was talking with an adviser about it this morning, I was on a two meeting and I was like, I’m so sorry. Well, he apologized first, but I was like, I have the same problem. I look at the person because I’m talking with them and and I’m not looking up at the camera. And so they probably think I’m looking at some random place on my computer or something.

And I’m looking at the person on the screen.

And if I camera so I don’t know, I think you’re OK.

I think that it looks to me like you’ve been looking at me so. Could have fooled me. OK, let’s move on. That’s OK, little known. Very good. All right. Question number one, wouldn’t it be? Wouldn’t it ben efit to not actually… I’m going to reword this a little bit, wouldn’t it be beneficial to use your sick leave or to not use your sick leave and retire early? That way you can just put more into your retirement and TSP and then get paid out for sick leave.

Basically, what they’re saying is, isn’t it better to save up sick leave an annual leave rather than burn it before you retire? Let’s say you Cassie. Well, it depends on your situation. Yep, right.

Sick leave is automatically added to your retirement computation pension amount Annual leave is automatically paid out in a lump sum, typically within two weeks of 30 days of retirement. Or separation, however, there are certain situations where, you know, you’re sick, leave is there to be used for a reason. My husband, when he was working for the federal government and he got into his motorcycle accident, he was able to use his sick leave in his annual leave for the three months he laid on the bed.

All they had a broken back and before he was able to go back to work. OK, so not only did he have the FMLA leave that he that gave him the availability to leave to use that much leave at a given time because you’re going to get permission. But because he had all that sick leave saved, he was able to use it. He didn’t have to go on leave without pay or something else. So we were still able to have an income, even though he was healing from his injuries.

So it can also not just be sick leave, but it can serve as a short disability type income policy as well. So it’s used in the same concept. It is not a short term disability policy, but it can be used for that. It could be used as such in a situation where somebody may not have that coverage and needs to you need to use that leave or certain medical reasons. So sick leave, it is nice to have a bucket of it saved for when you need to use it.

But in the event that you don’t use it, yes, it automatically can increase your pension amount as well. It won’t help you for eligibility purposes. OK, so if you are at your MRA, you’ve got to have 30 years or 10 years if you’re going to take a reduced benefit. 60 were twenty. Sixty two with five years. It’s not going to help. If somebody is age 62 and they only have three years, they’re not going to have enough sick leave to count anyways for eligibility.

But they can’t if they can’t use it to add. More months or something like if there’s a couple of months till retirement, anything great, I’ve got sick leave, I’m just going to use it to be eligible. That’s not how that works.

Right. But it will it will increase your pension. And in fact, it’s the same. It’s a dollar for our for our kind of thing. And so if you in a given year. An employee has two thousand eighty seven hours that they work working hours, so the table stays the same for your sick leave. If you reach two thousand eighty seven hours, you’re going to get an extra year added to your pension. And of course, if you have more hours, then you can have more time.

You don’t just stop at that. You’re either some people think, you know, well, I’ve got you know, it doesn’t go beyond this. Well, the table still goes. It just only shows you that amount if you’re looking at the sick leave chart.

But if it can still it could go on as much sick leave as you can accrue throughout your career.

You could add time, all that time, all those hours, rather, to your retirement computation. On the flip side, your annual leave. You are limited to how much you can have in a given year. You can earn. Well, depending on, well, you. For six or eight hours, so it depends on how many years you have in service to how many hours you’re accruing for Annual leave, but you can’t you can only use or you can only carry over rather a certain amount per year.

So a lot of times you’ll see use orsomebody’s lose on somebodies pay stub and that’s the amount of hours that they have to use before the calendar year is up or they’ll lose that time. So, I mean, if you if you’re going to. Retire at the end of the year, then you can count all of that time, those user lose hours into your Annual leave payout amount, that lump sum. But if you’re going to retire at the beginning of the year, use that time that you have because you’re not going to you’re just going to lose it if you don’t.

And so you might as well take advantage of it.

Right. And there’s also with Annual leave, we have to people do not think about this, but we have to think about taxes. So, one, because you’re if you’re paid out, you’re going to be taxed. Twenty percent right off the top, I mean, it’s going to come out right off the top of your Annual leave payout check, it’s possible to cut down on taxes by using your Annual leave. So what what some people do is they say, I’m going to retire.

Let’s say I’m going to retire July 1st, but I have two months of annual leave. So I’m going to actually retire two months before that. I’m going to quit working and then use my Annual leave, get paid out at get continue to get paid out for that time at a higher rate for the next two months. But then there’s some tax implications of where it actually works out better. And you actually make more you’ll get more money if you do that than if you just save it up and get a check for it.

And so there are different ways to make this work and there’s more considerations of, oh, I get a check. We have to think of taxes and we have to think of other things like that that a lot of people just it’s not on the radar when they’re thinking this. Yeah.

To include on that point, it might even bubble up to the next tax bracket if you are looking at some sort of the increase or step increase as well, because the Annual leave payout is based on your hourly rate at retirement. And so if you’re going to retire or if you’re going to work all year. And then separate November 30th and you get paid out for the Annual leave in December. Well, that actually might hinder your taxes look like next year, too, because not only are you paying the initial taxes, but then you’re having to use that or account for that in your federal taxes on how much you earned as well.

And so and who knows if that’s going to bump you up to a new tax bracket or what have you because of your your increase that you had. Some people think, oh, well, I’m going to I’m going to work another couple of months to make sure that, you know, where that money is included in your height. In my high three. Well, that is great. But then what does that do on the flip side, when you’re paid out for your annual leave as well?

And can I can I suddenly felt I was sorry.

Can I can I just say this is a simple. This this is probably the least I don’t want to say complex, but the least worrisome aspect of federal employee retirement burn or or save up, right? I mean, it’s not like typically people think a lot about this, but it could mean the difference of thousands of dollars. And and just this simple thing can make a huge, huge difference. And most people just say, well, I’m going to do it this way.

Well, did you really think about it? The day someone retires, people just throw that out is OK, I’m going to retire this day. Right? OK, I’m done. Well, let’s think about this in context of everything else, because it can mean thousands, again, thousands of dollars of difference to maximize your retirement. So these little issues should not just be taken just incredibly lightly. They should be planned out. Yeah, and here’s the other thing.

Are you going to need the Annual leave amount to help offset the percentage interim pension that you receive because you have to wait so long before OPM finalizes your paperwork? And so if your payout is going to be, you know, ten thousand dollars, fifteen thousand dollars, is that going to help you get through a couple of months on offsetting what you’re not getting from your pension? To Timbalier, OPM can finalize that amount. Right, and so we have to think about that as well.

And I get this from advisers as well. Why do you put that note in there about the Annual leave? Well, because it could make a big difference. That might be what some Slowes is is looking forward to because they see the numbers and they don’t, you know. They know that they’re only going to receive a certain amount of the pension, right. And so we have to plan for that as well. And they just wanted to make sure, like, oh, is that what you’re putting that in there?

Because that’s how much they get paid out. Right. And it’s like, yes, they don’t have the option to put your annual leave and include in your pension about it’s automatically a lump sum payout. There are no options for sick leave paid out. It’s automatically included in your pension. And so we’ve got to be very clear on that and how those leaves are used because they are beneficial to you. You just got to figure out how are you going to use them, right.

For your situation. That’s right.

So so we’ve taken a lot of time on that one. But it’s a good example of just how much we need to think through this. It’s it’s not a simple decision of, oh, you know, this is the way and again, shortcut phrases. You should do this oh, are you sure about that? That’s again, that’s where a specialist comes into play. No, no, there’s there’s a lot more behind this than just just making a decision and calling it good.

Yeah, I remember that as well, not all agencies are going to let employees use their annual leave like that, right?

Sometimes you have to get special permission to use your annual leave in a situation where, OK, I’m going to separate the state, I’m going to stop working, rather, and then I’m going to burn my annual leave until my separation date or my retirement date. So that way, because that’s going to be best for my situation or what have you. Right. And but you you have to get permission for that. Agencies aren’t just going to say, yeah, go ahead and use up all of your annual leave or all of your sick leave.

Some require maybe doctor certification for sick leave and things like that. And so you just got to be really clear with your agency and what the rules and their policies are for for using leave to see if it’s even an option for you and how that can coordinate with your retirement benefits.

It’s amazing. It’s amazing to me that in in the workshops, I probably spend one minute on this because. It’s something to think about, but then we have to move on to other subjects as well. But we just spent 15 minutes talking about this, and that doesn’t even involve someone’s situation where, OK, let’s look at all the options and all the different things. We’ve just spent a lot of time focused on this. And so I know a small issue can seem like a really big issue later on.

OK, we have five minutes for two questions that is fully paid for by the employer while you’re working.

Isn’t FEGLI paid for by your employer while you’re working? A portion of it, I should say, it’s not fully covered. Well, hmm. Postal employees get basic… What’s that postal employees get their basic. Paid for. Yeah, but besides but besides this place, it’s up there.

Good point. Good point. Someplace. Someplace. Yeah. Yeah, there are like postal inspectors and things like that. Their basic is included or I’m sorry, not included to the father government deduction. So they’re not the federal government’s not paying for that.

So you’re. The government has given you a break. In the premiums that you pay while you’re working for for the FEGLI amount. Once you retire, that premium will change. Because and it’s not because the government pays a portion of it, it’s because of how.

They factor. The premium. It’s kind of complicated to get it to advisers understand this because they get like the price point to the cost per thousand that goes into the FEGLI premium. But essentially your cost per thousand is less while you’re working than it is in retirement. And so that’s why you see a big increase once you retire for your FEGLI premium.

Yeah, and can I can I add to that? I don’t want people, people to misunderstand and mhere when you say it is less than when you when you retire and after less than it’s only comparing before and after. It’s not comparing less than, for example, a private plan. A private plan may already be less than that. It’s just less than when you retire, and so we have to be careful and understand what we’re comparing there. I mean, you said it perfectly, but I just want to point out that we have to understand that.

No, that’s that’s a very good catch. Thanks. Yeah, OK. Next question. This is an easy one. An easier one. How is the ice? A shorter one? How is the government ROTH TSP different than a Roth IRA? OK, so do you want me to do this or do you… Yeah, yeah, watch a previous episode, we talk about that a little bit when we talk about traditional.

A lot of similarities. Well, when we talk about the differences between an IRA and a TSP, well, it’s ROTH or traditional. A lot of the same concepts are applied. Right. So, for instance, when you take money out of the ROTH, TSP, as opposed when you take money out of a Roth IRA in the ROTH TSP, you have that split.

Yes. Well, you go ahead and explain that you’re so much better at it.

No, no, no, no. I mean, you’re on the right track. It’s when you pull it out from the TSP if you have as and the example, if you have 50 percent in your G, 50 percent and you see it’ll come out 50 50 and that’s ROTH more traditional. It doesn’t matter in an IRA with your ROTH or traditional, you can pull it out whatever way you want to. But I think the big the one of the biggest differences of the ROTH TSP other ROTH TSP versus a Roth IRA is that.

For example, I can put up well, you know, if I’m a federal employee, I can put nineteen thousand five hundred dollars into my TSP I can put that all into the ROTH in my TSP.

Right. There are income limits in an IRA so that it if I make too much money, I can’t put any in my Roth IRA. And even if I could, I could only put like I think the limit is seventy five hundred dollars a year, something like that. Yeah.

It’s, it’s limited on the amount that you could contribute to the Roth IRA depending on your income and whether or not you’re married and your situation. Right.

There are there are certain restrictions with the Roth IRA as opposed to the ROTH TSP. And if you’re looking at having a ROTH TSP, there could be a match to write you, whether it’s ROTH or traditional, that you’re contributing that five percent to the government still going to match. Right there, five percent were contributing up to that amount. Now the government match doesn’t go towards the ROTH, but your match does so. I just noticed we’re out of time.

I’ve got to say one more thing. I’ve got to say one more thing real quickly. I know we’re out of time and I hate that. And I apologize people, but I got to say one more thing. And I’m going to and I and I hesitate to say this, but I’m going to do it anyways. Overall, and I’m just going to say this overall, and this may be different for everyone. ROTH Espy’s. And again, I hate saying this, but ROTH TSP, typically for an employee, I’ll say are better for the employee in that rather than a Roth IRA.

When you’re putting the money in when you go to take it out, it’s usually the opposite. A lot of times the Roth IRAs are better of pulling it out. And we have to realize that there’s a distinction between pulling putting an ad in and putting it out. There are different rules and there are different times to have your money in different areas. Again, it may be different for everyone. So I don’t want to say that, you know, that’s a hard, fast rule because it isn’t.

So that’s my disclaimer. That’s what I had to say. Real quickly, before we end, any last words, Cassie? Yep.

There’s also different features between those policies. And, you know, I don’t know, we can’t say what’s going to be good for you or what’s not. Right. But we’ve got to talk to a financial planner. But if you’re curious, please reach out to us, Fednobabble.com, and we’ll get you in touch with somebody who can help you. We we don’t give your information to everybody. We give you information specifically to one adviser who can answer these specific questions for your case.

So they’re they’re going to provide a benefit analysis for you and then also be able to answer any questions on the back end regarding these types of scenarios where you’re curious, which is better. So go take action.

Yes. Thanks, Cassie Sorry everyone for going over. See you next time. Take care.

Thanks for coming to get Cassie’s comprehensive report on your federal retirement benefits. At no cost, no obligation and no sales pitch. Go to Fednobabble.com while you’re there. Submit a question for them to answer on the show.

 

39

#39 – Locality Pay, LTC, IRA vs TSP ( Part 2)

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Locality pay, long term care and IRA versus TSP, part two, all on today’s Fenobabble.

This is Fednobabble.com where Kevin and Cassie make federal retirement benefits understandable for humans like you.

These two don’t hold back because they answer questions from the Fed Pilot workshops and webinars or from questions submitted by you at Fednobabble.com.

Hello, welcome, Cassie, welcome to another edition of Fenobabble. Hello. Hello.

OK, so I know we went over the past couple of months, so we should probably keep it shorter. So let’s jump in here.

I think I think it’ll be easy, especially with this question. Does the high threat include locality pay? What’s the answer? Oh, yes, yes. OK, that was easy. That’s it. I’d like to be able to expound on that, but. It’s OK, actually, I am going to expound on that and just actually, really, really quickly here, the answer is yes. And I don’t know that I don’t think that there is and it depends on this one.

I think it is just I can’t think of an instance where it does it. But the follow up question that I get a lot to this is, OK, well, what happens if I move to another state? Let’s say I’m in San Francisco and I get a huge locality pay and then I retire and I move to the middle of nowhere, Montana. Do I get to take that with me? And the answer is again, yes. You just you’re I mean, well, you take the high three that is included.

That includes the locality pay in that location. You don’t take it with you in your current pay. They are like it doesn’t locality pay, does it? All of you, that other position. But what I mean is that when they retire in San Francisco, do they get to take. Oh, and then they move. Right. Yeah. And then you move. Yeah. Because what they figure out your whole number is I mean it’s a number of factors.

It’s your locality pay, it’s your basic pay and it’s a few other things possibly put that together. That’s what it is, and then when you retire, if you move, then you get you get to take that number with you wherever you go. I want to clarify one thing, though. Yes, it does not always include overseas locality pay. Right, good distinction overseas locality pay is different than locality pay. Yeah, I want to I get that often where somebody thinks whether they go there to have their their last three years overseas or they come back thinking that their locality pay was included and so they’ll they’ll be compensated, then their high three average will be based on their higher pay overseas.

That’s not always the case. And actually, I want to say a lot of the times locality pay overseas is is not included, period. There are some special exceptions where it is, but it’s not common. So just assume that it’s not in general speaking terms.

Right. Can you know, it’s interesting that a simple question like this, the answer is yes. Right. It just plain old. Yes. But when you when you peel peel it back just a little bit more, you you find that there are still nuances and things to consider and things to be thinking about and questions to ask, questions to answer that, that help with planning. I mean that really can make a big, big difference like that.

Like the overseas locality pay is different than regular. Look at a locality pay and it’s treated completely differently. And you and I have watched people go overseas and do exactly what you said, thinking that they’re bumping up their high three when actually it’s hurting their high three and they froze up Kevin.

I froze up. No, I think we’re good. OK, yeah, yeah, it worked that whole time. Sorry, and I’m the only recording, and if it looks good to me, we’re we’re going to keep going Cassie.

Sorry. No, no, that’s OK. That’s OK. We’re just we’re we’ll go to the next question. That was good. All right. Next question. I have a long term care through the feds. So the federal long term care, is that transferable? Can can they take it into retirement is what they’re asking? Can I you know, can I retire and still have it continue on? Is it one of those benefits that even after I retire, can live on?

Yes, that’s the short answer. It is transferable to retirement, if that’s what you’re thinking of. However, the government is going to still have their hands on it, you know, completely on that policy.

So just think about that in a minute and say, wait a minute. What do you mean? OK, just just to make this clear. What do you mean? I don’t own the policy because it’s on me. Right. I got it. It’s mine. What do you mean? I don’t own it. That’s true, but the government is the owner, you are the insured. And people think, oh, well, I paid for this, and so automatically I’m.

You know, taking care of, but it’s just like your family coverage and things like that, even though the house that insurance and the housing insurance, but they use other providers. Like further federal long term care. You actually have a policy? Well, the government has a policy for you with John Hancock.

ROTH is just an insurance provider, and it’s the same with FEGLI, your FEGLI is with a group MetLife Policy, it’s not through the government, which I guess is a good thing. But on the flip side, you don’t know the policy either. And so how good is it? I don’t know. That’s up to you. Yep.

So, yes, it’s transferable. You can take it. But here’s the other thing. Your premiums for long term care are not going to be taken out of your interim checks. Hey, dental and vision, long term care, they’re not automatically taken out of your interim pension checks.

You’re responsible for those premiums to pay those directly to the federal long term care. You know, whoever.

Well, federal long term care insurance plan is who administers that, right? So you’re responsible for paying those premiums directly to that entity rather than that coming out of your pension. Now, you can request those premiums to be taken from your pension later after your pension is finalized. But in the meantime, between the time that you start getting those interim checks, which are a portion of your pension to the time your retirement application is finalized, you’re responsible for those payments.

So as long as you’re not lapsed on those premiums, then you bet you can continue those into retirement. Right.

Again, it’s it’s a pretty simple answer. The answer is pretty much yes. But there are so many other things to consider. I think that’s a I think that’s a theme of this episode is easy answer, but. The ramifications or the you know, the slight differences can actually make a huge difference again. Well, you know, when I when I put these together, sometimes I it’s not that I am putting them together with answers like that, but they just happen to come out.

So look at that. Yeah, I planned it all, I’m sure.

All right. Next one. How is a traditional IRA different than a traditional TSP? Well. Go ahead, Kevin. OK, yeah, so there again, you put money in. And it’s supposed to grow and depending on how you put it, well, with a traditional, you’re not taxed up front, so it’s deferred. In both cases it’s deferred. So the taxes come out. When you go to pull it out, when you when you take a dispersement, that’s when you’re taxed on it.

So that that’s the same for a traditional and a ROTH.

However, for example, in a in a traditional IRA, traditional Cassie.

Say that again to ROTH. Yes, I’m sorry, yes, I said yes, this is an international TSP. I mean, that’s the same for these two different types of plans, right? Yes.

Sorry, I yes, I shouldn’t even say ROTH right now because we’re not talking about ROTH at all. But I, I do that all the time. I’ll get I’ll switch them anyways. We’re talking about traditional. So in this. Yes. One of the things that they actually changed and actually I will mention ROTH now is that it used to not be that you could take out money and have it only come from traditional. You can do that now, which is which is good from.

So you can say I only want my traditional TSP to come out. You can do that now and you can do that in an IRA as well. So there are a couple of similarities. Well, right.

Because you’re not going to have if you have a traditional IRA, you cannot have ROTH within that traditional IRA. And it’s just a traditional policy because it’s its own thing. Right.

So when one of the one of the differences, however, comes with our RMDs. For example, with in the TSP, if you get a required minimum distribution, so you reach age seventy two and the IRA says, hey, we want our tax money, we’re going to make you pull out some some money from your TSP so we can get our taxes is basically what it is in a in a traditional IRA.

You can say, hey let’s say I have three IRAs, I can pull them from any one that I want. I can pull it all from one thing. I could distribute it or I can you know, I can do some things with it or I can shoot. Honestly, I can choose not to. Now, there are penalties for that, but I can choose if I want not to within the TSP, it’s going to be forced out and you’re not going to have an essay on whether to do it or how to do it.

It’s just and you can’t spread it out between your IRAs as well. Now, it will come out of your TSP and they’re going to make you do that. It is much more rigid in that way.

Yes, and then yes, I would say the last thing. Go ahead, go ahead. No, OK.

I would say the last I would I would say the last thing is within within a traditional TSP. And honestly, this goes for ROTH as well. But I’ll just point this out now. When I go to pull money out of the TSP, let’s say I have 50 percent in my G, 50 percent in my S. Every dollar I pull out will come out 50 cents from each fund and. Right. You don’t have a choice in an IRA. You can say no, only give me 80 percent of my traditional money in the in this in one fund and 20 percent of my traditional from another.

And and doing that make I look, I look I’ve, I’ve seen the numbers Cassie and I don’t know if you’ve seen this from an IRA perspective, but if someone can do that, they can make their money. Last year’s longer the same amount of money, but it’s a several. Yes. I was looking at one example recently, seven years difference of how long someone’s TSP would last them because they’re able to choose from here and here and not do it the way the TSP forces you to do it.

Big difference. I think there’s other things as well in the features of the different types of policies, depending on where you’re located, what state you’re in. Things like that, then there can be additional features to a traditional IRA that the traditional TSP doesn’t offer and vice versa, depending on your age, on the traditional TSP and traditional IRA and those that comes into account with different features and benefits. Which raw options are different, like you were saying, not just the different ones that you can withdraw from, but the penalties that are imposed on withdrawing that money.

Right. Somebody who’s going to retire earlier may want to only put a portion into the traditional IRA to have take advantage of those different features and benefits, but then take advantage of the penalty free withdrawal option depending on what that retirement looks like for you in the traditional TSP. And so we got to coordinate these things together. If you’re looking at both options, which most of the time there are benefits to having both as opposed to one or the other, you’re right.

I can’t say that. That’s not always that’s always the case. Sometimes one might be favorable over the other per person situation, but I don’t know what that looks like for you. So I can’t say, yes, this is going to be best for you or again, I’m not a financial planner. I don’t offer any of that advice.

I’m not certified or licensed to give that advice. But I want you guys to be aware that you have to take a look at these from this perspective. OK, how is the how are these two going to be different? Why are they different? And is it going to be worth it for me? Is it advantageous to have all or one or the other and, you know, it’s really you’ve got to boil, you’re going to talk to a financial planner or somebody who understands those situations?

I can tell you the plan, the different types of plans that are available. No one but the different rules are for your state, number two, and the different features and benefits and who understand the TSP and what that entails, because you’ve got to have somebody who understands that, because if they’re not if they don’t understand the TSP, they might tell you the IRA is completely better for you and then screw you for a couple of years. Yep.

When you need money and access to cash and then you’re having to pay penalties on that money, an extra 10 percent, that could be a lot of money depending on how much you need. So we really have to talk about the talk to somebody who understands both both sides of the house there.

Yeah, and I would just to that point right there, I have seen people say, well, yeah, I dealt with the TSP before. I’m sorry, that’s not good enough. I hate to say it unless they know TSP inside, unless they have worked with many, many, many federal employees, working with a few federal employees. And I’ve dealt with that before. Isn’t enough that that isn’t even if if a financial adviser, a planner says, yeah, you know, I have some federal employees as clients.

No, I personally turn around and walk away because unless they have been through this many, I’m in like 100 plus times. Unless they’ve done this over and over and over again, they’re not going to see the nuances. They’re not going to understand all the differences to to do it right. And so, you know, that’s that’s my plug for a specialist, someone who understands the rules, because as you as he give you one more just real quickly.

Which I TSP. If I take some cash out, let’s say I’ve retired and I take some cash out, I have to wait 30 days before I can take anymore out again. That’s not the way it is in an IRA, you can take out money from your IRA several times a day if you want to, but if but you can go. But with a TSP, it’s once every 30 days. Well, what happens if you take money out, you spend it, then an emergency happens and you need money from your TSP and.

And then you just they say, TSP will say, I’m sorry, that’s the rule, you have to wait another 30 days. Well, that that’s no good. It’s your money. You want to be able to control it the way you want to, not the way someone else is forcing you to. So, again, that’s just another rule that if someone has dealt with the TSP over and over and over again, they’ll know how to work around and how to make it work.

So again, that’s why it’s kept going between. It’s kind of the difference between a general doctor and a specialist. Yeah, I go to the general doctor because my foot hurts and they take an X-ray and say they say, oh, well, you need to go see the specialist because it’s broken and you need Cassie.

And we don’t do that at. Right. So it’s the same situation they’ll be able to answer general questions for the TSP and they might be able to help rollover money into a traditional IRA, but they’re not going to understand that maybe we need to leave some of that money in the TSP for certain reasons. Right, maybe to have an emergency fund. In addition to the IRA, because the IRA is going to be your income. But then we want some some additional emergency fund money right over here.

Exactly. And. And, you know, that can grow or whatever the case is, and so you’ve got to you’ve got to talk with somebody who understands both sides of the house. So that way they can really guide you to where you need to go and what your goals are for retirement and be able to help you out there. Yep.

So please go to Fenobabble, Fednobabble.com and Cassie’s going to prepare one of those reports and we’re going to have one of our advisors and the trusted network reach out to you and explain it all to you and answer all of your questions, all the all the questions that we ask on these shows. You should be able to do what you you are able to turn around and ask them and get answers. Please get answers for yourself. Any last words of wisdom?

Cassie. Thank you, Kevin, take action, get answers for yourself, go be proactive. There you go. Good. Thanks, Cassie. Thanks, everyone and take care.

Go take action to get Cassie’s comprehensive report on your federal retirement benefits. At no cost, no obligation and no sales pitch. Go to Fednobabble.com while you’re there. Submit a question for them to answer on the show.