HELP ME CLARK!
From HLN's Money Expert Clark Howard
My husband recently retired from civil service and has $181,000 in his Thrift Savings Plan. We aren't sure whether to move this with our stockbroker into the market, or we have been offered a variable annuity through our bank. The money would more than double if something were to happen to him and if we decided in the near future that we didn't need this, we could cash it in with no surrender fee and the money would have earned 5% during this time.
What do you suggest that we do with this money to earn its greatest potential at this time of our lives?
First things first: I'm so impressed with how much money you saved with the TSP. Second, the TSP is the best retirement plan offered in America.
Of the three options you have, you didn't mention the third one: to leave the money in the TSP. And I would avail yourself of that, because no other option is as low-cost for your money as that.
As for a variable annuity, don't walk but run away from the bank officer who encouraged you to do a variable annuity. Those are massive fee investments, and I use the word "investment" loosely.
It would be dangerous to your wallet.