My father recently passed, and I’ve received the letter confirming the Thrift Savings Plan (TSP - US government) beneficiary participant account has been set up. I’m now within the 90-day window to make a decision.
My portion is about $50K, allocated 44% in the G Fund and 56% in the C Fund.
I’m in my late 40s, earn in the upper $100Ks annually, and I’m currently maxing out my 401(k) and Roth IRA contributions each year. If I cashed this out (even after penalty and taxes), I could eliminate all my debt—aside from my mortgage. That’s very tempting, especially given the current political and economic uncertainty.
Rolling the funds over to my Vanguard IRA is the traditional route, but the idea of being debt-free (except for the house) brings a lot of peace of mind.
Anyone else faced this kind of decision? I’d really appreciate your thoughts and experiences.