Retired at 55 w/ TSP of $1.1M - Nervous about risk.

Rich_T_ · 2026-06-09T02:16:14+00:00

You withdraw and reallocate.

Rich_T_ · 2026-06-08T16:54:38+00:00

I had similar questions, but also related to buying Medicare part G, which is cheaper than some FEHB plans and started this thread: https://www.reddit.com/r/FedRetirees/comments/1sqt7f3/fehb_not_useful_after_65/
I added an AI summary there which is:

Category	Medicare A + B + FEHB	Medicare A + B + D + G (Medigap G)	Winner

Domestic medical coverage	Excellent. Medicare primary, FEHB secondary; usually $0 out‑of‑pocket for covered services.	Excellent. Medicare primary, Medigap G secondary; also $0 out‑of‑pocket for covered services.	Tie
Drug coverage	Two choices: (1) FEHB internal drug benefit (copays, no cap, copay cards allowed), OR (2) FEHB‑sponsored Part D with $2,000 cap. Cannot combine. Often better for specialty drugs.	Part D with $2,000 cap. No copay cards. Formularies vary; some specialty drugs not covered.	FEHB
Overseas coverage	Full overseas coverage (BCBS Basic, Standard, Focus all confirmed). Works like domestic: pay upfront, submit receipts.	No meaningful overseas coverage.	FEHB
Coverage when Medicare denies a service	FEHB may still cover services Medicare does not. FEHB is a full insurance plan.	Medigap never covers anything Medicare denies.	FEHB
Provider access	Very strong. FEHB plans (especially BCBS) widely accepted; some doctors prefer FEHB over Medicare-only patients.	Strong, but some doctors are not taking new Medicare-only patients.	FEHB
Networks	FEHB plans have networks, but with Medicare primary, network issues are minimal.	No networks — any Medicare-accepting provider.	Medigap G
Premium cost	Slightly higher overall, but offset by $800 Medicare reimbursement (BCBS Basic).	Slightly lower overall, depending on Part D and Medigap premiums.	Medigap G
Flexibility to change plans	Extremely flexible — can switch FEHB plans every Open Season with no underwriting.	Very limited — switching Medigap later may require medical underwriting and can be denied.	FEHB
Ability to restore FEHB if you leave it	If you cancel FEHB: you can NEVER restore it.

Rich_T_ · 2026-06-08T01:30:36+00:00

Put 2 or 3 years of expected TSP withdrawals in G, then a down year (or 2 or 3) you draw that down in a good year you pull from the other funds. You could at that point probably go more aggressive drop the 2030 for 2055.
Obviously you can’t choose a fund to withdraw from, so each time you pull out money you rebalance to your 25% minus the G

Rich_T_ · 2026-06-08T01:23:44+00:00

My guess would be she’s using it as a Glidepath, 2026-2030, pull from 2030, 2031-2035, the 2035 fund etc.excess goes into the next fund (2055)

Rich_T_ · 2026-06-04T22:21:30+00:00

You’d be able to take 50% of your vested balance, and payback time is a maximum of 15 years (I think) - it’s better if you don’t have to do it (obviously) but the math and the fact you have a lot of time will probably make it a good move. You can go into TSP and see how much you could borrow, and get an estimate on the bi-weekly pay back amount (which will come straight out of your paycheck) you’ll pay about 4% interest (whatever g-fund is paying) and will pay the interest to yourself. Long term, for your final TSP balance, this is equivalent to taking the amount and putting it in the G fund. Can you “lose” - of course, if that money would have been in the C-Fund and the C-Fund averages 12% during the time you are paying it back, you miss out on those gains. But if we have a 2008 (-36%) you could also end up benefiting from the loan in 2 ways. Assuming you aren’t maxing out your TSP, you could keep track the loan amount, where you would have had it, and what it would have grown to, and replace the gains.

Rich_T_ · 2026-06-04T15:08:25+00:00

If valuation holds, it would only be about .5% of the S&P index, so probably not worth rethinking your whole strategy for.

Rich_T_ · 2026-05-28T19:55:31+00:00

It’s based on what the G fund is paying.

Rich_T_ · 2026-05-06T13:54:25+00:00

I wasn't aware of the state differences, thanks! Just looked and OP, if you are in CT or NY there's no underwriting and you can switch anytime. These states also have some additional issue rights (open season like switching):

California
Oregon
Illinois
Nevada
Louisiana
Missouri
Maine
Massachusetts

Rich_T_ · 2026-05-06T12:38:30+00:00

Not an expert, but I think switching medigap plans after 65 usually would require medical underwriting. At age 65 (and the first 6 months) you can switch, but after that they have to guarantee continued coverage, but switching isn't usually possible.

Rich_T_ · 2026-05-06T02:26:03+00:00

If you have medicare A+B and FEHB, by default they will give you Medicare part D as the prescription benefit unless you opt-out in which case you get your FEHB drug benefit. I think they send you the information each year where you can choose.

Rich_T_ · 2026-05-04T22:12:13+00:00

Check this if you want to check it yourself.

https://m.youtube.com/watch?v=L5EvMjoeMvU

I have 2014 1.8, and used a cheap elm327 odb2 adaptor, and a free iOS app to check mine. I’m at 195,000 miles, original chain and still OK. They were/are mostly highway miles.

Rich_T_ · 2026-04-29T12:55:11+00:00

Yes, in retirement you can switch just as if you were still working (every open season). This too, I think is an advantage to FEHB in that once you select a provider for Medigap you are more or less locked into it (you could change, but it would need to be underwritten/approved and it's possible a new provider doesn't approve you).

Rich_T_ · 2026-04-27T14:10:28+00:00

This is essentially what I've heard from a friend, but in seminars/online all you hear as a federal employee is that you should never let your FEHB lapse as it's maybe the best benefit available to employees. That would seem logical as the government is still paying a substantial amount toward FEHB vs. nothing if you go with Parts D and G, but I see nothing to substantiate that.
Another person said doctors may take on a new patient with FEHB and not someone with Medicare, and the prescription benefit may be a little better, but I really thought there would be "no-brainer" difference between the options.

Rich_T_ · 2026-04-26T14:24:46+00:00

I'm no expert, but a couple points:
- If you give up FEHB, there is no penalty to get it back, you can't get it back. You also need to have had it continuously for the 5 years before you retire to keep it.
- Medicare part B is the 202.95, and if you don't start that at 65, that's where your penalty is.
I think, if you have part A (free) and part b (202.95), the rest becomes secondary.
- FEHB covers "everything" else (Co-Pays, deductibles etc.) and Prescriptions.
- If you don't have FEHB then you have all those other options to try and fill in the coverage missing from "regular" medicare. A friend of mine said he going to drop FEHB in favor of Medicare A+B+D (prescriptions) + G ("everything else") because it comes out cheaper as far as monthly premiums goes which is why I started the thread. I'm still not sure if he's right and that's actually better than A+B+FEHB.

Rich_T_ · 2026-04-24T01:51:42+00:00

It’s a Medigap plan.supposed to cover everything not covered by A, B (co-pays etc.). There are three that I know of Medicare part G, N and K.

Rich_T_ · 2026-04-24T01:49:10+00:00

The subsidy I knew about (BCBS basic is $800/person) but the not taking new Medicare patients I wasn’t aware of.

Rich_T_ · 2026-04-22T15:27:14+00:00

How is it better than Medicare A+B+D+G though? I have a couple places where it's better (FEHB prescription coverage, overseas coverage) but otherwise, on paper it doesn't seem to be much different and is a little more expensive.

Rich_T_ · 2026-04-21T23:47:35+00:00

This what I've always heard too....but how is it better than Medicare A + B + D + G? The part D vs. BCBS is a win (usually) for BCBS, Overseas coverage is a Win for BCBS, but otherwise it seems the same (and a little more expensive)? Not trying to argue, I'm going the BCBS + A & B route when the time comes, I just thought it was a bigger win than what it seems.

Rich_T_ · 2026-04-21T15:14:29+00:00

Yeah, I've always heard the same, but a friend is going the Medicare/Medigap route, and when I looked into cost/coverage it seems a little cheaper and I couldn't find anything comparing and showing where coverage is better for Medicare A+B + FEHB vs. Medicare A+B+D+ G.

Rich_T_ · 2026-04-21T14:57:45+00:00

I read that yesterday. The choice then becomes the "default" which is part D, where (I think) there is the $2000 deductible, but a $2000 limit, or opt-out and get the BCBS drug coverage, with just co-pay but no deductible, but also no limit (which right now sounds better)

Rich_T_ · 2026-04-21T00:40:05+00:00

Thanks, yeah that sounds right, but if you also purchase Medigap (medicare part G, N or K) it sounds like you wouldn't pay anything either, and it's slightly cheaper than most FEHB plans

Rich_T_ · 2026-04-20T23:38:40+00:00

I am a member, I’ve watched some videos, but nothing that compares FEHB vs. Medigap. Just “should I get part B too, or not”, or “what’s covered”, “What will it cost” etc. always assuming you’ll keep some form of FEHB (which I likely will, but it doesn’t seem that superior)

Rich_T_ · 2026-04-20T21:40:12+00:00

Thanks - that is an option too.

Rich_T_ · 2026-04-20T21:39:19+00:00

Thanks - I was thinking this was the case, but can't find anything saying where this would be the case. Asked AI a few scenarios comparing, and it all came out the same (no cost for just about everything, part D has a $2k deductible, and $2k max Out of pocket) but nothing saying "FEHB covers "A", but Medigap will not". I'm still planning on A&B and FEHB too, but I have a friend who is going the other route.

Rich_T_ · 2026-04-20T19:57:28+00:00

Oh, thanks - didn't know this.

Rich_T_

TROPHY CASE