Suze Orman

However, just because she chooses it doesn't mean that I haven't already read it.

And the other day, about five days ago actually now, I was looking at some of the emails and I read this one from Julie.

And Julie was correcting me because I was wrong on something.

And I have to tell you, I love when that happens.

Because there's no way, everybody, that I could keep up on every single thing that's happening in the world when it comes to money.

This wasn't a major wrong, but it was something that I want to correct.

And here's what Julie said to me.

I'll just read it directly from her.

She says, in your podcast from January 22nd, there was a question from a listener with a TSP that had 50% in the G fund, which is everybody like a government fund, like a money market, so to speak.

and 50% in the C fund, C standing for common stocks.

Susie, you shared the advice regarding retirees having at least three years of living expenses in funds such as the G fund or money markets, etc.,

in case there is a market downturn, so that retirees don't need to sell funds like the C fund at a loss.

She said, that's great advice that I intend to live by.

However, there is a TSP rule that every retiree should know.

First of all, a TSP, everybody, is a thrift savings plan, like a 401k or a 403b, but for federal workers.

Here's what Julie taught me.

She said, when funds are withdrawn from a TSP in retirement, money is withdrawn from each of the funds based on the percent invested in each fund.

So for the listener with 50% in the G and 50% in the C, let's say the C fund is down and this person is withdrawing $20,000 from her TSP, she can't sell just G.

In that example, 10,000 would come from G and 10,000 would come from C. Interesting.

I did not know that.