No. of Recommendations: 2
Znarr: "I have asked my mother to look into what they've got from the employer - they're actually with the State Department and she's in something called the Thrift Savings Plan. She does get automatic deductions monthly that go into this plan, but no idea what the plan/funds consist of."

I know little about the TSP plan, but have read good things about it, and because it is federal government, there are lots of people around TMF quite knowledgeable about the TSP plan.

"When I mentioned that the first step was to eliminate debt, I also found that they owe about 17,000 :(

They've asked if they should remove some of the money from the TSP and pay off this debt but for now I've told them to wait until I know more about what kind of plan this is (ie if there are penalties for withdrawal, etc)"


Income taxes (federal and state [unless they live in a state w/out an income tax) and penalties (unless they are over 59 1/2, IIRC, and worst of all, no change in the habits that got them there and with reduced retirement assets and with expectations of a future windfall.

Regards, JAFO
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