How Is Foreign Service Retirement Income Supposed To Work?

Two Examples Below: 1. Retirement Income Plan 2. Distribution Portfolio (TSP Transferred To An IRA)

This is a retirement goal plan. It starts by listing detailed annual spending needs, wants, and wishes. Then, shows how cash flow will be provided by the Foreign Service Pension, Social Security, and the TSP. The needs gap between incomes from pensions and Social Security is filled by withdrawals from investment accounts like the TSP. This plan illustrates this cash flow in great detail. Why live with angst and unanswered questions about your retirement income when we can model it so accurately?


This report illustrates how the TSP can be transferred to a ‘distribution’ portfolio that is designed to provide income throughout retirement. In many cases, a professionally designed and managed distribution portfolio can last an entire retirement and not completely deplete the principle. This portfolio’s construction should be based on results of a retirement income plan like the one above. This takes the guesswork out of retirement income planning.