00:02 Alright, so this is my TSP account. This is, uhm, I joined the military in two thousand and ten. And at the time of this, you can see that it's September the 4th, 2024, and I'm about to empty out all of this, uhm, to put it into other businesses that I'm building and running. 00:24 And, uhm, you know, look at the returns. So I opened this up, uh, two days ago and there was actually a hundred. 00:30 I wish I would've did the, uh, withdrawal then. But, uhm, yeah, it looks like, you know, uh, we had issues in the last couple of days. 00:43 So let's go over this. Let's look at what we're doing. So TSP, we're talking, uh, two thousand and ten to now. 00:50 So that's fourteen years of investing and, uhm, you know, I was an air traffic controller for thirteen years. And out of that, you know, I couldn't contribute anywhere between five and twelve percent of my paycheck. 01:06 Sometimes I went as high as eighteen percent to max it out. And then my employer contributed, uh, like another five percent match, which would be the, you know, federal government, uhm, for many of those years, uhm, at least, uh, at least, uh, six of those years, uh, it was a match in the military. 01:27 I can't remember if we had a match in the military or not, But I know I did with the federal government. 01:31 So, yeah, I mean, you look at the money that has been invested and setting here, like, it's not much money at all. 01:38 Like, this is, uh, I mean, I make, you know, a lot more than this a year in my investment. So let's look at investment details. 01:49 And we can see that I've got see fun and I find These over, you know, like a 10 over long periods of times these have the best return you can see for fund return of a 16% here and 9% here, almost 10, uh, future investment. 02:08 I don't know what all this is, but, uh, you know, this, this again, isn't good returns, um, year to date. 02:14 So let's see your own date range, last calendar year, last 12 months. Okay, so here's the last 12 months. 02:31 We've got 27% and then 20% last 12 months. So yeah, I don't know why it keeps changing. 02:46 I wish it was save eight. I would like that extra $2,000. Uh, so anyway, when I emptied this out, I'd looked at other day, federal taxes. 02:54 All right. I'm going to be taxed on this money. This is a TSP. It's a form of a 401k. Okay, so federal is. 03:01 Is going to tax me, um, I think 10% and we're going to run through it right now. Um, on this video. 03:08 So let's go ahead and get to work and we're going to figure this out. Um, I like to know a little bit more. 03:15 Let's see last year calendar year. So that was 50 and then to my own death. Hey, let's start. 04:01 OK, so it looks like I can't even go that far back. So TSP has had multiple. Changes in their platform. 04:11 I wonder if that's the reason I can't go that far back. How far back can I go? So I joined the FAA in 2016. 04:59 Alright, so there we go. So I can go far back is May 2022. That's crazy, huh? All right, so May 2022. 05:12 So we had May 2022, we had 60,000 in there. And you got to keep in mind, too, that the the years 2023 and 2020 or no. 05:37 Yeah, no, I quit the FAA in 2022. So since I've been separated, it went up even more. OK. That's crazy. 05:54 Well, that's actually pretty interesting, right? I mean, 2022, 60,000 to 2024, it doubled. you by investing in the C fund and I fund here. 06:10 Let's see. 2023. Okay, so there's $80,000. Yeah, I mean, I don't know, uhm, I mean, this is showing 2.2, 2.74% return, a little up under 6% return. 06:57 Yeah. I mean, over the last, you know, two years, it looks like it's had quite a bit of growth here. 07:24 Yup. But either way, we're gonna go ahead and get rid of this. Uhm, let's go ahead and download. And it says change investment strategy, I'm about to make a big change in my investment strategy. 07:55 Uhm, if I had one of these and, uhm, I didn't have a business or something to put it inside, I'd I would literally just roll this into a solo 401k and be done. 08:16 There's my activity summary. Some gain. Let's see, let's do the math on this. So this is two years and it gained. 08:43 Yeah, that's not bad. That's really not that bad at all. Either way, let's go ahead and get this out. So we're going to withdraw and rollover. 08:59 And, uh, total distribution available. Man, I want I wish it would've did it the other day. 108,000. That would've been way nicer. 09:07 I got it to get approval from my wife. And it says penalties apply, so I'm getting all of it. It says 10% penalty. 09:58 So, it looks like out of 106,000, federal would've approved withholding is gonna withhold for, uh, right up under 14,000, then I'm gonna get right at 93,000. 10:08 And then, you know, there's, I think there's another probably 10% tax on that money. Uhm, so, and I think there might be a penalty on that too. 10:24 So, I'm gonna pull 20% here. So, I got 92,000 on my calculator, I'm gonna multiply that by .8, and that's Let's go. 10:32 Leave me with 74,000. So, out of 106,000, I'm gonna be able to keep 74,000 to put back into my business. 10:42 So, you know, I guess the big question is, is, uhm, why, why do I have to pay $30,000 of my own money to taxes? 10:57 right money that you know should be used to support my family and support my wealth and growth, and I've got to pay literally $30,000 out of 100,000. 11:08 I mean, that's 30%, right? So, we'll see if those numbers are real, but we already know that they're holding 10% here for federal, so, uhm, we'll see what that, that looks like. 11:19 So it says, you have 30 days to, to the extent to consider whether to consent to this payment form, print a copy, payment rights. 11:28 Federal law requires you to receive information about or any associated, If you are vested, balanced, not including your rollover, if any, at that time, or, if you are separated from service and you're vested, balanced, not including your rollover account, if any, at that time, or any subsequent time 11:48 , does not exceed $200, you have 30 days to consider whether to let direct rollover, tax consequences. Okay. Notice regarding commensal benefits. 11:59 Forensic payments. Yup. Alright, there's a couple of different mindsets, um, with, you know, withdrawing this too. 12:27 You know, I'm looking at it as, uh, federal and state taxes are only going to go up. Unless something drastic happens and then we're all going to be better for it anyway, right? 12:39 So, if I wait to retirement, I'm going to be taxed on my traditional and I try to put as much as possible in Roth. 12:51 If you don't know the difference, Roth is pre-tax, meaning I pay taxes on it before I invest, so I don't have to pay taxes on it with withdrawal. 12:59 So I did majority of it like that and um, Net cash. Uh, and then, um, whenever, you know, this account got created with the federal government, they will only allow you to contribute to traditional and the federal aviation administration would only match it going into the traditional account, not the 13:24 Roth, which is, um, which should be fixed, honestly. You should be able to choose. Alright, we're gonna get that to the checking. 13:41 Okay. Okay, so we're gonna come back to this video because I just added this, uh, bank account like two days ago. 14:24 So it's not gonna let me withdraw it. So now we just gotta hope and pray that, um, the stock market doesn't continue to go down. 14:34 Um, before we make that withdrawal. So let's go ahead and look at that, right? Let's see what stocks- what's happening with stock. 14:41 And this is always I think a terrible idea because, uh, because they could persuage you and like, you live in regret right but in reality we don't know. 15:00 And why do we not know? We don't know if it's- It's gonna go up and down because, uh, it isn't our business. 15:06 And that's the reason I'm withdrawing this because I want to invest in my own business. I want to invest in my own family. 15:12 And putting it into somebody else's business is not how I want to do that. So, let's go look at the markets. 15:36 Yeah, so it looks like the S&P dropped dramatically right there. Look at that big drop. 15:59 So maybe it's a, you know, blessing in the skies. We're just gonna wait it out. And we'll see what happens. 16:04 Hopefully, hopefully we don't make a mistake because, you know, the S&P dropped and these are S&P, I believe. Is he the S&P or Nasdaq? 16:19 Umm. See, I never spent time on this, right? And here, let's look at this too. Uh, let's see. Withdraw, fifteen thousand. 16:28 That's crazy, right? H-40, fifteen thousand dollars. Didn't withdraw, three hundred, thirty thousand $9,000. Alright, so, it- this is telling me that if I made a withdrawal of fifteen thousand dollars, that is sixty-five, I would have two hundred and eighty-eight thousand. 16:43 But if I didn't withdraw, then it's sixty-five, I had three hundred and thirty-nine thousand dollars. Uh, this is sad, right? 16:51 I mean, this is the American dream, the American dream that we're all sold. And, um, I'll tell you this, um, I've bought one rental, um, uh, . 17:03 . for, uh, all in all, like, all done. Like, we've got, uhh, a hundred and . . no. So, all invested, I had eighty-five thousand. 17:16 However, right now, in today's, uh, time, it will, it- it'll praise for a little over a hundred and eighty thousand. 17:23 And I got a renter in there that's paying me, uh, eleven hundred a month. That's just one renter. And you do the math at eleven hundred a month. 17:33 I'll show you. You to get And that's And then All right. So, that's thirteen thousand and two hundred dollars a year. 17:40 Uhm. And that's on an eighty-five thousand dollar investment. So, uh, this is telling me from age forty to sixty-five. So, that's twenty . 17:53 . . twenty-five years, right? So, times twenty-five. So, that one rental in twenty-five years, just collecting rent alone on a . . eighty-five thousand dollar house that the renter paid off, I'm gonna make three hundred and thirty thousand dollars. 18:12 All right. So, anyway, I mean, this is . . this is the American Dream scam. And that's the reason I'm recording this as I go. 18:20 I should have planned a little bit more . . . for this. But, um, anyway, hopefully you're getting something out of it. Um . 18:26 . don't do this, right? I mean, it's good to always, you know, diversify. Like, if you have a little bit of money, sure. 18:32 Put it in here. that'll be here. If you something . . . because, like, savings, this is nothing more than a way to save. 18:38 However, they restrict you and make it where you can only touch it at a certain age, right? And the certain age is fifty-nine and a half. 18:46 It's written somewhere here. Yeah, right here. Fifty-nine and a half or older. All right. Like, we should not be restricted when we can get our money. 18:53 But do you know why we're restricted where we can't make our money? Because you're investing in big companies. Like the S&P 500 and NASDAQ and all that. 19:02 Like, those are big companies all combined, and we put our money into it, right? The small people? We put our money in it. 19:10 And if everybody was able to withdraw their money, then it would continue to go up and make more money for the rich, right? 19:18 And the rich, meaning, like, the super wealthy. All right. We're not talking about, you know, like Tony Robbins or Pace Morvey or, you know, anybody else that you would know of. 19:33 . . Robert Kiyosaki. We're not talking about those guys. We're talking about the guys that are way wealthier than they are. And they've got, like, generational, um, money where they're, they're constantly investing in all these companies. 19:46 And, uh, you know, it, it, yeah, even the Federal Reserve. Federal Reserve is propped on, uh, Anthony, right? It's owned by families. 19:55 All right. So when you think about that, why would they allow us to get our money out earlier? If. buy us investing and continue to put our paycheck in there, they know that they're going to make way more money than we would. 20:10 Right? So anyway, that's just something, consider it. However, I do understand that certain people don't have the vehicles or opportunities that other have. 20:18 So for instance, I take a lot of my money and put in a real estate. In real estate, I just showed you how $85,000 rental. 20:26 You know, is going to make me a lot more money. That's just one. Now I've got way more rentals in the one. 20:32 All right. Um. you I mean, we got Airbnb's that bring in, you know, $12,000 a month. Um, so yeah. Uh, way, way better investments, you know. 20:45 And then right now, the reason I'm, I'm pulling all this money out is I'm, um, going to pull all of this money out and I'm going to put it into ad calls for another business that I'm launching. 20:56 And I'll make way more money than the 106,000 that I'm liquidating and paying the taxes on it. Fun. I'll pay the. 21:03 The taxes on it. And by me having a business, I'm going to have more write-offs, right? So, um, yeah, it's win-win, right? 21:10 So anyway, we'll come back in, I think, five days and we'll liquidate all this thing. Hopefully the S&P goes back up and doesn't have that drop. 21:18 So maybe this is a blessing in the skies. That way I can make a little extra money. You know what I mean? 21:22 Um, in short, pay less tax.