Jill on Money with Jill Schlesinger Tap TSP for Renovations?
8 snips
Nov 12, 2025 A financial dilemma unfolds as a caller considers withdrawing from her TSP to fund home renovations. She shares her current cash flow struggles and impressive retirement savings. Experts discuss the feasibility of tapping retirement funds for quality-of-life improvements while managing FAFSA implications. They advocate for enjoying hard-earned savings, stressing the importance of maintaining emergency funds. Practical tips on cash management, spending, and reallocating investments round out the conversation.
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Caller’s Work, Family, And Savings Snapshot
- Ann is a 61-year-old federal employee working without pay during a furlough and planning to retire at 68–70.
- She has twins in high school and is saving for college while running a $30k pre-tax side job.
Existing College And Retirement Balances
- Ann has about $40,000 saved for both kids and uses her husband's Roth IRA (~$120,000) for college funding.
- She also holds roughly $1,025,000 in TSP, mostly traditional with ~20% Roth.
Preserve Cash And Avoid Carrying Card Debt
- Avoid exhausting emergency cash; keep high-yield savings as a reserve during income disruptions.
- Use credit cards sparingly and pay balances off quickly to prevent persistent debt.