Newb from SoCal

[Terry Eriksen]

Hello everyone,

 I am in a unique situation. I am 38 and just retired from the FAA due to a work related injury. I have a very nice pension that I can comfortably live off of. When I turn 65, it will go down approximately 1/3. I have been a landlord in the past focusing on housing near Military bases, and I grew up building homes with my grandfather. 

I have a TSP account which has just shy of 90k in it that I am eligible to take all of it out in a lump sum or leave it in. If I leave it in there, I cannot make contributions. Not sure if this is the right thing to do or not.

I am considering taking the lump sum, eating the taxes and penalties and investing the balance in real estate. I am considering multi-family properties out of state since I am in California. I have several factors that can help reduce the amount I pay in taxable income. I have a home (That I am considering selling next year) that my significant other generally takes as a tax break for her income and we are expecting our first child in Sept. The distribution from my TSP would be my only taxable income for the year.

I'd like to start a couple LLCs and put my baby on the face of the business with me so that by the time she is college age, the real estate will pay for her tuition.

Any thoughts, comments, or questions are greatly appreciated. 

Thanks so much in advance,

    Terry