“I know I have enough saved,” she said, “I just don’t know what that means month to month.”

This is where a lot of smart, diligent retirees find themselves. They’re not lacking money - they’re lacking a strategy.

Darcy had always been a high-income earner. She’d heard about Roth TSPs, but assumed she made too much to contribute. And by the time she looked into it seriously, it felt too late to pivot.

“I didn’t even know Roth was an option in my TSP,” she said.

Like so many others, she trusted the system. She assumed her balance would somehow convert itself into a paycheck when the time came.

But the federal retirement system was never designed to convert savings into income. It was designed to defer taxes.

When “Deferred” Becomes “Due”

As we walked through her plan, Darcy began to connect the dots. Her TSP was entirely pre-tax, which meant every dollar would eventually be taxed as ordinary income. And with her pension, Social Security, and RMDs starting at age 75, those taxes could hit harder than she realized.

Her biggest tax burden wasn’t going to come from her spending - it was going to come from her saving.

And by the time many retirees realize that, they’ve lost the window to fix it.

This wasn’t about blaming her for not doing Roth. It was about helping her see the bigger picture: Retirement isn’t just about how much you have saved. It’s about how that money will be taxed, and when.

The Moment it Clicks

At one point during the call, Darcy said something that stuck with us.

“This makes me realize how not prepared I am… but at least I know that now.”

It wasn’t defeat - it was motivation.

She saw the gap. Not in her portfolio, but in her plan. She had saved enough. What she lacked was a way to turn those savings into intentional, tax-efficient income.

And that’s the part most federal retirees miss. Because they’re taught to focus on saving, not spending down in a strategic way.

Options You Won’t Hear from HR

As we dug deeper, Darcy learned about a specific kind of private investment that offers monthly income and includes a tax refund mechanism. It’s not well known. It’s not part of the TSP. And it’s not right for everyone. But it opened her eyes to the kind of outside-the-box planning that’s available if you know where to look.

The system she had trusted was never designed to help her spend in retirement. It was designed to delay taxes and defer the problem until later.

She didn’t need a new account. She needed a new lens.

The Dangerous Assumption of “I’m Fine”

Many federal retirees assume they’re fine. They’ve got a pension. They’ve got savings. The balances look good.

But then they try to build a budget - or run a projection - and realize they’ve never actually mapped it out.

They haven’t calculated their monthly income. They haven’t forecasted RMDs. They haven’t tested their plan under different tax laws or health care scenarios.

Darcy didn’t call us in panic mode. She called out of curiosity. And that one step gave her more clarity than the last five years combined.

If you’re a federal retiree, or on your way there, your benefits probably give you a strong foundation. But that doesn’t mean the structure is complete.

The TSP is not a retirement plan. It’s a savings vehicle. And if you haven’t yet figured out how that balance turns into actual paychecks (and what Uncle Sam takes along the way), now is the time to start asking those questions.

Just like Darcy did.

She didn’t feel behind anymore. She felt informed. And that made all the difference.

Download the free retirement checklist here.