Question's about retirement

Managing your TSP and alternate investment options after retirement or separation from service.

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GUTK
Posts: 17
Joined: Wed Jun 28, 2017 2:42 pm

Re: Question's about retirement

Post by GUTK »

Seeking retirement advice. I retired from the military after 20 years. After alimony bringing home $1250 a month from my Mil Retirement. I am currently 55 yrs old with 17 years Civil Service. I have over $300K in my TSP. When I hit my MRA+20 (at age 58) my monthly Civ Svs annuity is $1512.00 (using the EBIS calculator). The missing factor I am totally confused about is Soc Security.

From what I understand I can start drawing the Soc Sec Supplement at my MRA+20 age 58 (is that correct?). Since the money I will be recieving from TSP, Civ Svs and Military retirement are not income the Social Security Administration will not be able to deduct $1 from your benefits for each $2 you earn above $16,920 (correct?).

When I hit my MRA at age 58 I will have worked over 40 years contributing to Soc Security. So I should be able to draw the Soc Sec Supplement risk free correct? Currently my age 62 SSI benefit is $1,575 a month so this amount will not change if I draw on it at age 58.
Last edited by GUTK on Thu Jun 29, 2017 2:28 pm, edited 1 time in total.

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evilanne
Posts: 1886
Joined: Thu May 14, 2015 6:52 pm

Re: Question's about retirement

Post by evilanne »

With only 20 years civil service you would have to work 2 more years to get the Supplement at age 60 and it only accounts for your civil service time (excludes military time). http://www.fedweek.com/reg-jones-expert ... plement-4/
&
https://www.opm.gov/retirement-services ... k/c051.pdf

GUTK
Posts: 17
Joined: Wed Jun 28, 2017 2:42 pm

Re: Question's about retirement

Post by GUTK »

evilanne -- thanks much!!!!

From reading that, I apply the formula 1575 (SSI annuity at 62) X 22 FERS yrs / 40 yrs = $866.25. Great, nice to figure this out without having to be a rocket scientist.

As a follow-up question; is it true, If I retire before age 60 I face a 5% per year reduction in my Civil Svs retirement pay (5/12 of a percent per month)?

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evilanne
Posts: 1886
Joined: Thu May 14, 2015 6:52 pm

Re: Question's about retirement

Post by evilanne »

Not sure about MRA + 20 you really need to read the regulations or call CPOL.
Dan Jamison’s FERS Guide is pretty good reference https://fersguide.com cost $10 for 1 year subscription and you could email him questions, which I did before I retired.

For regular retirement there really isn't a penalty under FERS other than you only get 1% per year times average high 3 salary. I retired early under VERA with 28.7 years but I will get the supplement once I reach my MRA, there was no penalty under FERS but there was for those under CSRS/Offset so that may also be true for MRA + 20.

Kpop
Posts: 11
Joined: Fri Jan 27, 2017 9:52 pm

Re: Question's about retirement

Post by Kpop »

ArrieS wrote:
crondanet5 wrote:FCOR


FCOR YTD performance -1.37% -0.69, adding dividends back in it's still -0.16.

G Fund TYD performance +0.81%

Doesn't look the same to me.


Not even close.

mindofmush
Posts: 353
Joined: Mon Jul 02, 2012 1:38 pm

Re: Question's about retirement

Post by mindofmush »

Anybody looking for a replacement fund for the G fund needs to stick with the TSP because they don't have enough confidence in their own investing abilities.

You don't imitate a limited system when better alternatives exist, like inverse funds/ETFs FOR example.
mo meng, mo ching (which loosely means: no money, no life)

TSPBuilder
Posts: 254
Joined: Tue Jun 19, 2012 2:14 pm

Re: Question's about retirement

Post by TSPBuilder »

John316 wrote:Is there a penalty in this scenario - say at age 56 you take a full retirement, going out at your MRA with 37 years service. You do not want to leave any money in the TSP, so you open a Traditional IRA with say, Vanguard. You transfer say 300,000. Now, once the transaction is complete, can you begin to withdraw money from this IRA if you choose, even though you are not 59 and a half?


Hello John316,

I am retiring in 2.5 months everything I've read and heard says that if you take it out of TSP and put it in an IRA on the outside you will be penalized for withdrawal unless you withdraw based on life expectancy. That is the only reason I am considering leaving 1 to 3 years worth of supplemental money in TSP (until 59.5) and moving the rest to Profunds (no fees except yearly $15 maint. fee, inverse funds, leveraged funds). Confirm by calling TSP and the place you want to transfer money to. I haven't done that yet.

Ericdelee
Posts: 210
Joined: Thu May 30, 2013 7:09 pm

Re: Question's about retirement

Post by Ericdelee »

philmiec wrote:It's my understanding that you will not be hit with the 10% penalty since you've completed 30 years service and are officially retired when you begin drawing your monthly pension. And yes, you will be eligible for a social security payment at age 62. The supplement pays you a portion of your SS payment between age 57 and 62. At 62 you can start drawing your regular payment.

30 years of service or 30 years of Active Federal Service?
I know some NG folks with 20 Active Federal; but have like 32 years of total service.

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FundPriceDayYTD
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