What am I missing

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

Moderator: Aitrus

tsptiger
Posts: 5
Joined: Thu Oct 21, 2010 11:29 am

What am I missing

Post by tsptiger »

I have made saving a priority and have about $1.8M with about 4 years until I hit MRA (which is 56). In today's dollars my FERS and supplement will provide about $73000 annually. Using the 4% rule (assuming I get to $2M in 4 years) that will yield another $80K annually for an approximate income of $150K gross. With no state taxes on my annuity or TSP withdraws and no more TSP contributions, life should be pretty good?

Appreciate your opinions on things I should be thinking about that I may not be aware of?

Also, any ideas on other withdrawal strategies, besides the 4% rule?

cashworth
Posts: 118
Joined: Mon Jul 03, 2017 11:18 am

Re: What am I missing

Post by cashworth »

Congrats on some solid numbers!! How did you come to such a high number on your FERS + supplement estimate? I thought it was like 25% of your high 3 or something like that?

tsptiger
Posts: 5
Joined: Thu Oct 21, 2010 11:29 am

Re: What am I missing

Post by tsptiger »

Years of service (36) x my high 3.

Supplement is expected payout at 62 divided by 40 x years of service.

anomadtoo
Posts: 52
Joined: Thu Jun 13, 2013 10:23 am

Re: What am I missing

Post by anomadtoo »

congrats! you are doing quite well and will retire happy it looks. You can also take the social security supplement early, if you wanted that is. Our pension portion is roughly 1% x Years of Service x High 3; but the longer you work over 30 years the 1% becomes 1.1% at some point, I forget.

tsptiger
Posts: 5
Joined: Thu Oct 21, 2010 11:29 am

Re: What am I missing

Post by tsptiger »

62 it becomes 1.1

and don't forget added years of TSP contributions (from MRA to 62).

also remember if you go early, you don't get COLAs on your annuity until you hit 62. I just learned that in the last 2 years or so.

anomadtoo
Posts: 52
Joined: Thu Jun 13, 2013 10:23 am

Re: What am I missing

Post by anomadtoo »

and AL payout for a little pocket change :) roughly the max 240hrs is $15k I found out this morning.

Scarfinger
Posts: 629
Joined: Mon Jan 30, 2012 12:00 am

Re: What am I missing

Post by Scarfinger »

anomadtoo wrote: Mon Jul 19, 2021 5:46 pm and AL payout for a little pocket change :) roughly the max 240hrs is $15k I found out this morning.
Max AL carry over is 240 + 208 if you retire on the last day of the year for a payout of 448 hours of AL. That is why some many retire in December causing some backlog in processing in January.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
5/3/21: Buy and Hold, if I can stay disciplined.

anomadtoo
Posts: 52
Joined: Thu Jun 13, 2013 10:23 am

Re: What am I missing

Post by anomadtoo »

ahhh good to know :) thanks

User avatar
ubascuba
Posts: 49
Joined: Fri Sep 08, 2017 11:56 pm

Re: What am I missing

Post by ubascuba »

Can you explain what the supplement is? Is that the pension or something additional?
Ubascuba
Strategy:121017
Current PIP: 29.38%


“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” ~ Winston Churchill

anomadtoo
Posts: 52
Joined: Thu Jun 13, 2013 10:23 am

Re: What am I missing

Post by anomadtoo »

I'm assuming (terrible I know) he was talking about the pension (FERS and pension).

User avatar
Aitrus
Moderator
Posts: 2142
Joined: Mon Aug 06, 2012 5:03 pm

Re: What am I missing

Post by Aitrus »

Or maybe he's talking about the SSA Supplement that's payable to certain employees who retire early and meet certain requirements.
Seasonal Musings 2021: viewtopic.php?f=14&t=18757
Recommended Reading: http://tspcenter.com/forums/viewtopic.php?f=14&t=13474
"It's not what happens to you, but how you react to it that matters" Epictetus

DogPyle71
Posts: 20
Joined: Sat Mar 05, 2016 11:10 am

Re: What am I missing

Post by DogPyle71 »

Not sure if tsptiger is a special category employee (LEO, ATC or Fire) but COLA adjustments on your annuity start when you retire. Not a well known perk. Also, IRS allows a provision for Public Safety Officers to exclude up to $3,000 for qualified health insurance premiums from gross income. Another perk that is isn't well known. In January of this year I retired at 50 as a salary capped 1811/GS14. Hello pension goodbye tension!

anomadtoo
Posts: 52
Joined: Thu Jun 13, 2013 10:23 am

Re: What am I missing

Post by anomadtoo »

congrats DogPyle71! Must feel good.

User avatar
12squared
Posts: 384
Joined: Thu Dec 31, 2015 7:28 am

Re: What am I missing

Post by 12squared »

DogPyle71 wrote: Wed Jul 21, 2021 10:43 amCOLA adjustments on your annuity start when you retire. Not a well known perk.
An open question: How the FERS COLA compare with the annual pay raises over the past several years? If maxed out in grade, would a pension 5 years into retirement exceed the pension based on staying employed for 5 years?
“The genius of investing is recognizing the direction of the trend — not catching the highs or the lows.”
- Jack Schannep

"Know when to hold 'em, know when to fold 'em"
- Kenny Rogers

fish8me
Posts: 14
Joined: Thu Jan 07, 2016 10:36 am

Re: What am I missing

Post by fish8me »

DogPyle71, have you gotten your annuity process yet by OPM? I was one of those who retired on 12/31/2020 as an 1811 capped-out and I'm still waiting from OPM to receive any annuity or partial annuity. I have a long list of everyone I have reached out from Senators to my prior agency HR but as of yet,,, nada. I call OPM every 15 days and they blame COVID, personnel issues, and NFC for apparently missing paperwork they did not sent them with my package. It's a broken record with them. I was lucky enough to receive about 512 hrs. (240+240+ furlough hrs.) to keep me going for the last 7 months, but my story is incredibly sad... I don't know if your in my same situation or other recently retirees reading this are also going thru this same frustration as I am. If anyone can share anything that I should doing or talking to, please let me know...Thanks.

Post Reply

Fund Prices2021-07-29

FundPriceDayYTD
G $16.63 0.00% 0.77%
F $21.09 -0.15% -0.51%
C $66.32 0.43% 18.61%
S $85.20 0.43% 14.82%
I $39.19 0.69% 10.75%
L2065 $14.30 0.52% 15.19%
L2060 $14.30 0.52% 15.19%
L2055 $14.30 0.52% 15.19%
L2050 $29.03 0.42% 12.50%
L2045 $13.24 0.39% 11.76%
L2040 $48.29 0.36% 11.04%
L2035 $12.75 0.33% 10.18%
L2030 $42.40 0.31% 9.34%
L2025 $11.99 0.23% 7.40%
Linc $23.15 0.11% 3.92%

Live Charts

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".