What am I missing
Moderator: Aitrus
What am I missing
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?
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?
Re: What am I missing
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?
Re: What am I missing
Years of service (36) x my high 3.
Supplement is expected payout at 62 divided by 40 x years of service.
Supplement is expected payout at 62 divided by 40 x years of service.
Re: What am I missing
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.
Re: What am I missing
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.
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.
Re: What am I missing
and AL payout for a little pocket change roughly the max 240hrs is $15k I found out this morning.
- Scarfinger
- Posts: 811
- Joined: Mon Jan 30, 2012 12:00 am
Re: What am I missing
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.
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation ofTimboSlice wrote: "People really need to stop overthinking this."
Re: What am I missing
ahhh good to know thanks
Re: What am I missing
Can you explain what the supplement is? Is that the pension or something additional?
Ubascuba
Strategy:167054
“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” ~ Winston Churchill
Strategy:167054
“Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen.” ~ Winston Churchill
Re: What am I missing
I'm assuming (terrible I know) he was talking about the pension (FERS and pension).
Re: What am I missing
Or maybe he's talking about the SSA Supplement that's payable to certain employees who retire early and meet certain requirements.
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Re: What am I missing
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!
Re: What am I missing
congrats DogPyle71! Must feel good.
Re: What am I missing
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?
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- Dean Witter
"Put all your eggs in one basket and then watch that basket."
- Andrew Carnegie
Re: What am I missing
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.
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