Thread: Post-Retirement Talk: Discuss Strategies

Originally Posted by jrwash

I totally agree. That's how I was able to work mine up to maximum years ago. Anybody remember the good old days when we got those huge 4-5-6% raises??? Part of the COLA went to TSP, part went to the take home pay. My wife and I adopted the attitude that it was money we couldn't use until retirement. Period. TSP contributions weren't considered disposable income that we could redirect elsewhere. TRust me, It wasn't easy at times. Except for a couple of really lean years when my kids were in college, I never reduced my TSP contributions. Dropped them by 4% from max for 2 years to get the boys thru and still make ends meet. Once college was done, we got back to max on TSP and then refinanced the house with a very low interest (3.25)% loan my CU offered. Took a total of 12 years to pay off our present home. That was 4 years ago and we're staying put. To me, those were always the two key elements to retiring financially secure at any age. But, especially mid-50s to early 60s.

I'll admit it's much easier looking back from where you're at today, then it is looking forward to where you want to be one day. But, if you're one of those that's looking 10-15-20 years down the road to retirement you have to find a plan you can live with, and then stick with it for the long haul. Or have a rich Uncle or win the Lotto.

I am reaping the beauty of dollar cost averaging over many years. I pity the folks that react to every up and down in the market place. If we pulled back 5% it would feel like death. But in truth, it would do little to the bull market technicals. Most of the areas of this market are in bull market mode. Riding the gravy train to even more gains.

Hello Fellow TSP'rs, I'm considering my options for TSP withdrawals at retirement. I am well past 59.5 age for relief from penalties. For those who have already made their choices what did you choose and why? I am considering leaving everything in the TSP and withdrawing 4-5% a year until it runs out. Should meet the requirement to start withdrawing at age 70 1/2 to avoid withdrawal penalties (not one you wish to run afoul of-they basically take your money. Ideas???

Originally Posted by Scout333

Hello Fellow TSP'rs, I'm considering my options for TSP withdrawals at retirement. I am well past 59.5 age for relief from penalties. For those who have already made their choices what did you choose and why? I am considering leaving everything in the TSP and withdrawing 4-5% a year until it runs out. Should meet the requirement to start withdrawing at age 70 1/2 to avoid withdrawal penalties (not one you wish to run afoul of-they basically take your money. Ideas???

I'm leaving 50% of my current balance in TSP, moving 50% to a self directed IRA. A large portion of that will be invested with Vertical Alliance. A company I've invested in successfully for many years now. I plan to build on my TSP and the IRA for a couple more years while my wife is still working and make no withdrawals during that time. We'll be 58 in 2 years. I believe you have to start enjoying the fruits of your labors while you're young enough to do so. I'll slow down some when I get older. Much, much older.
I'm LEO retirement, so I've planned my income stream accordingly. I believe I have a plan that will work for as long as I'm around.

Income 56-58: FERS LEO annuity, FERS supplement, Wife's salary. Only if necessary, minimal TSP withdrawals, or part time employment (if someone holds me at gunpoint).
Income 59-62: FERS LEO annuity, FERS supplement, TSP withdrawals equaling 5-6% annually. Wife retired, time to travel. ALOT.
Income 63-66: FERS LEO annuity, TSP withdrawals equaling 4-5% annually, wife applies for SS benefits, I apply for FASF (file as spouse first) SS benefit which is estimated to be around 40% of her SS benefit. Applying for FASF doesn't affect my SS benefit at FRA (66.5).
Income 66-? : FERS LEO annuity, TSP withdrawals equaling 3-4% annually (or less), Wife's SS, Apply for my SS benefit at FRA (66.5).
By waiting until Full Retirement Age to withdraw my SS I insure that my spouse gets full survivor benefits one day.
By TSP estimates, the funds left in my TSP will last me well into my 90s if I withdraw at 6% annually at a 5-6% return. I believe I'll be withdrawing much less in later years.
I would love some feedback on this. Am I on the right track? Any holes in the plan. There are alot of seasoned retirees on here whose opinion would be valuable.

Originally Posted by Scout333

Hello Fellow TSP'rs,... I am considering leaving everything in the TSP and withdrawing 4-5% a year until it runs out. Should meet the requirement to start withdrawing at age 70 1/2 to avoid withdrawal penalties (not one you wish to run afoul of-they basically take your money. Ideas???

Hopefully by the time you reach mandatory retirements, it won't be a bother. MRD's are not designed to drain accounts, just get the money back into circulation. The calculations are pretty much based on performance and value, to ensure that you are meeting your end of the bargain for taking advantage of the tax-deferrment.

Originally Posted by jrwash

Income 63-66: FERS LEO annuity, TSP withdrawals equaling 4-5% annually, wife applies for SS benefits, I apply for FASF (file as spouse first) SS benefit which is estimated to be around 40% of her SS benefit. Applying for FASF doesn't affect my SS benefit at FRA (66.5).I would love some feedback on this. Am I on the right track? Any holes in the plan. There are alot of seasoned retirees on here whose opinion would be valuable.

Question, I'm reviewing the SS supplement information. I'm confused on how you can draw on your wife's SS without causing the supplement to be affected. Do you have a link?

Originally Posted by Frixxxx

Hopefully by the time you reach mandatory retirements, it won't be a bother. MRD's are not designed to drain accounts, just get the money back into circulation. The calculations are pretty much based on performance and value, to ensure that you are meeting your end of the bargain for taking advantage of the tax-deferrment.


Question, I'm reviewing the SS supplement information. I'm confused on how you can draw on your wife's SS without causing the supplement to be affected. Do you have a link?

Would that be the Windfall Elimination Provision? Is that the one that reduces your SS benefit by two thirds? I lucked out and missed that provision as an "offset" employee I had over 30 years of earnings subject to SS taxes, etc. It is wicked. Does it apply when you draw on your spouse's earnings which I guess is your original question?

Originally Posted by Scout333

Would that be the Windfall Elimination Provision? Is that the one that reduces your SS benefit by two thirds? I lucked out and missed that provision as an "offset" employee I had over 30 years of earnings subject to SS taxes, etc. It is wicked. Does it apply when you draw on your spouse's earnings which I guess is your original question?

Well, not really, but good topic.

My issue - My wife is 6 years older than me.

I will retire at 57, with 31 years. I have always paid SS.

Since I will be 57, I qualify for SS Supplement. When I turn 62, my wife is well into drawing SS. I guess what I didn't realize until now is that the supplement will end at 62 (jr's example) and he will file against his wife for the 40% which will offset the supplement.

That was confusing for me at first, but re-read it to get the message.

SSA publication re Government Pension Offset includes information on effect when applying based on spouse's SS earnings record.
http://www.ssa.gov/pubs/EN-05-10007.pdf

Originally Posted by Scout333

SSA publication re Government Pension Offset includes information on effect when applying based on spouse's SS earnings record.
http://www.ssa.gov/pubs/EN-05-10007.pdf

If you're under FERS, and subsequently, paid SS during your career, your retirement won't be affected negatively by applying for the FASF SS benefit.

Originally Posted by Frixxxx

Hopefully by the time you reach mandatory retirements, it won't be a bother. MRD's are not designed to drain accounts, just get the money back into circulation. The calculations are pretty much based on performance and value, to ensure that you are meeting your end of the bargain for taking advantage of the tax-deferrment.


Question, I'm reviewing the SS supplement information. I'm confused on how you can draw on your wife's SS without causing the supplement to be affected. Do you have a link?

This is the link to the Forbes article on FASF. There's a SS calculator link in it. Should be what you need.