Thread: Post-Retirement Talk: Discuss Strategies

[QUOTE=jrwash;424226]

I'm starting this thread in the hopes that fellow TSP members will share their strategies, plans, dreams, anything regarding retirement with other members. Hopefully, those members who are currently retired, and those who are looking forward to it in the near future will offer their thoughts.
What have you done since retiring? What do you plan to do after retirement? Work? Play? Travel? Does your spouse, significant other, still work?
Do you feel you are financially prepared to get the most out of your retirement? Do you worry about the future? Whatever You want to talk about.

I'm coming to the end of 29+ year career in Federal Law Enforcement. I've been fortunate enough to have spent my entire career at one institution and finally have the honor of being first on the seniority list this year. That turned out to be somewhat of a mixed bag. By reaching that milestone,
I've watched every person I started with, and those here before us, retire. And, in the months prior to retirement, they we're all repeatedly asked the same question by younger staff. "What do you plan to do after retirement?" Some had a definite, well thought out answer. Some didn't have a clue. It's the first question I'm asked when I meet someone I haven't seen in a while. Do I have a job lined up? Am I moving or staying in town? Is my retirement pay what I thought it would be? What did I do to prepare financially?

I'll kick it off. I hope some of you members with a great deal more knowledge on the subject than me will join in.

I'm retiring as a Regional I. T. Supervisor from the Federal Bureau of Prisons with 29.5 years. I'll be 56. While I understand the need to stay active and contribute in some way, and feel useful, I haven't decided whether I'll going back to work any time soon. At least, not in a conventional 9-5 type job where I'd most likely have to, at some point, answer to someone else. Been doing that since 1971. With the SSA limit for earnings at $15,120.00 before they start penalizing me it hardly seems worth it. Especially, after taxes, buying clothes, gas, lunches, etc. All the trappings that come with "going to work". My plan for now is to live off my LEO retirement and maintain a decent rate of return on my TSP and IRA that will match or exceed any reasonable withdrawals (3-5%) I might make. I don't plan to withdraw anything while my wife is still working. 2-3 years more by her estimate. So, the short term plan is to keep my BassCat in the water a couple days a week, take my wife to lunch often, enjoy picking up my 3 granddaughters at school once a week, got to their softball games, see my son more when he's not working, and start and finish several projects around the house. And travel, then travel some more. Oh, and go to the gym (because my wife says so).

So, what's your plan???

Would really like to hear from those of you that are already retired. Good information for the rest of us.

JR, I am not retired yet but will be at the end of year. Similar to you, I have 25+ years LEO, plus 6 military. Difference is I am only 49.
When, or if, I opt to go back to work I'll have no cap until I reach my MRA age. That gives me 6-7 years before I have to worry about the SS penalty.

Are you CSRS? If so, I wish I had your retirement, but such is life. You deal with the hand you were dealt. :-)

I will be rolling my TSP into a self-directed IRA.

I am working on my plan but right now I am looking to diversify mainly into dividend stocks and a "couch potato" collection of ETF funds.

Any time you can lock up capital gains to defer the IRS you are ahead of the game on your terms. And capital gains pass to an heir easily with a step up in basis - that means the accumulated capital gains are tax free to your heir. Obama hasn't discovered this mechanism yet.

Originally Posted by jrwash

I'm starting this thread in the hopes that fellow TSP members will share their strategies, plans, dreams, anything regarding retirement with other members.

Good idea, jrwash. But I'm going to move this from the "Rules" Forum to a more appropriate forum.

I'm FERS. Missed CSRS by about 4 months, and actually just fine with it. The key to FERS is contributing to TSP. I was lucky enough to be able to contribute the maximum allowed all these years, and make a decent average return. A lot due to TSPTALK. Trust me, not easy at times. But, it's paid off. The combination of LEO retirement, FERS supplement, and TSP withdrawal (when I start taking one in a couple of years) will meet or exceed what I would have gotten under CSRS. Both good retirement plans.
Just have to figure out how to make work for you.

One of my goals for retirement was to own a house that was fully paid off one year before the year i would be eligible for retirement. So when i bought home, i made sure there was no prepayment penalty, and then used Excel to create a amortization schedule for the number of years until retirement to compute how much I needed to pay each month to fully pay it off in x years (I.e. less than 30 years). If you do that when you buy your first home, it does not result in significantly higher payments. Then I set up my budget and set up auto payments for that amount. Time flies and it is just one more way to be ready and be debt free at retirement. Hope someone including young folks might benefit from doing that!

Originally Posted by DreamboatAnnie

One of my goals for retirement was to own a house that was fully paid off one year before the year i would be eligible for retirement. So when i bought home, i made sure there was no prepayment penalty, and then used Excel to create a amortization schedule for the number of years until retirement to compute how much I needed to pay each month to fully pay it off in x years (I.e. less than 30 years). If you do that when you buy your first home, it does not result in significantly higher payments. Then I set up my budget and set up auto payments for that amount. Time flies and it is just one more way to be ready and be debt free at retirement. Hope someone including young folks might benefit from doing that!

That's what I did, Paid off a 30 year loan in 12 years, saved so much money you can't belive. Did it 4 yaers ago if I had paid the payment plan I would pay until 2025.

I started my loan paydown program on the 2d house, 8 years after buying the first. took me another 7 years, but done awhile back. Helps not to buy too much house in the first place. Higher interest rates mean lower home prices, I bought at the right times, lucky I guess. principal paydown comes fast when home price is low to start with. all those mortgage payments I'm not making are letting me max out tsp-still not easy, but possible because no mortgage. and roth is also marginally doable too at this point.

Just a thought - helps to only buy one house at at time.

Also a good thing to increase your contribution percentage to TSP each year by the COLA percentage you get...pain free way to max out TSP. You don' t miss what you never got in a paycheck...too bad we've gone so long without a COLA...

Originally Posted by PessOptimist

Just a thought - helps to only buy one house at at time.

He's got a point there too, you know. those of us who move around with .gov end up being serial homebuyers. I buy one, live in it, sell it, buy the next, live in it, haven't sold that one yet-its paid off and I haven't been inclined to move since then.

Now I do have a very middle-middleclass friend in private sector who doesn't have a dime in the stock market, her retirement is all in real estate. but she sweats anytime she has a vacancy in one of her rentals.