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Thread: Dirt Cheap retirement FERS at 55

  1. #13

    Default Re: Dirt Cheap retirement FERS at 55

    Quote Originally Posted by alevin View Post
    But I'm also looking at a longlived family history on both sides so running the math well beyond the average life expectancy-another difference for me,
    you could fix that if you just started smoking and drinking and carrying on, more fun now less to worry about later...
    100g

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  3. #14

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    Default Re: Dirt Cheap retirement FERS at 55

    Quote Originally Posted by burrocrat View Post
    you could fix that if you just started smoking and drinking and carrying on, more fun now less to worry about later...
    Says the one who I warned would have early death and never be a grandpa if didn't hurry up and quit smoking, and who turned himself inside out in extreme ways trying to get off the cigs and finally succeeded in improving his breathing capacity by getting off the tars if not the nic. Congratulations on getting that far, btw. Oh, and I drink (a little-the phenols and antioxidants are good for me, you know), but I will never ever drink and drive, YMMV. I value quality of life as much as quantity, which is why I'm not departing fed ranks just yet.
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

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  5. #15

    Default Re: Dirt Cheap retirement FERS at 55

    Quote Originally Posted by offroad View Post
    so am looking at the possibility and thoughts of retirement at 55 plus years old (whatever the MRA+10 is, which I think I qualify for). Lets say I have

    $400,000 in TSP which I hope to draw maybe 5% yearly from immediately ($20,000 a year).

    $12,000 yearly from pension immediately.

    Sure only $32,000 a year, but I am going to live in an RV and boondock (no weekly rental cost). For seven years. And I will supplement my income with some cheap job for $10,000 a year; so grand total of $42,000 a year.

    In seven years I get SS at 62 with $20,000 additional a year (so $52,000 yearly as I might not be able to supplement.)

    What big problems would I have that I am not estimating? We are talking dirt cheap retirement. yes I know I will need to buy obamacare at $250 a month, plus $5000 deductible. rolling the dice on medical as most anyone really does.

    Well, if you do retire at 55 based on your current projections, your going to be under the US average and more importantly under Louisiana average income which honestly at $44,555 is living paycheck to paycheck after taxes. With that said, you can live that way and many do. You will do fine if you can live without the costly cell phone data plans, the cable/satellite bill, and eat in a lot. You can shop at thrifty stores and Goodwills/CARC to get your basic clothing needs and household needs. You don't need an expensive car...just some cheap transportation. If you live near businesses that can support your income, you don't even need a car. Maybe a bike will do. So, it can be done. I'm assuming your not married and will stay unmarried. Well with that said, I'm in the camp that believes if you work longer, it will benefit you and you will have more time to build your nest egg. I don't have all the answers about your TSP investing...your close to retirement so unless you work longer I cannot tell you to go risk to get reward. Instead, you should be protective of your TSP. If you like dividends for extra income for the rest of your life, perhaps buy some well established companies that provide safe dividends. I would throw in an oil companies in there because there are some good ones out there that have attractive dividends and will rebound nicely in late 2016/2017. By the way...nice TSP balance.

    P.S. I'm a fan of helping Goodwill/CARC and thrifty stores. I like them and use them. I do live modestly too. So, I practice what I preach.

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  7. #16

    Default Re: Dirt Cheap retirement FERS at 55

    looking at SS doomsday predictions makes me think everyone gets cut 25% to be solvent in SS. Really what happens, am predicting, is everyone gets means tested for SS. Those making $200k yearly get the 25% cut. Those making less don't get it. An across the board cut makes no sense at all. There are people barely making it on $12000 a year now, and there is no way you can cut them 25%.

    My choice for age of retirement is go at 56 or toil until 60. My family history is all smokers (but not me), all passed at 70, non smokers pass at 80. But then I look at how old they were, when they became frail and unable to do more adventure things; and adventures stopped at 65 for most. I would hate to wait until 60. I see people at work who can barely function at 60 due to one reason or other. (bad knees, bad memory, diabetes, etc.)


    "SS has been warning that around about 2040, SS will start running deficit, and payees can expect 25% cut in payout. If you expect to live that long or beyond, you'll want to take a hard look at how you would or wouldn't be able to make up that difference in income and whether you could still cover basic living expenses if that cut came to pass."

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  9. #17

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    Default Re: Dirt Cheap retirement FERS at 55

    Quote Originally Posted by offroad View Post
    looking at SS doomsday predictions makes me think everyone gets cut 25% to be solvent in SS. Really what happens, am predicting, is everyone gets means tested for SS. Those making $200k yearly get the 25% cut. Those making less don't get it. An across the board cut makes no sense at all. There are people barely making it on $12000 a year now, and there is no way you can cut them 25%.

    My choice for age of retirement is go at 56 or toil until 60. My family history is all smokers (but not me), all passed at 70, non smokers pass at 80. But then I look at how old they were, when they became frail and unable to do more adventure things; and adventures stopped at 65 for most. I would hate to wait until 60. I see people at work who can barely function at 60 due to one reason or other. (bad knees, bad memory, diabetes, etc.)


    "SS has been warning that around about 2040, SS will start running deficit, and payees can expect 25% cut in payout. If you expect to live that long or beyond, you'll want to take a hard look at how you would or wouldn't be able to make up that difference in income and whether you could still cover basic living expenses if that cut came to pass."
    The longevity in your family is a little shorter than mine, offroad, so yes it's a good plan to give yourself time to enjoy what comes next before you can't. and you've given some thought to the SS 2040 situation too. You may be right about the means testing. If it goes that way I'll be safe too, I like to plan for the fat-tailed black swans myself, just in case.

    I know someone surviving (not without help) on SS disability of only 800/month-had a stroke at 55. 7 very long years from being able to pull straight SS. He was a major outdoor kinda guy, workaholism struck him down. He wouldn't be able to make it financially without help from friends and neighbors periodically. no car, 1 bdrm lowend apt. a couple cats he had already before the stroke. very simple life. not a fed, just a decent bluecollar kinda guy. Nam and Cold War vet.

    Having enough time to enjoy what comes next is why I'll go as soon as can afford to go do what I'd like to do as a postscript-which requires some careful financial planning and not getting caught in a market megadowndraft in early retirement or immediately prior to. and have included potential for needing some cushion to handle unplanned-for expenses.
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

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  11. #18

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    Default Re: Dirt Cheap retirement FERS at 55

    OffRoad,

    I hear you. It is a personal decision. I understand the requirement to enjoy what you have built before you can enjoy it no longer.

    However, I would be concerned with 'Buy Low, Sell High' with my food money. As a person with 12 trades this year I don't think I fall real of a 'Buy and Holder'. I try to attain an edge - especially in down markets. But, only 105 out of 1083 (9.7%) of the folks in the AutoTrader made 5%+ this year. All of the individual funds came in below your asset refresh rate. All of the LifeCycle funds came in under your refresh rate. How much of the $400K can you 'invest' - knowing that you could lose 20% very quickly in any C/S/I blend?

    And, I am not certain Social Security will be means tested. It could just die. There ain't any money. Why we a ward of the state. The state is broke...
    Lookin' up at the 'G Fund'!!!


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  13. #19

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    Exclamation Re: Dirt Cheap retirement FERS at 55

    OffRoad,

    If you stay a resident of South Carolina (from your profile and assuming single), your $42K income will be taxed $9,300 (Federal + State) leaving you $32,700. That is $2,725/month or - if you prefer a 2 week paycheck - $1,260/pay period. You will pay the 7.5% Social Security/Medicare tax only on the $10K of work income so that reduces the take home to $2,660/month or $1,230 every two weeks.

    So, your after tax take home is $2,660/month

    Then you will have space rent (if at a campground), fuel, medical, food, utilities, entertainment, dining, clothing, repairs, and future replacement cost for your vehicle which you will have to have a huge down payment or pay in cash, etc... That brings up something, folks with no money get no credit. If you decide that the Mountain Man lifestyle isn't what you want than a house is a cash investment, renting will be difficult as well.

    It can be done. But go in with both eyes open and don't expect the GenXers to vote for extended benefits. I would assume the 25% Social Security cut - and maybe even a 25% Federal pension cut. You can feel the ripples now as politicians (actually both sides if you listen clearly enough) start prepping the battlefield.

    By the way, earning $42K/year makes you middle class - not poor. That means that you will be means tested in any Social Security fandango future politicians come up with to purchase the votes of their younger voters.

    Again, it can be done. I remember living off that kind of income as a student.
    Lookin' up at the 'G Fund'!!!

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  15. #20

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    Default Re: Dirt Cheap retirement FERS at 55

    Quote Originally Posted by offroad View Post
    unfortunately no I would not get SS supplement. Because you need to be 60 to get that as a retirement benefit when you retire. I also do not get medical at all.
    I don't that's correct.
    Weatherweenie's Account Talk
    Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Retired on November 30, 2023 with 30+ years of service.

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  17. #21

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    Default Re: Dirt Cheap retirement FERS at 55

    Quote Originally Posted by tsptalk View Post
    I believe it is 60 y/o with 20 years, or any age @ 30 years.
    I think that's right.
    Weatherweenie's Account Talk
    Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Retired on November 30, 2023 with 30+ years of service.

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  19. #22

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    Default Re: Dirt Cheap retirement FERS at 55

    Quote Originally Posted by weatherweenie View Post
    I think that's right.
    Believe me, it's right.
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

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  21. #23

    Default Re: Dirt Cheap retirement FERS at 55

    I will have 27 years at 60


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  23. #24

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    Default Re: Dirt Cheap retirement FERS at 55

    So what kinds of adventures are you wanting to have while you still can, offroad? how long do you think you'll be able to do them before you can't? Just because others at work you see with bad knees and whatnot at 60, doesn't mean it has to be that way for you if you've been taking care of yourself, especially not smoking. I went on a professional trip to China years ago with a hyper 72-yo who worked for an east coast land conservancy after retiring as a math professor somewhere. I wanted to call him the energizer bunny, he was so hyper and full of beans and life energy. fun, almost exhausting to be around, mental energy as well as physical energy.
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

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