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Thread: Retirement looming, questions

  1. #1

    Default Retirement looming, questions

    Hello. I think I'm posting in the right place, if not, please let me know and I will move.
    Any help appreciated, thanxs in advance.

    I've had a "hands off approach" to my retirement all these years, but now with forced retirement on the horizon, I would really appreciate some advice from the experts here. I've made some mistakes (too conservative TSP for one) but I hope to at least finish up better than I started. I made the mistake of thinking the retirement numbers would be better than they are, so now I'm in a bit of panic mode.

    I'm 55 years old, Federal prison worker. I must retire in June of 2020.

    I should (assuming no gain/loss other than contributions) have about 210,000 in TSP when I retire. (sad for the number of years I've been around). I've already upped my contribution significantly, can't go much higher.

    I know that you can never 100% know what will happen, but generally, should I leave it in TSP, or move it to something like Vanguard? Should I take an annuity? If so, I would appreciate someone pointing me to a good place to break down all the different options.

    I could live without taking TSP, at least while I'm young enough to have another job, but what should I do with the money, let it ride? And should I put it all in G when I retire? (currently about 60% G, 10% L2050, 10% L2040, 10% L2020.

    Also, I will downsize my house and probably pocket around 50k. Can I put this in TSP? Should I?


  2.  
  3. #2

    Default Re: Retirement looming, questions

    Couple questions Dave.
    Do you plan to work full time after you retire?
    Can you live on your retirement?
    Are you FERS and eligible for Social Security at aged 62?

  4.  
  5. #3

    Default Re: Retirement looming, questions

    Thanx for the reply, scout.

    I will receive the Fers supplement when I retire as long as I make less than 17000. This supplement (not sure if you are familiar with it) is a gap until social security kicks in. It will be just under 12000 a year. I will get social security at 62, most likely a similar amount and this payment will stop.

    So, if I get a real job, I will have to make enough to make it worth forfeiting the 17k. My tentative plan is to make just under 17k.
    I think I could live off what I think I will make in retirement, but it would be much less than what I have grown accustom to having...

  6.  
  7. #4

    Default Re: Retirement looming, questions

    OK just my 2cents....No to Vanguard and a very very no to annuity! You should be 50% in C and keep 50% safe in the G. I say C becoz that's the market consent over the next mo's. I would keep it in the TSP after your retirement. You can mange yourself and get better rate of return with outside m Funds etc. If you would sell your house now before u retire you could put some in the make up % in the TSP. But I believe once you retire you can't add! But remember if you add those funds to the TSP it will become income tax later when with taking the amount out. But if your age and ownership of home IRS tax rules, you'll pocket the full amount. Something to think about... You might think about the premiums services here! There's tons of info on the site and lot of folks do very well! I retired from BOP this year (27 years). Best wishes.....I am not anyway a finance advisor or clam to know what you should do. Take in all the info on this site and make the best decision you can......

  8.  
  9. #5

    Default Re: Retirement looming, questions

    Dave, first tip is read lots on the TSPTalk site. Lots of smart folks here that have been through the retirement process. I kept my TSP funds in the TSP because the fees are so low. The downside is the lack of flexibility that you could get with the outside funds. i.e. only 2 transfers per month. You are awfully young to retire completely. Keep building your retirement account as long as you can while you are working. It sounds wonderful to retire early but you have to have something to do. Keep working as long as you can. If you are just hanging out you'll actually spend more money than you are now. I agree with boxer that the annuities are not the best option. JMHO Wish you all the best in your planning!

  10.  
  11. #6

    Default Re: Retirement looming, questions

    Quote Originally Posted by dave123 View Post
    Hello. I think I'm posting in the right place, if not, please let me know and I will move.
    Any help appreciated, thanxs in advance.

    I've had a "hands off approach" to my retirement all these years, but now with forced retirement on the horizon, I would really appreciate some advice from the experts here. I've made some mistakes (too conservative TSP for one) but I hope to at least finish up better than I started. I made the mistake of thinking the retirement numbers would be better than they are, so now I'm in a bit of panic mode.

    I'm 55 years old, Federal prison worker. I must retire in June of 2020.

    I should (assuming no gain/loss other than contributions) have about 210,000 in TSP when I retire. (sad for the number of years I've been around). I've already upped my contribution significantly, can't go much higher.

    I know that you can never 100% know what will happen, but generally, should I leave it in TSP, or move it to something like Vanguard? Should I take an annuity? If so, I would appreciate someone pointing me to a good place to break down all the different options.

    I could live without taking TSP, at least while I'm young enough to have another job, but what should I do with the money, let it ride? And should I put it all in G when I retire? (currently about 60% G, 10% L2050, 10% L2040, 10% L2020.

    Also, I will downsize my house and probably pocket around 50k. Can I put this in TSP? Should I?
    If you plan on not using it for a while, keep it in TSP--G fund is special. You want access to it, even if you spread you investments around to the other funds.

    You should put the full $24k/year in your plan from now till you retire. Lookup the website Bogleheads and read the threads on it. You will get good advice on asset allocation. But typically you should have a mix of 60/40 stocks to bonds (or stocks to G fund as a bond substitute). Maybe even 50-50.

    Sent from my moto x4 using TSP Talk Forums mobile app

  12.  
  13. #7

    Join Date
    Dec 2007
    Location
    inland Northwest
    Posts
    4,105

    Default Re: Retirement looming, questions

    If you sell your house before you retire, and you haven't been able to put full $24K from salary into tsp up to that point, then supplement your needed living expenses with house proceeds until you retire. that would give you the ability to put $24K into tsp from your BOP salary, until retirement date. Funds from home sale cannot directly be put into tsp, not the right flavor of money.
    "life can only be understood backwards, but it must be lived forwards" - soren kierkegaard

  14.  
  15. #8

    Default Re: Retirement looming, questions

    If you have a good idea how much you will be receiving in retirement, try living on that amount now and put the rest into your TSP. That will give you an early heads-up on what your finanaces will be like while socking away a little more for later.

    That's what I tell the people where I work anyways. Get used to retirement finanaces before you retire. Funny, it's the ones who absolutely refuse to do that and think I'm crazy who cry later that they aren't getting enough in retirement to live on.
    Allocations as of COB Dec 28 : 100% S. | Retirement Date:Dec 2022
    Past Returns:
    2019 27.97%, 2018 -3.36%, 2017 13.10%, 2016 -1.79%, 2015 8.71%,5Yr Avg 8.35%

  16.  
  17. #9

    Join Date
    Oct 2010
    Location
    Aiea, Hawaii
    Posts
    1,121

    Default Re: Retirement looming, questions

    Sorry, duplicate entry.
    Last edited by uscfanhawaii; 10-09-2018 at 11:07 AM. Reason: Duplicate
    There are 10 types of people in the world. Those who know binary, and those that don't!!
    Retired on December 31, 2018!!


  18.  
  19. #10

    Join Date
    Oct 2010
    Location
    Aiea, Hawaii
    Posts
    1,121

    Default Re: Retirement looming, questions

    All good ideas.
    I would also add a couple more....

    yes, read all the retirement threads, there are many. Also read TSP.gov articles which have lots of info.

    Retiring at 55? You have maybe 30 or 40 more years of retirement! Now is not the time to go ‘conservative’. There is plenty of time to recover from a bear market. Didn’t you say you made a mistake in going conservative during your career? Don’t make that mistake again.

    Diversify. I have TSP, Vanguard, Traditional, and Roth. There are different benefits for each.

    Good advice from C and A, max out on contributions now, till you retire.

    Good Luck on your retirement! Write back often to let us know how it is going!
    There are 10 types of people in the world. Those who know binary, and those that don't!!
    Retired on December 31, 2018!!

  20.  
  21. #11

    Default Re: Retirement looming, questions

    Quote Originally Posted by Cactus View Post
    If you have a good idea how much you will be receiving in retirement, ....
    To build on Cactus' comment...if you haven't already, contact your HR people and request an "official" retirement estimate. I think most Agencies will give you this estimate, but you are sometimes limited to how many times you can request one.

    In my case, the estimate gave a pretty good ball park figure of what my pension would be. Of particular interest is the FERS Supplement...that number may be way lower than the amount you're expecting ! In my case, it wasn't even close to what my SS check is !

    HTH !!!

    Stoplight...
    "Too old to rock and roll...too young to die"... - I. Anderson

  22.  
  23. #12

    Default Re: Retirement looming, questions

    BTW, there IS a sub-forum on retirement discussions here !

    https://www.tsptalk.com/mb/retirement-and-ira-talk/


    No worries, though...you'll get responses from the friendly people here, wherever you post !!! Many of us have posted our questions and experiences in that thread, as we approached and moved into retirement...

    One other thought came to my mind...you don't mention anything about marital status (or prior marital status !) in your original post...Like it or not, that IS a big deal when you retire !!! There are issues with spousal rights, etc, that have an impact on what your take home pay will be, and what you can do with your TSP...the Feds are pretty stringent about that, too...

    just saying...be sure to check all that out, too, as you plan your budget !!!


    Stoplight...



    "Too old to rock and roll...too young to die"... - I. Anderson

  24.  
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