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Of age & ready.....but jittery
Old 03-31-2013, 01:31 PM   #1
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Of age & ready.....but jittery

Hello, I've been reading this forum for a few weeks and found it very helpful. Here's my choice: 2014, 2015 or 2016? I am a federal employee with a defined benefit plan (CSRS) and will have 38 years Sept. 2013. My pension will cover my expenses.(I'm 62)

2014 my net pension will be ~$5900
2015 it would be $209 more a month
2016 it would be $441 more a month

I have no spouse, children or debt other than my mortgage. I have a 2700sf house which I shared with my mother until her death 2 years ago. I want to downsize and plan to declutter and get my house ready for sale during the 1st year of retirement. I want to move to New Mexico....but that's another thread topic.

My TSP (401k) is currently has $197,350 and I plan on taking making a one time withdrawal of ~$60,000 when I retire. The rest will remain in the TSP and I won't need it for living expenses.

I believe my jitters are a normal part of the retirement process.
Comments/feedback welcomed, thank you.

PS: I joined the forum last summer and just found my way back!
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Old 03-31-2013, 01:52 PM   #2
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Quote:
Originally Posted by Cassie View Post
2014 my net pension will be ~$5900
2015 it would be $209 more a month
2016 it would be $441 more a month

My TSP (401k) is currently has $197,350 and I plan on taking making a one time withdrawal of ~$60,000 when I retire. The rest will remain in the TSP and I won't need it for living expenses.

I believe my jitters are a normal part of the retirement process.
Comments/feedback welcomed, thank you.

Welcome!

From a pay-back perspective, unless you think you'll only be around for 10 more years, I'd say it would make sense to fund your first 2 years from your TSP and net cash left from downsizing your house, because waiting 2 years grows your pension $5376 more/year....or almost 10% more.

Conversely, the amount you withdrawal to fund the first 2 years (maybe $80k?) would produce maybe $3,000-$4,000/year income with a somewhat aggressive portfolio.
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Old 03-31-2013, 02:44 PM   #3
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Hi Cassie - I'm a retired fed.......retired in 2010 on a CSRS pension (quite a bit smaller than what you will get) after 31 1/2 years of service at age 54.5 (I got an early out, about 6 months before I would have been eligible for normal retirement). Based on the info. you provided, if I were you, I'd retire in 2014, or even earlier. You said your CSRS pension will cover your expenses, and that you don't need to touch your TSP account, so I guess I'm wondering why you are even considering working another 3 years? You should be in great shape to retire in 2014, or even sooner. Jitters are a normal part of any retirement, but in your situation, I wouldn't worry too much......you'll be fine. Sounds like you will be plenty busy with the sale of your house and the move to N.M......once you get involved with all that, you'll probably forget about work in no time flat.
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Old 04-01-2013, 06:52 AM   #4
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New Mexico called and wants to know what's taking so long?
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Old 04-01-2013, 05:08 PM   #5
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Hello Cassie - did you enter your numbers in FIREcalc ?
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Old 04-01-2013, 07:38 PM   #6
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Thank you Moorebonds, RAE, heeyy_joe & obgyn for taking the time to give me feedback.

No I didn't enter numbers in FIREcal. I'm not early retiring I'm just plain retiring with a pension of $5900 a month @ 63 and 38 years of federal civil service. My TSP, I guess would be considered a portfolio, however, I won't be using it to generate income so I didn't enter it. My little Roth ($22,300) I will consider as my emergency fund.

How does the FIREcal help me? I'm new so maybe I'm not understanding. Thanks again!
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Old 04-01-2013, 08:05 PM   #7
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Welcome (or welcome back), Cassie!
With 38+yrs of service under CSRS you should be fine whatever you decide. Nothing says you must retire as soon as you can if you enjoy civil service. I agree with you that FIREcalc is not specifically geared to your situation, although I'm sure others will explain how it might help.
You say your pension will cover expenses, so waiting until '15-'16 would give you another ~$2500-5300/yr cushion (or for luxuries!). In the end only you can decide if it's worth it to you.
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Old 04-02-2013, 02:38 PM   #8
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Hi Cassie. I'm in a similar situation though I work for local government. When do I pull the trigger - I am ready right now but would push to the end of 2013. If I wait 6 months more I would gain $125 a month but I am hating w*rk right now and I can't imagine how much I will hate it 14 months from now!

My medical will be fully paid by w*rk, so it is a question of $5680 or $5873 a month. How much is peace of mind worth?
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Old 04-02-2013, 03:20 PM   #9
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This must be the Fed section! I am also leaving the federal gov't (this Friday) with 11 years service under FERS. I am not yet the minimum retirement age although I will hit it in September so I can then collect a "10 plus MRA" annuity if I choose to. The dilemma will be the 5% reduction in the benefit for each year I am under the age of 62 (30% for me). So if I don't need the funds I am thinking I am better off deferring the annuity for a few years and looking at it as a 5% return tax-deferred.
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