Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Retirement Plan Review
Old 03-03-2014, 01:31 PM   #1
Dryer sheet wannabe
 
Join Date: Apr 2012
Location: Tyler TX
Posts: 12
Retirement Plan Review

Hey there.

Retirement plan review:

Retiring June 30, 2014. Age 51, 25 years federal law enforcement. ($525,000 in TSP). Have obtained a full-time teaching position at local high school. Plan to collect FERS Annuity / FERS Supplement (combined $75,000 starting), as well as collecting $40,000 teaching salary. My plan for Early Retirement is to stop teaching and fully retire at age 56. In retirement I plan to live on FERS Annuity / FERS Supplement and start collecting TSP monthly IRS based withdrawals to avoid the 10% withdrawal penalty for retiring from the FEDS prior to 55. Since I'm retiring at age 56, I will still collect the FERS Supplement until age 62 when I start collecting social security.

Does any one see any mistakes in my federal retirement assumptions and plan?
Federal LEO is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-03-2014, 02:41 PM   #2
Dryer sheet wannabe
 
Join Date: Apr 2012
Location: Tyler TX
Posts: 12
Forgot to add ...no debt other than $1054 month home mortgage which will be paid off at age 65. No other investments outside TSP.
Federal LEO is offline   Reply With Quote
Old 03-03-2014, 02:50 PM   #3
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
Could I ask your grade? I'm about to retire under CSRS, as a GS-11 with 37 years and my CSRS won't be anywhere near $75k. I realize you'll be getting the FERS/SS supplement, but still it seems awfully high. Or...does that include TSP withdrawals as well? If you are correct with your numbers, then you're doing pretty good! My CSRS, plus my TSP withdrawals, plus my military reserves retirement (3 1/2 yrs away) still will be short of your figures. Anyway....congratulations!
martyb is offline   Reply With Quote
Old 03-03-2014, 02:52 PM   #4
Dryer sheet wannabe
 
Join Date: Apr 2012
Location: Tyler TX
Posts: 12
Lucky enough to reach Executive Schedule III. $168,044 final salary.
Federal LEO is offline   Reply With Quote
Old 03-03-2014, 04:32 PM   #5
Confused about dryer sheets
 
Join Date: Feb 2014
Posts: 6
Hi Fed

I am also retired LEO, but from a state plan. Excuse my ignorance, with you pension do you lose your supp. Once you qualify for Social Security? My next question is the TSP plan a federal version of my state 457 plan?
Hotrod 140 is offline   Reply With Quote
Old 03-03-2014, 04:36 PM   #6
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
Quote:
Originally Posted by Federal LEO View Post
Lucky enough to reach Executive Schedule III. $168,044 final salary.
Well....that explains that! Definitely is in order!
martyb is offline   Reply With Quote
Old 03-03-2014, 04:52 PM   #7
Dryer sheet wannabe
 
Join Date: Apr 2012
Location: Tyler TX
Posts: 12
Quote:
Originally Posted by Hotrod 140 View Post
Hi Fed

I am also retired LEO, but from a state plan. Excuse my ignorance, with you pension do you lose your supp. Once you qualify for Social Security? My next question is the TSP plan a federal version of my state 457 plan?


I will start receiving my FERS Annuity (pension) as soon as I retire. The FERS Annuity has a yearly COLA.

The FERS Supplement provides me approximately $14,000 per year and ends when I reach social security eligibility at age 62. The FERS Supplements has no COLA. After age 56, this benefit is reduced if earned income is above SSI earnings limits (currently about $16,000). Therefore, my dilemma will come if I enjoy teaching and decide to teach past 56.

The Thrift Savings Plan (TSP) is the federal version of a 401k with the government matching dollar for dollar up to 5% of salary.
Federal LEO is offline   Reply With Quote
Old 02-25-2015, 03:27 PM   #8
Dryer sheet wannabe
 
Join Date: Apr 2012
Location: Tyler TX
Posts: 12
Okay, six months into my retirement plan. Financially I'm good. Between my FERS/TSP income of $90,000, and teaching salary of $35,000, I'm doing fine. However, I never imagined full-time teaching would be so time consuming. I have negotiated a part-time schedule next year (8:00 - 12:00 noon), which may help me feel semi-retired. Oh, boy...public school teaching is a bitch!!!!



Sent from my iPad using Early Retirement Forum
Federal LEO is offline   Reply With Quote
Old 02-25-2015, 03:49 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
It'll be much less time consuming from May/June to Aug/Sept.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 03-12-2015, 04:22 PM   #10
Recycles dryer sheets
 
Join Date: Mar 2015
Posts: 75
Quote:
Originally Posted by Federal LEO View Post
Hey there.

Retirement plan review:

Retiring June 30, 2014. Age 51, 25 years federal law enforcement. ($525,000 in TSP). Have obtained a full-time teaching position at local high school. Plan to collect FERS Annuity / FERS Supplement (combined $75,000 starting), as well as collecting $40,000 teaching salary. My plan for Early Retirement is to stop teaching and fully retire at age 56. In retirement I plan to live on FERS Annuity / FERS Supplement and start collecting TSP monthly IRS based withdrawals to avoid the 10% withdrawal penalty for retiring from the FEDS prior to 55. Since I'm retiring at age 56, I will still collect the FERS Supplement until age 62 when I start collecting social security.

Does any one see any mistakes in my federal retirement assumptions and plan?
Your financial situation kind of mirrors mine .... except I left as a GS-13/6 so pension a bit less. (I'm also taking the "life-expectancy" payments from my TSP .... similar to a 72T plan)

I tried working in the private sector for a year after retirement but got fed up with it and my wife was a public school teacher for 5 years but gave it up due to frustration with the school system's nonsense. We are both fully not-employed now & loving it.

Think about your plan if you discover you hate teaching ... still gonna be okay?
AndyS is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Safe car part of health plan and/or retirement plan Buckeye Health and Early Retirement 21 07-10-2016 02:58 PM
54 and asking for a review of retirement plans - can you help? Zuma Hi, I am... 21 03-05-2014 05:36 PM
Requesting review & comment on ER plan Theseus FIRE and Money 21 01-19-2014 08:32 AM
Review: Society of Actuaries' retirement publications Htown Harry FIRE and Money 6 10-10-2010 06:07 AM
Book Review-The Next Great Bubble Boom Michael Other topics 17 09-19-2004 03:53 PM

» Quick Links

 
All times are GMT -6. The time now is 08:24 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.