Class of 2013

[seraphim]

I'll be retiring sometime between January and June [2013]; precisely when depending on whether apathy or greed wins out.

[martyb]

I'm eligible in January '13, am leaning towards staying until later on in the year, though, for purely financial reasons.

[Huston55]

Quote:

Originally Posted by martyb I haven't really established a budget, but I'm currently trying to track monthly expenditures. When I retire, my take-home income will be slightly more than when working. Wife will keep working for 3 more years after I retire, then call it quits at 55. That will allow access to her 401k account without tax penalty. We'll need to pull maybe $500 per month from that for about 2 yrs until I reach age 60, when my military pension kicks in. She'll have some SS which we'll tap at her age of 62. My SS will only be about $300 a month, so I'm not making big plans for that money. Maybe beer $$!

Quote:

Originally Posted by martyb That's really good...fed retirees still have to pay their part of the health coverage. Currently, I'm paying $200 per 2 weeks, so roughly will be a little north of $400 per month when retired...not considering increases which of course happen every year. My pension will be around the 70% of high-3 average for me, with just under 36 yrs. Not gonna be rich but also won't have to sleep under a bridge...

Marty-

I might be answering my own question but, I'm curious how your pension take home pay is higher than your working take home pay.

Is it due to not having to:
- Save for ER
- Pay SS taxes
- Pay taxes in a higher bracket

[martyb]

Quote:

Originally Posted by Huston55 Marty- I might be answering my own question but, I'm curious how your pension take home pay is higher than your working take home pay. Is it due to not having to: - Save for ER - Pay SS taxes - Pay taxes in a higher bracket

I am currently maxing my TSP @ $22,500 a year. That stops when I retire, but unfortunately I will only see just a little higher take-home than while I'm working. My gross salary is only $63k per year, net currently is $27,500. If I retire in Jan '13, my net pay, is calculated to be approx. $28,500. Wife's income is less, at just $23k gross, $14,500 net. She currently contributes 25% to her 401k, but when I retire, we'll try to get closer to her max allowable. It'll be tight, but if we can tough it out for 3 yrs till she's 55, it will be worth the effort. I should mention that on this net income, we currently maintain 2 separate apartments due to my job being located 125 miles away. We still manage to eat out too much and have 2 newer vehicles which are paid off.

So the answer to your question would be your first guess above, Save for ER.
I don't pay into SS, because I'm a fed employee under CSRS. That means I'll get almost no SS when I turn 62, due to WEP. Wife does pay SS.

Note: I could substantially increase my pension by working 4 or 5 more years after retirement eligible, but because I will receive a military retirement starting at age 60, and due to the fact that we get by ok on our present income, although not extravagantly, I feel confident we can make it until the 2nd pension kicks in. I will be able to withdraw from my TSP a reasonable amount that will be a SWR starting anytime after Jan '13 (and after I retire), and in 3 yrs, wife's 401k will also be available if needed. Wife will begin SS at 62.

So basically, we'll be looking at $28500 (my pension) + $6000 TSP net SWR) = $34,500

+ $6000 net SWR from wife's 401k begining in 2016) = $40,500

+ $10,000 net from my military reserves starting in 2018 = $50,000

All the above is net income and could vary some but is probably very close. Both my pensions include deductions for survivor's benefits for my wife, life & health insurance, and all expected taxes.

I will get a small (approx. $250) SS payment @ 62 in 2020
Wife will get SS @ age 62 in 2023, but that's so far off, we don't think about it.

The only variable in the above would be if I decided to work longer, past January 2013.

[seraphim]

Quote:

. I might be answering my own question but, I'm curious how your pension take home pay is higher than your working take home pay.

At the moment, our take home pay averages about 6800 a month. We're currently supporting our son's college for a few more months (after 5 years) to the tune of about 2500 a month. So we're living nicely on about 4300.

In retirement, our take home, with the minimal possible withdrawals from investments, will be 5900. Assume 1000 a month for health insurance and we'll be living on 4900 a month, with several extant loans paid off - so fewer obligations. Say 5300 vs our current 4300, taking health insurance into account.

That leav.es our investments room to continue growing.

[martyb]

After going out for a few hrs & returning, I realized I didn't do the best job above trying to describe our projected post-FIRE income.

[Huston55]

Quote:

Originally Posted by martyb So basically, we'll be looking at $28500 (my pension) + $6000 TSP net SWR) = $34,500 All the above is net income and could vary some but is probably very close. Both my pensions include deductions for survivor's benefits for my wife, life & health insurance, and all expected taxes.

Smart thing to buy survivor's benefits. I'll do the same with my AF Reserve pension; not a Fed so, don't get CSRS or FERS pension. But, they do take a healthy chunk of change for survivor's benefits don't they.

[Finance Dave]

I'm a "potential" 2013 FIRE member....we'll see.

Currently working in 50 hour/week grind that I need a change from, been prepping for such change for about 3 months. Will start interviewing in a much different field in the next month or so. If I find what I want, I'll rehire immediately...and *ork at the new *ob for 2-5 years depending on pay. If I cannot find something at 20-25 hours/week that I like, I'll continue with MegaCorp for 1-2 more years..and leave at that time.

I WANT to do something in rehirement....I like being around people, having some structure, and to keep learning and engaged. I just want more of a 20 hours/week stint, where I can take 3-4 weeks off once/twice a year for vacations, a boss that's not over my shoulder, a relaxed atmosphere, and some fun.

The goal is to get to where I can afford to accept the above at minimum wage...so 20 hours/wk x $8/hour x 45 weeks/year = $7,200/year...plenty when combined with all our savings and some rental income from 2 (currently) to 4 (anticipated) rental homes.

It will be so awesome to make $7,200 and actually receive more than 80% of it. Uncle Sam, I'm putting teflon on my back.

[Coaster]

Hi class! I was in the class of 2014, but it now looks like it will be 2013 for me. My contract is ending a year earlier than planned

[KM]

Welcome to the club. Moving up your date is way better than moving it out.

Countdown to Jan 2013
Days - 224
Week Days - 160
Work Days - 114


I have been mulling over hanging in for Q1 2013 - but too many more days like today and that silly thought will no longer exist.....

[RitaR551]

Adding myself to the class of 2013. I'll be four months shy of 62 on 1/01/13. I'm currently working part-time and we are living on income produced from our investments. So far so good. I'm going through the emotional adjustment of "letting go" of my position and accepting the fact that it really doesn't matter what i think about any changes my employer makes in the future. I'm outta there in 7 months!
We have our small winter place purchased and looking forward to being snow birds.

[Helen]

Congratulations, Rita! Where will you snow bird to?

[RitaR551]

Quote:

Originally Posted by Helen Congratulations, Rita! Where will you snow bird to?

Near Tampa. We had visited DH parents there a number of years and like the area.

[Chuckanut]

Quote:

Originally Posted by Coaster Hi class! I was in the class of 2014, but it now looks like it will be 2013 for me. My contract is ending a year earlier than planned

Congratulations.

[martyb]

I'm still undecided. My first date of eligibility to retire is 1/18/2013. Still thinking about it....

[Milton]

Quote:

Originally Posted by Finance Dave I WANT to do something in rehirement....I like being around people, having some structure, and to keep learning and engaged. I just want more of a 20 hours/week stint, where I can take 3-4 weeks off once/twice a year for vacations, a boss that's not over my shoulder, a relaxed atmosphere, and some fun. The goal is to get to where I can afford to accept the above at minimum wage...so 20 hours/wk x $8/hour x 45 weeks/year = $7,200/year...plenty when combined with all our savings and some rental income from 2 (currently) to 4 (anticipated) rental homes.

Assuming that you will be FI, may I suggest that you consider volunteering rather than part-time paid work? I suspect that you'll find it considerably more flexible, and personally fulfilling, than minimum wage paid employment.

Of course, if the anticipated $7,200 annual employment income will be necessary, then please disregard.

[Huston55]

Quote:

Originally Posted by martyb I'm still undecided. My first date of eligibility to retire is 1/18/2013. Still thinking about it....

Marty-

You're the founding member of The Class of 2013 with your opening post. Don't get "one more year-itis" on us now!

Step awaaaaaay from the work place; everything will be fine.

There are those of us who need a good example.

[martyb]

Quote:

Originally Posted by Huston55 Marty- You're the founding member of The Class of 2013 with your opening post. Don't get "one more year-itis" on us now! Step awaaaaaay from the work place; everything will be fine. There are those of us who need a good example.

Yeah, I know, I never woulda thought I'd have second thoughts. I've been thinking about this time for a lonnnnng time. Now I'm at the point where I have to actually decide about giving notice in the next few months...and it's suddenly making me nervous. I'd love to not be working after January, but the reality is I've had a 2 year pay freeze, which hurt my hi-3 average, my TSp's not quite where I projected & wanted it to be for retirement, so I'm just saying I might go a little longer into 2013 to at least get another year's TSP contributions packed in there, and to get a bigger Annual Leave payout, which would help a lot with expenses when I first retire. OPM has a history of taking several months to get a retiree's full payment figured out, meaning some retirees are receiving only a percentage of their full pay, sometimes 40%, 60% etc. That would be tough...but I could buffer it with the additional vacation pay, till they get things caught up & I get the back-pay. I'm constantly hearing of this taking several months to get finalized. I'm probably gonna be buying a house soon, and I don't want to get caught in a cash crunch where I have to dip into retirement funds just to pay the bills till my pension gets straightened out.

[Amethyst]

Same boat. Already decided to stay another year. Are you doing the "take no annual leave, so I can get paid for it when I retire"?

Amethyst

Quote:

Originally Posted by martyb the reality is I've had a 2 year pay freeze, which hurt my hi-3 average, my TSp's not quite where I projected & wanted it to be for retirement, so I'm just saying I might go a little longer .

[martyb]

Quote:

Originally Posted by Amethyst Same boat. Already decided to stay another year. Are you doing the "take no annual leave, so I can get paid for it when I retire"? Amethyst

Gonna try to do that as much as possible, but with my mom being 82, I feel like I need to go visit at least once or twice, and she lives 1000 miles away.

I carried over 240 hrs from last year, so still have that, plus at the moment, I have 175 hrs on the books, plus 24 hrs performance award time as well. About to use 40 in July, then will have to use the rest by the end of this year or will lose everything over the 240 carry-over.

I've got a training class in Virginia in August, so will most likely use another 40 hrs to stop by & visit family again in NC at that time. So...I'll start 2013 with the 240again, and am eligible to retire on January 18th, 2013.

That's too late to sell back anything really above the 240 I'll have from 2012. If I want more than that, I have to work longer in 2013 & try to manage the balance as best I can. I'd like to have at least 400 to sell back, but it will be tough to do.

If I go back again at Christmas 2012 to visit, maybe I can postpone further trips till after I decide to retire, later in 2013. But, then it goes back to my mom's age...I don't want to find myself feeling regret....