Hoping to retire soon

[Federal LEO]

Hello all,

My first post, however I have been reading your posts for several years as non-member. I hope/plan to retire in three years from federal probation.

Very nervous about economy, but I am forced to retire at 57 anyway so why not plan to get out early if possible.

 

[obgyn65]

Welcome to the forum.

 

[omni550]

Welcome aboard.

Lots of good folk (including some LEOS) and tons of information here.

omni

 

[Federal LEO]

Hello all, My first post, however I have been reading your posts for several years as non-member. I hope/plan to retire in three years from federal probation. Very nervous about economy, but I am forced to retire at 57 anyway so why not plan to get out early if possible.

I have been offered a $30,000 high school teaching job starting August 2014. I currently make $166,331. My pension, FERS Supplement, and TSP IRS Min. Withdrawals = $95,000. Therefore, the teaching job would provide me with approximately $125,000 gross semi retirement salary. I am intrigued by (semiretirement) of having holidays and summers off. What do you think?

 

[REWahoo]

What do you think?

I think you're delusional if you consider teaching high school being semi-retired.

 

[RockyMtn]

I think you're delusional if you consider teaching high school being semi-retired.

+1 if I was a student...or my kid.

 

[Federal LEO]

+1 if I was a student...or my kid.

Okay.... I get it. But after 25 years of a law enforcement career, having summers off does sound nice. No offense to the teachers out there.

 

[sheehs1]

Okay.... I get it. But after 25 years of a law enforcement career, having summers off does sound nice. No offense to the teachers out there.

Holidays and some weeks during summers are nice but the days in between you may think you are back in law enforcement.

I'm not a teacher, my daughter is.

Welcome to the forum.

 

[seraphim]

My wife - the teacher - worked longer hours than I did in law enforcement. Spent more of her own money on purchasing supplies, as well.

 

[retiredatfifty]

Hello all,

My first post, however I have been reading your posts for several years as non-member. I hope/plan to retire in three years from federal probation.

Very nervous about economy, but I am forced to retire at 57 anyway so why not plan to get out early if possible.

Additional years beyond your 20 or 25 or whatever you have had to reach your FERS/LEO retirement eligiblility age do not really add all that much to your base pension.

You've been faithfully contributing to your TSP ... yes? Got pretty much everything paid off? Have your eggs safely dispersed in different baskets? Then just do it brother, and don't look back! You'll be fine.

 

[kimcdougc]

Welcome to the forum. If you are passionate about the teaching. Give it a try for a year and see where it goes from there.

 

[Walt34]

An item for thought from the book What Color is Your Parachute? is to take a teacher or three from the same school where you are thinking of teaching out to lunch and ask them to talk about their job.

It might solidify your intentions or scare you away. Either one is a good thing if it saves you lots of grief later.

 

[Theduckguru]

Hello all,

My first post, however I have been reading your posts for several years as non-member. I hope/plan to retire in three years from federal probation.

Very nervous about economy, but I am forced to retire at 57 anyway so why not plan to get out early if possible.

What is your age now?

 

[Kaufmanrider]

Congrats. I retire Jan 11, 2014, 25 years as a LEO, only 49. Time for a change of scenery. You mention minimum withdrawals from TSP. I believe at age 55, you only pay Fed/State Tax on TSP withdrawals, no more 10% penalty. Therefore, I believe you can tell TSP to give you what you want each month, i.e., monthly dollar amount withdrawal rather than Life Expectancy.

If you're interested, PM me as I am not sure if I am allowed to put external links on this message board and I'll send you a link to a free FERS LEO retirement booklet, updated annually, written by a now retired Fed LEO, Series 1811, that is probably the best booklet there is. He also does a non-leo Fed booklet for you regular Feds.

 

[martyb]

If you're retiring in Texas, you'll only pay federal taxes on your TSP. And, as Kaufmanrider says, no age-related penalty since you'll be age 55 or older when you retire. I will be taking annually-adjusted monthly withdrawals from my TSP. No annuity or rollovers. I recognize leaving my money in TSP as the best choice for me.

 

[Redbugdave]

FYI...Your FERS Supplement will be reduced if you go back to work and make more than about $15,120, (2013 level). If a retiree's earnings exceed the annual earnings limit, the supplement will be reduced by $1 for every $2 earned above that amount. LEO's may have different rules about the earnings limits...I am not sure, though.

Yes, you can also adjust your TSP monthly withdrawal amounts once a year, too. It can be done at the end of each year and the TSP has to receive form TSP-73 by Dec 15 for the upcoming year.

And hey...My last day is Jan 11, 2014, too!!!!

 

[martyb]

And hey...My last day is Jan 11, 2014, too!!!!

Sure Dave, rub it in!!!

 

[Kaufmanrider]

LEO's can work and make as much as they want until they reach MRA, then the reduction you mention kicks in. For me that's 56.

Congrats on your retirement.

FYI...Your FERS Supplement will be reduced if you go back to work and make more than about $15,120, (2013 level). If a retiree's earnings exceed the annual earnings limit, the supplement will be reduced by $1 for every $2 earned above that amount. LEO's may have different rules about the earnings limits...I am not sure, though.

And hey...My last day is Jan 11, 2014, too!!!!

 

[Redbugdave]

Hi Marty...Hang in there, it's almost over! I've been keeping track of you, too!

Having to work has been messing up my deer season this year. But not next year! It's going to be nice not having to work for money...

 

[F4mandolin]

As an ex-teacher......sometimes you get summers off.....sometimes you don't. I always had to take a certain number classes every 5 years or so to stay certified. If the job was that easy.....everybody would be doing it. Some people just can't handle being around kids.....let alone the other teachers And on the other side of it.....no way would I want to be a policeman.

 

[BigE]

I think Walt34 has some good practical advice. It would also be nice to know what grade level and subject matter you would be teaching. I taught many labs in college and graduate school and tutored science and math from high school up and I thoroughly enjoyed it. Have never been a teacher full time, so I don't have the depth of understanding, but I'm somewhat surprised at the negative comments regarding teaching; is it really that bad? The teachers I know (3 kids, so I've interacted with quite a few) seem to be pretty happy. I'll also say that my decision to go to college (first one in my immediate family) was due to an influential chemistry teacher in HS. I'm interested to know what you decide, so please keep us posted. Thanks.

 

[retiredatfifty]

Congrats. I retire Jan 11, 2014, 25 years as a LEO, only 49. Time for a change of scenery. You mention minimum withdrawals from TSP. I believe at age 55, you only pay Fed/State Tax on TSP withdrawals, no more 10% penalty. Therefore, I believe you can tell TSP to give you what you want each month, i.e., monthly dollar amount withdrawal rather than Life Expectancy.

If you're interested, PM me as I am not sure if I am allowed to put external links on this message board and I'll send you a link to a free FERS LEO retirement booklet, updated annually, written by a now retired Fed LEO, Series 1811, that is probably the best booklet there is. He also does a non-leo Fed booklet for you regular Feds.

A Federal LEO/Firefighter/Air Traffic Controller retiring early can start taking "life expectancy" withdrawals from the TSP at any age without the 10% penalty but cannot change that option once selected until age 59.5 at which time a one-time final change of withdrawal method can be made. Federal/State tax does apply to those withdrawals but not FICA. (If one doesn't need the money though, it's probably best to let it ride & grow in the TSP)

As to the OP inquiry about teaching ... I hate to be a Negative Nelly, but I wouldn't be doing it for the money. My wife was a public school teacher for a few years and found it's not so much the kids being the problem as it was the school administration, politics, and all of the after-hours work required. Has the OP thought about teaching college classes as an adjunct? I have an ex-FedLEO friend who did that a few years & was very happy with it. Personally, I tried a couple of contract investigative jobs before deciding I just really didn't want to work anymore ... so now I don't ... at all ... and I love it! (word of warning --- don't take one of those contract OPM background investigation gigs ... you will regret it unless you are just a real Type-A and don't care what your effective per hour rate of pay is) I hear a lot of the retirees who go down to FLETC to teach are happy ... might want to look into that?

Also, retiring early you will become subject to the Social Security earnings limit at age 55 for purposes of your FERS Supplement which will be reduced per a formula according to how much you make over the limit. I was never able to find a good calculator for the FERS Supplement and it's a pretty complicated formula - even many of the agancy HR office retirement coordinators can't seem to figure it out .... the reality ballpark figure for most is 1k to 1.2k per month. OPM will let you know for sure only when you finally pull the plug. (the Supplement goes away at age 62, btw and you are expected to then apply for early SS ... or just wait)

And once retired ---- don't forget to take that Public Safety Officer tax deduction for your retiree health insurance premiums ---- a little known perk some Congressperson threw into the tax code for us! (could that be because Congresspersons get the Law Enforcement retirement as well instead of regular FERS or CSRS? Not sure why, but they do.)