Retirement Plan Review

[Federal LEO]

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]

Forgot to add ...no debt other than $1054 month home mortgage which will be paid off at age 65. No other investments outside TSP.

 

[martyb]

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!

 

[Federal LEO]

Lucky enough to reach Executive Schedule III. $168,044 final salary.

 

[Hotrod 140]

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?

 

[martyb]

Lucky enough to reach Executive Schedule III. $168,044 final salary.

Well....that explains that! Definitely is in order!

 

[Federal LEO]

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]

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

 

[pb4uski]

It'll be much less time consuming from May/June to Aug/Sept.

 

[AndyS]

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?