Updating this again after 2+ more years have past....
I am still married (31 years!) Couple of months from 51 years old --- DW turns 50 shortly
I am now <6 years until I am eligible to retire with an immediate annuity. ( officially at 56 and 8mos.) I am not really even dreaming about an earlier retirement than that.
2 Adult kids now 26/28. The older one has finished a Master's degree and is living a few blocks away with her husband and both are gainfully employed. The younger daughter is also gainfully employed and also lives a few blocks away.
My DW stopped working a very stressful university job a year ago. She LOVES not working!!! Blood pressure is much better. The job had served its purpose of providing both kids with a debt free education from a reputable institution. We always tried to maintain our lifestyle to only require one salary so this change has not effected our plan for me to retire as soon as eligible in 6 years.
Breaking this out a little differently in this update ---
I now have 32+ years as a full-time federal employee and @ 57 will receive a federal pension of about $33,500 a year after the SBP reduction. (FERS)
My SS amount at 62 is indicated to be $21,600/yr in today's dollars and I will have the FERS SS Supplement that mirrors the SS that I will get at 62 . Rumors indicate the Supplement maybe taken away (although I'm thinking if true it will be grandfathered.... ) Regardless ( worst case) I'm planning to use some TSP ROTH $$ to make a bucket of funds to replace Supplement if taken away so it doesn't effect retirement plans...
My wife's SS should be half of mine at $10,800 @62 and I plan to also have a "bucket to equate that from age 57 - 63 (wife is a year younger than me so I'll be 63 when she is 62 for SS eligibility)
NOW all that said I only anticipate and "count on" HALF of SS actually being a reality (based on the SS systems current solvency outlook) Soooo 50% of $21,600 and $10,800 is a total of $16,200 which means my 57-63 bucket needs to be about $90K .
At 60 I will get over $10K pension from my military reserve retirement which adds a $30k need to the above $90k bucket for a total of $120K
So totaling up above I am counting on a
33.5K pension from FERS starting @ 57
16K SS (or bucket) starting @ 57
10K Military Pension ( or bucket ) starting @ 57
Anticipated retirement income need calculation.....
Current salary of $95,600 - 25% contributed to 401k (with catch-up contributions) is $71,600 (won't be contributing 401k after 57
) AND about $6,300 in SS and medicare tax that will not be paid in retirement brings down retirement salary need to $65,300 --- Several other more minor line items will decrease in retirement budget but also there may be several minor increases that would offset
So that leaves $6,000/yr needed to come from TSP 401k funds
We now have about $690K in a 401K plan and still own our house with no other debt.
I save 25% of my salary and get a match of 5% for the 401K.
Hoping to have over $900K or so at 57 retirement
$900K - $120K for buckets outlined above is $780K - $100K bad luck market turn = $680K * 2.5% withdrawal rate = $17,000
I am still concentrating on health and maintain 175 ( I'm 6'2") I hit the gym 6 days a week for about 40min/visit.