martyb
Thinks s/he gets paid by the post
Well, I'm one month from being gainfully unemployed . I'm retiring (age 56 1/2) from a federal govt. career spanning 37 1/2 yrs. I'm not one of those really high-graded feds who'll pull down 100k in retirement, but between my fed civilian pension & my AF Reserve retirement that will kick in in another 3 1/2 yrs, the foundation will be there, with some wiggle room.
Wife will continue to work another 2-3 yrs, and when she stops working, basically my military retire pay will be about the same as her income and will simply replace it at that time. She has no pension, just a smallish 401k (approx. 100k now). She will qualify for a small SS at 62 (maybe $600/month). When I am 62, I'll get maybe $250 SS as well.
So here's my question: Once I stop working, I will obviously no longer be contributing to my TSP. This greatly concerns me because I'm worried how I can recover from dips in the market going forward. I'm hoping that some of you who are retired feds with TSP accounts will share your allocations, and how it's working for you. Are you sticking with your allocation regardless of what the market does, or do you move funds into/out of the G or F fund when things go south?
I'm retiring under the old CSRS system, but I'm only a GS-11, step 5 so not such a huge pension. I expect to net $34,200 per year after all taxes, health & life insurance plus max survivor's benefit. Wife's job adds another $13,300 net after her 401k contributions. So that's $47,500 net, before taking any TSP withdrawals. I don't have a huge TSP balance, but enough for $9000 net or so per yr if I want to or need to. I'm leaning towards not doing any w/d before my military pay starts. If I follow that route, then when combined with wife's 401k, we could probably w/d $13000 if we want/need to when she's 59 1/2 in 6 yrs.
We currently live on a combined net income of $38000 per year, and that does include some discretionary spending such as eating out, a movie now & then etc. Mostly goes for living expenses, though. This means that when I retire, we'll actually get a pay raise ($38k to $47.5k) plus any portfolio withdrawals.
So...we have some flexibility with the 401k/TSP withdrawals. I just need to know more or less how others are investing their TSP funds now that they're no longer contributing. Thanks folks!
Wife will continue to work another 2-3 yrs, and when she stops working, basically my military retire pay will be about the same as her income and will simply replace it at that time. She has no pension, just a smallish 401k (approx. 100k now). She will qualify for a small SS at 62 (maybe $600/month). When I am 62, I'll get maybe $250 SS as well.
So here's my question: Once I stop working, I will obviously no longer be contributing to my TSP. This greatly concerns me because I'm worried how I can recover from dips in the market going forward. I'm hoping that some of you who are retired feds with TSP accounts will share your allocations, and how it's working for you. Are you sticking with your allocation regardless of what the market does, or do you move funds into/out of the G or F fund when things go south?
I'm retiring under the old CSRS system, but I'm only a GS-11, step 5 so not such a huge pension. I expect to net $34,200 per year after all taxes, health & life insurance plus max survivor's benefit. Wife's job adds another $13,300 net after her 401k contributions. So that's $47,500 net, before taking any TSP withdrawals. I don't have a huge TSP balance, but enough for $9000 net or so per yr if I want to or need to. I'm leaning towards not doing any w/d before my military pay starts. If I follow that route, then when combined with wife's 401k, we could probably w/d $13000 if we want/need to when she's 59 1/2 in 6 yrs.
We currently live on a combined net income of $38000 per year, and that does include some discretionary spending such as eating out, a movie now & then etc. Mostly goes for living expenses, though. This means that when I retire, we'll actually get a pay raise ($38k to $47.5k) plus any portfolio withdrawals.
So...we have some flexibility with the 401k/TSP withdrawals. I just need to know more or less how others are investing their TSP funds now that they're no longer contributing. Thanks folks!
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