aknowhow78
Dryer sheet aficionado
Greetings to everyone,
I am a female officer (06 CAPT) and plan to retire 2021 (30 years of service and would be 52 at that time). Upon my retirement, my husband will continue to work until he is 59.5. I attended a pre-retirement seminar and am more confused about Survivor Benefit Plan (SBP). Here is our current situation and plans:
1. We have 2 children (4 and 14 years old). I have transferred my Post 911 GI bill to both kids and college wise--have a Custodian Acct for the oldest and saving in backdoor Roth IRA intended to be used for the youngest.
2. Husband has 401K and currently contributes 31k/year. Plan to go up on this as he is turning 50 this year. Plan is to do 2% withdrawal rate upon his retirement. (Anticipated balance based on 5% rate 1M).
3. I have a TSP and max contributions of 18k/yr. This will stop 2021 upon my retirement and we will not touch until required to at 70-- anticipated balance based on 5% rate will be 900K.
4. We have an after tax savings in various CD (ladder) contributing 36k/yr. Plan is to use this money to buy a house in 2021.
5. My retirement pension (COLAed) will be 84K. I have a life insurance policy of 500K (USAA ends when I turn 65) and while active also have the SGLI (400K). Husband has life insurance of 750K via work and will end when he retires.
6. Our current spending ranges from 8k to 9k/mth and expect to remain the same until in our 60s (have young children and can be expensive).
So if everything goes according to plan, we will have 1.9M between his 401K and TSP. Husband is healthy and parents still living, healthy in their 80s. My parents also healthy and still living in their 70s (my grandmother lived until 97). Based on the above info and the longevity on both side of our family, do we need to take SBP insurance on my pension?
Much obliged for your input.
I am a female officer (06 CAPT) and plan to retire 2021 (30 years of service and would be 52 at that time). Upon my retirement, my husband will continue to work until he is 59.5. I attended a pre-retirement seminar and am more confused about Survivor Benefit Plan (SBP). Here is our current situation and plans:
1. We have 2 children (4 and 14 years old). I have transferred my Post 911 GI bill to both kids and college wise--have a Custodian Acct for the oldest and saving in backdoor Roth IRA intended to be used for the youngest.
2. Husband has 401K and currently contributes 31k/year. Plan to go up on this as he is turning 50 this year. Plan is to do 2% withdrawal rate upon his retirement. (Anticipated balance based on 5% rate 1M).
3. I have a TSP and max contributions of 18k/yr. This will stop 2021 upon my retirement and we will not touch until required to at 70-- anticipated balance based on 5% rate will be 900K.
4. We have an after tax savings in various CD (ladder) contributing 36k/yr. Plan is to use this money to buy a house in 2021.
5. My retirement pension (COLAed) will be 84K. I have a life insurance policy of 500K (USAA ends when I turn 65) and while active also have the SGLI (400K). Husband has life insurance of 750K via work and will end when he retires.
6. Our current spending ranges from 8k to 9k/mth and expect to remain the same until in our 60s (have young children and can be expensive).
So if everything goes according to plan, we will have 1.9M between his 401K and TSP. Husband is healthy and parents still living, healthy in their 80s. My parents also healthy and still living in their 70s (my grandmother lived until 97). Based on the above info and the longevity on both side of our family, do we need to take SBP insurance on my pension?
Much obliged for your input.