Can I Retire with 300k in My TSP?

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[@bantizzle79]

We are very lucky to be eligible for a pension at retirement. Makes a huge difference in the amount we need to save to retire comfortably.

[@tomhenry9485]

Reminder it’s taxed and also check the cost of survivors benefit.

[@TES-bt8sv]

I retired from Feds in 2022. I retired debt free and I comfortably live off of my pension. I have not touched my TSP (which I rolled over into a Fidelity IRA), and have no intention on touching it until RMDs kick in of the taxable accounts. I keep about 3 years of cash in laddered CDs in case of an emergency. Yes, you can do it. LIke my father told me: "It's not how much you make, it's what you do with what you make."

[@cietranan3966]

Great!! I was taught the same thing. It's what you do with what you have.

[@vickiewilkins1579]

I did the same in 2021.

[@glasshalffull2930]

Just keep in mind that your TSP may be so large that your RMD pushes you up a couple of tax brackets! Look at it and it might turn out that it would be better to take distributions in the interim. You could reinvest or ladder them. Additionally, should you die, your heirs will have to take it all out in ten years. That could push them up a few tax brackets.

[@TES-bt8sv]

@@glasshalffull2930 Or do some Roth Conversions after retirement. You will have to transfer out of TSP though.

[@gregthomas2448]

I absolutely could not have retired at 55 without having full medical dental and vision. VERA/VSIP and FERS Annuity supplement is huge. 66 months of 2K on top of pension. For people who say FERS isn’t good. So wrong. It’s great

[@luckypenny4263]

Agree

[@jd1811]

@@luckypenny4263absolutely right, I feel so blessed to be a Fers retiree and made those 30 years service so worth it.

[@cietranan3966]

Agreed. People need to realistically plan, and prepare for retirement. Also they have the option to work part and make a certain amount with in an income limit so they don't reduce their pension.

[@gregthomas2448]

@@cietranan3966 I find the earnings test to be criminal. Why penalize someone who wants to work and contribute to society and pump up that retirement? I retired at 55 in 2022 I just started receiving the FERS supplement which is an extra 2K and change for the next 66 months at which time I turn 62 and can at that time I lose the supplement and can turn on social security benefits or delay them however, the downside is that the supplement is also subject to the earning test which will hopefully increase in 2024 currently it’s 21K a year. I find that unfair. Just my humble opinion.

[@stevedavis3370]

Very helpful, Great point regarding receiving a pension on top of your 401K (TSP). A lot of info you see about “how much 401k do you need for retirement” was established without any pensions. Perfect examples you used. Thanks for sharing!

[@cr-zq8qn]

It's all about lifestyle and where you plan on living...some areas have a higher COL than others.

[@lindad6223]

The key is to know what your expenses are... I adjusted my take home pay to my expected pension and SS survivors benefit for the last 2 working years as a test budget - routing everything else into my TSP. There were some months that were a bit tight, with property taxes and insurance falling together in December and May every year, and I'm just not as good as I should be for these known annual expenses. I haven't needed to take from my TSP yet, but the house needs a new HVAC and some electrical work....

[@roachtoasties]

I've read some financial articles that don't even mention Social Security income, like it's going to be totally gone. It isn't. You're right about the 4% rule calculation, if that is assuming you have a $1 million retirement account, that starts at $40,000 per year. If you have a pension that will pay you $3,333 per month to start, that's also $40,000 per year, so that negates the need to have that first $1 million in your retirement account. Of course, there are financial articles that don't even consider any outside pension, annuity, Social Security, or anything. People still have these. Anyway, it's what you need to retire, not what others tell you that you need.

[@gregthomas2448]

Best comment I’ve seen ! So many factors, when you dial it down it’s really all about what “you” need to be comfortable. You want to live like a king, you should probably pick a place with lower overall cost, pick Miami well you’re going to need more and probably have to work to supplement that lifestyle. So be it. Good luck to all ⭐️👍🏆

[@roachtoasties]

@@gregthomas2448 Thanks.

[@larriveeman]

it depends, I retired as a topped out 15, no debt, wife also has a small fed pension, she is taking her SS, I will wait, we are just fine, no need to touch TSP/IRA

[@b.coxemba6799]

Like many of the comments, I don't plan on touching my TSP until 62. I retired at 51 under federal law enforcement agency. I also have a veteran disability pension. My wife doesn't work. We do find. I have no withdrawal penalty to worry about. I haven't touched my emergency fund. After the first year I did very little substitute teaching. This is my third year into retirement. Having a MBA degree gives me some good options. Life is short and financial freedom is a great tool. Your most valuable asset is time. I also plan to touch my social security at 62. I don't received any supplements since I retired under fers disability. Luckily for me, I brought back my military service so at 62 I'll actually get a pay increase. 😊

[@vickiewilkins1579]

Everyone needs to do a retirement budget first, then see what you will need from your TSP.

[@lorimcmahon407]

Would you please consider a video regarding a fers seasonal employee pension? Is fers computed differently for a seasonal employee? Seasonal employees work full time generally 8 to 12 months. Last three years seaonals have worked year round 12 months in our service center. Thank you so much for all your informative videos. Appreciate you!

[@willritchie5319]

The method that I used was to roughly calculate what my fixed income would be in retirement then invest as much as I can now to make my net pay the same as my fixed income in retirement. So "day 1" in retirement my income stream is the same but I have income producing assets under my control as well

[@larriveeman]

lets say one has a 75K fed pension, using the 4% withdrawal rule =75K/4% = 1.8 million in investments in order to have that withdrawal amount at a 4% withdrawal rate. In the case of the fed pension your payments do not end until you die, and if you have elected 100% survivor option, your spouse get 50% of your pension until she dies, that is a great deal, not to mention the ability to keep your health benefits with premiums the same as when you were working ( realizing it will be after tax and monthly). Remember your gross while working is not what you are getting net, net is minus SS/medicare tax, tsp investment amount, fed/state taxes, health insurance ect..

[@BC-te9ow]

A $75k fed pension??? How is that even possible under FERS?

[@toddbulgarelli5988]

The only way I think that might be possible is if you are at the very top of the SES scale (some of them make around 180K per year) and retire with 30 - 40 years of service, OR if you are one of the very few on a special pay band; otherwise, yes, a 75K pension is totally unrealistic for GS employees, even if you retire as a maxed-out GS-15.

[@larriveeman]

I was topped out GS-15 with 40 years

[@tgc4204]

The MRD may force you to take more $1,000 pre tax TSP in your example and depletes your TSP faster Also $300k gives your 75 months of pre tax $4,000/mon which will deplete $300k in 6.5 years. Very scary. Good thing there is another after tax of $3,500. Thanks for showing us the math.

[@marycolmenar1633]

Is there a formula to factor in the inflation rate to determine if the future value of your current take home (net) income every 2 weeks?

[@djcoolrule]

Truly feel blessed after serving my country for a career but unfortunately the wear and tear on my health is rough. I will retire from federal service once I reach MRA +10. I need to start living for my family.

[@PlanYourFederalBenefits]

Thank you for your service and commenting!

[@swright5690]

Don't estimate your FERS pension. Contact OPM and they will do an exact analysis for you. Takes 3 to 5 days.

[@legony1]

My agency’s HR does FERS pension estimates at request.

[@rosarodgers7539]

Access your GRB portal anytime for detailed info

[@teeduck]

Or break out a calculator and do it yourself

[@legony1]

@@teeduck I’d rather have the HR folks do it. That’s what they’re paid to do.

[@rh8453]

Must be 5 years prior to retirement.

[@BMWi-nc7nv]

Do you get tax on supplemental also?

[@BarfieldFinancial]

I've seen people retire with 1/10th that amount in their TSP.

[@manuel25mco]

I am 41 years old and have $543,677 in my retirement accounts and yet I still feel like I am so behind and still feel nervous of retirement. Everything just went up in prices, I don't know how are people retiring nowadays.

[@glasshalffull2930]

Estimating 8% return over 20 years with $1K additional contributions a month and your TSP will grow to $3.1 MILLION. Worry less, keep upping the contribution, NO TIMING THE MARKET and stay in the C Fund!!!

[@barbsinclair7352]

Do people really ask these type questions?? It is so different for everyone, you have to know so many individual things that I will answer this question.

[@terryneal5569]

Me again.

[@ddddddno24]

What is schedule F federal appointment?

[@PlanYourFederalBenefits]

Great question. Schedule F federal appointment is not currently in effect. Here is a great website about it: nffe.org/advocacy/issues-by-subject/federal-workforce/schedule-f/#:~:text=Background%20Info,as%20%22Schedule%20F%22%20employees.

[@PlanYourFederalBenefits]

Great question. Schedule F federal appointment is not in effect right now. Here is a great video about it: nffe.org/advocacy/issues-by-subject/federal-workforce/schedule-f/#:~:text=Background%20Info,as%20%22Schedule%20F%22%20employees.

[@ddddddno24]

@@PlanYourFederalBenefits 😊 thx

[@shawnsereal4175]

62 and 20 years for .1% What about 42 years and 60 years? Is there anything for that amount of time worked.

[@PlanYourFederalBenefits]

Great question! The short answer is no, sadly. Here is a video to give a little more context: kzbin.info/www/bejne/api4Z2mkr8xqkNE&lc=UgwX0iymoFvqOxGjLk54AaABAg