Can I Retire with 500k in My TSP?

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[@Clewis2023]

All about expenses. Having zero debt is key.

[@_omarlives]

Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult

[@ddxl459]

Now with the recent economy, To get Financial FREEDOM you have to be making money while you're asleep.

[@davidrex9592]

I’m going to have about 100k and I’ll be fine. Already bought a tiny house and land, the rest is taking it easy

[@garyfarley323]

That's enough as long as you don't have a mortgage,,, and all debt is paid off.

[@rickros3677]

Love when people with millions in thier TSP feel they can't retire. Not to be judgemental...but these folks will never retire. Bottom line, know your cost to be "you", know your guaranteed income, the delta will need to come from savings.

[@scottgold1054]

Yep all take half and be in good shape.

[@stephendibari5010]

You can use the OPM federal ballpark estimator which takes all 3 legs of the stool (Pension, SS and TSP) and non -Tsp savings and produces estimated retirement income

[@rickros3677]

Also understand...typically a person's spending in retirement goes down over time. For most of us public servants...our pension ans SS will cover our expenses. Saving becomes kind of a "piggy bank" to draw fun money and one off money from. The fun money want will be less over time...as people just tend to do less in thier 90s than in thier 50s and 60s.

[@gregthomas2448]

It’s all about your individual lifestyle and needs. Revenue streams vs expenses. Or what’s coming in, what’s going out. Nobody can answer what you are comfortable with, except you. 😉

[@LittleCabin]

I don't plan on needing near as much in retirement as I do while working -- debts will be paid off before retiring. Since I won't be needing as much income, I won't be in as high of a tax bracket...the 20% figure seems pretty high to me, and hence, will be influencing my decision to transfer money to an IRA or the like, so I can take what I need without TSP automatically taking out 20% right off the top.

[@angelacross3109]

With my s.s, federal annuity and monthly supplement for my 401k, my income is almost what I make!

[@Desert679]

Whats also key with the TSP 4% rule the withdrawal remaining balance will be adjusted with the TSP fund average investment return. That investment return will be based on market performance which can effect your balance positively or negatively.

[@judymullis7437]

People need to remember that the supplement goes away at 62. They will need to have a before 62 and after 62 plan.

[@Michaelthearcheangel]

I used (past tense)the Bengen 4% rule but for the last 7 years i make OVER 30% a year in stock market. So, my money skyrockets ALOT. So, add my money AND my military retirement im at over 10k a month (NOT counting my job) AND I still work a fulltime job because Im only 50 way too young to retire.

[@terryneal5569]

Good stuff 😊

[@PlanYourFederalBenefits]

Glad you enjoyed it

[@gerrywetzel4699]

You also collect social security on top of that, and that in

[@isiah675]

isn't that the big "SS" on the board?

[@bigblue3568]

His example is retiring between 57-62 which would involve the FERS Supplement, after 62 you can claim SS if you choose but FERS Supplement ends.

[@rangerstyleisme]

If you have two pensions will that impact SS?

[@user-le5ht6vb1m]

Fers retirement system only lets you retire on the 1st of the month

[@markmurrell1894]

I’m curious, what’s the average TSP balance of the typical FERS retiree?

[@bigblue3568]

Average end of last year was $169,000 with the highest balance little over $7 million. Unfortunately many don't or can't take full advantage or wait way too long to start.

[@javiersmith2216]

If most of your wealth is in capital gains, do you want to max out your pension?

[@PlanYourFederalBenefits]

A pension is a great way to have a consistent and reliable income source. It's a good idea to maximize if you have no other consistent income source.

[@shawnsereal4175]

Why would you want to work for 30 or 40 years and save up all this money and not be able to spend it all. My strategy is to spend it all before I leave Earth. I'm just wondering why you would keep focusing on growing your money after you retire unless you plan on giving it to someone else as an inheritance. As I see all around me is that people over say 80 years old don't really have a life of travel, expensive hobbies, or buying expensive items. They just pretty much just sit at home watching TV or going to a casino occasionally. So my motto is to enjoy your money before you can't enjoy your money.

[@PlanYourFederalBenefits]

I appreciate the comment. Everyone is different. If you find a sustainable strategy that works for you, then that's great!