How NOT to retire:

[James48843]

This family retired the earliest they could. Now they face more than $8,000 a year shortfall, because this DA Army Civilian chose to retire at age 56, with only $77,000 in his TSP account, a small FERS pension, and bills he wasn't ready to handle.

When Kingsley retired, he had $65,233 in taxable accounts such as savings and checking accounts and a brokerage account. He had an additional $77,314 in tax-deferred investments, which consist entirely of the Thrift Savings Plan, a retirement savings and investment plan for federal employees.

They receive $3,833 in monthly pension benefits for a total annual income of $45,996. That's the sole source of income for him and Luchia.

Their mortgage is the only debt they have, but their monthly expenses still exceed their income by $676.

He'll now be short for the rest of his life, if he doesn't drastically reduce his expenses, or find other income. Had he stayed just a few years longer, or started savings in his TSP earlier and boosted his balance, he could have been much better off.

This is how NOT to do it:

http://www.freep.com/article/20110324/BUSINESS07/103240485/Quit-job-early-you-prepare

 

[Valkyrie]

Obama Is Going To Pay For My Gas And Mortgage!!!

http://www.youtube.com/watch?v=P36x8rTb3jI

 

[Zebra]

You got to be sh................ting me? How naive idiots can be.

Obama Is Going To Pay For My Gas And Mortgage!!!

http://www.youtube.com/watch?v=P36x8rTb3jI

 

[akpackfan]

This guy obviously didn't plan well/at all or got some really bad advice. 28 years still to pay on a 30 year mortgage living on FERS retirement income? Come on folks. Think this stuff through. You should have your mortgage totally paid off before you retire, IMO and then live on your expected retirement income for at least a year to make sure you can do it. That should be near the very top of your "to do" list before you pull the plug. Based on the information given it doesn't sound like he saved or planned like he should have. I think federal employees can retire at their MRA with a fairly comfortable standard of living if they have no major debts or expenses and do a little planning. I don't want to work till I'm 65, at least at this point. We'll see when the time comes. Moral here is PLAN WAAAAYYYYY AHEAD!!

 

[Boghie]

Good God,

This guy is a 'procurement officer'. That explains why a purchase of three high end video cards for an almost non-functional work center at my command is taking six months. Some slug like this brain surgeon is saving a couple of bucks while three salaries are thumb wrestling.

Nice job buying a 30 year mortgage two years from retirement.
Nice job amassing less than a hundred grand.
Nice math skill with basic arithmetic.
Nice 'G Fund' compounding.

Would anyone here hire this chap? Not me. Hope he doesn't get put on a stopper list.

This family retired the earliest they could. Now they face more than $8,000 a year shortfall, because this DA Army Civilian chose to retire at age 56, with only $77,000 in his TSP account, a small FERS pension, and bills he wasn't ready to handle.


He'll now be short for the rest of his life, if he doesn't drastically reduce his expenses, or find other income. Had he stayed just a few years longer, or started savings in his TSP earlier and boosted his balance, he could have been much better off.

This is how NOT to do it:

http://www.freep.com/article/20110324/BUSINESS07/103240485/Quit-job-early-you-prepare

 

[Show-me]

You just can't save everyone, or fix stupid, at some point people have to take responsibility for themselves. He is in charge of his own destiny.

 

[Boghie]

There has to be some welfare plan for baby boomers...
Only forty years to save for retirement...

My guess is that he is prior military and some (much) of that pension is a military pension. If not, he has saved less than $2K a year in retirement accounts.

Ouch, just ouch.

Wait till the politicians 'enhance' his pension(s).

 

[nnuut]

I (CSRS) retired 3 Months from 65 years of age, I could have retired at age 58 with 30 years but I knew that with my mortgage unpaid and car payments and kids still in College I just couldn't live on my income. So I worked about 7 more years, my retirement grew 14% in that time, I paid off the house and the car and could draw my little bitty Social Security, I qualified with 53 quarters and should have gotten about $750 a month but being CSRS they reduced my SSA by 60%, but it's been a year and 3 Months NO PROBLEMS. By the way I haven't touched my TSP and NEVER had matching contributions. Don't be stupid, don't retire early if you can't afford it.

 

[Mista_Magee]

Kingsley can "afford" to retire on $3,800 per month. The wife is the problem, what the h-e-l-l is she doing sitting around at 46 years old, pretending to be retired too, and from what? It's about time she gets a job pronto!! Surely she can earn $600 a month somewhere, to pick up the slack, it's about time.

 

[law87]

This family retired the earliest they could. Now they face more than $8,000 a year shortfall, because this DA Army Civilian chose to retire at age 56, with only $77,000 in his TSP account, a small FERS pension, and bills he wasn't ready to handle.


He'll now be short for the rest of his life, if he doesn't drastically reduce his expenses, or find other income. Had he stayed just a few years longer, or started savings in his TSP earlier and boosted his balance, he could have been much better off.

This is how NOT to do it:

http://www.freep.com/article/20110324/BUSINESS07/103240485/Quit-job-early-you-prepare

if he were to do this in kansas he would have been fine...man i cant believe this guy who is an officer, have gone to college and got a degree and yet could be so careless, even i see could see that with that kind of money you cant possibly retire and bought a brand new house (2 years)

 

[Show-me]

I understand wanting to retire at the MRA but I am guessing this guy is CSRS. He could go back to Federal Service but he better not wait too long.

I thought I could go at my FERS MRA until I realized the dynamics of retireing too early my MRA was 57, it is now 62.

 

[James48843]

Kingsley can "afford" to retire on $3,800 per month. The wife is the problem, what the h-e-l-l is she doing sitting around at 46 years old, pretending to be retired too, and from what? It's about time she gets a job pronto!! Surely she can earn $600 a month somewhere, to pick up the slack, it's about time.

You are absolutely right.

He should send her out on the street to bring in some income.

She ought to be able to pick up a little cash somewhere.....

 

[burrocrat]

You are absolute right.

He should send her out on the street to bring in some income.

She ought to be able to pick up a little cash somewhere.....

plus acorn could help structure the small business to avoid taxes and maybe get some grants too.

 

[Handballer]

You and James are getting too nasty. Just my opinion.

plus acorn could help structure the small business to avoid taxes and maybe get some grants too.

 

[burrocrat]

thread killer.seriously? that was innapropriate?there were financial ramifications littered throughout, you know get a job that pays, optimize taxes, avail yourself of available social services, plan ahead or end up on the street, things that normal adults objectively consider all the time.i appreciate the invaluable service you provide to this community, but the whole limit freedom of relevant speech for everyone else because your ears are sensitive is too much.i'm boycotting this site for a week just to register my displeasure with the whole churchmouse moral police defend/don't offend the ladies big brother crap even though they seem to defend themselves just fine.some knight you are. 'night.

 

[Steel_Magnolia]

Well, it is obvious that they will have to go back to work if they continue to live in the same area. If they don't want to do that, they need to move to an area of the country where the cost of living is less expensive. So we all agree on the basic premise that started this thread. But we don't agree on some other things. Someone said something about this thread becoming too coarse. So that means that I shouldn't add that as a small woman owned business the wife could qualify for federal contracts. So okay I won't add that. Someone started that particular sub-thread by saying that the woman should get a job pronto instead of pretending to be retired, and it was about time she got a job and went to work. That is certainly a valid opinion. Another valid opinion is that we don't know what this woman was doing to help support the family up until this time. Maybe she was working at odd jobs that she found each time they moved to a new area because of his career. Maybe they had an active family and they agreed that she should be the care giver, cook, housekeeper, laundress, chauffeur, gardener and medical tech of the family 16 hours a day while he worked 8 hours a day. We just don't know that much about their situation. This reminded me of a story I'd like to share with you. My mom is almost 80 and has severe foot problems so she's supposed to keep her feet elevated. But she still does all the cooking and cleaning. A few months ago I was at my parent's home for a visit. Mom had made us a big family dinner the night I arrived and her feet were swelling badly so Spouse and I were helping her to clean up. Dad mentioned something about how nice it was to be retired, so I asked Dad at what point in their lives did MOM get to retire. Dad informed me that Mom didn't want to retire and they both liked it that way. Mom just rolled her eyes at me. Now that was a different generation. Men protected the "little woman" by going in to the big bad world while she stayed home to do "women's work." And we are all much more enlightened than that, aren't we. Aren't we??

 

[WorkFE]

And we are all much more enlightened than that, aren't we. Aren't we??

There is a point in most peoples lives (Married) when either party staying home is extremely hectic. It is that perfect storm of childrens ages, social activities and many other factors that make it very much like work for that individual.16 hour days, really. Highly doubt it. Other than the exception to the rules (Mentally challenged child) the hectic part of that life last about 5 years and in alot of cases those years are not consecutive.You are correct about not knowing enough about their situation. If she is the homemaker and there are still children in the house he needs to find another job for a few years. If it is just him and her in the house they both need to go get a JOB. Our son is gone and we eat out 3 days a week. My wife and I take turns cooking. I do the laundry she puts it away.As far as house cleaning (other than laundry and dishes) we can come and go all week and you would hardly know we were here with minimum cleaning. Of course with age comes experience.

 

[Steel_Magnolia]

.... Of course with age comes experience.

Rep points. Your answer and your point of view were both refreshing.

 

[WorkFE]

Steel, I guess my main point, that to be honest with you I never got around to saying, is that there is no such thing as retiring from work. At least until literally you are physically unable. But then again, what is work.Work makes us:Self dependantStrongerImproves intellectCaring individualsStregthens values7 years in recruiting command. 6 day work week/ 60 hour week. I never considered it hard work.Last 2 years in the military. My wife and I both worked roughly 40 hours a week. We built our 2000sf home, with very little assistance (OJT ). Additional 40 hours a week in the home. Plus our son was in his prime social years that required our attention. You know, old enough to hang out / sleep over with friends, baseball, movies, mall etc. but unable to get there himself. Walk in the park and I would gladly do it all over again.Work challenges are easy. Lifes challenges, now thats work but it is not like we don't have any input into that.BTW. My wife loves your name. Strength and beauty.

 

[Steel_Magnolia]

Steel,...BTW. My wife loves your name. Strength and beauty.

Thanks for passing that along. And it was nice that you called me Steel. The Magnolia part of me was an accident of genetics. But I feel like I have earned the Steel.