Maricar19 Account Talk

[Maricar19]

You retired at 62 and realized you needed an additional $1500 monthly to live comfortably.
Will you use your TSP to augment your retirement income until you reach FRA or will you start claiming you Social Security benefits and not use your TSP?

Note:TSP balance $250,000; SS at 62 is $1500 and SS at FRA is $2200.

Choices:

1. Use TSP until FRA
2. Use Social Security benefits at 62 and delay tapping your TSP

 

[uscfanhawaii]

You retired at 62 and realized you needed an additional $1500 monthly to live comfortably.
Will you use your TSP to augment your retirement income until you reach FRA or will you start claiming you Social Security benefits and not use your TSP?

Note:TSP balance $250,000; SS at 62 is $1500 and SS at FRA is $2200.

Choices:

1. Use TSP until FRA
2. Use Social Security benefits at 62 and delay tapping your TSP

Sorry, I have to go with Choice 3. Go back to work until FRA!!

TSP is too low, and $1500/mo is too low. :sad6:

 

[Maricar19]

Sorry, I have to go with Choice 3. Go back to work until FRA!!

TSP is too low, and $1500/mo is too low. :sad6:

You are so smart USCFan.. I always look forward to your responses..you always find a loophole
I should have added another parameter - no option to go back to work! LOL

Thanks USCFanH.., but I still would like to see which one you would have chosen if you have no option of continuing to work.
Remember, no other options available, but the two choices above.

By the way, congratulations on your 500 posts..

 

[OBXTrader]

Our option #3 is tapping our taxable accounts first which are spread between property, savings, CD ladders and Mutual Funds. Then draw from Social Security and keep the IRA/TSP/401k deferred until age 70.

You are so smart USCFan.. I always look forward to your responses..you always find a loophole
I should have added another parameter - no option to go back to work! LOL

Thanks USCFanH.., but I still would like to see which one you would have chosen if you have no option of continuing to work.
Remember, no other options available, but the two choices above.

By the way, congratulations on your 500 posts..

 

[Maricar19]

Our option #3 is tapping our taxable accounts first which are spread between property, savings, CD ladders and Mutual Funds. Then draw from Social Security and keep the IRA/TSP/401k deferred until age 70.

OBXT, you're so like USCF, always thinking outside the box.
However, the parameters of the situation is stated as- only 2 options available, TSP and SS - no other savings, no CDs, no option to continue to work. No Option 3...and option not to choose either will cause you to starve to death.

 

[Maricar19]

https://myretirementplan.wellsfargo.com/mrp/plan/calculator_modify?subform=income

 

[burrocrat]

OBXT, you're so like USCF, always thinking outside the box.
However, the parameters of the situation is stated as- only 2 options available, TSP and SS - no other savings, no CDs, no option to continue to work. No Option 3...and option not to choose either will cause you to starve to death.

those are b.s. parameters. any idiot in their right mind would find other work, even if it is just darning socks from their wheelchair. or else if truly no work options they would just sign up for ssi now for max can get and spend tsp down to zero before they died. i don't think that scenario you present with only two options is very realistic. worried retirees do not think about only two hypothetical options, they think in units of cans of alpo, and take large purses to the buffet and steal ketchup packets and saltines.

 

[DreamboatAnnie]

Hum.. Is this a trick question? :smile:

Well either way...I go with option 2.
If you retired at 62, you must be referring to SS full retirement age.
With TSP you would continue to grow it, If you can earn at least 7.2 % a year while invested you would gain $18k a year in your TSP, which is equal to your monthly shortfall of $1500. However you must then consider whether SS is a fixed amount that does not adjust for inflation so you might need to earn a little more each year in TSP to make that up as well. Not sure of the rule on that.

Also, you must then consider how much extra you would have gotten in SS if you retired at the normal SS full benefit age, and compare that to the additional amount you need to earn in TSP every year after reaching SS full retirement age as that would be a permanent loss each year after you reach your SS full retirement age. Right?


To Be worth it you would need to earn that much more in your TSP until 70.5,but it would need to cover your life expectancy beyond 70. So this further increases the percent you must earn in TSP up to age 70 to make up for the extra money you need to live on thereafter throughout your life expectancy, to include your 250k and any extra you earned. If you live beyond that, it's best that you have been very good to a child, family member or awesome friend!!!


Also, You could take the one-time single lump sum from your TSP, but all taxable in one year, and it would not be earning you anything. So again you must compare what the lost earnings would be and tax effect. Hum.... Uggghhh right??

 

[uscfanhawaii]

t...the parameters of the situation is stated as- only 2 options available, TSP and SS - no other savings, no CDs, no option to continue to work. No Option 3...and option not to choose either will cause you to starve to death.

So there IS an option 3....starve to death! Not sure if that isn't the only option with such low resources. Curious why the severe limitations?

Anyway, I guess I would have to go along with DBA...Option 2, take the SS and keep building the TSP. But this also depends on other variables that were not, or could not, be specified. Is the reason work is not an option because of medical reasons? Will TSP be invested in equities? Will the market cooperate with future plans? Etc.

Then again...what do I know? I only got a 66% on the da*n retirement quiz!! at:

 

[Maricar19]

those are b.s. parameters. any idiot in their right mind would find other work, even if it is just darning socks from their wheelchair. or else if truly no work options they would just sign up for ssi now for max can get and spend tsp down to zero before they died. i don't think that scenario you present with only two options is very realistic. worried retirees do not think about only two hypothetical options, they think in units of cans of alpo, and take large purses to the buffet and steal ketchup packets and saltines.

Burro, they are not b.s. parameters, except the "starve to death" option, which is an exaggeration. LOL

 

[Maricar19]

I guess at 430 am, nothing much exciting going on in this website.
but I thought the other side of the world is just getting ready to sleep? Or awake?
Guam is ahead of us - any tsptalkers from Guam?

 

[bmcar]

I still have 50% exposure. I almost moved to G yesterday, but today if the S funds go up,I will definitely move to G. I haven't met my monthly goal of 1% a month

 

[Lakebound]

I still have 50% exposure. I almost moved to G yesterday, but today if the S funds go up,I will definitely move to G. I haven't met my monthly goal of 1% a month

I'm confused. If today, S-Fund goes up then you are going to IFT to G fund? Are you locking in earnings?

BTW, Welcome.

 

[bmcar]

I'm confused. If today, S-Fund goes up then you are going to IFT to G fund? Are you locking in earnings?

BTW, Welcome.

Yes, Frank. I am locking in whatever little amount I have gained this Qtr. Although the S Fund fid not go up today, I still did an IFT to G. Next month is another rollercoaster as Maricar19 calls it.
Congratulations for being a top three on the AT.

 

[Stoplight]

MC,

Obviously, you Guys are putting a lot of thought into your upcoming retirement “Plan” ! That’s a good thing ! Your various posts on your “situation” have got me thinking...

A few comments/points stand out, in my mind :

- You now have your Agency’s estimate of your bennies...use that for all your future planning !

- Have you looked closely at what an estimate of your “routine” monthly expenses will be, after you retire ? They DO change ! ...and don’t forget about taxes !!! I assume your numbers are “gross” ? I’m not talking about the world tour...heck...that’s what “retirement” is for !

- Downsizing house and relocating is probably a great move ! If you have a lot of equity in the “old” house, that’ll be a good chunk of change ! ...but what’s wrong with hurricanes ??? :smile: There’s a lot to be said about relocating to FL.

- What about your “estate planning” ? None of us want to outlive our money...OTOH, if you don’t live that long, where do you want the left-over money to go ??? FERS annuity and SS can help out the surviving spouse, but where will your TSP balance go when you're BOTH gone ? This is an issue that the Wife and I are struggling with right now...

Soooo....my vote is for Option #2 : Take the SS money and run, at age 62 (IF you need it all !) Lot's of other variables, though, as USCFH noted !

Just my 2 cents !!!


Stoplight...

 

[DreamboatAnnie]

:smile:

MC,

Obviously, you Guys are putting a lot of thought into your upcoming retirement “Plan” ! That’s a good thing ! Your various posts on your “situation” have got me thinking...

A few comments/points stand out, in my mind :

- You now have your Agency’s estimate of your bennies...use that for all your future planning !

- Have you looked closely at what an estimate of your “routine” monthly expenses will be, after you retire ? They DO change ! ...and don’t forget about taxes !!! I assume your numbers are “gross” ? I’m not talking about the world tour...heck...that’s what “retirement” is for !

- Downsizing house and relocating is probably a great move ! If you have a lot of equity in the “old” house, that’ll be a good chunk of change ! ...but what’s wrong with hurricanes ??? :smile: There’s a lot to be said about relocating to FL.

- What about your “estate planning” ? None of us want to outlive our money...OTOH, if you don’t live that long, where do you want the left-over money to go ??? FERS annuity and SS can help out the surviving spouse, but where will your TSP balance go when you're BOTH gone ? This is an issue that the Wife and I are struggling with right now...

Soooo....my vote is for Option #2 : Take the SS money and run, at age 62 (IF you need it all !) Lot's of other variables, though, as USCFH noted !

Just my 2 cents !!!


Stoplight...

Hi Stoplight, I definitely agree with you. I have been thinking about downsizing the house and eventually moving to a County with lower property taxes. Makes a lot of sense. No need to keep paying high taxes and staying in a neighborhood with great schools--- the tax costs are definitely a premium that would be nicely spent on traveling and doing fun stuff! :smile:

Oh I can think of lots of benefactors for your left over money! lol Actually, I immediately thought of your niece. But I am sure there are several relative s that would appreciate some help once its all said and done. Take care!... and best wishes on your retirement and your investments!!! :smile: DBAnnie

P.S. Live long and prosper!

 

[Maricar19]

Continuation of thread #20 -My path to Retirement

Just received my annuity estimate and that of spouse. Not getting much after 30+years of service.

If you are reading this, please understand that I am not bragging (there's not much to brag), just felt the need to share in case somebody has some suggestions regarding the mix.

From age of retirement to age 60: Total $7300
Combined annuity: $3300/month
Conservative combined SRS Estimate: $1500
Combined TSP monthly withdrawal: $2500

From age 60 to 62: Total $7300
Annuity: $3300+
SRS: $1500
TSP: $1400
Military pension:$1100

Age 62 - 66: Total $7500
Annuity: $3300+
SS: $1300 (only one us will claim), and then the other one will claim the SS at 66($2289)
TSP: $1800
Military pension:$1100+

Or
Age 62 and up: Total $7900
Annuity: $3300+
SS: $2800(both claiming at 62)
TSP: $700
Military pension:$1100

I will update this once I have the time to type the results from TSP calculator.

if I die before spouse, spouse will get my partial FERS annuity, but how does it work with SS benefits?
scenario1. I claim at 62 and spouse defers SS and I die before 66 or any age
scenario2. Both claim at 62 and of us die before 66 or any age

 

[Maricar19]

MC,

Obviously, you Guys are putting a lot of thought into your upcoming retirement “Plan” ! That’s a good thing ! Your various posts on your “situation” have got me thinking...

A few comments/points stand out, in my mind :

- You now have your Agency’s estimate of your bennies...use that for all your future planning !

- Have you looked closely at what an estimate of your “routine” monthly expenses will be, after you retire ? They DO change ! ...and don’t forget about taxes !!! I assume your numbers are “gross” ? I’m not talking about the world tour...heck...that’s what “retirement” is for !

- Downsizing house and relocating is probably a great move ! If you have a lot of equity in the “old” house, that’ll be a good chunk of change ! ...but what’s wrong with hurricanes ??? :smile: There’s a lot to be said about relocating to FL.

- What about your “estate planning” ? None of us want to outlive our money...OTOH, if you don’t live that long, where do you want the left-over money to go ??? FERS annuity and SS can help out the surviving spouse, but where will your TSP balance go when you're BOTH gone ? This is an issue that the Wife and I are struggling with right now...

Soooo....my vote is for Option #2 : Take the SS money and run, at age 62 (IF you need it all !) Lot's of other variables, though, as USCFH noted !

Just my 2 cents !!!


Stoplight...

You are on the money, SL. I should start recording our daily/monthly expenses for the next 6-8 months before we really submit our retirement papers. We only see the obvious monthly bills, like cable, cell phone, utilities, car insurance, etc. i guess we never paid attention to the $5 here and $10 there. And my vet bills...

 

[jpcavin]

Someone has been digging into my past....
#1

 

[Maricar19]

I still have 50% exposure. I almost moved to G yesterday, but today if the S funds go up,I will definitely move to G. I haven't met my monthly goal of 1% a month

You lucked out...the S fund went scuba diving today..