A couple of new threads about retirement strategies now which are very informative. I chose to put this in my retirement story because…
The OPM SOL site shows my 4/1 statement with the amount including taxes, FEHP and the two FEDVIP allotments. The amount is NOT what the booklet I was sent states. I remain underwhelmed by this sacred booklet.
FEDVIP has been sending me letters about having to pay premiums in the interim before OPM starts paying them. So far, I got only one bill, for the vision plan which I paid. I am sure there is a dental plan bill coming.
Now that the OPM amount has been finalized, it’s time to start planning for income after the AL lump sum runs out. That happens in July and I gotta keep that cash flow coming to keep to the plan of having take home equal what it was when employed.
As mentioned before in one of the threads, the decision is taking SS then at 67y 3m or withdrawing from TSP and waiting until 70 for SS.
Another wrinkle to the story is that an insurance agent for one on my ancient whole life policies recently was handed my policy. He has reached out to me and I have consented to talk to him about financial planning. He has brought one of the company’s financial planners in to our weekly conversations and I suspect there may be some OJT going on here. They have made some good suggestions but have yet to get to the bottom line, what are they going to try to sell me? When we discussed TSP (which as usual they know nothing about) and the G fund paying 2.75% right now there was a lot of silence followed by “we will run some scenarios and talk next week”. A hint came this week when the financial planner suggested that I could turn my TSP balance in to a million dollars by age 70. Roughly between 16 and 21% per year. Not impossible but it has to have some risk.
Based on my own thoughts and one of their suggestions, comes yet another potential plan. The SO really wants to apply for SS by August. She is a little confused about her SS amount, mainly due to a friend’s statements about her own payments, based on a deceased husband. I have determined my SO’s PIA and my spousal benefits based on that. If she draws SS in August and I apply and restrict my payment to spousal benefit, my own delayed retirement credits will continue to accrue until I reach age 70. Then I apply for my own benefits. This is based on the below from the SS web site and not to be confused with the old “apply and suspend” rule. This applies to me as I turned 62 in May 2014. FRA was May 2018. From the SS web site.
Can I restrict my application for benefits and apply only for spouse’s benefits and delay filing for my own retirement benefit in order to earn delayed retirement credits?
If you turn 62 before January 2, 2016, deemed filing rules will not apply if you file at FRA or later. This means that you may file for either your spouse’s benefit or your retirement benefit without being required or “deemed” to file for the other. In your case, you may also restrict your application to apply only for spouse’s benefits and delay filing for your own retirement in order to earn delayed retirement credits. However, if you turn age 62 on or after January 2, 2016, you are required or “deemed” to file for both your own retirement and for any benefits you are due as a spouse, no matter what age you are.
If we do this, the “full withdrawal based on monthly payments” from TSP to keep up desired cash flow will deplete my TSP at age 88. Based on keeping it in the G fund and planning on 2% return. This from a TSP.gov calculator.
At age 70 I will apply for my own SS benefit and reduce the TSP monthly payment accordingly. At 70[SUP]1/2[/SUP] I must take MRD from TSP which based on the projected amount left in TSP using one of TSP.gov’s calculators will be about $1600 per month. This changes upward as I age. Changing the monthly payment to MRD at 70 projects the TSP to last well in to my 90s. The SS amount will be somewhere between $400 and $500 per month more based on the delayed retirement credits and possible SS COLAs.
I suppose the question is what will quality of life be like at 70 for me and 67 for SO?
Decisions, decisions. Decisions.
How is your retirement story going?
PO
