maxdouttsp
New member
I am just a guy with a spreadsheet. I am open to suggestion from all of you that have achieved the financial independence I desire. I would like to set a goal, perhaps I am setting the bar too high, but then at least I will have options that are of my own choosing, not based on my bank account. Without having a discussion on what I would do with myself, I would like to retire at 57.
I started federal employment in September of 2008. My birthday is in October. I am 39 and my wife is 43 and works outside the home (she will get a social security benefit). My wife and I are non-smokers in good health – I plan for a long retirement. I was looking at the requirements for retirement under the FERS plan. My minimum retirement age is 57. It appears I would qualify for an immediate retirement at 57 and the benefits would start at age 60. On my 57 birthday, I would have 21 years of service. Is this a smart move if my other finances are in order or am I somehow cheating myself out of tens of thousands of dollars of benefits by not working a few months longer?
I visited the social security website and estimated the future dollars of our benefits at 62 and then plugged in a COLA at 2.92%. My wife would start at $10,900 and I would start at $29,700 if you can believe the estimates. I did not include a survivor benefit for my wife.
I did not find a calculator that would estimate my pension 20 years out so I guestimated future dollars of $27,800. I plugged in a COLA of 2.00%. I did not include a survivor benefit for my wife. At first glance, it appears I would qualify for the FERS annuity supplement that would pay out from age 57 to 62 ($14,500?).
We both have ROTH IRAs and plan to put the max in each year and will do catch up contributions when allowed. I plan to put the max in each year to the TSP and will do catch up contributions when allowed. I have not decided if I will continue with the traditional TSP or switch to the ROTH option for future contributions.
We had $275,000 saved at the end of 2011 in the TSP, ROTHs, brokerage acct, checking, etc. Our savings took a hit just like everyone else in 94, 02, and 08. The rest of our savings was equity in two homes that has evaporated in the past few years. We have no debt outside a mortgage. I estimated a portfolio return of 8% from 2010 to 2019; 7.5% from 2020-2029; 7% from 2030-2039; 6.5% from 2040-2049; 6% from 2050-2059; 5.5% thereafter.
We should have about 2-3 million at age 57. The compounding interest really starts to pay off when I am 57-60 years. I plugged in a current dollar income needed to maintain my lifestyle and applied a consumer price index/inflation at 2.88%. There should be enough money for travel, hobbies, cars, taxes, medical needs, insurance, etc. for a lifestyle of $100,000 a year income in today’s dollars.
I was trying to do all of this retirement planning on the back of my employment and anything my wife earns increases our current standard of living or becomes more to save if that year’s circumstances allow/force it to stay on plan. I do not plan on any inheritance from my wife’s side or mine. We live a simple lifestyle yet do not deprive ourselves of a normal standard of living.
What would you do different from now to age 57 (besides save more!)? All I get is odd looks and unreturned calls from the retirement/financial services companies I have approached/interviewed for advice after I show them my spreadsheet.
I started federal employment in September of 2008. My birthday is in October. I am 39 and my wife is 43 and works outside the home (she will get a social security benefit). My wife and I are non-smokers in good health – I plan for a long retirement. I was looking at the requirements for retirement under the FERS plan. My minimum retirement age is 57. It appears I would qualify for an immediate retirement at 57 and the benefits would start at age 60. On my 57 birthday, I would have 21 years of service. Is this a smart move if my other finances are in order or am I somehow cheating myself out of tens of thousands of dollars of benefits by not working a few months longer?
I visited the social security website and estimated the future dollars of our benefits at 62 and then plugged in a COLA at 2.92%. My wife would start at $10,900 and I would start at $29,700 if you can believe the estimates. I did not include a survivor benefit for my wife.
I did not find a calculator that would estimate my pension 20 years out so I guestimated future dollars of $27,800. I plugged in a COLA of 2.00%. I did not include a survivor benefit for my wife. At first glance, it appears I would qualify for the FERS annuity supplement that would pay out from age 57 to 62 ($14,500?).
We both have ROTH IRAs and plan to put the max in each year and will do catch up contributions when allowed. I plan to put the max in each year to the TSP and will do catch up contributions when allowed. I have not decided if I will continue with the traditional TSP or switch to the ROTH option for future contributions.
We had $275,000 saved at the end of 2011 in the TSP, ROTHs, brokerage acct, checking, etc. Our savings took a hit just like everyone else in 94, 02, and 08. The rest of our savings was equity in two homes that has evaporated in the past few years. We have no debt outside a mortgage. I estimated a portfolio return of 8% from 2010 to 2019; 7.5% from 2020-2029; 7% from 2030-2039; 6.5% from 2040-2049; 6% from 2050-2059; 5.5% thereafter.
We should have about 2-3 million at age 57. The compounding interest really starts to pay off when I am 57-60 years. I plugged in a current dollar income needed to maintain my lifestyle and applied a consumer price index/inflation at 2.88%. There should be enough money for travel, hobbies, cars, taxes, medical needs, insurance, etc. for a lifestyle of $100,000 a year income in today’s dollars.
I was trying to do all of this retirement planning on the back of my employment and anything my wife earns increases our current standard of living or becomes more to save if that year’s circumstances allow/force it to stay on plan. I do not plan on any inheritance from my wife’s side or mine. We live a simple lifestyle yet do not deprive ourselves of a normal standard of living.
What would you do different from now to age 57 (besides save more!)? All I get is odd looks and unreturned calls from the retirement/financial services companies I have approached/interviewed for advice after I show them my spreadsheet.
. To accomplish this, one thing I know I need to build is a separate taxable brokerage to account as a "bridge" to provide income before I get to draw on my retirement accounts. 
