Retire at age 55?

[vol46]

Thanks everyone, very informative thread.
Seems like most TSPers are planning on leaving something for their heirs.
I'm of the mindset of using it all up by the time I die. So to do this, I would have to use the life expectancy chart and divide the balance by the number of years expected to live.
The percentage earned in the G fund should cover the cost of inflation.
Any feedback? Thanks, Vol46

 

[pyriel]

Thanks everyone, very informative thread.
Seems like most TSPers are planning on leaving something for their heirs.
I'm of the mindset of using it all up by the time I die. So to do this, I would have to use the life expectancy chart and divide the balance by the number of years expected to live.
The percentage earned in the G fund should cover the cost of inflation.
Any feedback? Thanks, Vol46

Or if you plan on making it automatic. Just throw it in one of the L funds. You should get a better return just leaving it in the G fund.;-)
Just a thought...

 

[Jill Carver]

I'm eligible for retirement at age 52, but I will "PROBABLY" keep working until age 55. I want to start using my TSP as soon as I retire and am determined not to pay the penalty! I just have to decide if I want to start my travels around the world in 6 years or 9 years. Decisions, decisions!

 

[ChemEng]

Thanks everyone, very informative thread.
Seems like most TSPers are planning on leaving something for their heirs.
I'm of the mindset of using it all up by the time I die. So to do this, I would have to use the life expectancy chart and divide the balance by the number of years expected to live.
The percentage earned in the G fund should cover the cost of inflation.
Any feedback? Thanks, Vol46

My goal really isnt too leave something for my heirs as much as it is to not put me in a situation where I am betting against myself. Good luck in whatever choice you make!

 

[clester]

ATCSAT64,
I am 46 and also ATC (eligible may '09) and have done substantial research on ATC retirement. Its probably better than you think. 39% FERS plus SSS plus TSP adds up. TSP has lots of good options. Look into transfering TSP int an IRA the using the 72t rule. I agree on working conditions in ATC. I am really lookin forward to getting out.

clester

 

[DDT]

Just read all your comments... I use to love to come to work - with all the changes (mostly for the bad), terrible management, and generally not enjoying what I do anymore, I can't wait to retire - 2 years, 9 months... AND COUNTING.
Up until about 6-8 months ago, I thought I would be young forever, but when your in a situation you are not happy in, it takes a toll on every part of your life and I personnally have aged in body, mind, soul, and attitude in a very short time... SO THOSE OF YOU THAT CAN RETIRE EARLY AND STILL MAKE ENDS MEET - ENJOY YOUR LIFE WHILE YOU CAN - IT GETS VERY SHORT VERY FAST! HAPPY HOLIDAYS!!!

 

[SkyPilot]

Several of my co-workers and I often muse about how many Saturdays we may have left in life. This kind of puts into perspective our discussion regarding how high our quality of life must be and how much longer we will likely have to work to achieve that goal.

Personally, the older I get, the more I understand that I can likely do with less money in order to be able to retire earlier and redeem the time pursuing more altruistic activities.

If your work situation is exacting too great of a personal toll, then exit at the earliest opportunity. However, you must, MUST, have a plan in place for the next phase of your life. Otherwise, wherever you go, there you are.

Just rambling really......

Best of luck, and blessings on one and all

 

[Brett]

SkyPilot, you are so right! The moment you are eligible to retire, but don't, (for whatever reason) you are paying for your future security with loss of retirement income you could be receiving, but aren’t and the intangible of how many retired days you will live to enjoy. If you need more time to fatten your nest egg, great, but don't forget what price you are paying for it.

 

[atcsat64]

Just read all your comments... I use to love to come to work - with all the changes (mostly for the bad), terrible management, and generally not enjoying what I do anymore, I can't wait to retire - 2 years, 9 months... AND COUNTING.
Up until about 6-8 months ago, I thought I would be young forever, but when your in a situation you are not happy in, it takes a toll on every part of your life and I personnally have aged in body, mind, soul, and attitude in a very short time...

Wow, sounds familiar, I even had pride in the job I did...

Several of my co-workers and I often muse about how many Saturdays we may have left in life. This kind of puts into perspective our discussion regarding how high our quality of life must be and how much longer we will likely have to work to achieve that goal.

A good new way of looking at it .. I currently work saturdays so counting those that will be just for me and mine soon will be important....

SkyPilot, you are so right! The moment you are eligible to retire, but don't, (for whatever reason) you are paying for your future security with loss of retirement income you could be receiving, but aren’t and the intangible of how many retired days you will live to enjoy. If you need more time to fatten your nest egg, great, but don't forget what price you are paying for it.

I've always considered myself an optimist, and am really struggling to stay an optimist, so here is an observation: some co-workers that were frustrated and difficult to work with who have since become eligible for retirement seem to be rejuvenated and sometimes even fun to work with. I hope that work conditions do not force me to retire at MRA so that I can
have a little more time to fatten our nest egg. Plan for the worst, hope for the best.

 

[ATCJeff]

Wow, sounds familiar, I even had pride in the job I did...

AMEN Brother.....

 

[tspgo_com]

Retire at age 54?

Excellent thread. Can someone help me answer these questions?

If someone is elligible to retire at age 54 after 20 years of service (LEO-FERS), will he be penalized the 10% if he retires at 54 but leaves his TSP untouched until he becomes 55?.

If so, when he turns 55 he starts withdrawing 10% per year out his TSP, how long will the 10% penalty last?

Does he have to retire after 55 to avoid the penalty or does he have to wait until he becomes 55 to start making withdrawls?

see this link: http://www.tspgo.com/tspgoretirement.htm

Thank you

 

[Wheels]

Re: Retire at age 54?

If someone is elligible to retire at age 54 after 20 years of service (LEO-FERS), will he be penalized the 10% if he retires at 54 but leaves his TSP untouched until he becomes 55?.

If so, when he turns 55 he starts withdrawing 10% per year out his TSP, how long will the 10% penalty last?

Does he have to retire after 55 to avoid the penalty or does he have to wait until he becomes 55 to start making withdrawls?

If you retire at 54, leaving your money in TSP until you are 55 will NOT allow you to avoid the penalty. If you were to start withdrawing money, other than via life expectancy tables, you will be penalized until you are 59 1/2.

Keep in mind the exact wording of the exception, "...separate from service during or after the year you reach age 55". This means that if you have a late birthday, say October or November, then you can retire in January of that year and begin withdrawals immediately and they will not be penalized. You've retired during the year you reach age 55, even though your actual age is 54 and a couple of months. (Also keep in mind that in FERS, there are disadvantages to retiring in January, so you have to weigh which advantages and disadvantages apply to you).

The link you posted is factually correct, although some of the assumptions and scenarios are a little fuzzy.

 

[tspgo_com]

Thank you, Wheels. Much appreciated.

 

[James48843]

11 years, 8 months and 17 days.


FAA. Can you tell?

 

[James48843]

Of course, I don't get to retire at age 55. My MRA is 56, although I'll probably be 59 when I can afford to, unless the market does much better between now and then.

 

[GUCHI]

i'm csrs and was wondering about when i retire at 55 will i be able to draw on my tsp at that time also? i heard i would have to wait till 591\2 ??? can anyone help me understand this ???

 

[Wheels]

i'm csrs and was wondering about when i retire at 55 will i be able to draw on my tsp at that time also? i heard i would have to wait till 591\2 ??? can anyone help me understand this ???

Fers or Csrs makes no difference. If you retire during the year that you turn 55 (or later), you can withdraw funds from your TSP account without penalty.

Once again, from the TSP website:

Additional 10% penalty tax if you are under age 59½

If you receive a TSP distribution before you reach age
59½, in addition to the regular income tax, you may
have to pay an early withdrawal penalty tax equal to
10% of any portion of the distribution not transferred
or rolled over. The additional 10% tax generally does
not apply to payments that are:
• Paid after you separate from service during or
after the year you reach age 55;
• Made because you are totally and permanently
disabled;*
• Paid as substantially equal payments over your
life expectancy;
• Annuity payments;
• Ordered by a domestic relations court;
• Made because of death; or
• Made in a year you have deductible medical expenses
that exceed 7.5% of your adjusted gross
income.*


Crystal clear.

 

[GUCHI]

thanks wheels

guchi

 

[clester]

"• Paid as substantially equal payments over your
life expectancy;"

Thats the key. Think IRS rule 72t

 

[Wheels]

Here's a question. I am in a wheelchair. Will I need to file for and receive SS disability payments to be considerd totally and permanently disabled? What's the criteria? Can I go from working one day to totally and permanently disabled the next? I got the permanently part covered but I don't know about the totally. Any ideas?