Stoplight's Retirement Story (FERS, Gap in Service, Military Buy-Back)

[Stoplight]

I don't mean to "double post", but here's my latest post in the other Retirement thread I recently started about accessing your Spouse's IRA :

"While looking into this issue a little further, I was surprised to discover the TSP has a discussion on this very topic, and giving access to your TSP...in fact, they even have a "power of attorney" (POA) pdf form you can download, sign and notarize, and return to them ! Never knew that existed, but never THOUGHT of this issue, either !

Our IRA's are with USAA, so I wasn't as surprised to discover they have the same thing ! Makes sense...since USAA has a heavy involvement with current and former military members, they have a whole boatload of info and recommendations on finances, etc...especially the need for a POA if a spouse gets deployed, etc. ! Also applicable for our use...

What makes this sweet is that we can fill out the USAA POA form, sign and notarize, and submit...and that takes care of our dealings with ALL our USAA accounts...IRA's, life insurance, checking (although that's already a joint account), credit card, car insurance, etc etc.

Next step is to research this same "account access" for OPM and my pension, and the Wife's 2 State Public School pensions...

Good thing I'm a retired, lazy procrastinator, and didn't sign up for the Credit Union's legal service plan yet...don't NEED them !

Stoplight..."


Maybe it's overkill, but the subject is NOT one we'd considered, and it scared the crap outta me (and the Wife !!!). I'm happy to find the forms to take care of it !


Stoplight...

 

[Bronco07]

Stoplight,
Just wanted to touch base with you.........many readers within the TSPTalk forum appreciate you sharing your thoughts within the retirement arena.....cheers

 

[Stoplight]

Stoplight,
Just wanted to touch base with you.........many readers within the TSPTalk forum appreciate you sharing your thoughts within the retirement arena.....cheers

Thanks ! Just trying to "pay it forward"

Stoplight...

 

[nasa1974]

Thanks for the information Stoplight. Something else to think about.
Hoping not to touch SS for the wife and myself until we need it. Taking a one time partial withdrawal from TSP but plan not to touch the balance until I'm forced to.
Good luck on the home improvements.

 

[Stoplight]

Thanks for the information Stoplight. Something else to think about.
Hoping not to touch SS for the wife and myself until we need it. Taking a one time partial withdrawal from TSP but plan not to touch the balance until I'm forced to.
Good luck on the home improvements.

Hi, Nasa !

Hope your retirement is treating you well, too !

In case you didn't see it in the other thread, here's ANOTHER one to think about :

OPM doesn't even recognize a power of attorney !!! Your person designated to handle your finances has to contact OPM with your account information to get "full instructions" You know, I'd rather get that all set up in advance, BEFORE I'm (totally !) mentally decrepit, so I might just go ahead and call them to see what those instructions might be...you'd think they'd have more info on their web site...

RE: my "home improvement" ? I'd be okay with needing a new roof, or an A/C unit, or something like that...but Nooooo...I have a yard that's infected with some sort of bug, and there's no known treatment, except to dig up the yard, and put down new sod ! :nuts: Now, I'm NOT a "keep up with the Jones" kinda Guy, but when my house looks worse than the foreclosed-on properties in the neighborhood, ya gotta do SOMETHING !

Take care !


Stoplight...

 

[polarbear]

Stoplight, in answer to your post, hey yeah, my wife is not Fed, she is State! State of Florida!! So she has more of a stress level than we do! So good that she can retire (62) in 2014 is it looks like that's what's needed. Dude, I know having to be careful with money, having to do with funding one of the children. I have come to appreciate Mom and Dad's way with money, they lived thru hard times and they could squeeze the red color out of a penny. More interesting than myself is them and also a friend of mine in San Diego. He retired from the Navy Lab a few years ago, transferred ALL his TSP into Regular IRA and since then has been carefully transferring from it into Roth IRA as his taxes have dictated. Invests as he sees fit. There you have it, people.

Now about Mom and Dad. Mother did not live thru the great Hyperinflation following the First War, she lived on the edge of it countrywise, so it helped that her grandparents were vineyard people and had land and some animals, so they could help them out as needed. Her dad was just a cabinet maker so he did not get many orders during hard times. Farmers do better during a hyperinflation than city people, figure it out. They only have to buy seeds and root stock and farm equipment, and a few replacement animals, etc., otherwise they are set. As for Dad and his Dad, his Dad was a carpenter and stained-glass artisan, worked for a few years for Tiffany's, why Dad was born in the Bronx, the South Bronx of course, where else? Then grew up in Upstate New York near his mother's family, they had a farm, btw. His parents were German immigrants. They are hard-working frugal people and emphasize education. OK, so Dad worked every day of his life from 16 (1922) until retirement at 65 (required, unfortunately, by McG-H) in 1971. He lived thru the Depression, but making $90-$110 per month as things varied. That figures to support his Mother and younger siblings as my 4th grade teacher after we moved from Orlando to Tampa, in Hillsborough County, started teaching in the 30's and made $300 a year back then. That comes to $25 a month, so that compares with Dad's income as to supporting one unmarried woman (my 4th grade teacher in Tampa) versus an entire family. OK. That was not bad at the time, Dad, once during the Depression he walked into an unemployment office to post a notice and saw a banker friend of his in line. His friend said with tears in his eyes, "Fred, don't tell anyone you saw me here." That's about it. You all take care.

 

[Stoplight]

PB,

Yeah, that was whole different generation, wasn't it ?

My Mom couldn't believe that I paid more for a car (a Honda Accord), than she paid for her house...said I was being "irresponsible" !

My, how times have changed...but I appreciate the lessons she taught me and my Brothers...

Stoplight...

 

[Stoplight]

Well, yesterday, in the mail, I received a Letter of Appreciation/"Fair Winds and Following Seas" certificate from the Big Cheese. It made me LOL...since I've been retired for 1 year and 2 months already !!!

At least they spelled my name right...and the checks have been coming in on time !


Stoplight...

 

[nnuut]

Well, yesterday, in the mail, I received a Letter of Appreciation/"Fair Winds and Following Seas" certificate from the Big Cheese. It made me LOL...since I've been retired for 1 year and 2 months already !!!

At least they spelled my name right...and the checks have been coming in on time !


Stoplight...

I don't think I got one of those? Darnit!:worried:

 

[nasa1974]

Well, yesterday, in the mail, I received a Letter of Appreciation/"Fair Winds and Following Seas" certificate from the Big Cheese. It made me LOL...since I've been retired for 1 year and 2 months already !!!

At least they spelled my name right...and the checks have been coming in on time !


Stoplight...

Are you going to frame it and hang it somewhere?

 

[Stoplight]

Are you going to frame it and hang it somewhere?

Nasa,

Probably not...right at the moment, the Cat is laying on it, on my desk

Stoplight...

 

[PessOptimist]

Save it Stoplight. Future generations will appreciate it.

 

[Stoplight]

So it's been a while since I updated my "Retirement Thread" ! Really no need to, since nothing has changed...

Lots of good posts on the Retirement Forum, with other's experiences and questions about the whole retirement process ! With all the crap going on, it sounds like I'm glad I retired when I did...

One new wrinkle for us : to summarize...I rolled over MOST of my TSP balance to a self-directed brokerage IRA, but I left a balance in my TSP, and specified a monthly dollar amount withdrawal that will meet our expenses until the Wife can begin drawing Social Security (next year, age 62), and I can begin withdrawal from MY IRA without penalty (at age 59 1/2)...the TSP withdrawal is not "penalized"...

I received a letter from TSP, saying it's "open season", and I can adjust the amount of my monthly withdrawal for next year. There are also other options, like pulling it all, or recomputing based on my life expectancy...

So now I need to decide what to do...I've made a few bucks on my TSP balance, based on following a premium service, so should I increase the monthly withdrawal (like a COLA ?) to hit my original zero-out date, or let it ride and take a month or two extra payment ? Will have to crunch some numbers before the 12/15 deadline !

We've had some unexpected home improvement expenses this summer, that have depleted our "emergency cash" pot, so I'm leaning towards bumping up the TSP withdrawal...

OTOH, the IRA's are making good money, with the dividend stock decisions I've made...investing very conservative...lots in cash, to survive a downturn, if/when it happens...

We will probably take the Wife's reduced SS (at 62) next year, but may be able to delay mine until later...thus getting a higher monthly check...

Ya gotta play the game !!!


Stoplight...

 

[Stoplight]

Okay...my retirement story update :

Did NOT bump up my TSP withdrawal for 2014...sticking with my original withdrawal amount...my TSP earnings have added to my balance, so we could've bumped it up, to account for inflation, but we're leaving it "as-is", so the effect is, that delays the time before we need to start withdrawals from either the Wife or my IRA...let those pots of money ride, which are making MUCH more than my TSP pot !!!

We had a lot of unexpected expenses last year, which depleted our "emergency fund" a LOT...but we're still in a zone that we're comfortable with, on that balance...We're still meeting expenses with our month-to-month income... Advice to the youngsters : Take the advice about 3 to 6 months income for your emergency fund SERIOUSLY !!!

As an early retiree, not getting a COLA on my pension and supplemental kinda sucks, but the Wife gets a meager one on HER pensions. This year, she can pick up SS at age 62, and we'll go with that...should allow us to begin restocking the "emergency fund", as well as meet expenses, while doing some of the other things we want to do in retirement !

Just a side note : I recently hooked up with an old high school Friend...he's now a Lawyer, making big money, but working like a dog...he said : "I can't believe you are retired already !" I said : "Yeah, but I'm broke, compared to you...it's a "life choice" one makes...and I've NEVER looked back !!!"

Some nitty-gritty comments : Thanks, Scout, for the kudos in Nasa's retirement thread. I got my snail mail 1099 from OPM today. Still waiting for other paperwork before I can actually do my taxes ! I HATE loaning the Feds money, and I've never understood why people are happy to get $2,000 back as a tax refund !!! My goal is to owe them $1...missed it by a little this year, but still avoided any penalty !

Good investing to all y'all !!!

Stoplight...

 

[Stoplight]

Hey, Viewers !

So I think I have all my paperwork now for doing my taxes...some curve balls thrown my way, but it's my fault...it's all good...

Here's the weird thing that's giving us mental fits ! DID'NT expect this !!! :nuts: The next leg of our "Retirement Plan" was for the Wife to pull Social Security at age 62...so tonight, we applied for it...we can use the bucks !

HOWEVER...something just weird about it...maybe it's just TOO DEPRESSING to be drawing SS !!! Objectively, it's the right thing for us...but Dang !!! Are we THAT old ??? Any of you other retirees get that same feeling ??

I'll report on our experience with SS, like I have with OPM and my Fed retirement...just kinda creeping us out !


Stoplight...

 

[PessOptimist]

Hey, Viewers !

So I think I have all my paperwork now for doing my taxes...some curve balls thrown my way, but it's my fault...it's all good...

Here's the weird thing that's giving us mental fits ! DID'NT expect this !!! :nuts: The next leg of our "Retirement Plan" was for the Wife to pull Social Security at age 62...so tonight, we applied for it...we can use the bucks !

HOWEVER...something just weird about it...maybe it's just TOO DEPRESSING to be drawing SS !!! Objectively, it's the right thing for us...but Dang !!! Are we THAT old ??? Any of you other retirees get that same feeling ??

I'll report on our experience with SS, like I have with OPM and my Fed retirement...just kinda creeping us out !


Stoplight...

You bet Stoplight. It is creeping me out also. So many changes. And I am feeling so old. And I am not retired yet.

I will be 62 next month. I plan to work until I'm 65.5 to get 20 years fed time and the 1.1% FERS multiplier. Far too late to buy back the military time. Wife doesn't turn 62 until after I am planning on retiring so that option doesn't apply.

When I turn 65 TriCare (military medical plan which IS NOT free) throws me out to MediCare. No one can tell me if I still see the same doctors or have to search for new ones. Depends on policy the day I turn 65.

Good luck and keep us posted.

PO

 

[Stoplight]

Glad someone else is creeped out, like us !!!

Will do, PO !


Stoplight...

 

[nasa1974]

Hey, Viewers !

So I think I have all my paperwork now for doing my taxes...some curve balls thrown my way, but it's my fault...it's all good...

Here's the weird thing that's giving us mental fits ! DID'NT expect this !!! :nuts: The next leg of our "Retirement Plan" was for the Wife to pull Social Security at age 62...so tonight, we applied for it...we can use the bucks !

HOWEVER...something just weird about it...maybe it's just TOO DEPRESSING to be drawing SS !!! Objectively, it's the right thing for us...but Dang !!! Are we THAT old ??? Any of you other retirees get that same feeling ??

I'll report on our experience with SS, like I have with OPM and my Fed retirement...just kinda creeping us out !


Stoplight...

I'm not sure about the feeling old part but it does feel creepy looking into SS. I felt old when I got my Ohio Golden Buckeye card at 60. I will be 62 in May and my wife will be 62 next year. Looked into SS for me and her. I wouldn't get much now at 62 for two reasons; 1) I have my points but haven't paid much into SS because I was CSRS and 2) I will lose some of my SS because of my government pension. So I will be better off waiting until I turn 66 at least to draw SS. I will investigate further as my wife gets closer to 62 to see if we need to have her start drawing SS. The getting old part is when we have to apply for Medicare. Stoplight good luck.

 

[Stoplight]

I'm not sure about the feeling old part but it does feel creepy looking into SS. I felt old when I got my Ohio Golden Buckeye card at 60. I will be 62 in May and my wife will be 62 next year. Looked into SS for me and her. I wouldn't get much now at 62 for two reasons; 1) I have my points but haven't paid much into SS because I was CSRS and 2) I will lose some of my SS because of my government pension. So I will be better off waiting until I turn 66 at least to draw SS. I will investigate further as my wife gets closer to 62 to see if we need to have her start drawing SS. The getting old part is when we have to apply for Medicare. Stoplight good luck.

Thanks, Nasa ! I FORGOT about that part, where you were CSRS and not paying into SS, while I was FERS, and paying in since Day 1...including my military time ! That's part of us FERS people's "3-leg Retirement Plan" that was touted when FERS was enacted...pension, TSP, and SS...Your "retirement spreadsheet" calcs must be WAY more complicated than mine !

So...nothing new to report on the Wife's SS app...haven't checked their web page, though...she should get a check in July, I guess...

Submitted my taxes today...thought I would owe a few bucks, but getting a chunk back, but not too big of a chunk ! Dang...I should've filed earlier ! I love the Tax Act website...a little weak in some areas and info, but recommended !

Stoplight...

 

[Stoplight]

Greetings !

So today, we received the official snail mail "Notice of Award" letter on the Wife's SS payment Actually, I had checked the SS web page this weekend, and saw that she had been "approved" , and all the details (amount, date) were there...ALL gross amounts, before any taxes taken out, though...we need to find out how to tell them how much to take out for Fed taxes !

FYI...The amount was exactly what her "Earnings Report" said it would be...

NOTE OF CAUTION !!!

Well, I'm a dumba@#...so it's my fault !!! The on-line app asked "When do you want your SS to start ?" (or words to that effect). I interpreted that as..."When do you want your first SS check ?", so I said 7/2014 (1 month after the Wife's 62nd birthday). Well, like any paycheck or pension, they pay you at the END of the pay period !!! Thus, we won't get our first SS check until the end of August, rather than the end of July, like I thought ! :nuts: Ah well...not worth the hassle of trying to change it now... I just hope the Wife doesn't die anytime soon...that would make for an awful LOT of additional paperwork !


Stoplight...