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

[Scout333]

Hello Stop, Congrats on the raise (wife's SS)! I made a similar error by making my start date 1-2-2014 which was my CSRS retirement date. Quick question- when you got your finalized retirement amount how long was it before you got the details (booklet, I guess will have the details). Also, on the catch-up payment when did you get the explanation on how it was computed? I got a random deposit in my checking account, direct deposit, but I'm not sure if the amount is correct.

 

[Stoplight]

Hello Stop, Congrats on the raise (wife's SS)! I made a similar error by making my start date 1-2-2014 which was my CSRS retirement date. Quick question- when you got your finalized retirement amount how long was it before you got the details (booklet, I guess will have the details). Also, on the catch-up payment when did you get the explanation on how it was computed? I got a random deposit in my checking account, direct deposit, but I'm not sure if the amount is correct.

Thanks, Scout !!!

Don't know what we'll need to have withheld from her SS payment to meet next year's taxes, but right now, her SS is comparable to her main Teacher pension...that kinda surprises me !!!

To be honest with you, I don't remember much about MY SS supplement calc details ! Let me go back in my paperwork, and see what I can tell ya !!! Off the top of my head, I don't recall a lot of detail re: the SS supplement I'm drawing...... Stay tuned !!!

Stoplight...

 

[Stoplight]

Scout,

I DOUBLE apologize ! I never did find the paperwork (it's around here, somewhere :nuts: ) Looked through my electronic files, but didn't find anything...

If I remember correctly...the OPM booklet explains the AMOUNTS you're getting, but really doesn't go in to detail about the "How" it was calculated.

Also, after re-reading your post, I realized I was off base...I thought you were asking about the SS Supplement that I get as a FERS Guy, NOT the catch-up deposit that makes you "whole" after the OPM interim payments, and the completion of the retirement process. I don't remember getting a lot of detail on THAT amount, either...but since I didn't fly off the handle, I assume it was in-line with my expectations ! Maybe Nasa, as a CSRS Guy, can provide more info about his experience...

...or maybe you've already received all the info you were wondering about ! Again...sorry...


Stoplight...

 

[Stoplight]

Greetings, All !

So today, I did a "first cut" at our taxes for 2014....not sure how to handle the Wife's new SS check, and the tax implications ! It appears that SS does NOT withhold anything until you tell them to, but that remains to be seen (when we get her first check) ! I want to make sure we owe just a small amount in April 2015, and don't have to go the "estimated tax payment" route With our defined benefit pensions, and TSP/IRA income, I suspect we'll be subject to that 85% tax rule on SS benefits...


Stoplight...

 

[Scout333]

Thanks for following up Stop! I actually got my booklet and you were correct there wasn't a lot of detail as to how the amounts were computed. I just called the OPM toll free number and they were fairly helpful. Between their info and what I had received from my retirement specialist I was able to determine how the amounts were computed. I had the survivor premium, a redeposit premium , and a SS Offset deduction taken out just to get to the gross civil service retirement amount. Then the Federal Tax withholding and health insurance premiums were taken out to arrive at the net deposit amount. Looks correct! I'm excited to finally get the amount I will receive each month.

 

[Stoplight]

Thanks for following up Stop! I actually got my booklet and you were correct there wasn't a lot of detail as to how the amounts were computed. I just called the OPM toll free number and they were fairly helpful. Between their info and what I had received from my retirement specialist I was able to determine how the amounts were computed. I had the survivor premium, a redeposit premium , and a SS Offset deduction taken out just to get to the gross civil service retirement amount. Then the Federal Tax withholding and health insurance premiums were taken out to arrive at the net deposit amount. Looks correct! I'm excited to finally get the amount I will receive each month.

AWESOME, Scout !!! I have no idea what the "redeposit premium" or the "SS Offset deduction" is, but I'm glad you got a number from OPM that you are happy with !!!

Enjoy your retirement, like I am !!!


Stoplight...

 

[Stoplight]

Just some random musings :

As a retired guy, with a self-directed IRA with USAA, I find myself watching a lot of Bloomberg and CNBC during the day. It dawned on me that there is a certain...ummmm..."demographic" for their audience at that time. I've never seen so many ads for ED pills, walk-in bathtubs, catheters, home emergency buttons, reverse mortgages, and expensive cars !

Speaking of USAA...there have been many discussions scattered around the board, discussing the pros and cons of various brokerage firms. USAA recently notified us that they are switching to Fidelity to handle our brokerage services. That seems like a good thing, because it looks like it'll open up options to a broader range of products and funds, including "short" selling and uncovered options....all without changing their on-line trading fees, which, for me, is only $5.95/trade. We'll see how it goes, as they move us into the new system.

For those of you looking into establishing a brokerage account, you might want to look a little closer at USAA.


Happy Memorial Day, and "thank you" to all those who died, protecting our Country !


Stoplight...

 

[Stoplight]

Speaking of USAA...there have been many discussions scattered around the board, discussing the pros and cons of various brokerage firms. USAA recently notified us that they are switching to Fidelity to handle our brokerage services. That seems like a good thing, because it looks like it'll open up options to a broader range of products and funds, including "short" selling and uncovered options....all without changing their on-line trading fees, which, for me, is only $5.95/trade. We'll see how it goes, as they move us into the new system.

For those of you looking into establishing a brokerage account, you might want to look a little closer at USAA.


Happy Memorial Day, and "thank you" to all those who died, protecting our Country !


Stoplight...

As a follow-on...I posted some thoughts about the USAA changes in a new thread in the "Investment" section here:

http://www.tsptalk.com/mb/investmen...nges-usaas-brokerage-services.html#post460131

If you're affected, check out the changes..."an informed consumer is a happy consumer" !


Stoplight...

 

[Stoplight]

WOO-HOO !

So our checking account today recorded the Wife’s first Social Security check deposit !!

This is a milestone in our retirement “Master Plan”. When I crunched the numbers before deciding to retire in 2012 (Wife retired in 2009), I knew 2013 was gonna be tough, but we’d get in the black in 2014, when the Wife’s SS kicked in.

What I DIDN’T realize was just how tough 2013 would be !!! We were hit with some major home repair bills, and also helped a Family member with some college tuition payments. Thank God, we had an emergency cash fund built in to the “Plan”, so we were able to draw that balance down, and still pay all the bills.

So....rather than spend this new income on frivolous stuff, we’re going to use it to rebuild that emergency fund as our first priority. Well....maybe spend SOME on some frivolous stuff...

My investment decisions with my remaining TSP and my rolled-over TSP (now in a traditional brokerage IRA), along with the Wife’s rolled-over 403(b) accounts (also in a traditional brokerage IRA) , have kept ahead of our withdrawal rate, so our balances are actually growing...knock on wood !!! In fact, my TSP pot will run dry almost 4 months after I projected it would ! Of course, one never knows how their finances will do going forward, but I’m comfortable with my asset allocation for now.

OTOH, like I said before...it’s somewhat of a bummer to be drawing SS...but at least it’s still here !!! :nuts: To borrow a line from an old Jimmy Buffett song that sums it up :

“We are the people our Parents warned us about !”

Now, we ARE “...our Parents...” !!!

Thanks for reading !!!


Stoplight...

 

[Stoplight]

One other thing about the SS payment...and I knew this part !

They DON'T automatically deduct for Fed taxes, like TSP withdrawals do. You have to TELL them how much to withhold, but I wanted to wait and see how that shook out on the first payment...

So...when we went to file the form to withhold today, based on my estimate of taxes, I was surprised to see I could NOT specify a specific dollar amount...it has to be a certain percentage !!! I did NOT know that !!!

No biggie...just means we'll get a little more refund (or owe a little less !) than what I figured...


Stoplight...

 

[nasa1974]

Good job and good luck.

 

[Scout333]

Congrats on the raise Stop! I'm still waiting for the spouse's SS to kick in!

 

[Hawgjo]

WOO-HOO !

So our checking account today recorded the Wife’s first Social Security check deposit !!

This is a milestone in our retirement “Master Plan”. When I crunched the numbers before deciding to retire in 2012 (Wife retired in 2009), I knew 2013 was gonna be tough, but we’d get in the black in 2014, when the Wife’s SS kicked in.

What I DIDN’T realize was just how tough 2013 would be !!! We were hit with some major home repair bills, and also helped a Family member with some college tuition payments. Thank God, we had an emergency cash fund built in to the “Plan”, so we were able to draw that balance down, and still pay all the bills.

So....rather than spend this new income on frivolous stuff, we’re going to use it to rebuild that emergency fund as our first priority. Well....maybe spend SOME on some frivolous stuff...

My investment decisions with my remaining TSP and my rolled-over TSP (now in a traditional brokerage IRA), along with the Wife’s rolled-over 403(b) accounts (also in a traditional brokerage IRA) , have kept ahead of our withdrawal rate, so our balances are actually growing...knock on wood !!! In fact, my TSP pot will run dry almost 4 months after I projected it would ! Of course, one never knows how their finances will do going forward, but I’m comfortable with my asset allocation for now.

OTOH, like I said before...it’s somewhat of a bummer to be drawing SS...but at least it’s still here !!! :nuts: To borrow a line from an old Jimmy Buffett song that sums it up :

“We are the people our Parents warned us about !”

Now, we ARE “...our Parents...” !!!

Thanks for reading !!!


Stoplight...

Greetings Stop; May I ask with what brokerage did you rollover a portion of your TSP....if I'm reading your post correctly as my wife and I are trying to figure out "how" to withdraw our TSP.
Thanks...Joe

 

[Hawgjo]

Okay and sorry, read some of your other posts from days gone by and see that you answered my question(s) in those prior posts.
Thanks in deed.

 

[Stoplight]

Okay and sorry, read some of your other posts from days gone by and see that you answered my question(s) in those prior posts.
Thanks in deed.

Hey, Joe ! Thanks for stopping by !

Yeah...I know this retirement thread has gone on way too long, but I'm glad you saw my previous posts re: my TSP rollover. There have been discussions in other Forums about the pros and cons of an IRA brokerage account with USAA. They just made some significant changes, and I admit...I'm not sure I like the "new" way of displaying my data...just gonna take some time to get used to it, I guess...

In my case, the partial rollover from TSP went smoothly...you shouldn't have any problems, regardless of what firm you choose...BUT...I had a scare with mine, when TSP didn't get my complete fax, and set it up as a cash withdrawal, complete with 20% tax withholding !!! OUCH ! Fortunately, I caught it in time... My recommendation is to submit the request via snail mail, or at least a good fax machine ! ...and follow up with TSP immediately !!!

Just as an aside...there have also been a lot of discussions on the Forum about the pros and cons of just leaving your TSP balance with TSP...there happened to be an article in USA Today this weekend, that talked about this issue...link here :

Retirees and 401(k)s: Big money, big decisions

I moved my balance, for all the reasons they cite !!! "Different strokes for different folks", though...

Best of luck to you !!!


Stoplight...

 

[Hawgjo]

Thanks Stoplight, another question por favor, not trying to be nosy, can I assume that your USAA IRA is self directed by you and that you more or less use IT's signals for your IRA moves? I recently approached USAA with a couple questions via email and they saddled me up with one of their "wealth management" folks which I didn't want....I just like the looks of the advantages of the IRA and want to move money around every month similar to my TSP actions. Thanks again, Joe

 

[jimijr]

PARTIAL rollover, I never considered that; I sent it all to the pros. It might've been fun to retain some in the TSP to play with.

SS is nice isn't it. Mine equals OPM-FERS, they add up to something livable. Glad your enjoying yourself, you earned it.

 

[Stoplight]

Joe,

No worries...ask away !!!

Yes, my USAA IRA is a “Self-Directed” brokerage account. I incur fees when I make trades, and of course there are fees that aren’t obvious in the mutual funds, etc I hold...but I don’t pay USAA a fee to manage my money ! Maybe they could do better...maybe not

I DO subscribe to I-T’s premium service, BUT I only move a small percentage around based on his advice. You can follow I-T’s signals based on TSP-comparable mutual funds or ETFs if you want to.... I have a portfolio of conservative buy-and-hold stocks and mutual funds that I selected based on dividends and diversity....rarely trade them ! I DO also have some “mad money” that I trade in NUGT, mostly following Oleg’s calls...it’s my guilty pleasure (or pain !)

I’m not surprised USAA steered you towards their wealth management folks...I got that initially, too ! I don’t fault USAA on that, though...they try and “up-sell” you every time you call them and speak to a real person, be it about your investments or your insurance coverage !!! I suspect every other similar Company is the same...

BTW...they STILL have problems with their conversion of accounts to the new manager...my “Activity” screen has some pretty funky line items !!! I spoke with an adviser the other day...he gave me what I was looking for, but he said...”Yeah...this conversion is taking a while...”

Jimi,

Thanks ! The Wife’s SS IS making a difference !

Yeah, the one-time PARTIAL TSP rollover became critical for me !!! I was < 59.5 when I retired, so if I moved the whole shebang over to the IRA, I couldn’t touch it, without tax penalty, for a few years !!! Instead, I estimated what I wanted/needed to withdraw, and left that in the TSP, and set up a final FULL withdrawal at a fixed dollar limit to draw on that ! It has no additional tax penalty, and I can adjust the monthly dollar withdrawal once a year...so far (knock on wood !), I haven’t had to adjust it !!! I DO follow I-T on that small TSP balance...

HTH !

Stoplight...

 

[Hawgjo]

Excellent Jim I could not have asked for a better reply!
I'll c what I can do now.
I'll continue to monitor your thread for tidbits....
All the best!
Cheers....Joe

 

[Hawgjo]

Jim; As I continue my decision process for my TSP parking garage search, I found this article in the WP Business Section from a couple months ago. A different perspective for sure.

Regards, Joe


http://www.washingtonpost.com/business/as-brokers-urge-ira-rollovers-ex-workers-ditch-their-low-fee-federal-retirement-plan/2014/08/14/53c68dd0-2239-11e4-958c-268a320a60ce_story.html