Last year my husband and I both retired, he was CSRS I was FERS. We chose to dump FEGLI, too expensive. And unlike they show for "Shirley", our payments for Dental and Vision went up: Dental a lot, Vision not as much, still less than we'd pay without any insurance.
The retirement estimate from EBIS was almost exactly what I get paid, about a dollar off. I worked for the same agency for over 30 years so it wasn't complicated.
The main exercise that made us pretty sure we were ready was to keep a really detailed budget for the last 3 years. Down to the individual Starbucks coffees...might be overkill for many people but since we wanted to retire at the earliest possible time and not go back to work, we needed to know where the money went.
I had 50G/50S when I retired and that's just when the market tanked. That was a big enough hit that I'm still in negative interest territory for the last 12 months, but I shouldn't have to touch TSP until my FERS supplement runs out in 5 years...so trying not to stress.
CJ
From: "sarah_oz@yahoo.com [TSP_Strategy]" <TSP_Strategy@yahoogroups.com>
To: TSP_Strategy@yahoogroups.com
Sent: Thursday, June 23, 2016 8:57 PM
Subject: [TSP_Strategy] Comparing Your Income Before and After Retirement
Comparing Your Income Before and After Retirement
4:53 PM ET
After you retire, you'll find that some of your expenses — such as the cost of commuting or maintaining a professional wardrobe — will go away. But you also might find that you increase your spending in such areas as travel and health care. That's why it's important to compare your actual income in retirement to what you are bringing home during your working years.
Last week, we looked at ways to ballpark your retirement income. Now let's do a more concrete "net to net" comparison of what you can expect pre- and post-retirement.
Your gross and net income are shown on your biweekly leave and earnings statement. The net is the amount after the withholdings for such items as taxes, insurance and retirement contributions. Some withholdings, such as Thrift Savings Plan contributions, health insurance premiums and flexible spending account allotments, reduce your taxable income.
Let's look at an example involving "Shirley":
Gross monthly salary: $8,413.60
- FERS retirement contributions: -$67.32
- Medicare tax: -$115.83
- Social Security tax: -$495.24
- Federal Employees Health Benefits: -$265.37
- Federal Employees Group Life Insurance (Basic): -$33.80
- Federal Employees Group Life Insurance (Option B): -$72.93
- Federal Employees Dental Insurance: -$136.59
- Federal Employees Vision Insurance: -$23.86
- Federal income tax: -$803.83
- State income tax: -$362.53
- TSP contributions: -$1,716.00
Net monthly income: $4,320.30
Now, let's compute Shirley's retirement income. It will come from sources such as her FERS basic retirement benefit, Social Security benefit and income from the proceeds of her TSP funds. Here's Shirley's retirement income, taking into consideration all of her reductions and withholdings:
Monthly FERS benefit (based on 20 years of service and high-three average salary of $101,312): $1,857.38
- Spousal survivor annuity (maximum): -$185.74
- Federal Employees Health Benefits: -$265.37
- Federal Employees Group Life Insurance (Basic): -$33.80
- Federal Employees Group Life Insurance (Bracket 5: 3 multiples of Option B): -$291.62
- Federal Employees Dental Insurance: -$136.59
- Federal Employees Vision Insurance: -$23.86
- Federal Long-Term Care Insurance: -$99.01
- Federal income tax: -$317.00
- State income tax: -$79.00
Social Security retirement: $1,676.00
- Federal income tax: -$280.00
TSP income (using payments based on life expectancy): $2,836.88
- Federal income tax: -$567.37
- State income tax: -$141.85
Net monthly income: $3,949.05
Shirley can now see she'll have less monthly income in retirement than she has while she is working full time. She may decide that's fine, if her expenses will be lower in retirement. Or she may decide to work a little longer to increase her retirement income.
After completing this fairly simple exercise for yourself, you may have a better level of confidence as you plan for a financially secure life after retirement.
Photo: TaxCredits.net, via Flickr
4:53 PM ET
__._,_.___
Posted by: Cyndi Johnson <gardencatalogs@yahoo.com>
| Reply via web post | • | Reply to sender | • | Reply to group | • | Start a New Topic | • | Messages in this topic (4) |
Have you tried the highest rated email app?
With 4.5 stars in iTunes, the Yahoo Mail app is the highest rated email app on the market. What are you waiting for? Now you can access all your inboxes (Gmail, Outlook, AOL and more) in one place. Never delete an email again with 1000GB of free cloud storage.
Neither the TSP Strategy group, nor individual members, are licensed or authorized to provide investment advice. Any statements made herein merely reflect the personal opinions of the individual group member. Please make your own investment decisions based upon your personal circumstances.
.
__,_._,___
Anda baru saja membaca artikel yang berkategori dengan judul Re: [TSP_Strategy] Comparing Your Income Before and After Retirement. Anda bisa bookmark halaman ini dengan URL https://1stleadershipworkshop.blogspot.com/2016/06/re-tspstrategy-comparing-your-income_24.html. Terima kasih!
Ditulis oleh:
Andriansyah -
Belum ada komentar untuk "Re: [TSP_Strategy] Comparing Your Income Before and After Retirement"
Post a Comment