want to jump ~2 GS grades for your last year,
A GS 7-5 becomes a GS 9-5 or a GS 9-5 becomes an 11-6 paygrade?
a simple retirement strategy that only requires patience, discipline and no permission from any superiors, about two years prior to retirement
With a potential boost in retirement checks and a free up to 21.5% raise in the final year.
(The raise is a lump sum in your final or next to final check, so patience)
(look at a pay stub, find your hourly rate, multiply that by up to 408 hours)
examples
a GS 9 step 7 gets a check for an additional $12,900 (less taxes)
a GS 11 step 6 gets additional $15,200
a GS 11 step 9 gets additional $16,500 equivalent of being a GS 13 step 3 the last year, because you did it for yourself
a Raise of up to ~21.5% or a jump of ~2 GS grades for the final year
using 2017 GS schedule for DC, a GS 11/6 high 3 could be EITHER $233,000 OR $249,500
1) remember, your last/high 3 years is your income that determines your retirement checks for years to come
With an up to 21.5% bump the final year, you can add around 7%/year to that number, with simple discipline and patience to that total
1) carry over 240 hours annual leave (count up your yearly holidays and sick leave, around 42-43 days/ ~1/6th of the year) It takes a bit of patience and discipline
2) use no annual leave the last year and accumulate up to 208 more hours
3) retire the last payperiod of the year (in december, when there are lots of parties and your retirement party is just one more
4) your YEARLY pay hours will be as much as 2,528 hours instead of 2,080 hours for the last year,
5) Your "3 high years used to determine your retirement checks" have that up to 21.5% bump
i invite criticisms as this should be obvious to all
I'm 34 and loved reading this advice Thom! My ideal retirement plan. Thank you for sharing.
Sent from my iPhone
i love this approach!!!!!!!!!
Great strategy!
Sent from my Verizon, Samsung Galaxy Tablet
-------- Original message --------
Date: 4/29/17 12:28 PM (GMT-08:00)
Subject: Re: [TSP_Strategy] TSP/IRS withdraw strategies
-------- Original message --------
Date: 4/29/17 12:28 PM (GMT-08:00)
Subject: Re: [TSP_Strategy] TSP/IRS withdraw strategies
I have a very wise cousin that told me once there's three phases to retirement. Those are 1) the GoGo years, 2) the Slow-go years and 3) the No-go years. Most people upon entering retirement look at how much money from investments they can withdraw each year to maintain their style of living. I've arrived at a different formula based on 2 & 3. I figure I'm going to spend 50% of what I have in the next 10 years, the GoGo years, and enjoy it. I figure at 75 I'll be a bit slower and not as willing to travel across multiple time zones and I don't want to look back and say, "Gee I wish I would've..."
I watched my father save and save for retirement and then live very frugally after he got there. At 82 he entered a nursing home memory unit at a cost of over $10,000 per month. The money he earned and saved is now gone. And he didn't get to enjoy it.
My hope is that should I ever need to go to a nursing home, there's very little left to spend on that before Medicaid starts picking up the bill. We'll see how my plan goes when I reach 75.
Enjoy life while you're still young enough to do it.
Thom
calculations i used for my specific circumstances
1) maxed out my TSP contributions including catchup
2) i have medical conditions and males in my genetic line die at 40 or 82-84
3) medicine is getting better and i dodged the bullet 2x already, thus i am not making plans for being 85-95 or so
4) TSP is heritable, you can gift it to your spouse of children 100%
5) Social security, FERS, CSRS STOPS when you die, completely
6) If I had deferred Social Security until i was 70, I would have forgone $200,000 I could have spent, but did not get if I collected starting at age 62 (8 x ~$25,000)
7) TSP continues to grow and I don't need it yet, you may need it
**8) can you wait 1 more short year to retire and totally max out your TSP contributions, max out the $5,500 catchup, (drop another $23,000+ into TSP) carryover Annual leave and get 448 hours worth of annual leave paycheck? (an extra 5.6 paychecks)( (you have 9 holidays, a month or so sick leave saved up (?) work some 3-4 day weeks, ease into retirement)(you asked for suggestions)
1 graph what you get age 62, 1 graph what you get age 66, 1 graph what you get starting age 70.
don't add %'s or anything, make it simple. I personally had to live ~20 years (age 82-83) for the crossover points, IF I can make TSP grow, it will grow faster if I make no withdrawls before I need it
my graph had me getting $200,000 when I hit 70 if I started at 62, and $0.00 starting at 70
I got a higher monthly if I waited, BUT will I be alive or healthy enough to enjoy it
"It's later than you think"
I will be retiring in a few months and I am 59 years old. I wondering how to determine whether it is better to take more out of my TSP and my IRA now, and defer Social Security payments later than age 62 vs. taking the lower SS payment at age 62 and lowering my TSP/IRA payments at the same time. Any information or thoughts is appreciated.
Dave
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