Basic retirement advice.

[RammerJammer]

She had asked me if I could go another year , I just can't.not another winter here in the north east. My body can't do it . Ive been in this office since 1994. 12 years as an RCA but 2 and a half was full time . As the regular I subbed for had health issues. I need to go , yesterday , lol

I understand, just wanted you to know what you gain at 62 & 20.

 

[DB.Cooper]

She had asked me if I could go another year , I just can't.not another winter here in the north east. My body can't do it . Ive been in this office since 1994. 12 years as an RCA but 2 and a half was full time . As the regular I subbed for had health issues. I need to go , yesterday , lol

Too bad the PO won't return the favor you did them with that 2 and a half years filling on for the Reg way back when... they should let you ride out that last year on SL or whatever to make it until 62... I guess that isn't in the cards either...

 

[RammerJammer]

Too bad the PO won't return the favor you did them with that 2 and a half years filling on for the Reg way back when... they should let you ride out that last year on SL or whatever to make it until 62... I guess that isn't in the cards either...

I bet if you said pretty please with a cherry on top they’d at least give you a year credit in exchange for working for 12 years non career & not costing them a dime in benefits.

 

[DB.Cooper]

I bet if you said pretty please with a cherry on top they’d at least give you a year credit in exchange for working for 12 years non career & not costing them a dime in benefits.

They would if they had any sense of fairness... which of course, they don't...

 

[stillfirstclass]

If you’re 61 you’re only going to draw the supplement for 1 year. You could work just 1 more year and boost your annuity by 10% for the rest of your life. But don’t let me stop you. If you paid that lady $500 and she didn’t advise same thing, I’d ask for my money back.

for peeps watching this... supplement could be ?$? .. 10% of a 20 year carreer vs. 10% of a 28 year carreer $?$.....
get out of p.o. could be worth $?$ after my deductions, my net po retirement is $385... if staying for the extra 10%, you're probably part of the 10% that still loves this job.... j.s. each person has to make the decision that works for them and family

 

[DB.Cooper]

for peeps watching this... supplement could be ?$? .. 10% of a 20 year carreer vs. 10% of a 28 year carreer $?$.....
get out of p.o. could be worth $?$ after my deductions, my net po retirement is $385... if staying for the extra 10%, you're probably part of the 10% that still loves this job.... j.s. each person has to make the decision that works for them and family

How much are your deductions????

 

[stillfirstclass]

How much are your deductions????

life ins, just basic, taxes about 15%, bcbs the killer, combined about 800 $$

 

[Herma]

I’d get an official estimate and build a monthly budget before setting a retirement date. The extra year can improve the annuity, but health, insurance costs, debt, and whether you actually want another winter on the job matter just as much. I’d also ask for estimates at several ages and have someone independent check the numbers.

I’ve found that reading about firms such as Yorkton Securities is a useful reminder that financial careers and markets change, so I wouldn’t rely on old advice or informal estimates. A fee based retirement counselor may be worth it if they explain the assumptions clearly.

 

[hunchback]

I’m hoping to retire around September I’ll be 60 with 20 + years. Any basic advice like when to start online process, does specific dates matter ( end of pay period) etc. Any odd things you wish you had known.

I would strongly suggest to anyone retiring *** DO NOT **** take the lifetime annuity payment for your Thrift Savings Balance.
I warned this years ago on this site and my biggest fears came true...

***INFLATION*****

If you accept the annuity payment it is guaranteed at the same monthly rate for life.

Sounds Good?

In return for that lifetime annuity the money you saved is no longer yours to save, invest or pass on to your heirs.

AND

What if inflation hits over 9% like it did during the Biden Administration.
What if Gas, Diesel and food prices skyrocket (which aren't included in official inflation figures)
What if you die the first year?

If you roll the money in your Thrift Savings into an IRA with Banks or Investment Houses Like Vanguard your money is yours and continues to earn interest based on your investments, CD's, Mutual Funds Individual Stocks ETC.

I challenge anyone that retired and accepted the lifetime annuity to tell me the interest rate they are being paid.

Every other annuity is required to give you a Truth In Lending Statement that includes the interest rate paid. They may in fact tell you in the contract you enter into with them, but I doubt anyone looks at anything very closely enough to tell you anything but the monthly pay out amount.

Taking the annuity could be devastating to your financial situation when inflation hits.

Just a tid bit for you: When we hit 9% inflation during the Biden Administration, the rate of inflation gradually fell, but the prices had already factored in that 9% increase. While the increases slowed the prices still increased from that 9% increase and those on fixed annuities lost ground every day.

Don't make this mistake

 

[Worve]

I would strongly suggest to anyone retiring *** DO NOT **** take the lifetime annuity payment for your Thrift Savings Balance.
I warned this years ago on this site and my biggest fears came true...

***INFLATION*****

If you accept the annuity payment it is guaranteed at the same monthly rate for life.

Sounds Good?

In return for that lifetime annuity the money you saved is no longer yours to save, invest or pass on to your heirs.

AND

What if inflation hits over 9% like it did during the Biden Administration.
What if Gas, Diesel and food prices skyrocket (which aren't included in official inflation figures)
What if you die the first year?

If you roll the money in your Thrift Savings into an IRA with Banks or Investment Houses Like Vanguard your money is yours and continues to earn interest based on your investments, CD's, Mutual Funds Individual Stocks ETC.

I challenge anyone that retired and accepted the lifetime annuity to tell me the interest rate they are being paid.

Every other annuity is required to give you a Truth In Lending Statement that includes the interest rate paid. They may in fact tell you in the contract you enter into with them, but I doubt anyone looks at anything very closely enough to tell you anything but the monthly pay out amount.

Taking the annuity could be devastating to your financial situation when inflation hits.

Just a tid bit for you: When we hit 9% inflation during the Biden Administration, the rate of inflation gradually fell, but the prices had already factored in that 9% increase. While the increases slowed the prices still increased from that 9% increase and those on fixed annuities lost ground every day.

Don't make this mistake

When I go my tsp is next in line. They are not keeping my money any longer than I am employed. Going in a separate fund for my son, I don’t need it he will. That’s his retirement account which he has no idea about.