Federal Retirees

i mean, you'll do what's right for you in the end. i worked 30 to the day and i was out. i still took home about the same as when working because i didn't have all the deductions taken out, i.e. tsp, csrs, medicare, less in taxes, and i was only at 56% i believe.

Old Fed is correct.

I achieved 30 years at age 49, but worked til I was 57, retiring with almost 39 years also CSRS.
On average, my Monthly retirement pay is ALMOST 50% more than I received during any 2 paycheck month while working, because of deductions.

Single claiming ZERO, Fed tax, IL state tax, maxing out TSP + over 50, CSRS 7%, 1.45% medicare tax, FEHB, FEGLI, Delta Dental,
$800/payday savings for investments, 1.25% Union Dues, etc, etc.


IF you're CSRS, you also have the option of contributing to a Voluntary Contribution Plan (VCP) and MAX FUNDING it over to a ROTH IRA.
In essence, you can put up to 10% of your Federal Lifetime earnings into the VCP, then transfer it into a ROTH IRA.
I took my outside, already taxed savings in Mutual Funds, sent it to my Federal VCP, then transferred it to Vanguard as a ROTH IRA.

$100,000 Plus ! ONE FELL SWOOP.

It takes time, so I'd give it 4-6 months to be accomplished, and do it via next day mail. They move at the speed of Government.
Don't be surprised if most of the people you ask know nothing about it. Most CSRS folks are gone, but it's still available to you.

Half breed you have helped me so much I can’t thank you enough! So grateful. I wanted to ask, the money you are taking about investing, is that the TSP when I retire? What is good about a Roth IRA? snd what are the rules? I love your slogan at the end, I almost feel retired, my mind is on retirement and doing something new! I think you are such a great person with a wealth of knowledge. TY

I also had 4 Mutual Fund investments OUTSIDE of the TSP, two which were BOND Funds. My TSP is separate, so let's talk Mutual Funds. I'm in Vanguard and Dodge & Cox, but Fidelity is also a good fund company. I closed both of my BOND Funds and transferred that into the VCP run by the US Gov. If memory serves me correctly, it was in St Louis, MO.

After they received the money and informed me, I contacted Vanguard and opened up a ROTH IRA and I wanted it in a Conservative fund which is Wellesley. They also have a moderate fund Wellington. I got the transfer paperwork from, I believe the VCP, or maybe Vanguard. It HAS to be a direct transfer from VCP to Vanguard/ Fidelity or whomever you choose. The entire process took about 2 months or a bit more, however, I sent my paperwork next day air. You should use either FEDEX or USPS (Next day delivery). VCP in St Louis had to send me two verification letters, because their printout only goes up to $99,999.

I like the ROTH idea, because it only became available the year I retired, and there are no Required minimum distributions at a certain age, like the TSP has.
IF you go that route, be advised that most people in HR know nothing about the VCP because it's not available to FERS folks, and most don't know about it in general.

I bought an e-book for $8 online from Micah Shilanski (lives in Alaska) and teaches retirement to Feds.
https://plan-your-federa...om/csrs-vcp-to-roth-ira/

I also had been in the Bogleheads forum, an online community of FEDS who invest in the Vanguard (and other) mutual funds. Named for Founder Jack Bogle.
https://www.bogleheads.org/forum/

There are numerous topics on the VCP to ROTH IRA conversion and how it's done. Just search for VCP conversion.
I learned quite a bit from the folks there over these last 10 years. I'm on there as Jerry55

As far as the TSP goes, I'm still in it at 80% C fund, 10/10 S and International. VCP conversations may also be here, in this forum.
I'm only 64, but I'll make choices about TSP in another 3-6 years tho. I'm leaving it alone for now.

Good luck in your retirement, either now, or later.

VCP - ROTH IRA conversion Federal Radio podcasts. This first link below is the most interesting.

https://federalnewsnetwo...tribution-program-works/

https://federalnewsnetwo...y-contributions-program/

Edited by user Wednesday, January 29, 2020 10:29:18 AM(UTC)  | Reason: Not specified