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For those approaching retirement as well as the currently already retired, here is a forum to share ideas and thoughts and exchange questions and answers.


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fedupfedup  
#1 Posted : Saturday, January 25, 2020 12:11:38 PM(UTC)

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Hello everyone I am supposed to retire sometime this year 2020 by June I will have my 80%. I work for the military and I like my boss and he might extend for one year if he did extend and I stayed that would put me at August 2021 with all the 43 years. I understand I will be contributing into the TSP by staying longer and also getting full salary, I would be around 64, I was just wondering what your personal feelings were about working a year or more, I have six month sickleave currently I believe I will get 2% more for working an extra year, I also took out three months of retirement in 1978 when I first joined the federal workforce so I know whatever retirement is deducted after the 80% will go to pay some of that and I guess that would increase my retirement because I am paying some of it back with interest. I am not sure if my boss is going to get an extension for a year or not but it might happen. I am kind of tired of working But I don’t know if I could pass up the opportunity to work another year if I’m working for him because it would be easy kind of I work close to home and my commute is a dream. I want to know how much this could change my pension as far as getting larger by working an extra year or 14 months and I want to know what your personal opinions are.I don’t know if it’s true but I heard from federal retirees that when they get the 80% they are actually making more money than when they worked as a civilian employee or close to it and I wanted to know if that was true with you please share your personal experience with me I value your opinion a lot thank you
old fed  
#2 Posted : Saturday, January 25, 2020 12:45:12 PM(UTC)
old fed

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Originally Posted by: fedupfedup Go to Quoted Post
Hello everyone I am supposed to retire sometime this year 2020 by June I will have my 80%. I work for the military and I like my boss and he might extend for one year if he did extend and I stayed that would put me at August 2021 with all the 43 years. I understand I will be contributing into the TSP by staying longer and also getting full salary, I would be around 64, I was just wondering what your personal feelings were about working a year or more, I have six month sickleave currently I believe I will get 2% more for working an extra year, I also took out three months of retirement in 1978 when I first joined the federal workforce so I know whatever retirement is deducted after the 80% will go to pay some of that and I guess that would increase my retirement because I am paying some of it back with interest. I am not sure if my boss is going to get an extension for a year or not but it might happen. I am kind of tired of working But I don’t know if I could pass up the opportunity to work another year if I’m working for him because it would be easy kind of I work close to home and my commute is a dream. I want to know how much this could change my pension as far as getting larger by working an extra year or 14 months and I want to know what your personal opinions are.I don’t know if it’s true but I heard from federal retirees that when they get the 80% they are actually making more money than when they worked as a civilian employee or close to it and I wanted to know if that was true with you please share your personal experience with me I value your opinion a lot thank you


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.
fedupfedup  
#3 Posted : Saturday, January 25, 2020 1:05:32 PM(UTC)

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Wow that’s amazing that you made about the same amount of money at 56%, I guess I will too almost , but I did take out 3 years of retirement in 1978, my salary was prob 11,000 a year back then
The HalfBreed  
#4 Posted : Tuesday, January 28, 2020 9:49:27 PM(UTC)

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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.
RETIRED CSRS 12/19/2012 @ age 57 w/39 years.
Good Bye Tension...Hello Pension !
Endless Summer  
#5 Posted : Wednesday, January 29, 2020 1:11:47 AM(UTC)
Endless Summer

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Originally Posted by: fedupfedup Go to Quoted Post
Hello everyone I am supposed to retire sometime this year 2020 by June I will have my 80%. I work for the military and I like my boss and he might extend for one year if he did extend and I stayed that would put me at August 2021 with all the 43 years. ... I value your opinion a lot thank you


Here's a crazy thought from a different perspective. I'm assuming you're in decent health. You seem to be saying that you enjoy your job and an additional 12 months would not be a burden.

If that's the case, what could you do with the extra money? If you max out your TSP that would leave you with how much, $50k? Imagine taking that money, which doesn't really have too much value to you, and donating it to the charity of your choice? That amount might be a significant sum to a small charity.

You could contact a local college and fund scholarships, donate to whatever you think might make a difference. You don't really need the dough and you'll get some enjoyment from continuing the job as well as helping a worthy cause.
fedupfedup  
#6 Posted : Wednesday, January 29, 2020 6:18:39 AM(UTC)

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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
fedupfedup  
#7 Posted : Wednesday, January 29, 2020 6:21:06 AM(UTC)

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Thank you endless summer for your input, but I need my money to live, I do volunteer work now for animal Rescue and also donate, that is a nice idea. Thank you so much.
thanks 1 user thanked for this useful post.
Michelle on 6/13/2021(UTC)
The HalfBreed  
#8 Posted : Wednesday, January 29, 2020 10:23:12 AM(UTC)

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Originally Posted by: fedupfedup Go to Quoted Post
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

RETIRED CSRS 12/19/2012 @ age 57 w/39 years.
Good Bye Tension...Hello Pension !
thanks 1 user thanked for this useful post.
Michelle on 6/13/2021(UTC)
fedupfedup  
#9 Posted : Wednesday, January 29, 2020 11:51:38 AM(UTC)

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Thank u🤙
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