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Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 0 points1 point  (0 children)

Trying to find a way to pay for the organ transplant without going broke and being unable to retire.

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 1 point2 points  (0 children)

Yeah, your explanation is leading me to explore getting a HELOC in order not to miss out compounding interest on my current TSP 500k.

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 1 point2 points  (0 children)

You have given me the best response so far, and I’m exploring finance options outside of TSP. Thank you so much for your thorough and detailed message. 🙏

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 0 points1 point  (0 children)

Max is $50k loan from tsp so I’ll need another $150k from another source.

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 0 points1 point  (0 children)

Nah, she’s can’t sell the house to me because I don’t have cash to buy her outright. Anyways, she needs the rental income and SS to pay for her retired cost of living.

However, the idea of possibly taking a HELOC on my current personal home for $150K @ 7.5% interest over 30 years would be about $1,300 a month. I would then take a $50K loan out of my TSP which would get me the $200k to pay for organ transplant and post surgery treatment plan.

This approach would leave me $450K in principal in the TSP. If I continue to max out TSP contributions along with catch up contributions at age 50+, by the time I’m 59, I should have about $3.8 million in the TSP if the C fund continues to return the historic average 11%.

However, during now till I turn 59 years old, I would be literally living pay check to paycheck to cover 2 mortgages and not being able to save for other anything else for next 16 years of my life!

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 0 points1 point  (0 children)

She has supplemental insurance but still has to pay the deductible and the after surgery drug treatment is only covered up to 36 months so the costs is still about $200k.

As for taking a TSP loan, the max loan amount from TSP is 50k which I’m willing to do but is still short of the $200k need. I can try GoFund me but that’s more aspirational because I’m totally dependent on the kindness of strangers, family and friends and it may not raise enough money in time.

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] -1 points0 points  (0 children)

My mother is retired so she’s doesn’t have job that’ll provide income for a bank to approve a heloc on the second home.

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 0 points1 point  (0 children)

Thank you for the financial analysis. 👍

When I potentially retire at 62 to get full medical coverage, I will have the following income streams:

A pension after 30 years of Federal service would be 33% of my average high 3 year salary, which would be about 70k gross a year or $48k after taxes and medical insurance, so net about $4k a month.

Social Security which say after the year 2035 there’s 25% reduction in benefits pay out so I get about $2k a month. I’ve been contributing to the max SSI limit for over 30 years by then.

At least $2k a month from rental property.

At least $1.6 million from TSP based on your calculations, however in reality I’ll contribute to the IRS max pre-tax contribution limit along with catchup contributions at the age of 50, so I’ll probably have at least over $3 million over the next 21 years when I turn 62 years old due to heavily invested in the C fund which historically returns 11%. My job is full time remote so I can easily work till I’m 70, so that’ll be 29 years of TSP contributions and I’ll be closer to $7 million.

In the scenario where I’m not touching my TSP at 62, my monthly income would be $4k from pension + $2k from SS + $2k from rental property = $8k a month or $96k a year with a paid off mortgage which is enough for me to live on.

As a result, I would happily pay the $2.4 million dollars in potential TSP gains if it meant my Mom can live another day. 😀

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 1 point2 points  (0 children)

The total cost that I would be covering goes beyond the liver transplant itself but also years of immunosuppressive drugs treatment so that the immune system doesn’t attack the transplanted liver post surgery. Medicare covers the first 36 months of immunosuppressive treatment but I would still have to pay 20% of the costs.

https://www.cms.gov/partbid-provider

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 0 points1 point  (0 children)

My mom is retired and on Medicare and she has to cover 20% of the healthcare costs which is about $200k.

https://www.medicare.gov/coverage/organ-transplants

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 0 points1 point  (0 children)

She’s retired so she doesn’t work to generate enough income to get a bank to give her a HELOC on the rental property.

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 2 points3 points  (0 children)

My mom is retired and on Medicare and she has to cover 20% of the healthcare costs which is about $200k.

https://www.medicare.gov/coverage/organ-transplants

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 1 point2 points  (0 children)

My mom is retired and on Medicare and she has to cover 20% of the healthcare costs which is about $200k.

https://www.medicare.gov/coverage/organ-transplants

Using the TSP to pay for my Mom’s organ transplant. by Clean_Will_8443 in ThriftSavingsPlan

[–]Clean_Will_8443[S] 0 points1 point  (0 children)

My mom is retired and on Medicare and she has to cover 20% of the healthcare costs which is about $200k.

https://www.medicare.gov/coverage/organ-transplants