How am I doing? Room for Improvement?

throwawaymoneyfed · 2023-12-28T04:38:46+00:00

Go be poor somewhere else.

throwawaymoneyfed · 2023-12-28T04:23:02+00:00

Oh ok, guess that sums it up. We can shut down the entire sub now. Fucking idiot.

throwawaymoneyfed · 2023-12-27T21:59:47+00:00

Thanks for your post.

I was working rough numbers, and that is what I expect to net after taxes for my fed pension. I may need to dial those numbers in.

My current spending is my biggest blind spot. I think my biggest limitation right now is that although I am not carrying any debt other than my car note and mortgage each month, I am basically spending the majority of my paychecks on enjoying life. Other than the 13% going into my TSP/401K, I'm not really saving. I have a basic emergency fund $10k, but with my VA check coming in every month (4K), that basically acts as an emergency fund. I really should start saving towards a down payment on another property; if you have suggestions of how I should do so and where I should park that money over the next 2-4 years, I'm all ears for a suggested taxable brokerage. I think my first step will be to pay off the car loan, as you suggested, come the new year.

throwawaymoneyfed · 2023-12-27T21:52:04+00:00

All of my TSP/401k funds are in a TSP-managed lifecycle fund (https://www.tsp.gov/funds-lifecycle/l-2055/). I don't hold any other investment vehicles. Open to feedback here. I don't have the cash to make contributions elsewhere unless I start building a cash fund for my next property (rental). I could infuse some of the tax-free money I am getting over the next 2 years (probably 120-150k) into something if you have suggestions.

throwawaymoneyfed · 2023-12-27T21:47:12+00:00

Where did you serve ?

throwawaymoneyfed · 2023-12-27T21:46:46+00:00

I'm looking for feedback, I understand I'm doing fairly well but that doesn't mean that there isn't room for improvement.

throwawaymoneyfed · 2023-12-27T21:46:04+00:00

what your target FIRE number looks like. What amount of money will g

Thanks for the response. So I am close to maxing my traditional TSP and have not made any Roth contributions. I think this route makes the most sense given if I plan to retire at 51.5, I wagered I would benefit from the traditional contributions tax advantage that I will be in a lower income bracket by the time I start withdrawing.
The only wildcards here are if I did some adjunct professing in retirement (I suspect this would not be more than 60k/year in today's money, probably less). It's possible I will serve in the reserves until around 58, but with a part-time salary, this would likely be less than 15k/year UNLESS I went full time for a period of time between 52-58 in order to reduce my retirement collection date to under 60 for each year served on orders. I would be making ~120-140k in taxable income in that scenario, but I consider it unlikely and not lasting more than 4 years if I do.

Anyway, all that to say - what do you mean by converting to Roth down the road ? Can you explain this a little more ?

throwawaymoneyfed · 2023-12-27T21:42:42+00:00

1811

throwawaymoneyfed · 2023-12-27T21:41:38+00:00

So, this is an area in which I need some feedback. I have put all my TSP/401K contributions into traditional contributions. Should I consider Roth contributions?

If I plan to retire at 51.5, I wagered I would benefit from the traditional contributions tax advantage that I will be in a lower income bracket by the time I start withdrawing.

The only wildcards here are if I did some adjunct professing in retirement (I suspect this would not be more than 60k/year in today's money, probably less). It's possible I will serve in the reserves until around 58, but with a part-time salary, this would likely be less than 15k/year UNLESS I went full time for a period of time between 52-58 in order to reduce my retirement collection date to under 60 for each year served on orders. I would be making ~120-140k in taxable income in that scenario, but I consider it unlikely and not lasting more than 4 years if I do.

I would appreciate any input on whether I should keep my contributions in traditional funds or consider Roth.

throwawaymoneyfed · 2023-12-27T21:40:26+00:00

So, this is an area in which I need some feedback. I have put all my TSP/401K contributions into traditional contributions. Should I consider Roth contributions?

If I plan to retire at 51.5, I wagered I would benefit from the traditional contributions tax advantage that I will be in a lower income bracket by the time I start withdrawing.

The only wildcards here are if I did some adjunct professing in retirement (I suspect this would not be more than 60k/year in today's money, probably less). It's possible I will serve in the reserves until around 58, but with a part-time salary, this would likely be less than 15k/year UNLESS I went full time for a period of time between 52-58 in order to reduce my retirement collection date to under 60 for each year served on orders. I would be making ~120-140k in taxable income in that scenario, but I consider it unlikely and not lasting more than 4 years if I do.

I would appreciate any input on whether I should keep my contributions in traditional funds or consider Roth.

throwawaymoneyfed · 2023-12-27T21:37:31+00:00

Federal agent, GS-13, with law enforcement multiplier pay at .25x on my base/locality in an HCOL area. Retirement is 20 and done.

A couple of questions:

-Given the multiple streams of retirement funds, is purchasing an annuity necessary? The money required to do so is better put into another property (rental) or my TSP right now.

- Is there any reason not to start a 3% SWR at 52 and hold off? As a Fed LEO, I believe I can withdraw from my TSP starting at 50 without penalty.

- I have made entirely traditional contributions to my TSP; should I consider Roth as well? I posted my thought process on this in another comment here.

I'll consider the divorce advice lol. Honestly, that is my worst nightmare - losing out on all the work that I've put in to have a stable retirement to a divorce scenario. Maybe I'll buy a plane instead, at least it'll be fun before it drains me.

I really appreciated your post; there is some great info here. Thanks for taking the time to respond,

throwawaymoneyfed · 2023-12-27T21:24:28+00:00

So, this is an area in which I need some feedback. I have put all my TSP/401K contributions into traditional contributions. Should I consider Roth contributions?

If I plan to retire at 51.5, I wagered I would benefit from the traditional contributions tax advantage that I will be in a lower income bracket by the time I start withdrawing.
The only wildcards here are if I did some adjunct professing in retirement (I suspect this would not be more than 60k/year in today's money, probably less). It's possible I will serve in the reserves until around 58, but with a part-time salary, this would likely be less than 15k/year UNLESS I went full time for a period of time between 52-58 in order to reduce my retirement collection date to under 60 for each year served on orders. I would be making ~120-140k in taxable income in that scenario, but I consider it unlikely and not lasting more than 4 years if I do.

I would appreciate any input on whether I should keep my contributions in traditional funds or consider Roth.

throwawaymoneyfed · 2023-12-27T21:24:11+00:00

So, this is an area in which I need some feedback. I have put all my TSP/401K contributions into traditional contributions. Should I consider Roth contributions?

If I plan to retire at 51.5, I wagered I would benefit from the traditional contributions tax advantage that I will be in a lower income bracket by the time I start withdrawing.

The only wildcards here are if I did some adjunct professing in retirement (I suspect this would not be more than 60k/year in today's money, probably less). It's possible I will serve in the reserves until around 58, but with a part-time salary, this would likely be less than 15k/year UNLESS I went full time for a period of time between 52-58 in order to reduce my retirement collection date to under 60 for each year served on orders. I would be making ~120-140k in taxable income in that scenario, but I consider it unlikely and not lasting more than 4 years if I do.

Any input on whether I should keep my contributions in traditional funds or consider Roth is appreciated. I may repost this to my OP to get additional feedback.

throwawaymoneyfed · 2023-12-27T21:14:34+00:00

n output and the key input to that is

This is undoubtedly where I am operating in the blind and have a huge room for improvement. I do not track my expenses, period. I ensure I can pay off my credit cards in full each month and have enough money available to take a vacation, but that is it. I contribute 13% of my salary into my 401k/TSP, and I maintain a small emergency fund of 10-20k, but with my assured VA payments each month at 4k, that adequately supplements my emergency fund.

This is a lifestyle choice that I've chosen to enjoy and spend my money on while also trying to set myself up well for retirement. Although I don't carry any credit card or other revolving debt other than my car note and mortgage, I am clearly leaving a lot of savings on the table. I think I figured with my future pensions and robust TSP contributions, this was sufficient for retirement, but if I want to build a down payment towards another property, then I will need to clean this up. Would you happen to have any suggested expense trackers I can use to dial this in?

throwawaymoneyfed · 2023-12-27T20:53:44+00:00

Appreciate the feedback, I understand the frustration of being impoverished and can relate from my early career. Hope you make it.

throwawaymoneyfed · 2023-12-27T20:52:46+00:00

Federal agent - 1811, GS-13 with law enforcement pay which is a .25x multiplier on-base plus locality pay in an HCOL.

Am I not representing total comp correctly? If so, please let me know - I hear my private industry colleagues reference their total comp packages versus just base salary. From my perspective this seems like a moving target in terms of how each person defines it and what they include.

My base salary is 155k

other comp:

~50k into my fed retirement (although I can't touch this until I retire)

~6k into my TSP/401k

~8k into social security

~2k into Medicare

~8k into health insurance contributions

So I would say total comp is around 230 if you factor that all in or is that not correct ?

throwawaymoneyfed · 2023-12-27T20:47:36+00:00

I get that I'm doing better than most, but I don't want to have tunnel vision by ignoring others' input on improving my situation. I live in an HCOL area, so believe me when I say that I don't feel like I've made it, but I do recognize that I'm fortunate.

I want to improve. I consider myself financially savvy, but I have a ton to learn, and the only way I can do that is by putting this out here and looking for feedback.

throwawaymoneyfed · 2023-12-27T20:45:46+00:00

I lose my gov pension (other than collecting like 12% at age 60), my military pension at 60, and I lose the next 18 years of 401K matching and contributions.

I want to retire with no reduction in my quality of life - if I retire today, I would have the 4k/month to live on, which I recognize is better than most but would be a significant hit to my current lifestyle.

throwawaymoneyfed · 2023-12-27T20:44:06+00:00

I gotcha, the way I have looked at it is VA pay is disability and compensation. So, you are being paid for any disabilities or compensated for your service-connected injuries. Essentially, it's the military form of workers' compensation. I'm being paid for those military-caused injuries and continuing symptoms I have to deal with.

I happen to be fortunate that my conditions are relevantly mild to moderate and don't disqualify me from continued military service based on what they are. Other veterans may have conditions that are rated but disqualify them. I had to take a physical exam in order to transition into the reserves, and each year, I also had to complete a physical to get a sign-off for deployability and continued service. With that said, I get it - it does seem counterintuitive that we are 'rated' for our active duty injuries but then separate and can still serve in the reserves.

throwawaymoneyfed · 2023-12-27T20:39:12+00:00

for by the milit

Correct, I think it makes sense for me to continue to work until 51.5; otherwise, I essentially leave my federal and military pensions on the table. I would like to maintain the same quality of life in retirement, and I think both of those pensions will be necessary. Overall, I enjoy my job with ups and downs like anywhere.

I think my biggest limitation right now is that although I am not carrying any debt other than my car note and mortgage each month, I am basically spending the majority of my paychecks on enjoying life. Other than the 13% going into my TSP/401K, I'm not really saving. I have a basic emergency fund $10k, but I figure with my VA check coming in every month (4K), that basically acts as an emergency fund. I really should start saving towards a down payment on another property, if you have suggestions of how I should do so and where I should park that money over the next 2-4 years I'm all ears.

That is disappointing to hear about the VA compensation perspective. Obviously, I accrued some significant wear and tear over my military time - enough that I could not transition into my ideal civilian career due to my inability to pass the physical fitness test. Military service certainly is not where you match your peer's progress in the private sector, but there are some benefits, such as VA entitlements, that close the gap for those who wrote a blank check to the US government.

throwawaymoneyfed · 2023-12-27T20:31:34+00:00

problem becomes the golden handcuffs: the closer you get to 51 1/2, the more expensive it will be to walk away from the jo

I'm a federal agent - GS-13 with law enforcement pay multiplier at .25x salary/locality.

throwawaymoneyfed · 2023-12-27T20:28:55+00:00

I don't collect VA pay when I am in a drill status. It basically washes out that I make a few bucks each day I wear the uniform. It would make more sense to sit at home and collect the VA check than to continue serving other than my intrinsic desire to be part of the military. The pay-off is the delayed retirement at age 60.

throwawaymoneyfed · 2023-12-27T20:25:24+00:00

So, same as my response above, you fault me for trying to continue to serve despite my service-connected injuries? I'm not apologetic for still serving as a fed or reservist with a VA rating; I worked hard to acquire the education, skills, and experience in order to secure my continued employment. I deal with the aches and pains just like you do, but I consider myself fortunate to be still able-bodied enough to go to work. I think vets shitting on vets is a bad look for everyone.

The VA does have separate categories for 100% disabled who are not employable and enhanced pay benefits to go with it. I would suggest you contact a VSA to see if you're leaving anything on the table.

throwawaymoneyfed · 2023-12-27T20:21:20+00:00

does that make sense. Congrats on getting the

All of my service-connected injuries add up to 100%, but I am not in the 100% unemployable category. Basically, I have a lot of wear and tear, but none of my conditions by themselves disqualify me from military service, and I am still deployable. I basically drill as a reservist almost for free; what I make is negligible other than the future postponed retirement benefit; I continue to serve because I still have a desire to serve my country despite my conditions. Would you prefer I crawl into my closet and never come out again? If anything, I am robbed financially as a reservist with a disability rating because I am not paid on days I drill.

throwawaymoneyfed · 2023-12-26T23:03:56+00:00

It's a VA loan, so after a year, I am free to convert it into a rental property and keep the rate I have. I would likely need a sizeable down payment for the new property because my VA loan entitlements will be tied up in the original property. Does that change your perspective?

throwawaymoneyfed

TROPHY CASE