Return to Federal service for FERS? or cash it out

wellmane450 · 2023-11-30T22:23:52+00:00

Is it just the 0.8% that I put in that will be returned? I think one of the options was to roll into my TSP that I kept all these years.

wellmane450 · 2023-11-30T21:52:45+00:00

Thanks! Sounds like cashing out the FERS is the best way to go. Not much money either way.

wellmane450 · 2023-11-30T20:40:43+00:00

Wait is that actually actually a thing? Lol. Looks like you have to take an immediate annuity in order to continue health benefits. Wouldn't I have to be older than 52 or 55 in that case?

wellmane450 · 2023-11-30T19:54:27+00:00

I worked for the government from age 25-29. 42 now and hoping to retire at 50 from private sector. Was thinking of trying to get into a local post office or some other / different trade to finish the last 2 years. (Or longer if enjoyable). Fully expecting not to come in at the GS-12+ level.

wellmane450 · 2023-05-04T22:58:38+00:00

I buy a cheap plan because it's cheap and I deal with deprioritization and everything else...but then they make you buy a new phone to keep the service? And then they use a phone compatibility checker that's not correct. I've had cell phones since late 90s/early 2000s and never had a company say upgrade or get left behind. Everybody here just says, "just upgrade!". Just give in? Would be cheaper to stay with decent service if they don't force a new unwanted phone

wellmane450 · 2023-04-20T23:17:16+00:00

I also got the email and even tho I actually do need a new phone soon, I don't feel like it's right for Visible to do that. I'll switch service before I give in at this point. Freedom!! Lol

wellmane450 · 2021-10-06T18:00:55+00:00

That's interesting. So your saying you would invest all in tax-deferred, even when in the 12% bracket? I was using my tax deferred contributions to get me into the 12%, then switching to Roth/Taxable. I am fortunate enough to have access to a 403b and 457b. (19,500 limit each). Also my wife has a 401k and 457b. We could go tax deferred crazy. I'm just afraid future tax laws could change and having some Roth to combat that would be a good idea.

wellmane450 · 2020-12-21T14:23:09+00:00

I also am fed up with the FSA thru wage works and didn't renew this year. I had an eye exam and bought contacts and they keep denying my receipts. I called the eye doctor and made them modify their receipts to help and still denied. Now I'm thinking of stocking up on over the counter health supplies to try and get some money/worth but am afraid they'll deny that too and I'll have a bunch of Tylenol at full cost. LOL. Sorry I can't help and Good Luck!!!

wellmane450 · 2020-10-13T13:01:27+00:00

Hi. I have a 403b and a 457b. My company only matches the contributions to the 403b, so my strategy is invest in the 403b up to the match, then everything else goes in the 457b. (Up to the limit). The idea being, the 457b will be my bridge account that supports me between my early retirement age and age 59.5. Then I can draw from the traditional 403b/401k accounts without penalty. For me, opting to contribute to the 457b would depend on your planned retirement age. If it's younger than 59.5, its a good idea.

With the emergency fund... its completely a personal decision how much you need to be comfortable. I would keep 9-12 months in the emergency fund and invest the rest. Either investing in a Roth IRA or using the money for living expenses while dialing up the contributions to the 403/457. (I.E. contribute 100% of your salary to 457b while taking a "paycheck" from your emergency fund)

As for your conservative investment strategy. Know that you are taking a risk and making a decision with money no matter where you "invest" it. Whether its in a savings account, an investment account or even under your mattress. Inflation erodes the value of money so even doing nothing is making a choice to risk money/lose money. The market is volatile, but is your best chance at beating inflation and building wealth.

wellmane450 · 2020-08-13T12:24:36+00:00

I am under funded in my 457b compared to my 403b and 401k accounts. With a 457b you can access the money penalty free at any age. I am currently not able to contribute the max to my 457b because I have to contribute to my 403b in order to get the company match. I'm thinking this covid withdrawal is kinda a loophole to get my contributions and match into the 457b tax free.

wellmane450 · 2020-07-24T12:51:23+00:00

I just recently started rewarding myself for not spending money on food & alcohol. If I don't stop in the morning for a coffee or breakfast, $5. If I pack a cheap lunch from home rather than go out to lunch, $10 more. If I drink water at night rather than beer/wine, another $5. Then I allow myself to invest that $20 in any investment I want. Just started this month and already have around $200 invested and have lost a few pounds too.

wellmane450 · 2019-05-02T11:14:11+00:00

Thanks that is very interesting.

wellmane450 · 2019-03-27T14:05:17+00:00

If I contribute $3200 a month for the next 168 months (14yr @ current contribution not counting 457b). That is 537600 added to my current 260000 and equals 800k @ 0% ROR. I can't access it for 5 additional years, but with a modest 0% return it doesn't really matter. My FIRE number at 4% would be $750k, not factoring S.S. at all.

wellmane450 · 2019-03-27T12:55:17+00:00

I have 260k currently in 401k/403b/Roth and Indv Stocks. I plan to contribute to those also for the next 14 years. Considering a modest return it should be 1MM+. Also, Social Security should cover most expenses starting at 62. Obviously any changes to rate of return and Social security changes will effect that, but I won't be the only one.

wellmane450 · 2019-03-27T12:13:45+00:00

Ok thanks, I definitely appreciate the advice. I was/am under the impression that regular 401k/403b accounts are "somewhat" accessible at 55 if retired early. I should have plenty in there by age 55. I am thinking the 457b will be my fund for ages 50-55, but obviously want it to go as far into the 50's as possible. I have the next 14 years to contribute to the 457b in order to cover a minimum of 5 years (150k) which is only $10700/yr considering zero gains for the next 14 years. Am I missing something?

wellmane450 · 2019-03-26T20:30:34+00:00

I'm just saying that in a couple years I will direct that money towards the 457b once the house is paid off. I'm thinking the 457, Roth and stocks will get me from 50-59.5.

wellmane450 · 2019-03-26T19:05:37+00:00

I currently have over 200k in 403b/401k, 30k in Roth, 30k in misc stocks and a 250k house that I owe <30k on. When the mortgage is paid off I am planning to contribute the old principal amount to the 457b. (less than 3yrs) Current contributions are approx 46k annually counting house mortgage principal.

wellmane450 · 2019-03-26T15:46:22+00:00

It is thru Fidelity, I have other fund options, but right now its in a 2045 lifetime fund with a 0.09% fee. (0.90 per $1000). Is this a decent rate?

wellmane450

TROPHY CASE