Hey, I use checks and stamps still……youngsters these days with their debit cards, try carrying a money clip and a checkbook everyday, along with my glasses holder, pen and screwdriver
I’m not sure if you’re trolling or not but yes generally speaking you should be more than okay. You’ve got 1.4 now, and in 13 years with an annual return even as low as 6%, you’ll have 3 millionish (without further contributions). Plus pension and social security, I don’t think you have anything to worry about.
I just used an online calculator with your starting value (1.4million) plugged in a conservative 6% return annually, and the length of time (13 years) and it gave me a little over 3 million. I’m not sure what your annual expenses are, but I hope to be in your position one day! I’ve got about 30ish more years til retirement
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
This one is fairly nice because it can give you a variance on rate of return.
1.4x1.06^13 in millions
Simple interest rate/growth formula. A=P(1+r/n)^(n*t), where P is starting amount or the principal, r is annual interest rate, n the number of compounding periods per year, and t the number of years.
There is a general rule called “the rule of 72.” It will give you the amount of time required to double your money in years. But you can’t vary the interest rate you are receiving. This must remain constant for it to work. So let’s say you wanted to know how long it would take to double your money of your receive 10% yearly. Take 72 (the constant) and divide the given interest rate into it, I.e., 10% and you get 7.2.
It will take you 7.2 years to double your principal at a rate of 10%.
I’m planning to retire after MRA but before full retirement age. I looked at what the pension hit will be, and it’s not that much, comparatively. I’d rather have my life back. With this much savings already, look at where you’ll be at MRA vs 62. Good luck.
You’re being downvoted but you are right, depending on your lifestyle. Follow the 3-4% retirement rule and ignore the others. I’m guessing you are in late 40s? Push for 2m.
You’ve done well so far. I’d adjust your risk tolerance a little more and try to get into the 10%+ return range.
Not knowing what your pension would be, you should be fine. If you are GS 13+, stick with it and keep getting those step increases/raises, more responsibility etc.
I’m in my low 50s now, retired from military recently and am at a 3% of ~163K/yr. I believe you can get to 100K/yr if you make some tweaks to your portfolio.
I knew I would bc people will automatically think you are being sarcastic and bragging. It is what it is. Thanks for the advice. I’ll reach out bc I have a few questions I want to run by you.
If you knew you would get pushback, but then posted this without any specific questions about lifestyle/$ target/assumptions, then it’s clear you just wanted to stir the pot.
You can’t claim both well-intentioned sincerity and keen foresight.
SS sends you a statement every year, or you could log into the website and check the projected benefit.
Pension projections are usually offered by your agency somewhere online. If not, it isn't that complicated to figure out. If you retired at age 62 with 40 years of service, you would get 40 x 1.1% x high-3 average as your pension. If you retired at age 61 with 40 years of service, you would get 40 x 1% x high-3 average. Just fill in your best guess on your high-3 or just use your current salary to get a lowball estimate (knowing it would be at least that much).
I would say a conservative estimate using the rule of 72 at a paltry 7% annual interest rate would allow him to double his $1.4M twice. This guys looking at around $5.6M easily. That’s provided there isn’t a massive crisis in the next 14 years.
Just eyeballing it, I think you’re on track for $3M at least by retirement. That and a pension should be plenty. I know the concern is real even though you have a lot already.
Are you a regular FERS or special provision? You won't get anywhere near 80% under FERS. With CSRS it was possible to get near 80%, but you said you're under FERS.
40 years of service and separate after turning 62 gets you 44%.
40 years of service and separate before turning 62 gets you 40%.
Special Provision gets 1.7% for the first 20 years plus 1% for each year over 20. But they also usually have age limits requiring earlier retirement.
Even if you managed to get 40 years of service in a Special Provision position, that would only be 54%, not 80.
Are you CSRS or FERS? If FERS and your speaking strictly pension, this is incorrect. Again, if FERS, your pension at 40 years would be 40% of the average of your top 3 salary (unless you get a huge raise the last couple years, using your last salary is a good approximation). If at 40 years you'd be over 62, you'd get 44% of your top 3 salary. If you don't understand how these are calculated, recommend reading OPM website, it's laid out fairly easy to understand.
If talking about all your retirement streams to get to 80% (pension, SS, TSP), then as long as you're SS and TSP can make up 40% of your income, then math checks.
With the amount you have listed, even if you didn't put another cent in, as long as your returns are about 5.5% (which depends on your tsp allocation, if you don't know how this works, need to do basic invest research), your money in TSP would double in 13.5 years. (If you don't know why this is, Google Rule of 72). You can then divide that new total amount by 25 (Google 4% rule), to determine rough yearly withdraw from your TSP.
Then either you're not under FERS or that person shouldn't be in that position. There's no way for you to get 80% under FERS unless you work well past retirement age.
ETA: by "well past" I mean like another entire career's worth. It takes 72-73 years of service to get to 80% of high-3 under regular FERs.
There's no excuse for a retirement specialist giving such blatantly incorrect advice. Either they're flat out incompetent or else you misunderstood something that they said and are misquoting them here.
Congrats on having the discipline despite knowing nothing about your pension. Clearly learning about retirement planning wasnt a priority until now but you did the most important thing by saving and investing heavily, early, and consistently. Not sure how you managed that balance w 30/30/30 C/S/I (that 30% I hasnt done much), how many years of max contributions and match? I maxed for \~20 yrs and dont have close to that but no match.
Where do you live or where do you plan to live is the better question. Along with your pension I think you are pretty set. You could retire now financially if you meet the requirements and don’t have any financial burdens. Honestly why do you want to make it to 40 years? So you are too old to enjoy retirement. Do you know how many people I know that have stayed beyond like you plan to and literally got too sick to enjoy retirement. Or worse died. Get out when you can. Have a plan. Enjoy life.
This guy…shows you can know absolutely nothing about your retirement and it still work out for you as long as you’re contributing the max. No need to do 40 years. Do 3.5 more, get your 30 and ride off into the sunset. Congrats!
It’s not cool if no one knows about it. Nice flex op. The problem might be drawing it down and spending it because after watching it grow so many years and wanting to hit 2 mil and then 3 mil you get in this competition mindset of only going higher and higher. Then you drop dead with all this in your account and your decades of savings was pointless. You are going to need to flip that switch eventually.
Ya I worry about my millions of dollars not being enough too.. have you seen the cost of milk these days?!
Yes and the cost of stamps
What are these things you call stamps?
It’s how Boomers “email”
Hey, I use checks and stamps still……youngsters these days with their debit cards, try carrying a money clip and a checkbook everyday, along with my glasses holder, pen and screwdriver
No one understands sarcasm unless you shove a /s in their face
it's more fun when they don't see it
I’m not sure if you’re trolling or not but yes generally speaking you should be more than okay. You’ve got 1.4 now, and in 13 years with an annual return even as low as 6%, you’ll have 3 millionish (without further contributions). Plus pension and social security, I don’t think you have anything to worry about.
How did you calculate that?
I just used an online calculator with your starting value (1.4million) plugged in a conservative 6% return annually, and the length of time (13 years) and it gave me a little over 3 million. I’m not sure what your annual expenses are, but I hope to be in your position one day! I’ve got about 30ish more years til retirement
Which online calculator? The one that OPM provides?
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator This one is fairly nice because it can give you a variance on rate of return.
Thank you Pillow
Nah thecalculatorsite.com has an annual growth rate calculator
1.4x1.06^13 in millions Simple interest rate/growth formula. A=P(1+r/n)^(n*t), where P is starting amount or the principal, r is annual interest rate, n the number of compounding periods per year, and t the number of years.
I’m still lost. May I DM you? I need to learn this calculation.
Here, try this. https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
Thanks very much Jim.
There is a general rule called “the rule of 72.” It will give you the amount of time required to double your money in years. But you can’t vary the interest rate you are receiving. This must remain constant for it to work. So let’s say you wanted to know how long it would take to double your money of your receive 10% yearly. Take 72 (the constant) and divide the given interest rate into it, I.e., 10% and you get 7.2. It will take you 7.2 years to double your principal at a rate of 10%.
Definitely feel free to pm me. I used to teach, so this is permanently burned into my brain, lol. The formula assumes no further contributions.
Future value calculation.
Cool DK why
You’re being 100% sarcastic with this post and 100% are bragging.
that’s the case with most people who post here hahaha
Actually I’m not. I have heard you need about 3 million to live comfortably.
3 million well net you about a 120,000 annual withdrawal. That’s at a 4% rate.
My best friend Suzie says I need at least 10 mil. So I might get there if I work until 75.
🤣🤣🤣
Don’t forget you have a pension and SS. So your TSP is only one leg of the stool. You could retire now.
I wish. I don’t have the age.
I’m planning to retire after MRA but before full retirement age. I looked at what the pension hit will be, and it’s not that much, comparatively. I’d rather have my life back. With this much savings already, look at where you’ll be at MRA vs 62. Good luck.
Ok thanks Minerva. I will reach out to the retirement specialist to see if they could calculate it.
You’re being downvoted but you are right, depending on your lifestyle. Follow the 3-4% retirement rule and ignore the others. I’m guessing you are in late 40s? Push for 2m. You’ve done well so far. I’d adjust your risk tolerance a little more and try to get into the 10%+ return range. Not knowing what your pension would be, you should be fine. If you are GS 13+, stick with it and keep getting those step increases/raises, more responsibility etc. I’m in my low 50s now, retired from military recently and am at a 3% of ~163K/yr. I believe you can get to 100K/yr if you make some tweaks to your portfolio.
I knew I would bc people will automatically think you are being sarcastic and bragging. It is what it is. Thanks for the advice. I’ll reach out bc I have a few questions I want to run by you.
If you knew you would get pushback, but then posted this without any specific questions about lifestyle/$ target/assumptions, then it’s clear you just wanted to stir the pot. You can’t claim both well-intentioned sincerity and keen foresight.
But you also get a pension and SS.
I don’t know how much that will be.
You’ve been in the government for 25 years and don’t know how to estimate your retirement…🤯🤦🏼♂️
SS sends you a statement every year, or you could log into the website and check the projected benefit. Pension projections are usually offered by your agency somewhere online. If not, it isn't that complicated to figure out. If you retired at age 62 with 40 years of service, you would get 40 x 1.1% x high-3 average as your pension. If you retired at age 61 with 40 years of service, you would get 40 x 1% x high-3 average. Just fill in your best guess on your high-3 or just use your current salary to get a lowball estimate (knowing it would be at least that much).
Do we pay taxes on the pension in retirement?
Pension and SS, yes.
Ok, and? The rule of 72 states your money will double roughly every 7 years. With 13 more years until retirement, you should have that $3 Mil easy.
You also have a pension and social security.
You’re set.
I would say a conservative estimate using the rule of 72 at a paltry 7% annual interest rate would allow him to double his $1.4M twice. This guys looking at around $5.6M easily. That’s provided there isn’t a massive crisis in the next 14 years.
the rule of 72 with 7% and 13.5 years would double his money only 1.312 times to $3.47M. (13.5/(72/7))
Never heard of rule of 72. Let me Google that RIGHT NOWWWWW!!!!
Huh? 👀👀👀 5.6?
I hope so man
Just eyeballing it, I think you’re on track for $3M at least by retirement. That and a pension should be plenty. I know the concern is real even though you have a lot already.
I appreciate it man. Was worried to even post it bc will automatically take it as bragging. I appreciate the reply.
People d/v are jealous. Admit it, lol.
Who knows man. Next time I post I’ll say my balance is $2,000 and I’m just starting
You should, lol.
I will get plenty of sympathizers then. Awwwww, you should invest more, yaddyya
Do you get a pension too?
Yes. FERS.
Curious, why wait for 40 years of service?
That’s what the retirement specialist recommended
Is there like a special perk you get for waiting until 40 years of service?
The retirement person told me that I could do close to 42 years to get 80% of my retirement but that’s a little too long for me, I think.
Are you a regular FERS or special provision? You won't get anywhere near 80% under FERS. With CSRS it was possible to get near 80%, but you said you're under FERS. 40 years of service and separate after turning 62 gets you 44%. 40 years of service and separate before turning 62 gets you 40%. Special Provision gets 1.7% for the first 20 years plus 1% for each year over 20. But they also usually have age limits requiring earlier retirement. Even if you managed to get 40 years of service in a Special Provision position, that would only be 54%, not 80.
Are you CSRS or FERS? If FERS and your speaking strictly pension, this is incorrect. Again, if FERS, your pension at 40 years would be 40% of the average of your top 3 salary (unless you get a huge raise the last couple years, using your last salary is a good approximation). If at 40 years you'd be over 62, you'd get 44% of your top 3 salary. If you don't understand how these are calculated, recommend reading OPM website, it's laid out fairly easy to understand. If talking about all your retirement streams to get to 80% (pension, SS, TSP), then as long as you're SS and TSP can make up 40% of your income, then math checks. With the amount you have listed, even if you didn't put another cent in, as long as your returns are about 5.5% (which depends on your tsp allocation, if you don't know how this works, need to do basic invest research), your money in TSP would double in 13.5 years. (If you don't know why this is, Google Rule of 72). You can then divide that new total amount by 25 (Google 4% rule), to determine rough yearly withdraw from your TSP.
What retirement specialist? Is this someone at your agency?
Yep.
Then either you're not under FERS or that person shouldn't be in that position. There's no way for you to get 80% under FERS unless you work well past retirement age. ETA: by "well past" I mean like another entire career's worth. It takes 72-73 years of service to get to 80% of high-3 under regular FERs.
I’m under FERS. I was told by a colleague that the person who told me was new to the agency and didn’t know all the rules.
There's no excuse for a retirement specialist giving such blatantly incorrect advice. Either they're flat out incompetent or else you misunderstood something that they said and are misquoting them here.
They were new on the job. I spoke to my colleague and they showed it to me on the OPM site that it was incorrect.
I am confused. How long you been contributing and why don’t you know that this is just one part of your retirement?
How long? Seems like forever 😂
Humblebraggers gotta humblebrag.
Enough for what?
Retirement
That’s what pension and SS are for. Now if you are building a new house, like me, $1.4M is certainly enough…
You’re building a house 🏡? 🙌🙌🙌🙌🙌
Actually it’s done - getting ready to close on the mortgage. I got enough in my TSP to cover it…
You’re buying a house with TSP money? I didn’t even know you could do that.
The payments will come out of TSP, yes. I am retired…
Congrats 🎊🎉🍾🎈
Btw, I never reached 40 years of service…
Congrats on having the discipline despite knowing nothing about your pension. Clearly learning about retirement planning wasnt a priority until now but you did the most important thing by saving and investing heavily, early, and consistently. Not sure how you managed that balance w 30/30/30 C/S/I (that 30% I hasnt done much), how many years of max contributions and match? I maxed for \~20 yrs and dont have close to that but no match.
I will DM you and share the details
Not with debt racking up $1 trillion every hundred days. For every $1000 you have it will only be worth $100 in todays value.
Maybe I missed it, but what funds are you in?
CSI split in thirds
Did u roll over a pension from a previous job ?
NO
Where do you live or where do you plan to live is the better question. Along with your pension I think you are pretty set. You could retire now financially if you meet the requirements and don’t have any financial burdens. Honestly why do you want to make it to 40 years? So you are too old to enjoy retirement. Do you know how many people I know that have stayed beyond like you plan to and literally got too sick to enjoy retirement. Or worse died. Get out when you can. Have a plan. Enjoy life.
THIS!!! Thank you PDeb.
How’s this even possible mathematically?
What do you mean?
How many years have you been contributing? You started maxing when you began your job?
I did. My first check was enough to pay for my apartment and car note 😂. I’m not even lying.
So, why are you now like a GS15 step 8?
I wish. GS12
But I also do something on the side.
Is 40 years minimum retirement age for you? That’s a long azz time to work at the same place.
I know Cartoonist. I know. 😩😩😩
Depends on your spending habits and if you have a lot of debt.
lol. You’re doing damn well.
Appreciate that Tasty Specialist
Now you’re just showing off.
Thanks for sharing! How many years have you been contributing to your TSP? And was it the maximum amount possible every year?
20 +years
Thanks ! Congrats on your savings.
I won’t lie, it’s the toughest shit to do. I guess I set it and forget it and have lived off the rest of the amount.
A lot of money 😩😩
13.5 years is a long time, a lot can happen. Shit, you might not have anything by then
Facts Merge
You know you will have enough. Such an odd flex.
I don’t know man. You have no idea what I have going on.
Perhaps talking with a financial planner would help you then.
Yes Morpheus. I will
This guy…shows you can know absolutely nothing about your retirement and it still work out for you as long as you’re contributing the max. No need to do 40 years. Do 3.5 more, get your 30 and ride off into the sunset. Congrats!
Facts Womper. I just listened to the orientation many years ago and decided to max out each year.
Or… you could retire earlier! 🤔
You’re probably going to have $3-4 million dollars. You’re fine. Plus your pension.
There’s no hope for the rest of us if $1.4 mil with 14 more years to grow isn’t enough for you to feel confident about your financial future.
When the spouse takes 1/2 it won’t be 🤣🤣🤣
I hope you will have enough time to enjoy your savings. Don’t wait too long.
The best reply. Facts.
How long did you max out for? What fund did you contribute to? Share your strategy!
Check your DM.
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Lmaooooooo
I don’t bro. 😎 I just invest and let others explain it to me 🤣🤣🤣🤣
Could be fine depending on quality of life that you want in retirement.
Very true
It’s not cool if no one knows about it. Nice flex op. The problem might be drawing it down and spending it because after watching it grow so many years and wanting to hit 2 mil and then 3 mil you get in this competition mindset of only going higher and higher. Then you drop dead with all this in your account and your decades of savings was pointless. You are going to need to flip that switch eventually.
💯
Please tell me you’re trolling
Nope
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SMH ok
I think you may be ok...it's iffy lol
It really is
Were you maxing your contributions for all of those 26.5 years? Which funds did you primary invest in?
For the most part. I may have missed it twice by a few grand
that amount would almost 1.5-2x should be enough
Want to go to Vegas for the weekend? I’ll pay for the tickets. You got the rest?
Obvious fake post. Delete
I wish it were fake and I had more. I want to be prepared for retirement.
go away. obvious BS.
If I had that amount, I be switching to a less aggressive approach, I wouldn’t ever risk a dime
Go hard or Go home bro. I’ve been living by that motto for years.
I might be old school, but I ain’t an old fool
Congrats and fuck you
Lol 😂 thanks
What is the point of this post
Getting Advice. What’s the point of your reply?
Seek mental help
Why are you mad? Lmaooooooo 🤣🤣🤣🤣🤣
Why are you dumb?
Why are you mad? LMAOOOOOOO 🤣🤣🤣🤣🤣🤣
The smart play Sir would be to pull all of it, pay 10% penalty plus 35% taxes and then buy 7 day call options on NVIDIA for 29 March
👀