Reply to Max out TSP, but make too much for Roth IRAs. How else do we save for retirement?

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Reply to "Max out TSP, but make too much for Roth IRAs. How else do we save for retirement?"

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[quote=Anonymous][quote=Anonymous]I know this may be a stupid question and a bit of tangent, but here goes.

If you are a fed and you are maxing out your TSP, why do you need any additional retirement?  It seems to me that you are going to get 25%-30% of your highest income every year to begin with in pension.  Then you'll havea  maxed out TSP.  Will I really need more than that?  Shouldn't the pension count for soemthing in the retirement savings analysis?

TIA[/quote]

Of course pension counts for something but FERS + SS will not be enough for me or most I know.

I've been saving 7-10% of gross salary IN ADDITION to maxing TSP contribs + catchup contribs + nondeductible IRA for the past 20 yrs+.

What's your TSP done?  I know people who lost a shitload in '07-08, others were more conservative at getting out of equities mostly (not fully) and saw less than half of the losses of those who were fully invested.  Those who went 100% G Fund are getting killed by low interest rates.

Those who diversified well have averaged well over 7-10% for the past 5 yrs on top of much lower losses in '07-08.  In real dollars this can mean hundreds of thousands of $ difference in the balance of your TSP account, so there is no one answer for "will you need more than TSP?"  In part it depends on where your TSP account is... drawing down on $750k+ is a lot different than drawing down on $400k ...

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