Reply to Maxing out TSP

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[quote=Anonymous][quote=Anonymous]The SS and FERS doomsayers are drastically overstating their cases.  It is possible that SS gets adjusted down from current scheme, but it's essentially a neglible possibility that you get nothing.  Same with your FERs pension -- it may move to "high-5" payout or some other tweaks and adjustments but it won't be wiped out completely.

Given that you are in line for 2 pensions and 2 SS streams, you really are OK if you just continue with 10% total (5+5 match) into the TSP.

Given conservative projections, the TSP should hit something like $1M in 30-35 years.  Conservatively, you're looking at another $50k+/year in 2 FERS pensions for 2 30-35 year careers, probably more depending on your income growth.  Very conservatively, you'd also get another $40k per year in 2 SS payouts.

Those are all 2018 dollars.  Even if you adjust the SS and FERs by 2/3, you're talking $60k per year plus whatever you can draw from your TSP.  At the 4% rule, you could expect to take $40k per year from the TSP.

That gives you $100k per year in annual retirement income.  That is the figure in 2018 dollars (the nominal number would be higher).

Even after taxes, given your current income and spending (and especially if you pay off a mortgage in the next 30 years), that puts you on track for a secure retirement.

Tl;dr: if you have extra room in your budget, by all means increase your TSP contributions.  But if money is tight, then just stay the course.  You are doing OK.  As you get raises, make sure to increase your retirement contributions with each pay increase.[/quote]

Anything is possible with a stroke of a pen.  Don’t be surprised if republicans try to attack FERS and SS.  If not now, later....especially if we continue to elect neo-fascists in office.[/quote]

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