Reply to Hating the TSP -- opinions on how to invest?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]There is no better retirement savings vehicle than the TSP.  TSP is such a great deal because of the rock-bottom fees that are charged.  A majority of mutual funds are linked to the US Total Stock Market, and the market's going to do what it'll do, so paying the tiniest of fees really gives TSP participants a leg-up.  The investment industry's average annual fee is 1% (and can go way up from there).  Vanguard's, the industry leader, is 0.18%.  But the TSP's expense ratio is just 0.03% across all its funds.

https://investor.vanguard.com/mutual-funds/low-cost

And the TSP's G-Fund is practically a free lunch.  A short-term bond with long-term rates that NEVER LOSES VALUE?  Sign me up, because it's not available anywhere else.

The Fed Dream = Retiring at 57 with 30+ years of service, and then immediately collecting each month a full & unreduced pension + a check from TSP that's drawing down a (hopefully) $2mil+ balance + a $1,300 check from the FERS Social Security Supplement until turning 62.  Plus a reasonable-cost health/vision/dental coverage plan for life, along with great survivor benefits too.  And then waiting all the way until 70 to collect SS.

But if you're a new fed hired after 01/01/2013, then you're screwed because of FERS-(F)RAE.  You get the same pension, but are going to pay a lot more upfront for it.[/quote]

Can this poster embellish a bit more on "The Fed Dream?"  My DH is a federal employee, and he knows the details of retirement, etc.  (He's 44 years old with 15 years of service, an annual salary of $158,000, and a TSP balance of $512,000.)  Here are a few questions:

(1) Do I understand correctly that, in the FERS system, you get 30% of your highest salary each year in retirement if you worked 30 years?
(2) Is the FERS Social Security Supplement something that you pay for as an optional item?
(3) Do federal employees really get a reasonable-cost health/vision/dental coverage plan for life?  (Can you embellish?)

Thank you!  [/quote]

(1) yes = 30% of highest three years
(2) special supplement is automatic if you qualify. 
(3) same as what your DH's getting now as a Fed. [/quote]

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