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Lots of things have income limits. ROTH IRA is the first thing that comes to mind. If you're right at the margin of being able to contribute, deferring some income can bring it down enough to be under limits.
Maxing TSP
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Mike Kilo
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Ability to choose where it’s invested instead of the funds.
32andBelow
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Basically this. And that you can max both your work tsp and a Roth IRA. The way I see it is I can almost max my traditional tsp and my Roth IRA with the same amount of money as maxing a Roth tsp. Yes I’ll pay taxes down the road but I feel like more money in the market longer will pay off. There’s lots of YouTube videos explaining this. Most come out close to a wash in the long run
Mike Kilo
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can try this I suppose.
FERS Supplement - Plan Your Federal Retirement
So few people know about the FERS Supplement - it's practically a secret. Learn about a special retirement benefit for some FERS federal employees.
plan-your-federal-retirement.com
Social Security supplement starts when you retire; stops when you become eligible for regular Soc Security (age 62) whether or not you start Social Security then. Calculation: (yrs service)/40 x (age 62 Soc Sec estimate)
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AnyTrafficPleaseAdvise
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There are people who haven’t been banned from there yet?
Raise when?
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I hear you, the peace of mind would be great.
And lots of people say to themselves they will invest the rest and simply end up spending it all on toys or their lifestyle
I just have auto deposits to my investment accounts so it's out of my hands. In my situation I really don't care if I ever even pay my house off. I figure I can sell my house when I retire, pay off the mortgage and I'll come out on top to the tune of a few hundred grand most likely....
Dontbotherme
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- Live within your means. This is the single most important thing you can do for long term financial prosperity!
- Max your TSP as quickly as you can. The TSP is very beneficial because of its low fees. Fewer options to choose from, but lower fees hopefully equals higher returns long term. You choose how to split it between traditional and Roth ($20,500 total). I personally do $500 traditional and $289 Roth. My split in 2022 will be $13,000 to traditional and $7,500 to Roth.
- Contribute to another Roth IRA ($6,000 total) either because you make less money or backdoor into a Roth.
- Put additional money into other investments (brokerage account, real estate investments, et cetera).
- Besides your rainy day fund (6 months or whatever you desire), enjoy the rest and live life.
- Max your TSP as quickly as you can. The TSP is very beneficial because of its low fees. Fewer options to choose from, but lower fees hopefully equals higher returns long term. You choose how to split it between traditional and Roth ($20,500 total). I personally do $500 traditional and $289 Roth. My split in 2022 will be $13,000 to traditional and $7,500 to Roth.
- Contribute to another Roth IRA ($6,000 total) either because you make less money or backdoor into a Roth.
- Put additional money into other investments (brokerage account, real estate investments, et cetera).
- Besides your rainy day fund (6 months or whatever you desire), enjoy the rest and live life.
Question: Is your SS Age 62 estimate based on you continuing to work until 62?? In other words, if you retire at say 50, your age 62 estimate is likely going to be too high on the SSN website? Therefore, your Social Security Supplment will actually be considerably less than those calculations? Can someone actually give an example of what their supplement is relative to their final salary? Doesn't have to be specific, but I'm guessing something in the $1000 to $1500 range per month for most retirees?
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I’m pretty sure you can request it right now. It’ll tell you what you’d receive. Takes like a month though
jdatc
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I believe you end up putting a lot of zero’s in for years worked into the calculation.
$1500 a month sounds like what I hear most of the time. I was suppose to go to one of those retirement things but…..
Here’s what I found-
FERS Retiree Annuity Supplement
A FERS Retiree Annuity Supplement, commonly called the special retirement supplement, may be paid in addition to your FERS annuity benefits. ...More
To get a rough estimate:
- Take your estimated Social Security benefit at age 62. If you don’t have an estimate (SSA no longer sends them to everyone automatically every year), you may get one by enrolling at www.ssa.gov/myaccount or calling (800) 772-1213.
- Divide the Social Security benefit estimate by 40 and multiply the result by the number of years you’ve been employed under FERS, rounded to the nearest full year. For example, if your estimated annual Social Security benefit at age 62 is $20,000 and you have 20 years of FERS service then your SRS will be $10,000 ($20,000/40 x 20).
Seems to work out somewhat. My estimate at 62 is 2414, I’ll have 26 years FERS when I retire, which comes out to about $1570. For reference from 2003 on I have hit the max I could pay to social security, I was a late 2002 hire.
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I don't have the exact numbers in front of me but (IIRC) you earn four Social Security "credits" each year you have at least a given amount of income. Your Social Security benefit is based on the highest 40 credits you've earned over your lifetime—essentially a "high 10" calculation similar to FERS' "high 3." There's no projection-until-age-62, it's solely based on the credits you've already earned.
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