I'm 60 With $1M TSP How Much Can I Spend In Retirement

The Fed Corner - Federal Retirement Planning

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Retiring with $1 million is often a common goal. If you're around 60 years old with $1M in your TSP, or maybe have a million dollars combined with your spouse and you're asking, "Can I retire?", then keep watching. In this video, Thiago Glieger, federal retirement advisor, shows us a retirement case from a real family that came to us asking if they could retire already. They went from barely making it to feeling confident about their retirement with more traveling.
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Опубликовано:

3 авг 2024

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Комментарии : 90

@TheFedCorner 10 месяцев назад

If you enjoyed this video, consider subscribing by using this link: ru-vid.com AND if you're interested in our FREE newsletter, you can find it here: thefedcorner.com/current-resources#764c6ea5-6ec2-4c7d-b04a-99745e48d53f

@crcol 10 месяцев назад

Thiago and his team helped me with my plan. I am 62, retired from the government. 1M in TSP, and doing consulting work, so not fully retired yet. However, I am more confident that the plan will keep me in a financial position where I can enjoy the rest of my life.

@TheFedCorner 10 месяцев назад

We're glad to be helpful. Thanks for sharing your experience and for your support; we all appreciate you!

@asandrik3124 8 месяцев назад

@crcol may I ask a ball park on what it cost you and are they a Fiduciary?

@denniswarren5871 3 месяца назад

62 and struggling with should I retire or keep working. Retire means retire. If I retire from federal employment and then go back to work doing something else, why not just keep working?

@GunMD 10 месяцев назад

Am I the only one who used to think "I know how to prepare for retirement...", yet every year I get less and less confident that I can handle the planning on my own without professional assistance? Wow. So much to think about. Thanks @TheFedCorner for sharing these videos.

@TheFedCorner 10 месяцев назад

You're not alone. Many retirement planning concepts are simple to understand but complex to implement. Laws and the economy frequently change, and it requires a substantial amount of time to properly stay on top of it all. Glad you found the videos helpful!

@CumminsTurbo4 6 месяцев назад

Yes, the tax stuff is the biggest wild card for me....

@Kep19901 10 месяцев назад

Super helpful! Thank the couple for sharing this information. Also, maybe paying off the house quickly would help minimize expenses/spending early. I'm 33, im just shoving in as much as I can into retirement vehicles.

@TheFedCorner 10 месяцев назад

Keep at it! You've got plenty of time to save aggressively to create your own financial independence in the future. Thanks for tuning in!

@Kep19901 10 месяцев назад

@@TheFedCorner thanks. I never feel like I'm doing/saving "enough"

@Mary-oc5ns 10 месяцев назад

This case study was helpful. I would also like to see examples of single people.

@TheFedCorner 10 месяцев назад

Sure, we'll add a case study with one person to our list for the future.

@CumminsTurbo4 6 месяцев назад

Yesss, second this!

@charlesstrang6007 10 месяцев назад

This was really Helpful!

@TheFedCorner 10 месяцев назад

Glad you think so!

@tompetzold869 10 месяцев назад

Yes helpful video, very interesting what small changes can do.

@TheFedCorner 10 месяцев назад

Happy to hear you found it helpful!

@gasrat87 10 месяцев назад

Yes, this is very helpful!

@TheFedCorner 10 месяцев назад

Glad you think so!

@cielnoir7 10 месяцев назад

I appreciate you taking us through the story. Love it!

@TheFedCorner 10 месяцев назад

Glad to hear it was helpful!

@kaysamuel2012 8 месяцев назад

Yes, it was very helpful. Pl continue to give such examples.

@TheFedCorner 8 месяцев назад

We will!

@momhouser Месяц назад

Yes please, more info about optimizing to save on taxes. Specifically, Roth conversion for those in 12/15% bracket, and capital gains window vs. Roth conversions.

@RusscanFLY 5 месяцев назад

This was very helpful. I need to really start thinking about my retirement. Lots to think about!

@TheFedCorner 5 месяцев назад

Glad it was helpful!

@anitahoward8506 3 месяца назад

Yes - this video was very helpful.

@TheFedCorner 3 месяца назад

Glad you think so!

@kennethbarnett3602 17 дней назад

Yes, real world examples are very informative!

@TheFedCorner 16 дней назад

More coming from Thiago in the near future, stay tuned!

@jefflynch3410 5 месяцев назад

This case study was helpful. Would like to see more examples in future. For the success rates what market assumptions were factored in.

@TheFedCorner 5 месяцев назад

Glad it was helpful. For this specific case, I was using 6.13% linearly annualized returns. Understand that linear returns is a mean line driven through a scatter plot of returns. It represents trajectories and should be used with caution, as volatility and tax-bite are very real variables that must also be accounted for. I just couldn't fit every possible outlook inside a video or risk it being too long and technical. -TG

@robertreynard2916 12 дней назад

Yes, this is helpful… please show more

@TheFedCorner 5 дней назад

Glad it helped! I’ll do different scenarios going forward.

@BPAIZZY 10 месяцев назад

Very helpful.

@TheFedCorner 10 месяцев назад

Glad to hear!

@aaron5416 2 месяца назад

Thiago had me at Monte Carlo 👍

@nyteification8801 10 месяцев назад

Do you guys have some sort of mid-career check-in/review of retirement strategy service? These videos are awesome!

@TheFedCorner 10 месяцев назад

Excellent suggestion, we'll add this to Thiago's video list. He does have a retirement checklist video that's being developed so stay tuned for that. Alternatively, for personal questions or anything related to working with him, you may send an email to welcome@rmgadvisors(dot)com

@nyteification8801 10 месяцев назад

Thank you!!

@vanessag6900 10 месяцев назад

Excellent!

@TheFedCorner 10 месяцев назад

Many thanks!

@tactfulanimal 5 месяцев назад

I'm late to the game but I've been watching a lot of Thiago's videos (a lot in general but Fed Corner are superior) and this was one of the most helpful I've seen. Please, please do more of these. Real scenarios are exactly the type of thing I deeply need in my learning.

@TheFedCorner 5 месяцев назад

We appreciate it! Glad they've been helpful. Thiago has more of these planned so stay tuned!

@GunMD 10 месяцев назад

Helpful,and I would like to see more real world examples, please.

@TheFedCorner 10 месяцев назад

You got it!

@patricksimon8943 10 месяцев назад

Absolutely helpful

@TheFedCorner 10 месяцев назад

Glad you think so.

@veronicajackson4868 6 месяцев назад

This was helpful.

@TheFedCorner 5 месяцев назад

Glad to hear it!

@eddiea1178 5 месяцев назад

We like these examples Thiago

@TheFedCorner 5 месяцев назад

Glad you found it helpful.

@VirginiaBrown-cl4ii 10 месяцев назад

Yes, this was very helpful. We are retiring at 62 after next year and plan to do roth conversions until age 70 when we start taking social security. We are hoping that those conversions grow enough to get us through retirement

@TheFedCorner 10 месяцев назад

Happy to hear this helped. Roth conversions can be incredible tools sometimes. We have a few videos on when they do and don't make sense, check those out if you'd like!

@Dave-sw2dm 10 месяцев назад

At what tax rate are you going to do the conversions? My issue is the government could decide to tax the gains in the future just like they started, and increased taxes on Social Security.

@markschmitt8315 5 месяцев назад

Maybe do a video on retirement income strategy and methods to reduce taxes since that made a huge difference?

@TheFedCorner 4 месяца назад

Sure, I'll consider this, someone else mentioned it too. The challenge is that there are many different strategies that can be good in some circumstances and bad in others. But perhaps I can show examples and talk through how some of them work.

@GracieValenti1 10 месяцев назад

Thanks, very helpful!

@TheFedCorner 10 месяцев назад

Glad you liked it!

@atgirlygirl626 10 дней назад

Very helpful! Is there a tool like this I can use to plug in my own numbers?

@TheFedCorner 5 дней назад

The system I use is much too expensive for individuals, and it’s quite challenging to learn and use if not a professional. But there are some other tools out there that are intended for individual use. I’m testing a few out to see how well they work and may eventually do a video on it.

@Arabian1967Knight 6 месяцев назад

I like this. I still wonder how this would look for my wife and me, as she retires in a little under 3 years and I in a little under 6. We both work for the FED. I also wonder how much it costs to have our situation analyzed.

@scotta5838 9 месяцев назад

Great video and example. My wife and I are looking at this as well and may be in a similar situation (hoping I’ll have more like $1.5M by the time we retire at age 57 in 7 years though). Trying to figure out if we can pull a lot those first 5 years to pay off mortgage and do Roth conversions and how that could affect our overall plan). Research continues but this video is a great for my thinking in that!

@TheFedCorner 9 месяцев назад

Great goal to shoot for, glad you enjoyed the video.

@glasshalffull2930 Месяц назад

What interest rate is your mortgage? If it’s 3%, why would you pull out of your portfolio, that hopefully is making 7%, to pay off a 3% mortgage?

@scotta5838 Месяц назад

@@glasshalffull2930we are looking at building/buying new in a new location but as I run scenarios it’s scary when you pull so much those first few years. Plus any Roth conversions and not wanting to affect Medicare so need to do all this before 63.

@glasshalffull2930 Месяц назад

@@scotta5838 IMHO, maybe instead trying to pay off the mortgage, stockpile the extra funds in laddered CDs so you can use it to survive without pulling from your 401K those first five years. Though counterintuitive, you could also ‘stop’ contributing to your 401K for a few years just before retirement (always contribute enough to get the match) and stockpile that money. It seems like you’re fixated on not having a mortgage. Not saying it wouldn’t be great to have a paid off mortgage, but in reality it’s just another monthly expense. Same as property tax, food, fuel, income tax, health insurance, etc.

@yourmanzach2307 5 месяцев назад

do you charge people in the federal service for this type of help? if i recall correctly we can see free financial advisors.

@Bonnie-yu3kj 4 месяца назад

What is implementing a proper retirement system mean? I didn't see where you told us exactly what you did. This couple is very similar to us so would have liked to see that. How do you figure out what to do?

@TheFedCorner 4 месяца назад

This will vary among families. Certain investments have characteristics that can help a retirement plan's objectives. Creating the right mix for any given retirement plan is multifaceted. I'll consider a video on this but it can be an overwhelming concept and quite technical for a quick video format. -TG

@Bonnie-yu3kj 4 месяца назад

@@TheFedCorner Thank you for the reply. Appreciate it. I do understand the complexity which is why I have a consistent headache trying to figure it all out LOL

@kenedward4585 9 месяцев назад

@TheFedCorner Do you work my the hour? I am within a year of retirement. 1.2 million + 62k fers + 28k SSA +20k wife SSA. zero debt

@TheFedCorner 8 месяцев назад

No, we do not work by the hour.

@Muriel-1112 10 месяцев назад

I've heard the 4% rule thrown around, but is that still relevant for TSP?

@Alexanda-Mc 10 месяцев назад

That's a true, With a significant sum like $1M in your TSP, it's crucial to have a well-thought-out strategy.

@redsantefe 7 месяцев назад

This was minimally helpful since it didn't provide a lot of information just vague examples.

@TheFedCorner 7 месяцев назад

Thanks for your feedback. In some videos we try to remain high level to give people an idea of how to be thinking, while others go a bit more in depth.

@nicholasrunowich371 10 месяцев назад

Can anyone help me understand why at age 62 the FERS retirement jumped from approx 27K to 29K (7.5% increase), while the next year it only jumped to $30K (a 2.5% increase) ? it would appear as he is saying that since you don't get the COLA until age 62 - that the COLA is cumulatively held until age 62. Which I do think was the case. I just thought everyone else gets their COLA's who are 62 or greater and you just lose your purchasing power until age 62 and at age 62 you just got the COLA for that year of age 62 to whatever the "FER's diet COLA" was and then it continued with DIET COLA's of each year. I don't understand why he increased the FER with a COLA of 7.5% unless it was cumulatively held ? Can someone explain this ? Thanks.

@logroller3122 10 месяцев назад

By waiting until age 62 to retire, the FERS annuity pension is calculated at 1.1% instead of 1.0%. Example, 40 years at age 62 x 1.1% = 44% x high 3. If retiring at age 60, that would be 38 years at age 60 x 1.0% = 38% x high 3. You are correct that you don't get the COLA until 62, but you do get a supplement until age 62. That's just a simple example. I think that 1.0% to 1.1% difference at age 62 is just one decision point on when to retire.

@TheFedCorner 10 месяцев назад

Excellent attention to detail, Nicholas. You are correct, COLA does not accrue until 62 and it is not cumulative along the way, so you are indeed losing purchasing power for a few years. This particular sample was an exact duplicate of the real family's plan, and they wanted to see a first COLA similar to the one for 2023, thus the bigger jump.

@nicholasrunowich371 10 месяцев назад

Thiago: Hi ! Thank you for the response back. (I thought I was losing my mind for a minute there !!!) It would have been interesting and more of a worst case to use the 2.5% COLA for the first year at 62 years old I think that you will never see that high of a COLA increase again as in 2023. In fact, by using the 2.5% COLA for age 62 and then re-running this with the same scenarios, it could show us all how much that effects the overall outcome. (Not saying for them to work longer, but just re-run everything you did with the presumed 2.5% COLA for age 62) @@TheFedCorner

@nicholasrunowich371 10 месяцев назад

Thiago: Hi. Another thing -- if the COLA for 2026 was 7.5% and that is diet cola on FERS - that means it was 8.5% inflation with calculations from the CPI . So therefore consumer goods and services also went up in that year of 2025 (to get the COLA for 2026). Yet for this couples living expenses you kept it steady at an increase of 2.5% per year and also the insurance premiums you kept it steady at 1.25% per year. Does this sound right to you for the year 2026 ? If there is a COLA that this couple wanted , then everything else should have also increased for 2026 - otherwise it is "free money - given to them" , but not take in goods and services. You are giving them more purchasing power than they deserve, in other words. And if this couple is keeping FEHB, I have been studying that ever since OPM created "self plus one" around 2013 - and FEHB is increasing at a rate of 4.5% per year. I am also curious how you handled medicare part B for this couple at age 65 for him and the next year for her , given they are taking SS at 67, that is a big jump in living expenses. Medicare for them (assuming no IRMAA) could be $200 a month each by year 2029 - and then when both of them take Medicare Part B that next year ($400 a month) - that is nearly $5000 more for that year and every year after that adjusting each year for the "new wonder drug" that comes out to make us live longer. Medicare Part B is what really scares me and its projection of what it will be in the future (as it doubled in premium in 10 years).

@swamprat9018 10 месяцев назад

couple problems I see are, you need to withdraw from deferred accounts in the beginning also. You have them living till 100. at age 80 50% will be dead more if we keep listening to the science. I don't expect your couple to make it to 80 boy did they miss out on life.

@TheFedCorner 10 месяцев назад

Great points! They did spend tax-deferred accounts in early retirement since they didn't have much in after-tax. Regarding the age, that's how long the projection is run for, not necessarily how long they live. However, running to 90 or less would be imprudent, as we see many federal retirees who live beyond that. Thanks for tuning in!

@Dave-sw2dm 10 месяцев назад

You earn leave. Take leave. Don't let work consume your life.

@TheFedCorner 10 месяцев назад

Great point, it’s too easy to just fall into the routine. Some folks needs the leave for payout once retiring though since the pension doesn’t start for a few months.

@Dave-sw2dm 10 месяцев назад

@@TheFedCorner , if they need the payout they probably aren’t ready to retire financially. The payout is a nice to have to fund that retirement vacation.