Himiko
New Member
Cash: $ 0.85
Posts: 4
Joined: 02 Aug 2014
|
Playing it safe |
|
|
I will being retiring at the end of September of this year, after which I will rely on my federal retirement. My retirement consists of my federal pension, Social Security, and the federal government Thrift Savings Plan (TSP). I also have three Vanguard IRA’s.
My assets total $880,000 (TSP, 73.9%; Vanguard Long Term Bond, 7.5%; Wellesley Admiral, 9.2%; and REIT Index Admiral, 9.4%).
My TSP savings are currently all in the L-2020 fund. However, since I am retiring this year, I am thinking of taking a more conservative approach and moving it to the L-Income fund and also transfer my Vanguard IRA’s into the L-Income fund as well.
The L-Income fund has an average annual return of about 4.54% (0.38% per month).
At that rate I figure that if I withdraw $6,875 per month that my combined TSP L-Income fund should last me until about 2029, at which time, if I am still around, I will be able to live comfortably off my pension and social security for the duration.
|
Sat Aug 02, 2014 11:51 pm |
|
|
JonCartoon
Preferred Member
Cash: $ 27.35
Posts: 135
Joined: 18 Jun 2014
|
I do not understand where is the question?
or you just share your experiences?
|
Mon Aug 04, 2014 8:06 pm |
|
|
littleroc02us
Moderator
Cash: $ 384.35
Posts: 1891
Joined: 09 Feb 2009
|
Probably spam. I'll give the poster a chance to respond or their gonna end up in the holding tank.
Risk comes from not knowing what you're doing. (Warren Buffet)
|
Mon Aug 04, 2014 8:26 pm |
|
|
Himiko
New Member
Cash: $ 0.85
Posts: 4
Joined: 02 Aug 2014
|
No, not spam -- spam for what?
Sorry I did not make myself clear. I was looking for feedback as to whether I am on the right track for moving all into the L-income fund for going into retirement. I figured the L-income fund would be a safe shelter.
I appreciate feedback.
Thank you.
|
Tue Aug 05, 2014 5:32 am |
|
|
Himiko
New Member
Cash: $ 0.85
Posts: 4
Joined: 02 Aug 2014
|
Playing it safe |
|
|
I apologize for my earlier post; it was not clear that I was asking a question and hoping for feedback that could help me make a decision on how to proceed, so I am re-posting my question:
I will being retiring at the end of September of this year, after which I will rely on my federal retirement. My retirement consists of my federal pension, Social Security, and the federal government Thrift Savings Plan (TSP). I also have three Vanguard IRA’s.
My assets total $880,000 (TSP, 73.9%; Vanguard Long Term Bond, 7.5%; Wellesley Admiral, 9.2%; and REIT Index Admiral, 9.4%).
My TSP savings are currently all in the L-2020 fund. However, since I am retiring this year, I am thinking of taking a more conservative approach and moving it to the L-Income fund and also transfer my Vanguard IRA’s into the L-Income fund as well.
I am wavering on whether to play it safe and put everything into the TSP L-Income fund or leave it as is.
If anyone has a similar situation, I would appreciate feedback.
Thank you.
|
Tue Aug 05, 2014 9:33 am |
|
|
Wino
Senior Member
Cash: $ 113.80
Posts: 560
Joined: 03 Aug 2012
Location: Dubai |
If I were in your shoes, I'd throw everything in the C fund, as that looks like the closest thing to the S&P 500 that they have. The L-fund would probably be a good second choice. Why are you going "conservative" now? I could see that if you have the bare minimum to get by, but that's not your case. You could easily go several months withdrawing nothing and living on your pension, so you could weather out the down markets, and cash in when the market is up.
I don't understand many, many factors in your case. I don't know:
Your age
Your marital status
Your other assets (house, rental properties, etc)
What you plan to do with the $7K per month you could draw according to your "formula."
Investing in the S&P500 is betting that the US economy will improve over time. If Obama and the current Congress has failed to destroy the economy, then I'd say it can continue to improve in almost any condition, over time.
|
Tue Aug 05, 2014 10:58 am |
|
|
Himiko
New Member
Cash: $ 0.85
Posts: 4
Joined: 02 Aug 2014
|
Playing it safe |
|
|
Thank you for taking the time to respond.
I am 67, which is why I am considering a more conservative approach. I reside in Japan, which is quite expensive, and have 15 years left on my mortgage ($3,000/month). I agree that the economy will probably improve over time. Of course one unknown variable is the yen to dollar ratio.
|
Tue Aug 05, 2014 12:36 pm |
|
|
RetirementER
Member
Cash: $ 3.45
Posts: 17
Joined: 19 Sep 2014
Location: Canada |
Sounds like a well thought out plan although I agree with Wino that you could be a little less conservative given your income stability. Another thought would be to go conservative with a third of the money, more agressive with the rest and draw your income from the conservative tranche when markets fluctuate.
|
Mon Sep 29, 2014 8:11 pm |
|
|
Benstoke
Preferred Member
Cash: $ 5.05
Posts: 132
Joined: 22 Nov 2017
|
You could easily go several months withdrawing nothing and living on your pension, so you could weather out the down markets, and cash in when the market is up. 250-438 exam dumps
|
Thu May 16, 2019 6:13 am |
|
|
vaduvala
Senior Member
Cash: $ 130.10
Posts: 665
Joined: 27 Feb 2018
|
A retiring pension shall be granted to a Government servant who retires, or is retired before attaining the age of Superannuation or to a Government servant who, on being declared surplus opts, for voluntary retirement. A regular pension payment is a set monthly payment payable to a retiree for life and, in some cases, for the life of a surviving spouse. Some pensions include cost-of-living adjustments (COLA), meaning payments go up over time, usually indexed to inflation. A typical multiplier is 2%. So, if you work 30 years, and your final average salary is $75,000, then your pension would be 30 x 2% x $75,000 = $45,000 a year. That $45,000 becomes your guaranteed lifetime income.
what is a telecom technician? - Fieldengineer
|
Wed Jan 19, 2022 4:06 pm |
|
|
|