วีดีโอ

As a private sector worker, I can't believe the tremendous benefits federal employees get for almost no work - healthcare, pensions all with only 15 years or less of employment. I'm shocked.

You are assuming everyone is a GS-14 or GS-15. That is definitely not true in Norfolk.

You may not have a choice. DOGE wants mass firings/layoffs, so they are not concerned about the best option for employees. Best case scenario is that agencies offer VERA to eligible employees, which could reduce the effect of a RIF.

Isn’t 150000 a GS equivalent of 15? How many feds retire that high? I thought the average was closer to 90k. 😮

Say good bye to your cola/ benefits with the Fers pension, now musk is in charge of DOGE.

Thank you for simplifying a relevant concern for me as I approach retirement as a federal employee. I like the consideration of the C and G Fund blend. Food for thought as I continue gathering information.

What about subtracting the standard deduction?

Great video. Thank you for sharing this information.

Is it best to contribute to the tsp in $ or %? Right now, I contribute 10%.

I want to retire tomorrow, and I'm 42 with 23 years.im burned out 😢

This should really be emphasized when we are federal employees. Even though they cannot provide tax advice, the information is vital. Thank you.

Thank You for the formula, May want to add that the supplement is only for Federal Civil Service time.

Too many asides and clarification between making the point. Please…. Just get to the point. You pu can back to discuss the final points and what-ifs.

Yeah I wouldn’t be forecasting any pay increases. At all.

But all those income streams are going to be higher in 4 years. That $11,781 will be higher.

Thanks

The FERS pension has an annual COLA so your loss of purchasing power wouldn't be so drastic.

As an investing enthusiast, I've kept aside a good sum of capital to invest for financial independence and early retirement, but my concern right now is the market rally being propaganda. Is this a good time to buy stocks, or do I wait for the crash?

Thanks again for explaining things in detail to make it really hit home. I like to pause & do the calculations as you talk about them to make sure I understand it. 😅

Retirement becomes truly rewarding when you have two key components: a solid financial foundation and a clear sense of purpose. Making wise investment decisions is crucial to achieving strong returns and enjoying a secure retirement.

I sure hope in your example that couple has been banking one of their incomes. That is crazy money compared to most Americans.

Thankas for the great video but I have another question about the SRS! Would I be eligable for the SRS if I were to take a VERA at age 48 with 25 years of service? If so, when would it start? 57?

Thank you for the thought exercise. I am not so sure the income component is easier to compute especially for those farther away from a retirement date. Take inevitable SS and Medicare reforms that will be impactful…maybe factor in a net loss in benefits of 17%+ using 62 as reference point? Then FERS…the 1.1% multiplier and COLA could be gone. Then if these opportunities cost more while working e.g. higher payroll taxes on SS, increased cost/withholding on FERS, etc…less cash in hand each paycheck may mean having to cut discretionary savings opportunities. Based on the known general parameters of today, at some point it seems inevitable that the target 80-100% used in this example at age 62 will be much more difficult to achieve. If I had to guess, Xennials and younger generations may be looking at a net lifetime income/benefit cut post retirement from these traditional programs (SS, FERS, etc.) of 17%+ percent if continuing to use 62 as a retirement date. Thus if using conventional wisdom of today and no changes to discretionary retirement strategies, one thinking they may have a 80% income replacement at 62 may actually be headed towards something only in the 60% range. Considering one of the principled variables to compounding growth is time, many may be faced with hard truths too late to make up such a large gap.

I like that you "show your work" on the calculations as well as explain it. Thanks!

Thank you

Great information for folks weighing their options. It would be interesting to see how this compares to the after-2013 employees as you mentioned at the end.

I've never thought of this. I did the detailed calculation by year using the two scenarios that you outlined and the annual rate of return you would need is 25.2% for the 0.8% contributors and 14.67% for the 4.4% contributors. That's a great deal for feds!

Great to know....thanks!

I am going to be 57 in one month I've been out on disability since 2015. I was changed from disability to retirement at 56 1/2. I am locked out of OPM and they never answer the phone. I worked for the IRS for 16y 3m. I am so confused. I have many questions and no one to as or help. It's hard for me to do all of this typing on a phone. 😢

Great list.

Great outline for how to generate the worksheet. I wish I had this a few years back when I cobbled together my first retirement income spreadsheet.

Plandemic. Do you fully comprehend what happened? Doesnt sound like it. Times are different now. How many people on SS were killed off? Nobody talks about that.

I think if you take a postponed retirement you can not join fehb plan?

Excellent video, thank you! I’ve learned so much from your channel and really enjoy the way you approach topics and provide easy to follow examples - greatly appreciate you.

If smart and did it right you should get out at 57 and enjoy more of retirement.. example TSP should be WAAAAAAAAAAAAAY more than $850K at least a million more.

My view of retiring earlier and later is summed up in this story, which I have read in a couple different versions. At a party given by a billionaire on Shelter Island, novelist Kurt Vonnegut informs his fellow author, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds,“Yes, but I have something he will never have - ENOUGH.”

Fed pension 101: get a fed job.

Good stuff. 👍

I retired from the state of California so I have medical and dental for life. I’m in the hiring process for TSA now. Is there a flex elect option for employees that don’t need health or dental?

I thought 4% was the rule? Why 5% and can you expound on that? Thanks

Roth conversions not here yet--but maybe in the future. According to the May 2024 meeting minutes from the Federal Retirement Thrift Investment Board (FRTIB), the Office of Participant Experience (OPE) discussed the upcoming 2026 requirement of some catch-up contributions being Roth under Secure 2.0. The OPE also mentioned that it was researching the feasibility of Roth in-plan conversions. Hopefully soon.

Basically, TSP is more like a 401(k) in many ways than an IRA.

Also the thrift line told me traditional and Roth TSP funds cannot have independent investment allocations.

The thing you have to watch out for if you decide to work elsewhere after retiring before 62, if you earn more than a set amount (not sure what it is this year), then your FERS supplement gets docked $1 for every $2 you earn....at least that's how I understand it.

I follow a few different TH-cam channels regarding federal retirement. This is the first time to watch one of your videos. I don't recall anyone providing a method of calculating the portfolio dollar value of a FERS pension (or in a way that I understood from where the 25 multiplier came), so thanks for that valuable information. Thinking of retiring is daunting, but your help lowers the fears.

Are options 2 and 3, all or nothing, meaning do you have to move the entire balance, or it is possible to move only a portion and leave some in the TSP?

What a great video thank you! it's like you were giving an example of us! Only difference is we've been maxing out the 401K or 10 years now, will continue to do that and we will have the mortgage paid off well before retirement, God willing! :o)

Real piece of advice. Thanks

Hello from Brazil

Fers video was very helpful tku much appreciated ❤CA