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Old 04-10-2016, 05:13 PM
 
Location: CA
922 posts, read 721,235 times
Reputation: 682

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JLawrence: Thank you! My cousins all live in Solon and when I visit, I do like to stay downtown. It's growing so quickly, I do not want to wait another 10 years before it prices me out.

Great point on the coverage information. As I get older, I am sure to need more visits, but I've been healthy since birth. I have 160 days saved of sick leave (20 more and it credits me a year of teaching). However, you just never know, right?

I'll be sure to use my family (cousins are my age with kids my kids' ages) for doctor information.

Agreed! People are really friendly. Most open doors when you enter Tower or any other building. Never had a problem. Westside Market and many other areas are a gem.
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Old 04-10-2016, 06:47 PM
 
2,702 posts, read 3,741,077 times
Reputation: 4520
Quote:
Originally Posted by West Coasting View Post
I have been working for the Feds since I was 19 with a small break in the private sector. I'm retiring June 30, 2016 after 34.6 years of service. We have lived in So Cal for the last 37 years with 20 of those in our current home. My mortgage is $1517 a month on a 226K balance. House will be listed at 421K but should garner 430K in the hot So Cal market.

Our plan is to eliminate debt and relocate to Tennessee. Leaving the oppressed state behind us with only cell phone and car insurance bills. My healthcare is covered through the government with me paying a smaller portion from my pension.

Initially we will have no home cost as we'll be staying with Mom (lol) and traveling for a bit with our toy hauler

Cash=
- Home Equity ~142.5K (Before paying down debt)

Debt-
- $0 ( Requires using a large portion of home equity listed )

Income
- 401K- $550K- Can elect to draw at MRA of 56 with no IRS penalty for under 59 1/2
- Pension- 41K/yr (Gross)

If we elect ot draw from 401K this is how the month should look (NET). This is after survivors, dental and health care cost are applied plus federal tax and life insurance. TN has no state income tax

NET MONTHLY ANNUITY $2,649.08
FERS Annuity Supplement: $1,370.00
*401k Monthly disbursement $1700

Total expected income- ~$5719

After we get tired of traveling and driving mom up the wall we may pick up a small part time job that passes the earnings test for the FERS annuity supplement. Then find us a small place to 'settle down' again

We started planning early and did many, many things. Our debt shows it. But we will clean the slate and start a new chapter in our lives. Glad I have many been there done thats so the bucket list isn't quite the pull it could have been otherwise

I had retirement pictured all wrong. I thought it would be a seamless process but not a chance. It is one of the most important decisions i have had to make in my life. Just like when you take a chance on that new job when you were content with previous ones.

Life is about living, not working every day until you die. And i have seen to many of my peers do just that after sticking around to 62

Not me.

WC

So you are a CSRS offset??? And you put into FERS on top of your amount into CSRS (which is not very much because of SS)...
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Old 04-10-2016, 06:53 PM
 
Location: Tennessee
29 posts, read 62,854 times
Reputation: 81
Quote:
Originally Posted by SoCalCpl2 View Post
So you are a CSRS offset??? And you put into FERS on top of your amount into CSRS (which is not very much because of SS)...
No, I missed that golden opportunity. Straight FERS.

Edit- Now that I give it more thought, I think you may be looking at the FERS supplement. Essentially, since FERS is a 3 part retirement plan between FERS pension, SS and TSP. To bridge the gap between MRA of 56 and SS eligibility at 62, the retiree receives a supplement at ~70% of what SS they would receive at 62. At age 62, the supplement drops off and if elected, SS kicks in

-WC

Last edited by West Coasting; 04-10-2016 at 07:20 PM..
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Old 04-10-2016, 07:10 PM
 
Location: Virginia
8,114 posts, read 12,684,219 times
Reputation: 3770
Quote:
Originally Posted by teacherdad View Post
I have a safe full of tools to address issues with health should they become cost prohibitive

Eskimo deal for me! Put me on a floating piece of ice and adios! Never sitting in a bed 24/7. I've been "hyper" my entire life according to my report cards and now students.

Health coverage is my only concern. I have to look into that. I pay about $400 per month and my employee puts in $1100. That said, Where I live there is ONE health network so no competition. CLE has the Clinic and many hospitals (best cardio in the World).
I've mentioned in other boards that my plans are very, very similar to yours. This is my 23rd year teaching. I am currently 44 years old. I have no plans to go past age 55. State and county retirement will provide just over 75% of my highest three years' annual salary. The housing market/COL here in the DC metro/NoVA area is similar to yours and being from NE Ohio I have also thought that CLE would be a good place to end up. I have one child who is currently in high school. One of the biggest issues will be health care costs. They retiree pays all but $100. The plan for which I currently pay $370/mo (family) increases greatly once the employee retires. Today a retiree pays $1,442/mo (family) or $1,134 for two people.
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Old 04-10-2016, 07:20 PM
 
Location: CA
922 posts, read 721,235 times
Reputation: 682
Hey there! Yes, we have discussed this.

Correct! I was looking at plans in CLE today via online. About 1000K per month with a HIGH deductible. My District does offer (at times) 20K for anyone willing to retire that has been "around" a while. Before age 62, I'll have to pay that insurance. Perhaps I could work somewhere with a plan where I would pay around $500 or so per month. I can't just sit around all day.

This is partly why some leave the states. They can get very good coverage for a fraction of what we pay.

Good to see you still reading the posts and best of luck with your situation!
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Old 04-10-2016, 08:15 PM
 
Location: In The Pacific
986 posts, read 1,178,690 times
Reputation: 1233
Quote:
Originally Posted by SoCalCpl2 View Post
So you are a CSRS offset??? And you put into FERS on top of your amount into CSRS (which is not very much because of SS)...
I know your question wasn't directed at me, but I fit the mold.
I may not have a 401K, TSP, a huge home equity and or money in the bank, but I retired under CRS with the "Windfall Project" aka the U.S. Government Offset, where at 62 I only received a fraction of my meager SSA. It's OK though, because I started receiving my military reserve pension at age 60 and also have a VA Disability Compensation ever since from my active duty service of 13 yrs and all of the COLAs ever since I retired in 1997 help out a great deal. All of my combined pensions and VA comp is quite adequate to live on.
I'm one of those rare fortunate Civil Service employee and a U.S. Veteran "Quadruple Dipper" with "Earn Entitlements"!
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Old 04-10-2016, 09:14 PM
 
Location: Upstate NY
35,481 posts, read 10,503,840 times
Reputation: 33592
My husband and I both retired at 55, and we're doing just fine. And we're still in NY lol.
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Old 04-11-2016, 02:00 AM
 
Location: Washington State
18,512 posts, read 9,574,204 times
Reputation: 15774
Quote:
Originally Posted by West Coasting View Post
No, I missed that golden opportunity. Straight FERS.

Edit- Now that I give it more thought, I think you may be looking at the FERS supplement. Essentially, since FERS is a 3 part retirement plan between FERS pension, SS and TSP. To bridge the gap between MRA of 56 and SS eligibility at 62, the retiree receives a supplement at ~70% of what SS they would receive at 62. At age 62, the supplement drops off and if elected, SS kicks in

-WC
SO would that $5670/mo increase when you hit 62 and how much of that is tied to inflation? I think you should be fine but I would be concerned if your income doesn't increase over time given we don't know how much inflation we'll have in the future.

Since wife and I recently retired still in our 50's and she found a house she wanted that was a bit over $500K, we are finding out that even though our wealth is multiple times the house cost and we have no debt, they still tie loans to provable income so be aware that is going to potentially affect you when you are ready to buy your next house...our income is tied to investment streams that I can tap or not when I want but they want recurring income, not income available when you decide you want it. I'm thinking of taking a short term consulting assignment with the company I left just to show income for a few paychecks during the loan process. We also don't have a retirement health plan so that exorbitant cost is on us.
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Old 04-11-2016, 05:34 AM
 
Location: Pennsylvania
12,493 posts, read 4,223,982 times
Reputation: 9802
Quote:
Originally Posted by teacherdad View Post
West Coast! Thank you for posting! I just returned from a walk with my wife and have been doing the same "thinking" for a few months. Here's my deal and maybe with your experience of research, you can help:

1. I own my home in S. Cal. Zillow says it's worth about 915K.
2. I am in year 23 of my job.
3. Real debt: About 35K total at 3.5%.
4. Kids: 18, 16, and 12. Two oldest are content with SBCC and not a 4 year school right away. Both are bright and have jobs while in high school and college. 12 year old- Starts 7th grade next year.

5. I meet with my STRS (Teacher's Retirement) person in two weeks to go over plans.
6. Like you, I have no intention to work to 62, although I LOVE teaching.
7. I'm 46. At 55, I'll get about 3300 for life per month.
8. I LOVE Cleveland and have family there. There is more to do there than here in Santa Barbara, not to mention COliving is a fraction.

I've been reading about a 4% rule: Live off of 4% of investments. My home may yield about 36k per year and then in 9 years, the retirement kicks in another 3300 per month.

Of course, I can work in CLE part time. I also run a towel company (gross about 42K per year).

I'd like to NOT wait to 55 years old to get there. I want to get out and use their park system, theatre district, sports teams, ski/sled resorts, etc. They also have a very good transportation system so only need to rent a car when traveling way outside the area.

In Oct. I can sell my home with no cap gains.

Oh.. I own about 50K in undeveloped property with my 2 brothers- 50K is my share.

Help me convince the wife to head to CLE!

BTW: Yes, we are on the ocean, but we do not surf or use it enough to justify the cost of living here. I was born here, but 8300 per year for prop. taxes, $3.50 per gallon of gas...etc. You know the drill. I love RVing and have a class C. In Ohio, I can afford a class A and take it during colder months.


TN: Is beautiful!

Thanks!

Nice life --- you teachers have it made. And you know it, but most of you won't admit it.
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Old 04-11-2016, 05:44 AM
 
13,897 posts, read 7,400,560 times
Reputation: 25379
I feel the need to point out that Greece had a huge number of retired public sector workers with massively generous pensions. They got into huge budget problems and those pensions were slashed. If you look at the state and local unfunded pension liability problem in the US, it's not beyond imagination that something like that could happen here. It would require a law change to allow states to bankrupt but there are enough states with huge problems that it could happen. The rest of us have to work until 65+. A defined benefit pension with health benefits and COLA is worth way more than a million dollars in a 401(k) that very few private sector workers get to.
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