Pension and SS covers expenses…aggressive 401K? (funds, credit, accounts)

[CoastieTX]

I’ll be a young (50) retiree this summer and will have a pension and social security supplement. We’re given the SS supplement because we’re forced to retire before becoming eligible for SS. At 62, the supplement ends and I plan on taking SS right away. The SS benefit at 62 is substantially more than the supplement.

If my pension and SS supplement cover my living expenses, how aggressive can I be with my TSP (federal employee’s version of a 401K)? I currently have my money in just two funds which track the S&P and Dow. It’s done well over the years and I’m tempted to just stay fully invested in them.

In your opinion, is this a wise move? I figure at my age, and with a steady stream of income from my pension, I can afford to have my TSP remain fully invested in stocks.

Thanks for any insight.

[oneasterisk]

That's essentially my plan. I'm 99.99% in C and S with maybe 10k in F that grew after I forgot to move it. I'm 43 with a paid off house and zero debt. Pension should cover living expenses. I have a Roth as a backup but will probably rely mostly on the brokerage to fill in the gap. I may wait till 70 to pull SS because my wife has a family history of long life. I want to make more than certain she has enough when I'm gone.

I'll treat the pension as the bond fund in my asset mix. Just my plan but still need to run it by a professional to make sure it's not absolutely nutty.

[selhars]

It may not make much difference but will you have a full 35 years of earnings for Soc Sec.?
My understanding from counting the years is that unless you started working and had a W2 or job that paid reportable Soc. Soc income at age 15 -- you won't have the full 35 for Soc. You may be one year short.

Of course if you work after your career retirement, then that's moot.

My plan Cliff Notes: Retire at 65.5. Wait for Soc. Security until at least my FRA of 67. I always envision staying at least 64/stocks to bonds. Of course it's not just the percentage allocation that counts.

Do you mean aggressive as in that -- just the spllt -- 80/20, 90/10? -- OR aggressive as to what the actual stocks or mutual funds are invested in? Personally, I'm an S&P 500 Index person, with an additional large cap growth primary focus, and value second.

I plan to stay tilted toward stocks also. Currently 401k is about 65/35. BUT rest of retirement accounts are 80/20. So overall I'm at least 75/25. And I'm OK with that. I'll likely adjust that at some point, but not until after retirement when I can really focus on how and where I'd want to move things. I'm heavy into research and do not like moving stuff every time you turn around to chase returns or interest or whatever. So once I decide on what goes where, it stays put for the long haul, barring some major need to change.

I also have way more cash than people say is prudent. But that's my comfort level. (Like YEEEARS worth of living expenses.)

I'll be retiring at 65 next year, with a pension from a previous career. My plan is (and plans can change):
Just because of the way the math, my birthdate, and my hire date work.....

-- Start collecting previous pension at 65
-- Retire at 65.5
-- Rollover 401k to existing Trad IRA
-- Do Roth conversions from 66 to 75.
(Start SS at 67. Who knows maybe later. I love those delayed credits.)

My previous (totally different) career pension won't quite be enough to live on so I will nip about $500 a month from savings until 67 in order to delay SS at least 2 years. (Highly, highly, HIGHLY doubt I will work at all after retirement).

I do not have a lot. But my expenses are so low, I'll live comfortably on less than 40K a year.
.....Hopefully, living a happy, healthy, content, stress-free life.

Congratulations on retirement. I can't wait to join you!

[GWoodle]

Originally Posted by CoastieTX

I’ll be a young (50) retiree this summer and will have a pension and social security supplement. We’re given the SS supplement because we’re forced to retire before becoming eligible for SS. At 62, the supplement ends and I plan on taking SS right away. The SS benefit at 62 is substantially more than the supplement.

If my pension and SS supplement cover my living expenses, how aggressive can I be with my TSP (federal employee’s version of a 401K)? I currently have my money in just two funds which track the S&P and Dow. It’s done well over the years and I’m tempted to just stay fully invested in them.

In your opinion, is this a wise move? I figure at my age, and with a steady stream of income from my pension, I can afford to have my TSP remain fully invested in stocks.

Thanks for any insight.

Check if your SS supplement will increase over time with COLA. The plan is for supplement to go away when SS begins at 62.

Also check if the pension is subject to COLA or is fixed.

Depending on your budget you may need TSP to grow & cover inflation over time. So you can be fairly aggressive with stocks/bonds. A combination of Dow & S&P looks good.

You are still young at 50 & could have 15 years to find some work to 65. This could add to your Social Security benefit. Finding something you like to do would be great.

[rjm1cc]

You could live another 50 years so you are still a long term investor.
The question is will your current income support you or do you need the investments?

I would also try and postpone SS until 70.