No. of Recommendations: 0
After skimming all the above posts, I would strongly consider working from 50-60+ while you are receiving your pension and postpone withdrawals from your retirement accounts until later in life.

Assuming compounding, the best years of possible growth in your retirement dollars will come in the last 10 years of your accumulation. You will severely restrict your future cash flow from those accounts if you: 1 - are no longer working (and no longer contributing to those accounts), and 2 - pulling out monies early.

The Rule of 72 would have your money doubling every 10 years if you receive a 7% return. If your TSP account grows to $500,000 by age 50*, it would double in value to $1,000,000 if you could earn just a little over 7% a year for the next 10 years.

I don't know about you, but I would happily work some parttime or even full time easy job for 10 years if it allowed me to have an extra half a million dollars when decided to stop working.

* $6k (your current balance) invested every year from age 25 through age 50 (25 years) and compounded at 7% would equal about $438,000. I assume you will invest more than $6k a year as you get older, hence the $500k amount at age 50.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.