I’m a 27(M) federal employee with 105K in VOO, 55K Roth IRA, 35K Roth TSP. I will max my Roth IRA until age 60 but will only be able to max my Roth TSP for 15 more years, then letting it ride until 60 (I’m retiring/starting new career after 20 years). I will maximize all future contributions and did not factor in employer matching contributions of 5% for my TSP in the calculations below. I also have a 529 with $8K for my kids I don’t have yet and $40K in savings. Currently make $106K per year 25% tax free. After all retirement contributions and monthly expenses we save $2K per month or $24K per year. I chose 10% based off S&P historical average.

    VOO:
    33 periods (N) (years) with $105K Present Value (PV) at 10% (Let me be optimistic) with 0 Periodic Deposits (PMT) = $2.438mil

    Roth IRA:
    33 N with $55K PV at 10% with $7K PMT at the beginning of each year = $2.988mil

    TSP until age 42 (Retirement):
    15 N with $35K PV at 10% with $23K PMT at the end of each year for simplicity (actually divided into 26 pay periods each year) = $877K

    TSP from age 42 to 60:
    18 N with $877K PV at 10% with 0 PMT = $4.876mil

    Spouse Roth IRA:
    34 N with $25K PV at 10% with $7K PMT = $2.528mil

    Pension:
    I will opt in for a 50% lump sum portion of my retirement pension from age 42-67 (I’m in the BRS) = 40% of my high 3 (Roughly $15K by year 2039) = $6K per month x 12 months x 25 years = $1.8mil before tax (About $1mil after tax). PLUS $3K per month for the other 50% of my pension from age 42-67 = $900K. Let’s call it 2 mil up until age 67 then $6K per month for as long as I live.
    I’m only factoring the $1mil upfront here for the total below.

    *** Disclaimer: I know inflation will increase everything, I’m talking solely PV.

    What am I forgetting? Is this a reasonable calculation?

    $14,707,000

    Is my future value calculation accurate?
    byu/IronmanMan97 inMilitaryFinance



    Posted by IronmanMan97

    1 Comment

    1. > *** Disclaimer: I know inflation will increase everything, I’m talking solely PV.

      This is exactly why many people use 7%, it helps hedge against inflation.

      Doing this brings your VOO down to ~$980k, your IRA down to ~$1.35m, your TSP down to ~$2.28m, and lastly your spouse IRA down to ~$1.15m. This gives you a total of about ~$5.78m in “inflation-adjusted” dollars (meaning the rough equivalent of having that much money today).

      This, of course, doesn’t factor in the pension or anything….but the median American doesn’t even have half a million by the time they retire.

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