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Supercharge Your Retirement Savings: A Path to Financial Freedom Abroad

Supercharge Your Retirement Savings: A Path to Financial Freedom Abroad
Supercharge Your Retirement Savings: A Path to Financial Freedom Abroad

Question:

I plan to retire abroad in four years but need to save an additional $300,000-$400,000. I currently contribute $900 monthly to my TSP and have $150,000 in it. I also put $600-$800 into savings each month. What steps can I take to achieve my goal?

Retirement Income:

  • Pension and disability payments from the military: $3,900 per month
  • Civil service pension: $1,900 per month
  • Social Security: $2,100 per month

Total non-investment income: $7,900 per month

Analysis:

  • Divert funds from emergency savings to TSP contributions, as you have minimal debt and a solid income floor.
  • Increase monthly TSP contributions to reach your target balance.

Savings Target:

                                         | 5% Annual ROI | 6% Annual ROI | 7% Annual ROI | 8% Annual ROI | 9% Annual ROI | 10% Annual ROI
-----------------------------------------------------------------------------------------------------------------------------------
Monthly Contribution                       |               |               |               |               |               |                
$900                                      | $231,000      | $239,500      | $248,286      | $257,403      | $266,868      | $276,694       
$1,100                                    | $241,694      | $250,379      | $259,393      | $268,748      | $278,458      | $288,536       
$1,300                                    | $252,341      | $261,252      | $270,499      | $280,093      | $290,048      | $300,379       
$1,500                                    | $262,988      | $272,126      | $281,605      | $291,438      | $301,639      | $312,221       
$1,700                                    | $273,635      | $283,000      | $292,711      | $302,783      | $313,229      | $324,063       
$1,900                                    | $284,282      | $293,873      | $303,818      | $314,129      | $324,820      | $335,906       
$2,100                                    | $294,929      | $304,747      | $314,924      | $325,474      | $336,410      | $347,748       

Conclusion:

  • Increasing TSP contributions by $500-$700 per month could help you reach your goal within four years, assuming a 6-8% annual return.
  • Consider working with a financial advisor for personalized guidance and support.

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