Join Early Retirement Today
Thread Tools Search this Thread Display Modes
15 years to go!
Old 08-01-2015, 08:30 PM   #1
Confused about dryer sheets
Join Date: Aug 2015
Location: Port Washington
Posts: 2
15 years to go!

Hello everyone,

I have been using this forum for a few years, and would like to thank everyone for the great knowledge, and keeping me motivated toward financial independence!

Here's my into:

I am an e-5 in the Air Force, and plan to stay for 20. I am investing $750 a month into the roth TSP (L2050), with a balance of $23,000. I plan to max my TSP as soon as I can! Additionally, I have no debt and $13,000 liquid.

The Air Force is paying for me to go to college, which is awesome! I am majoring in Computer Science, and plan to get my masters in software engineering.

When I retire from the Air Force in 2031, I hope to be completely financially independent and become an independent software vendor/developer. Whether I make $5,000 a year or $100,000 a year, I want to be financially independent and work for myself. To do this I will combine my military retirement and life expectancy withdraws from my TSP, and LBYM.

I look forward to any input.

Wisco2031 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-01-2015, 09:59 PM   #2
Thinks s/he gets paid by the post
Join Date: Feb 2013
Posts: 4,505
Getting paid to get a masters in software engineering - now that's smart. There many many different opportunities for consulting or developing your own products in that field. Good luck with your plan.

Even clouds seem bright and breezy, 'Cause the livin' is free and easy, See the rat race in a new way, Like you're wakin' up to a new day (Dr. Tarr and Professor Fether lyrics, Alan Parsons Project, based on an EA Poe story)
daylatedollarshort is offline   Reply With Quote
Old 08-02-2015, 02:01 PM   #3
Full time employment: Posting here.
Join Date: Jul 2014
Posts: 502
Welcome! You didn't mention your life status - if you're married and have (or want) kids, and it's possible that over time things may impact your plans. But the money you save now will be a powerful addition to FI in the future, so kudos for taking these steps now.

Sounds like you have a good plan, but more importantly the awareness of how your actions now can have a long term impact, and how little things can make a big difference. That awareness will serve you well in your life no matter what developments happen.
Katiek is offline   Reply With Quote
Old 08-02-2015, 03:43 PM   #4
Ronstar's Avatar
Join Date: Aug 2007
Location: Somewhere between Chicago and Phoenix
Posts: 7,211
Welcome to the forum, Wisco! Looks like you have a sound blueprint for your future. I can't add much input other than LBYM and maximize your savings. Starting work for yourself may be a little bumpy until you build up a good client base, but after that your business should support your retirement goals. Good Luck!
"And in the end, it's not the years in your life that count. It's the life in your years" - Abraham Lincoln
Ronstar is offline   Reply With Quote
Old 08-03-2015, 07:04 PM   #5
Confused about dryer sheets
Join Date: Aug 2015
Location: Port Washington
Posts: 2
Thanks for the replies. I forgot to mention, I am married with two kids, and will not have another. My daughters are 3 and 5, so they will both be out of high school by the time I retire from the Air Force. Also, I am 25, so I will be 41.

Does anyone have any input for my asset allocation. My situation is kind of unique, so I am unsure if I am making the right choice. I am in the L2050 and will begin to withdraw in 2031. Do you think this will be to risky?
Wisco2031 is offline   Reply With Quote
Old 08-03-2015, 07:31 PM   #6
Recycles dryer sheets
Join Date: May 2013
Location: The Villages
Posts: 82
Send a PM to Nords. He knows everything military.
Pbkmaine is offline   Reply With Quote
Old 08-03-2015, 07:44 PM   #7
Recycles dryer sheets
Join Date: Dec 2013
Posts: 278

I was putting all of my money into L2040 until L2050 opened up, at which point I switched. The way I see it, with plans to retire so young I need to be as aggressive as I can stomach in order to grow my money. If something bad happens I can keep working, but if all goes well (or it mostly goes well) this risk will pay off. Plus, L2050 will be considerably less aggressive in 2031 than it is now, and you can always adjust as you get closer to retirement. My .02.

Sent from my iPhone using Early Retirement Forum
FI by 2024 is offline   Reply With Quote
Old 08-09-2015, 02:06 PM   #8
Moderator Emeritus
Nords's Avatar
Join Date: Dec 2002
Location: Oahu
Posts: 26,564
Originally Posted by Wisco2031 View Post
Does anyone have any input for my asset allocation. My situation is kind of unique, so I am unsure if I am making the right choice. I am in the L2050 and will begin to withdraw in 2031. Do you think this will be to risky?
I think you're good. That fund is currently 85% equities (C, S, & I funds) and they'll tweak the allocation as you approach that date.

Your situation's unique for this forum, but it's common among military servicemembers. You have a relatively high expectation of continued employment (steady, bond-like income) so you can be aggressive with your asset allocation. Milevsky's "Are You A Stock Or A Bond?" goes into more detail on why steady earners can invest aggressively in equities, and why NFL football players or Wall Street financial employee should put all of their investments into Treasuries. L2050 can certainly help you sleep better at night, but you could also just split your Roth TSP contributions among the C, S, & I funds and do perfectly fine.

It must be the time of year, but that's the third TSP L2050 question I've seen this week...

Active-duty retirement:

I understand your motivation to go to 20 or even further, but I'll pass out the standard advice for those aspirations: take it one obligation at a time.

While you're in that obligation, learn about your opportunities in the Reserves or National Guard. When the fun stops, be ready to leave active duty for a drill billet in the Reserves/Guard and get your 20 in that way. Your quality of life will immediately improve, you'll find plenty of opportunities for drills and active duty (even mobilizations), and you'll be able to start a bridge career or even your own business.

When the fun stops, don't just grit your teeth and clench your jaw and grimly slog it out on active duty until 20. You'll risk your physical, mental, and emotional health-- and your family will get awfully tired of you too. The Reserve/Guard option will give you an inflation-adjusted annuity and cheap healthcare at age 60, and that's enough. You can bridge the gap between your 30s and age 60 with your drill pay, your bridge career, and your savings.

You can check whether a copy of the book is in your local library, or search the blog for keywords. Send me a PM if you have more questions.

The book written on, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 08-09-2015, 04:28 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,664
To do this I will combine my military retirement and life expectancy
withdraws from my TSP, and LBYM.
You're almost there already. With LBYM in the mix, you are golden.

Thank you for your service.

Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
20 years old, shooting for ER in the next couple years jadd806 Hi, I am... 65 05-28-2014 02:12 PM
Couples retiring years apart(at least above 10 years) Moscyn Life after FIRE 22 06-28-2012 07:39 AM
Go Go Years vs. Slow Go and No Go Years Cruisinthru Other topics 23 12-16-2009 10:38 AM
2 full Years after ER 32 years to go dex Young Dreamers 10 07-28-2008 06:20 PM
52 years old; want to retire in 2-3 years Barb301 Hi, I am... 2 03-07-2008 08:02 AM


All times are GMT -6. The time now is 04:32 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.