Married mid-level military father in Honolulu

[69CamaroMan]

Hoping to retire in 2025 to the southeast to part time work only. More time for my old car, hobbies and volunteer/church. Over the 200k threshold (80/20 split) but looking to consolidate all but the TSP into Vanguard. Then ramp up to 20-30% saved each year until done. Biggest problem I see is inability to buy "forever home" until after retire due to military lifestyle.

 

[Brat]

Have you read "The Military Guide to Financial Independence and Retirement"? An excellent resource authored by a poster on this forum.

 

[nash031]

Hoping to retire in 2025 to the southeast to part time work only. More time for my old car, hobbies and volunteer/church. Over the 200k threshold (80/20 split) but looking to consolidate all but the TSP into Vanguard. Then ramp up to 20-30% saved each year until done. Biggest problem I see is inability to buy "forever home" until after retire due to military lifestyle.

Greetings! Seconding the "Military Guide." I'm a 15-yr O4 Navy, and there are a few other military folks floating around here.

While it's true you can't buy a "forever" home in all likelihood, the Navy (at least) is trying to allow more "homesteading". I moved 13 times in the first 11 years on AD, but have now been stable for the last four and will remain here for the next five. Being married to a career woman helps stability! We bought a small house (2+/2) four years ago near market bottom. I doubt we'll be in this house "forever", but in military parlance 9-10 years is pretty good! Not sure if the other services are following suit...

Maybe look for someplace where your line of work will let you stay for a longer period (as I did by finding one of the Fleet concentration areas and settling in)? If you can't buy, find ways to reduce rent and try to save some more. The advantage of owning over renting is "forced savings" by paying down principle. As a renter, you could save the same amount, but invest it as you choose (not locked away in your house). Granted, if I stay in San Diego forever, my promotion is capped, but I'm OK with that.

 

[Bigdawg]

69CamaroMan,

Punched last year after 23. I will be selling my Poway (San Diego) house this summer. I found this site via "the military guide to early retirement" Doug Nordman's book is extremely helpful to guys like us. He did 20 in the Navy and hasn't looked back. Sounds like you have 10 yrs until retirement. You will be surprised at how thoughts and opinion's change from the 10 to 20 year mark. Good luck and keep reading on this forum. Might want to find a good point (15 year mark?) to stop TSP and go taxable on most investments. I have met a few military folks who maxed out TSP all the way to the 20 yr mark only to be short on cash from age 40 to 59.5

 

[samclem]

69CamaroMan,

Might want to find a good point (15 year mark?) to stop TSP and go taxable on most investments. I have met a few military folks who maxed out TSP all the way to the 20 yr mark only to be short on cash from age 40 to 59.5

Good point. 69camaroman, welcome! And maybe consider going the other way: Depending on your anticipated family income in your later years of active duty (e.g. if you plus spouse are likely to exceed the top of the 15% bracket = $75K taxable, or if you are filing singly and likely to exceed $37k taxable) , the tax deduction of the TSP could be worth more to you in the home stretch than it is right now. So, if it looks like that's the case, maybe go "regular" taxable savings now and contribute to the TSP later.
Best wishes!

 

[69CamaroMan]

Thanks guys. I have only about 15% in taxable but looking to start adding to it more to cover the 10-15 year gap before I reach 59.5. Some type of VG mutual fund. I stay away from individual stocks.

 

[Van-Guard23]

Welcome to the club 69CamaroMan...partial to Vettes myself. I retired from the military (Army) a year and half ago after 20+ years and currently living in Oahu. My wife is also AD and retiring this summer after 22 years. Looking forward to both of us fully retired this summer...I already am.
I second the recommendation to check out Nords' (also living in paradise) book "The Military Guide to Financial Independence and Retirement". It's available on Amazon or you can just go to a library and see if they have them. He gave out some copies to military libraries a while back, although Fort Shafter doesn't seem to have a copy. You should also check out his Military-Guide website.