Military Reservist Ready For "Semi-Early Retirement"
I am 36 years old, married, with 1 child and looking to "semi-retire" soon as family time is more important. I currently work for a large corporation, after leaving active duty military at 12.5 years, and am also an AF Reservist and a computer science instructor at a local college.
Current financial situation:
- Retirement Accounts: $278K
- Taxable Account: $42K
- Savings Account: $33K
- Mortgage Balance: Paid Off (no other debt)
- Annual Expenses: ~$40K
If I left the corporate "rat race", my annual income would drop to ~$24K, which would continue until age 42 (or longer if I get promoted). Theoretically, I could do an additional 7-10 days per month, but given the current budget battles there is no funding. Hypothetically, when the funding is straightened out, I could go 7-10 days TDY and upon return have nearly 3 weeks with the family without having to work. Healthcare will be covered as long as I remain a reservist; however, my military pension would not start until age 59 (and would be almost enough to cover annual expenses).
I obviously need to increase contributions to my taxable account, as I do not want to touch retirement accounts (even with 72T). But I believe that between the AF Reserves and teaching part time, semi-retirement could be done.