Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
New to forum; 31 lookin' for 51 ER
Old 12-15-2007, 03:33 PM   #1
Confused about dryer sheets
 
Join Date: Dec 2007
Posts: 9
New to forum; 31 lookin' for 51 ER

Glad I finally found a forum such as this. For awhile I thought I was one of the few pondering these various questions. I'm a military/airline pilot married to a High School English teacher on maternity leave.

Here is my situation.

Me: 32, Wife 28
Our Roth's together: $60,000
TSP: $28,000
Cash: $51,000
Home Equity: $40,000

Getting ready to start a new fed job with a 20 year retirement. So I will retire at 52 with a min. pension of $53,000K annually.

With this new job I will max out my 401K matching retirement plan and continue to put money back each year.

At age sixty I will have a military retirement of approximately $24,000K annually.

I will always max. out my wife and I's Roth. Only debt is mortgage and one car payment of $240. We live well within our means with two kiddos.

We are getting ready to move and I plan to use the VA loan to purchase a home. With no down payment required, we will have approx. 91K in cash. I would like to invest atleast 50K of this in an investment that I won't touch until age 52.

Any suggestions on the 50k investment?

Please help me find holes in my plans.
__________________

__________________
beebers 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 Early-Retirement.org 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 12-15-2007, 07:28 PM   #2
Full time employment: Posting here.
Sandy's Avatar
 
Join Date: Dec 2006
Location: Florida
Posts: 855
beebers,

Welcome. I tend not to feel confident offering suggestions on specific plans, though others that come along may gladly do so. That you are here asking, says you will be fine. Even if you do not get a definitive response, stick around. The learning that you will absorb from this group will more than meet your needs and give you ideas that help you exceed your current questions. You have definately come to the right place.
__________________

__________________
I would not have anyone adopt my mode of living...but I would have each one be very careful to find out and pursue his own way, and not his father's or his mother's or his neighbor's instead. Thoreau, Walden
Sandy is online now   Reply With Quote
Old 12-15-2007, 08:39 PM   #3
Thinks s/he gets paid by the post
MooreBonds's Avatar
 
Join Date: Aug 2004
Location: St. Louis
Posts: 2,091
Greetings Beebers!

A few questions:

1) I'm not familiar with the VA mortgage program - is the interest rate on a $0 down VA mortgage the same as one with 10%/20% down?

2) Were you planning on keeping a good part of that $91k in equity/cash as an emergency fund in a CD or MM account? Allow for at least $10k-20k for that.

As for the remainder, how are the ROTHs and TSP invested? Without knowing anything more, you could do a lot worse than simply putting $50k into Wellington or Wellesley....but like I said, your overall portfolio is key here.

Also, don't forget the impact of inflation: are those figures you quoted for your pension in 2007 $ or 2030/2040 $? Even if they're future $, you're still in great shape for where you're at now - just have to keep yourself from doing something stupid like putting $50k into Beever Cheese futures...
__________________
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote
Old 12-17-2007, 07:13 PM   #4
Confused about dryer sheets
 
Join Date: Dec 2007
Posts: 9
No Beaver Cheese futures here, although I like cheese… Ha.

IRA’s are diversified between Small, Mid and Large Cap, Capital Growth, Income and Tech funds. The TSP (which I will change soon) is in the G Fund (Gov’t bonds).

The pension values are in today’s dollars and will increase with cost of living and inflation.

With the $91K, I was planning on investing a min of $50k and keep the majority of the rest towards an emergency fund.

I’m not familiar with Wellington or Wellesley, so I have to research them.

I’ve never invested in any fund that was managed, but I have found a strategic fund through USAA that seems well managed and affordable.

.The VA loan has the same interest rates other loans and you also invest the closing costs (called “funding fees”) into the mortgage. So you literally put no money down.

I am very much an amateur when it comes to investing. But I do understand three basic rules that I have read in almost every reading.
  • Diversify
  • Live within your means
  • Compounding interest
__________________
beebers is offline   Reply With Quote
Old 12-17-2007, 07:26 PM   #5
Recycles dryer sheets
 
Join Date: Oct 2007
Posts: 463
Quote:
Originally Posted by beebers View Post
I am very much an amateur when it comes to investing. But I do understand three basic rules that I have read in almost every reading.
  • Diversify
  • Live within your means
  • Compounding interest
beebers,

I hereby graduate you from Amateur to Intermediate investor, based on the above statement.

You are further along than you realize.

[Pomp and Circumstance]

If you feed comfortable sharing it, what is your family's current spending level and projected future spending after kiddos are graduated and (hopefully!) mortgage is paid off? This will help in providing better advice.
__________________
TickTock Rule Of Finance - heavily discount any promises of money/benefits to be paid to you in the future

"I've traded love for pennies, sold my soul for less" -Jim Croce, Age
TickTock is offline   Reply With Quote
Old 12-18-2007, 10:10 AM   #6
Confused about dryer sheets
 
Join Date: Dec 2007
Posts: 9
Without mortgage and saving we spend about $20,000 per year. With the mortgage, just over $32,000 per year.

My current gross income is $100k and should be pretty stable for the next 20 years or so.

We save about $28K per year. We definitely don't pinch pennies, we don't even really follow a budget religiously, we just don't live beyond our means(maybe that's why the math doesn't exactly match up.... We have a 2 and a half year old and a 3 month old.

I think we are doing a pretty good job, I just think there are always better ways to do things. For the last couple of years I always wanted to pay my house off immediately. The more I read the more I realized how silly that was. In one form or another I will always work. So I will have money for a mortagage. On the other hand if I don't pay off the house and invest it and everything goes south, I can still get a job for th basic necessities and start all over again.

In the next few months I hope to put $50 K into a strategic managed mutual fund and $20k into one of Bob Brinkers model portfolios. And of course maxing out our IRA's.
__________________
beebers is offline   Reply With Quote
Dryer Sheets?
Old 12-18-2007, 10:12 AM   #7
Confused about dryer sheets
 
Join Date: Dec 2007
Posts: 9
Dryer Sheets?

P.S. What is this dryer sheet thing all about?
__________________
beebers is offline   Reply With Quote
Old 12-18-2007, 10:24 AM   #8
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
I would take a look at Scott Burns:

Dallas Morning News | News for Dallas, Texas | Scott Burns: Columns 2007

I am not sure how he is perceived by others on this board, but overall I think he gives out pretty good advice.
__________________
Rustic23 is offline   Reply With Quote
Old 12-18-2007, 10:54 AM   #9
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,112
Quote:
Originally Posted by beebers View Post
P.S. What is this dryer sheet thing all about?
http://www.early-retirement.org/foru...ets-28341.html

and

http://www.early-retirement.org/foru...rum-19058.html
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Reply


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
The ER Forum Status Line -- For When the Forum Goes Down TromboneAl Other topics 4 07-05-2007 11:30 AM
This Forum Is A Living Breathing Growing Life Forum Danny Other topics 25 12-09-2006 04:01 PM
SO, is this a Blue Forum or a Red Forum?? FinanceDude Other topics 7 11-09-2006 06:33 AM
Hello I am New to this forum boots Hi, I am... 19 12-22-2003 06:58 PM

 

 
All times are GMT -6. The time now is 10:15 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.