Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
OK, 42 years old over a million ca$h, NOW WHAT? Gurus I need your help please!!
Old 01-23-2010, 12:02 PM   #1
Confused about dryer sheets
 
Join Date: Jan 2010
Location: Seattle
Posts: 4
OK, 42 years old over a million ca$h, NOW WHAT? Gurus I need your help please!!

Requesting suggestion from the Federal Gurus or financial planners.

I am 41 years old and working for the Fed. I have six years military, six years non law enforcement and now law enforcement 6(c) retirement. As of today, I have a total of 13 Ĺ years with the Fed. I inherited a bit over a million $$ give or take. My salary will vary depending on overtime but my based is $65,000.00. I made some really bad investment like, Real Estates, business and bad girlfriends. Ohh those girlfriends!!! No kids as of now.

With the depreciation value of my properties, I lost over $130,000.00 and counting. I figure I am not much of a business person based on my business failures, so I decided to put my money in municipal bonds 6.20% AA+ tax exempt. I max out my TSP which is currently $100,000.00. No ROTH IRA for me. I am really hopping not to keep breathing pass 70. I want to wok six more years and retire to a third world (Thailand or Philippines or maybe both). Based on the advantage of the dollar in a third world country and my very humble lifestyle, I do not think I need more than $25,000.00 a year as of today unless I get a girldfriend. Oh those girldfriends!!!!

First, I am worry about the future value of the dollar. If the dollar crash I will be caught with my pants down in a third world country. So Iím trying to keep the door of my federal pension half open.

Also, my government retirement will be affected since I am getting out too early. I understand that if I get out too early I will be penalized 5% a year. My minimum retirement age will be 57.

Finally, I do not think the real estate market is going to recover for the next ten years due to the lack of inflation and others factors like the world economy is changing. I feel that my properties are just money pits and are creating a lot of distress in my life. I have no plan to pay off these properties because.
  • If depreciation value keeps rising my money will eventually be wasted.
  • If better to have cash on hand than to have it frozen in case you get sue or the economy keeps going bananas etc...
  • I can use the properties as tax deduction.
I donít know if I left anything behind. Feel free to ask me any questions

Any suggestion from the gurus about early retirement?

Thank you very much!!!
__________________

__________________
No beast so fierce but knows some touch of pity, but I know none, therefore am no beast.
RAMBO 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 01-23-2010, 03:55 PM   #2
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
You work for the Fed and you're in Seattle? They don't have a branch there.
__________________

__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 01-23-2010, 10:51 PM   #3
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
Quote:
Originally Posted by Maurice View Post
You work for the Fed and you're in Seattle? They don't have a branch there.
Might not mean The Fed, as in Federal Reserve, could be slang for The Government. Most feds I worked with often referred to their employer as "The G", as in, "The G's been very good to me', their issued cars as "G Cars", etc. Maybe OP uses the term Fed in that way.

6(c) retirements are for many (but not all) federal law enforcement positions as well as firefighters. They pay in an extra half a percent but get to retire earlier, they also have an earlier mandatory retirement age.

Although, I thought 6(c) positions had to be at least 50 or 52 to retire and 6 more years would seem to leave him a little short. But like everything else federal, the details vary greatly from agency to agency and it never ever makes sense to anyone.
__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Old 01-24-2010, 01:25 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,432
Quote:
Originally Posted by RAMBO View Post
I made some really bad investment like, Real Estates, business and bad girlfriends. Ohh those girlfriends!!! No kids as of now.
remember :
Attached Images
File Type: jpg cheaper.jpg (29.0 KB, 275 views)
__________________
learn, work, save, invest, fire
CyclingInvestor is offline   Reply With Quote
Old 01-24-2010, 03:12 AM   #5
Recycles dryer sheets
 
Join Date: Oct 2009
Location: Los Angeles
Posts: 50
You could live in Thailand or the Philippines for $25K/year easily. If you consider just the $1M in cash, that gives you 40 years and puts you at 81 years old.
__________________
Fantasm is offline   Reply With Quote
Old 01-24-2010, 06:24 AM   #6
Confused about dryer sheets
 
Join Date: Jan 2010
Location: Seattle
Posts: 4
Fantasm, Thank for your reply. That really makes me feel good. The real purpose for my post is to look for ways to retire earlier without hurting the following scenarios:
  • I do not want to throw away all my years in the federal (Fed) system. If I quit six years from today the government will take away 5% per year until my minimum retirement age (MRA). I think my minimum retirement age is 57. So I will end up with probably $0 by the time I reach the age.
  • My real estates investments are depreciating more and more because I purchased during the pick years. I just canít walk away even though it makes more sense to do so.
  • The possibility of the devaluation of the dollar, maybe not now but how about ten years from now. That is why I want to leave my fed years always as a back up plan.
I have others source of income like military disability $530.00 a month and a monthly rental income. But be advice that rentals incomes are not too reliable. You may have rental income today but may not tomorrow.

A pension is almost secure, and in my opinion is the best option, since you always going to get the same amount in a fix rate percentage if you keep it low risk, unless the country goes totally bankrupt or broke.

CivlingInvestor Thanks for the wonderful pic! I really hope that girl was one of the girlfriends, but I am too humble to ride that car and the girl. Maybe if I hit the lotto I will go for that.
__________________
No beast so fierce but knows some touch of pity, but I know none, therefore am no beast.
RAMBO is offline   Reply With Quote
Old 01-24-2010, 08:18 AM   #7
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
Quote:
Originally Posted by Leonidas View Post
Might not mean The Fed, as in Federal Reserve, could be slang for The Government.

Ok, my next guess was going to be an AIG field office...


Anyway, welcome to the board, Rambo.
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 01-29-2010, 02:58 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 1,012
Quote:
Originally Posted by RAMBO View Post
I do not want to throw away all my years in the federal (Fed) system. If I quit six years from today the government will take away 5% per year until my minimum retirement age (MRA). I think my minimum retirement age is 57. So I will end up with probably $0 by the time I reach the age.
if i understand your situation correctly you are talking about starting your pension (deferred pension) when you reach your MRA. since you wouldnt have 30 yrs of service you will lose 5%/yr for 5 years (62-57) or 25% of your pension value (if your additional work gets you to a total of >=20 yrs total creditable service and wait till age 60 to start your pension then there is no reduction). however there would be no increase in your high 3 from the time you leave service and start your pension so no adjustment for any inflation in that time period and the cola lite doesnt start till age 62, so lots of years of no inflation protection

btw, it is unclear what your current total asset value is. it would help to know that.
__________________
jdw_fire is offline   Reply With Quote
Old 01-29-2010, 09:39 PM   #9
Recycles dryer sheets
 
Join Date: Oct 2005
Posts: 443
Congrats, why worry so much As far as wealth go, you're probably the top 0.5% in Thailand or Philippines. $25k/yr in such country is like living in paradise. About your real estate, why not walk away. it will take a long time just for you to break even if it's already $130k depreciated.
__________________
Enuff2Eat is offline   Reply With Quote
Old 01-30-2010, 08:00 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
Quote:
Originally Posted by Fantasm View Post
You could live in Thailand or the Philippines for $25K/year easily. If you consider just the $1M in cash, that gives you 40 years and puts you at 81 years old.
Heck yeah just watch a bunch of episodes of Anthony Bourdain.
__________________

__________________
Notmuchlonger 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
How to Lose 3 Million in 6 Years easysurfer FIRE and Money 50 09-07-2009 06:20 PM
Photography gurus - need advice Gearhead Life after FIRE 6 11-20-2008 08:56 AM
Question for Computer Gurus TexasGal Other topics 24 09-10-2007 08:05 PM
Pension Plan Gurus UncleHoney FIRE and Money 4 08-11-2006 10:48 PM
Question for Investment Gurus ........... Cut-Throat FIRE and Money 10 02-09-2004 09:16 AM

 

 
All times are GMT -6. The time now is 02:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.