Hey you guys and gals. I am J. Yes, I know what it's like to be poor. No car, no food, no electricity, no running water,....no hope. I have slept on the floor, battled roaches, and wore dirty clothes. This may be great for homesteaders but not growing up in the city. I grew up poor in the projects of Louisiana and I promised myself I will never go back. So instead, I worry. I worry about money, well, about having enough money. So I have lurked on this forum for quite some time and finally gathered enough courage to open up to you and see what I can do better. So here goes my financial situation. I got out of my situation by joining the military and have never looked back.
Me, 38, and significant other, 33, live in Texas. We keep our finances separate other than paying jointly on monthly bills like electric, cellphones, and cable. (yeah I know, I know but it's my vice.)
- Hope to retire at 53, and work for a local city government.
I can draw a monthly check from TMRS at 53, for $3300 a month. Can continue health insurance from city upon retirement.
- $3300 at age 53 (I put in 7% and city puts in $14%) Taxable
457 Roth (thru city)
- $105K currently putting 18.1% yearly of salary of $68k- in 100% stocks but diversified to my taste
$40K- max out every year in T Rowe 2040 Retirement
Rental House-1/2 duplex
Value 60k owe 40K pay extra $200 month principle will be paid off in 8 years
Cash on hand-
Hopes to retire when I do. Just got really serious about early retirement. Makes about $55k but varies to $65k with commissions
-18K just started maxing out this year. Gets 3% match from company- Fidelity 2040 Retirement
$15k maxing out T rowe 2040 Retirment
$8k unsure what allocation is
Cash on Hand-
We have NO
debt other than my 1/2 duplex.
Both of our cars are paid off. No student loans. We live in an apt for free due to myself providing security. We are saving for a house upon retirement at a rate of $1k a month combined ($18k current balance), so we hope to have approximately $230k by the time we get to retirement. We will stay in Texas because property taxes are low and there is no state income tax. I live on less than $20k
a year and my SO is about the same. I know expenses will go up with a home so I am considering that.
I just want to make sure that we are on the right track. Where can I park the house saving money that is safe? It may be the place I put my emergency cash fund also.
Our plan is to live off my 457 and TMRS and her 401k the first few years and not to touch either of our Roths until it is mandatory. Her mutual fund is up in the air as to when we will access it. Oh, I was in the military for 5 years so I will have some social security but not much because my currently employer does not contribute. I "bought back" all the military time I could so it counts toward my time at the city. I can technically retire in 2017 but won't. SO will also get social security, but we have not figured those numbers into our equations for retirement. Thanks for your patience folks and any advice will not go unstudied.