Hello all, I was hoping to present my personal situation and with any luck, garner some value added input from you readers who are smarter than I.
I'm a 29 year old 10 year Air Force veteran and plan on staying in for at least 10 more years to reap the benefits of the military retirement system. I'm stationed in the Middle East right now and will be until December of 2008.
Living here, I pay no State or Federal taxes and get paid a little bit extra by the nature of the local environment. I invest 25% of my base pay (comes to about $1266/mo) in the TSP (spread between the C, S, and I Funds) and I also invest in a Roth IRA (PRSGX: Spectrum Growth) maxing it out at $416.66/mo.
The current value of my TSP is about $28,000 and my IRA is about $10,000. I have $10,000 sitting in a savings account that earns 10%APY while I'm here and the rest of my savings is in a high yield savings account with EmigrantDirect. I plan to continue to invest heavily in stocks clear through my 30's. Yes, I'm aware of diversification, and I am diversified...in small, mid, large, emerging, equity, international, etc...stocks. I'm not so interested in bonds and other "lower risk" options at this point in my life. I could lose it all today and still be just fine as far as I'm concerned.
I have no debt whatsoever and already have my MBA that was paid for by the military.
With all that being said...I want to retire early, and would like to know if I'm saving too little, too much or just enough AND is there anything else I should consider (non retirement vehicles)?
I will be eligible for military retirement when I am 38 yrs old and potentially will make about $55,000 per year on military retirement alone. That figure comes from looking at a Lt Col's pay (rank I will potentially retire at) today at 20 yrs of service and applying a 3% increase per year over the next 10 years to estimate the amount (at 50%) when I am due to retire.
Being so young retiring from the military, I will most likely get another job for a few years just to keep me busy but would like to have financial freedom earlier than the "typical" 59 1/2.
Your thoughts?
I'm a 29 year old 10 year Air Force veteran and plan on staying in for at least 10 more years to reap the benefits of the military retirement system. I'm stationed in the Middle East right now and will be until December of 2008.
Living here, I pay no State or Federal taxes and get paid a little bit extra by the nature of the local environment. I invest 25% of my base pay (comes to about $1266/mo) in the TSP (spread between the C, S, and I Funds) and I also invest in a Roth IRA (PRSGX: Spectrum Growth) maxing it out at $416.66/mo.
The current value of my TSP is about $28,000 and my IRA is about $10,000. I have $10,000 sitting in a savings account that earns 10%APY while I'm here and the rest of my savings is in a high yield savings account with EmigrantDirect. I plan to continue to invest heavily in stocks clear through my 30's. Yes, I'm aware of diversification, and I am diversified...in small, mid, large, emerging, equity, international, etc...stocks. I'm not so interested in bonds and other "lower risk" options at this point in my life. I could lose it all today and still be just fine as far as I'm concerned.
I have no debt whatsoever and already have my MBA that was paid for by the military.
With all that being said...I want to retire early, and would like to know if I'm saving too little, too much or just enough AND is there anything else I should consider (non retirement vehicles)?
I will be eligible for military retirement when I am 38 yrs old and potentially will make about $55,000 per year on military retirement alone. That figure comes from looking at a Lt Col's pay (rank I will potentially retire at) today at 20 yrs of service and applying a 3% increase per year over the next 10 years to estimate the amount (at 50%) when I am due to retire.
Being so young retiring from the military, I will most likely get another job for a few years just to keep me busy but would like to have financial freedom earlier than the "typical" 59 1/2.
Your thoughts?