Hi folks,
I've been lurking & reading threads on this site for quite some time, and would like some feedback & opinions on how to best proceed towards ER. If you can take the time to make some suggestions, I'd truly appreciate it.
Vitals:
32 y/o, never been married, no children. I do have a girlfriend but we're nowhere near considering marriage
Air Force medical officer (Major); I have spent 10.5 years active duty
College: BS, Masters, Doctorate completed & paid for
Hobbies: hunting, exercise, outdoors activities, reading, spending time with family & friends
Financial overview:
Home: purchased 2 years ago for $130K, owe $88K on 30-year fixed mortgage @ 6.5%
Debt: other than my home, none; I have a good reliable vehicle that is fairly new & paid for
Take-home pay after taxes: about $5100 per month (after TSP contribution)
Budget (excluding investments, including mortgage, insurance, etc): $1700/month
Savings: about $40K (USAA savings yield hovers around 5% for my amount)
Investments:
Manulife Financial -- Venture (John Hancock) -- $45K
Roth IRA (Washington Mutual American Funds) -- $34K
Thrift Savings Plan (9% of pre-taxed base pay, est. $425/month) -- $33K
I have a few questions.
1. What should I do with my $40K in savings? Buy land? Pay down my mortgage? Invest it? If so, where? I live very frugally, but I'm tempted by shiny sports cars & a cabin & land up in the mountains. I need to put it to better work for me. I chuck anywhere from $1k-1.5K per month at my mortgage principal. I built a custom deck in the back yard & landscaped last summer to add value.
2. Is the military retirement still a "good deal" in today's financial world? Especially since I already have 10.5 years towards the retirement? I'm tempted to get out quite often...but I realize there is BS to deal with in any job or corporation. A lot of folks tell me I can do much better on the outside with a "normal" 401K, and that military healthcare is not good for retirees.
My financial planner insists that it makes good sense to stay for another 9.5 years so I have the retirement income & health benefits.
3. Does my current portfolio makes sense? My TSP funds are allocated to the L2040 plan.
Any thoughts or suggestions are greatly appreciated!!
I look forward to my transition from a lurker to a poster. Thanks for the great forum!
I've been lurking & reading threads on this site for quite some time, and would like some feedback & opinions on how to best proceed towards ER. If you can take the time to make some suggestions, I'd truly appreciate it.
Vitals:
32 y/o, never been married, no children. I do have a girlfriend but we're nowhere near considering marriage
Air Force medical officer (Major); I have spent 10.5 years active duty
College: BS, Masters, Doctorate completed & paid for
Hobbies: hunting, exercise, outdoors activities, reading, spending time with family & friends
Financial overview:
Home: purchased 2 years ago for $130K, owe $88K on 30-year fixed mortgage @ 6.5%
Debt: other than my home, none; I have a good reliable vehicle that is fairly new & paid for
Take-home pay after taxes: about $5100 per month (after TSP contribution)
Budget (excluding investments, including mortgage, insurance, etc): $1700/month
Savings: about $40K (USAA savings yield hovers around 5% for my amount)
Investments:
Manulife Financial -- Venture (John Hancock) -- $45K
Roth IRA (Washington Mutual American Funds) -- $34K
Thrift Savings Plan (9% of pre-taxed base pay, est. $425/month) -- $33K
I have a few questions.
1. What should I do with my $40K in savings? Buy land? Pay down my mortgage? Invest it? If so, where? I live very frugally, but I'm tempted by shiny sports cars & a cabin & land up in the mountains. I need to put it to better work for me. I chuck anywhere from $1k-1.5K per month at my mortgage principal. I built a custom deck in the back yard & landscaped last summer to add value.
2. Is the military retirement still a "good deal" in today's financial world? Especially since I already have 10.5 years towards the retirement? I'm tempted to get out quite often...but I realize there is BS to deal with in any job or corporation. A lot of folks tell me I can do much better on the outside with a "normal" 401K, and that military healthcare is not good for retirees.
My financial planner insists that it makes good sense to stay for another 9.5 years so I have the retirement income & health benefits.
3. Does my current portfolio makes sense? My TSP funds are allocated to the L2040 plan.
Any thoughts or suggestions are greatly appreciated!!
I look forward to my transition from a lurker to a poster. Thanks for the great forum!
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