I have really enjoyed lurking in this forum over the last few months and reading all of the great advice posted here. I have certainly benefited from the collective wisdom of this forum’s members and I hope to get some advice on my own situation. I am a 35-year-old active duty Army officer (O-4/just went over 12 years of service). My wife and I have three small children under the age of six and my income is the sole source of income for the family. My ultimate goal is to fully retire as soon as possible, but with kids at home I do not figure that it will happen before 55 or so. My income and asset allocation are as follows:
Income: currently ~ $115,000/yr…housing allowance varies by assignment
401K/TSP: ~$75,000 (evenly split between the L2030 and the L2040 funds)
My Roth IRA: ~$25,000 (Vanguard Target Retirement 2035 Fund)
DW Roth IRA: ~$15,000 (Vanguard Target Retirement 2040 Fund)
Taxable Accounts: ~$20,000 (Vanguard Windsor II…any suggestions for a better fund?)
Cash: ~$35,000 (savings account)
We have no debt and live comfortably on our budget. We contribute what we feel is a sufficient amount to 529s for all three children (we also plan to utilize the transferability option with the new GI Bill). We currently max out the TSP/401K and both of our Roth IRAs and put back an additional $15,000/yr as savings for a future home purchase. As you can probably tell by the abundance of targeted retirement funds above, I am not a very sophisticated investor. My logic is that by putting my money into these types of accounts I can ensure that I have the proper asset allocation. Is there a better method for me to use?
My wife and I also hope to be able to buy a house outright when I retire from the service in about 10 years or so. Whether or not this is a realistic goal, of course, depends upon where we decide to settle down/where I get a job (low cost vs high cost area) and how much we’re able to save by then. I’d like to get some advice on what we should do with the money that we are saving for this purpose. As stated above, we currently put back $15,000/yr (which I hope to increase with each longevity raise as well as with tax savings/combat pay from each deployment). I have considered putting this money into a CD ladder or into one of the tax efficient funds at Vanguard (Tax Managed Balanced VTMFX or Tax Managed Growth and Income VTGIX?). We currently have no plans to purchase a home prior to retirement in 8-10 years…we move too often to make it worthwhile from our perspective and neither of us have any interest in being long distance landlords. Any advice on where this money should go or general comments on how we might better prepare to FIRE someday?
I apologize for the long post, but your insights are greatly appreciated.
Income: currently ~ $115,000/yr…housing allowance varies by assignment
401K/TSP: ~$75,000 (evenly split between the L2030 and the L2040 funds)
My Roth IRA: ~$25,000 (Vanguard Target Retirement 2035 Fund)
DW Roth IRA: ~$15,000 (Vanguard Target Retirement 2040 Fund)
Taxable Accounts: ~$20,000 (Vanguard Windsor II…any suggestions for a better fund?)
Cash: ~$35,000 (savings account)
We have no debt and live comfortably on our budget. We contribute what we feel is a sufficient amount to 529s for all three children (we also plan to utilize the transferability option with the new GI Bill). We currently max out the TSP/401K and both of our Roth IRAs and put back an additional $15,000/yr as savings for a future home purchase. As you can probably tell by the abundance of targeted retirement funds above, I am not a very sophisticated investor. My logic is that by putting my money into these types of accounts I can ensure that I have the proper asset allocation. Is there a better method for me to use?
My wife and I also hope to be able to buy a house outright when I retire from the service in about 10 years or so. Whether or not this is a realistic goal, of course, depends upon where we decide to settle down/where I get a job (low cost vs high cost area) and how much we’re able to save by then. I’d like to get some advice on what we should do with the money that we are saving for this purpose. As stated above, we currently put back $15,000/yr (which I hope to increase with each longevity raise as well as with tax savings/combat pay from each deployment). I have considered putting this money into a CD ladder or into one of the tax efficient funds at Vanguard (Tax Managed Balanced VTMFX or Tax Managed Growth and Income VTGIX?). We currently have no plans to purchase a home prior to retirement in 8-10 years…we move too often to make it worthwhile from our perspective and neither of us have any interest in being long distance landlords. Any advice on where this money should go or general comments on how we might better prepare to FIRE someday?
I apologize for the long post, but your insights are greatly appreciated.