Welcome to the board, Shipwreck. I hope your moniker isn't the reason that you're serving your "shore" duty in the desert...
I will recieve a pension of about $2000 a month after taxes, I am married, no children, My wife and I currently spend an ave. of $1350.00 a month.
I would like to hear about any others that are living on around $2000 a month.
Off the top of my head, UncleMick has a black belt in living below $2000/month. The Kaderlis also have nearly two decades of spending at that level. I don't remember if Trombone Al has discussed his budget but I think that he could make UncleMick look like a spendthrift.
The good news is that this is not rocket science. When you start your ER you'll get over your fatigue, recharge your batteries, clear your head, and be able to decide what brings value to your life and what does not. The spending decisions follow quickly & easily from your values, and it's not a life of deprivation or poverty.
Well.....I only have 30k in the bank but I actually plan on saving some of the monthly pay (2or3 hundred a month) to meet replacement costs (frig,car,washer/drier). and saving around $500 a month for play funds (Italy/Jamaica etc..)
Do you think this is feasable?
Yes, it can be done. It doesn't matter so much what they do as what you guys can do. You seem to already be living on two-thirds of the amount of your pension, which gives you plenty of room to avoid working. The best way to reassure yourself (despite the skepticism expressed in some of the posts) would be to build a detailed budget-- including property taxes, state/federal taxes, replacement expenses (a new roof, another car in 2020), and maybe a fantasy vacation or two. If your budget is less than $2000/month... well... that's pretty straightforward.
If your projected spending is more than $2000/month then things get more interesting. Our epiphany was realizing that our ER portfolio only had to last until spouse's Reserve pension kicked in (with Social Security waiting a few years after that). Maybe your savings would be able to take up some of that slack. You could also take Bob Clyatt's "Work Less, Live More" approach and either vary your annual spending or work part-time. Plenty of short-term jobs out there for a veteran. Even handyman work for your neighborhood or eBay/Craigslist selling quickly rises above $1000/month with minimal effort.
A few caveats-- first, if your spouse doesn't have her own income/pension and you're contemplating survivor benefits, then you'll need to recalculate your pension to account for over 25 years of SBP premiums.
Second, you may want to time your retirement to occur after a longevity pay raise (22/24 years) or an annual pay raise (after 1 Jan). I know that's not as much of a difference to a High-Three pension calculation, but every month that you stay at a higher salary also wipes out a month at a much lower salary. If you've recently been promoted then another year or two at your current rank will make a difference for the rest of your life. Plug different numbers into the retirement calculator and see how that affects your budget.
Third, don't budget your travel as if you're on two weeks' leave. Plan a long-term trip like the Kaderlis, where you can fly Space-A and live local style instead of in a hotel or resort. Their "Adventurer's Guide" is well worth the price of the download.
Thanks Outtarentals, I have the GI bill but I do not really want to sit in a classroom.
I've had no interest in higher education or occupational training either.
It is very scary for me to make the transformation to civilian life, the military is all I know. My wife and I really don't need much, we both come from lower middle income families and don't put too much stock in keeping up with the Jones'. We were stationed in Puget Sound Washington back in 1993 and fell in love with the cleanliness and beauty of the place, so we plan on selling our 320k home in Virginia to purchase a small place on the sound.
I know that no one can tell me a definite "It will" or "it will not" work out, but maybe some similar stories from people who do make it work will alleviate some of the apprehension and fear that I have.
The military has a tendency to ingrain the belief that you're barely capable of functioning at your current rank, let alone displaying the ability to survive a promotion. The Department of Defense would much rather slot you into a job so that you're not sleeping under a highway overpass and using your DD-214 for kindling. However the Navy's transition-planning tools can help you decide if one of your skills or interests could be turned into a profitable avocation. (Or, as in my case, they'll help you decide that you're done working.) If you're thinking of retiring next year then you
& spouse need to get yourselves to the Transition Assistance Program seminar as soon as you get home. The fact is that the ER lifestyle is great when you're capable of being responsible for your own entertainment. If you decide to start a bridge career, the bar is pretty low for the salary you'll be seeking.
If you can create a realistic budget that your pension can support, then I'd suggest taking ER a year or two at a time. You may find that you want to work, or you may decide that ER is much more interesting. There's plenty of civil-service (both state & federal) jobs in your area and veterans have plenty of skills that are valuable to civilian employers. You won't have to learn how to golf, you won't lose your contacts network, and your skills won't go stale.
A shipmate has been semi-ER'd in that area for eight years on a pension smaller than yours, and he's lovin' life. Post or PM me if you have more questions.
