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Old 04-19-2017, 07:01 AM   #21
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Old 04-19-2017, 07:17 AM   #22
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Howdy,

I stumbled upon the site recently. I can't remember exactly what I was searching for at the time, but I found the "Share your Milestones" thread, read all 72 pages, and I was hooked.

Finally I have an outlet to discuss retirement savings with like-minded folks and seek/offer advice.

My background:
Retired O-5 (Navy) w/23 years active service, 2.5 years into my second career. I am 47, DW 46, DD1 17, DD2 15.

We have saved ~$625K (cash, Roth IRA, taxable mutual fund accounts, TSP, and 401K).

By my projections, we are on track to hit $1M in 2021 (YOA), with the mortgage paid off in 2029 (59 YOA). I'm hoping to hit both of these milestones a bit sooner as my goal from here on out is to put all future pay raises towards savings and once my DD's finish private HS that will free up a bit more. For projections, I used the lifetime rate of growth minus 1% (to be conservative?). I don't project any growth in my cash holdings.

Although I am well behind many here, I think my saving grace is my military retirement which is ~$60K (gross/year) + COLA. Factoring that, I think I am OK'ish.

This forum has already helped me in one big way. We had been putting more towards the mortgage principal IOT pay it off sooner, but at a 3.125% interest rate, we've decided our money is better "spent" on increasing contributions towards my wife's 401K. Reading various threads on this forum has helped me overcome my psychological desire to pay off the mortgage at the expense of better options.

Looking forward to learning much more!
-AginMS
Welcome. Retired O-4 here with a DW retired CWO-4. Using the 4% rule you should be able to sustain a 85K/yr budget. 60K pension plus 25K from your stash. So the question becomes what are your expenses? DW and I are both in bridge career's for a few reasons. #1. I tried to retire full time and failed. I wasn't ready mentally. I am back in the game and loving my job. Almost non existent politics and b.s. Boss is a non micro manager. I like my team and they pay me way too much. DW is in the same boat. She will work even longer because she doesn't do a lot outside of work. She feels valuable where she is at. She needs that. I don't. Even with the great set up I will go full time FIRE in 2019/2020. Our stash is/will be much smaller than yours but our stay at home and watch Oprah income is 15-20% above our expenses. Technically don't even need a stash. The way my DFIL stated it: "if the fed's stop paying military retirement every person in the country is screwed". Currently 10 income streams. Military pension x 2, bridge career X 2, VA disability X 1, baseball umpire, volleyball referee, rental income X 2 and 4 nights per month as a doorman.

Once again, welcome to the show. Enjoy.
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Old 04-19-2017, 10:17 AM   #23
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I assume there will be some level of SS, as well?
Yes, DW and I should both receive SS and if I stick with this second career long enough I'll receive another small pension.

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AginMS-
About your screen name: did you recently move back to MS? Or it means you are an Ag living in MS?
Curious minds...
I grew up a Navy brat, moved every two-three years then attended Texas A&M and received a commission in the Navy. After that I continued to move every two years for the next 23 years. I consider myself a Texan and an Aggie, although I've only lived there 7 years total. For various life reasons, we currently live in MS but it's not too bad: low cost of living, military retirement not taxed by state, warm climate...
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Old 04-19-2017, 10:31 AM   #24
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Yes, DW and I should both receive SS and if I stick with this second career long enough I'll receive another small pension.



I grew up a Navy brat, moved every two-three years then attended Texas A&M and received a commission in the Navy. After that I continued to move every two years for the next 23 years. I consider myself a Texan and an Aggie, although I've only lived there 7 years total. For various life reasons, we currently live in MS but it's not too bad: low cost of living, military retirement not taxed by state, warm climate...
If you can find a state you really like AND they also don't tax military pensions (or SS), that's a good deal. In spite of its reputation as "Taxachusetts", MA taxes neither. Since all of routine (and some of our "splurge") expenses are covered by a Navy pension + SSx2 we pay very, very little to the Commonwealth. I personally wouldn't live in a state solely for that reason but in our case it just worked out.
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Old 04-19-2017, 10:38 AM   #25
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Using the 4% rule you should be able to sustain a 85K/yr budget. 60K pension plus 25K from your stash. So the question becomes what are your expenses?
Thanks Big Dawg,

Yes, that is the question! Hopefully there will also be the SS income stream (x2) when we turn 62.

For me though, I don't want to have to worry about money once I retire, ever. If I want to purchase a new vehicle, travel, vacation, or pick up a new hobby I want the financial freedom to do it (within reason of course).

So for now, I'll keep working. Fortunately, like you, I am loving my current job. I work independently, am paid well, and don't manage other people. DW works from home. Once my DDs are finished with their schooling, I see a huge chunk of our current expenses disappearing. So once they are both independent (i.e. out of the house and on their own) for a year or so I plan to realistically look at our retirement expenses and see where the savings are.

-AginMA
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Old 04-19-2017, 10:44 AM   #26
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If you can find a state you really like AND they also don't tax military pensions (or SS), that's a good deal.
That is definitely the plan, Friar. Hopefully I can convince DW to move to Texas or Florida once we decide to fully retire.
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Old 04-19-2017, 11:27 AM   #27
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Maybe I gave too much information away.
When I signed up for a new financial forum, one the the Mods asked me if I was giving too much away (e.g. kcowan signed Keith and my signature had a link to my tell all web site). I said it had never been a problem and it still has not. But then I don't do anything that everyone can't see! They might not agree but that is not MY problem.

I often meet people in real life who recognize me from the web. and I find that charming.
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Old 04-19-2017, 12:46 PM   #28
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But then I don't do anything that everyone can't see! They might not agree but that is not MY problem.
Agreed......DW & I post vacation/other pics, etc, but it doesn't mean that we're going to fall for monetary scams or other invasive approaches.

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I often meet people in real life who recognize me from the web.
I figure, if anyone recognizes me, they'd likely to a quick about face and hightail it in the other direction.
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Old 04-19-2017, 12:55 PM   #29
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We are not really unanimous.
Except for Mrs. Slocombe:

https://youtu.be/m6Px53b_prc
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Old 04-19-2017, 01:06 PM   #30
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BTW, there isn't anything particularly private about military pay or retirement.

If all "good time" was on AD, perhaps. What if part was in NG or reserves? The amount of retired pay would be reduced. Not as easy to estimate. What if VA disability is used as an offset? Still more complex.
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Old 04-19-2017, 01:42 PM   #31
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If all "good time" was on AD, perhaps. What if part was in NG or reserves? The amount of retired pay would be reduced. Not as easy to estimate. What if VA disability is used as an offset? Still more complex.


True, there are a TON of variables. So it would be difficult to figure out someone's exact retirement. Even someone retiring at 23 years -- Is that exactly 23 years, 23 and 1 month, 23 years 10 months,etc... it all makes a difference. Still, my point is the federal pay tables (including disability rates and reserve retirement benefits) are all public information so anyone could ballpark it fairly close with a little knowledge of the individual. I don't really have a problem with that personally.

The retirement figure I provided ($60K/yr) isn't exact, and it'll change every year depending on COLA increases. I was simply letting everyone know approximately where I stood financially so any advice could be tailored to my particular situation.

-AginMS
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Old 04-19-2017, 02:10 PM   #32
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The retirement figure I provided ($60K/yr) isn't exact, and it'll change every year depending on COLA increases. I was simply letting everyone know approximately where I stood financially so any advice could be tailored to my particular situation.
+1 Stick with round numbers. All that we who read your posts need to know to understand your situation is order-of-magnitude estimates.

Even if you knew all your numbers to the penny, they would be subject to rapid changes beyond your control. Most of us mentally round off anyway for ease of computation. Also, I doubt if anybody here makes their FIRE decision on the basis of hitting dollar targets exactly.
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Old 04-20-2017, 06:24 AM   #33
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Yes, DW and I should both receive SS and if I stick with this second career long enough I'll receive another small pension.

I grew up a Navy brat, moved every two-three years then attended Texas A&M and received a commission in the Navy. After that I continued to move every two years for the next 23 years. I consider myself a Texan and an Aggie, although I've only lived there 7 years total. For various life reasons, we currently live in MS but it's not too bad: low cost of living, military retirement not taxed by state, warm climate...
Well then I can also welcome you as a fellow Ag. We get down there every year a least 1-2 times. I was not in the corps, but i do appreciate your service. We have also been away from Texas here in Northern Va but also on Az for a while. I suspect we will return at some point. I spent some time there on the MS coast as a young guy and enjoyed it.

Enjoy the forum. Lots of great people and excellent info.
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Old 04-20-2017, 07:49 AM   #34
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Welcome AginMS...
No advice from me, but some simple thoughts on retiring early. Our retirement was less well funded than what you will have, but it is now into its' 27th happy year.
FWIW, here's a recap of the experiences of an old timer dealing with the events that occur along the way.

http://www.early-retirement.org/foru...ent-62251.html

While all of us have plans for the future, our goals are not the same. Happiness for some, is a warm puppy, while for others, world travel, adventure, or the perfect home is their nirvana. Still, we all face the same basic challenges, with regard to what we'll have to handle... buying, selling, contracts, taxes, legal issues, wills, problems with kids, relatives, unexpected events etc., etc..

We can't be prepared for everything, but seeing how others have handled those situations, can cushion the shock, and offer choices. It's hard to try and get caught up on the hundreds of thousands of posts here on ER, but using the "search" is a good way to get started on the subjects that interest you the most.

Wish you well on your retirement, and if the "EARLY" part is important to you, then I think you have a great head start.
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Old 04-21-2017, 12:10 PM   #35
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While all of us have plans for the future, our goals are not the same. Happiness for some, is a warm puppy, while for others, world travel, adventure, or the perfect home is their nirvana. Still, we all face the same basic challenges, with regard to what we'll have to handle... buying, selling, contracts, taxes, legal issues, wills, problems with kids, relatives, unexpected events etc., etc..

We can't be prepared for everything, but seeing how others have handled those situations, can cushion the shock, and offer choices.
+1 Thanks imoldernu; experience and advice from others on their pre- and post- retirement trials and tribulations is exactly what I hope to gain from this site. I'm blown away by how much great information there is on this forum and the willingness of others to share their knowledge and lessons learned.

-AginMS
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Old 04-29-2018, 09:16 AM   #36
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Well, it has been a year since I started this post so I thought I would look back and update where we are. Still enjoying the forum, topics, and posters immensely.

Thanks to an incredible 2017 market, and continued contributions to our TSP and 401, we have around $900K saved (6.5% Cash, 44.5% Roth, 18% TSP, 5% 401K, 26% Taxable).

We are heavy in stocks, we have almost no bonds. I justify this with my military pension and I think of it almost as a very safe bond fund.

My oldest DD started college but choose to live at home this year. Fortunately she has a full scholarship for tuition so we were actually saving money this year over last when we were paying for her private HS. Next year she is looking to move to the main campus and live in the dorms so we'll need to budget for her room and board.

My youngest is still in HS.

DW took a job with another company with higher pay. This has allowed us to max out her 401K. The company match is better too, so between the two of us and employer matches we are saving around $46K in TSP and 401K. Unfortunately she doesn't enjoy the job as much as her last one, so we'll see what happens there.

If we can get our cash savings up a bit more, I'd like to do a couple of backdoor ROTH's later this year. I've never done it before, but, we don't have any tIRAs, so it should be pretty straightforward to set up a non-dedutible IRA and avoid the IRA pro rata aggregation rules.

Really looking forward to hitting the 2 comma milestone - hopefully by next year!

Planning ER in 2028! Ten years to go...
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Old 04-29-2018, 09:22 AM   #37
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Thanks for the update! Things look they are going well.
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Old 04-30-2018, 06:10 AM   #38
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When I signed up for a new financial forum, one the the Mods asked me if I was giving too much away (e.g. kcowan signed Keith and my signature had a link to my tell all web site). I said it had never been a problem and it still has not. But then I don't do anything that everyone can't see! They might not agree but that is not MY problem.



I often meet people in real life who recognize me from the web. and I find that charming.

Keith; I keep expecting to run into you on the street in Old Town or at some beach bar in PVR. I swear I think I'd recognize you😎


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Old 04-30-2018, 06:24 AM   #39
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Well, it has been a year since I started this post so I thought I would look back and update where we are. Still enjoying the forum, topics, and posters immensely.

Thanks to an incredible 2017 market, and continued contributions to our TSP and 401, we have around $900K saved (6.5% Cash, 44.5% Roth, 18% TSP, 5% 401K, 26% Taxable).

We are heavy in stocks, we have almost no bonds. I justify this with my military pension and I think of it almost as a very safe bond fund.

My oldest DD started college but choose to live at home this year. Fortunately she has a full scholarship for tuition so we were actually saving money this year over last when we were paying for her private HS. Next year she is looking to move to the main campus and live in the dorms so we'll need to budget for her room and board.

My youngest is still in HS.

DW took a job with another company with higher pay. This has allowed us to max out her 401K. The company match is better too, so between the two of us and employer matches we are saving around $46K in TSP and 401K. Unfortunately she doesn't enjoy the job as much as her last one, so we'll see what happens there.

If we can get our cash savings up a bit more, I'd like to do a couple of backdoor ROTH's later this year. I've never done it before, but, we don't have any tIRAs, so it should be pretty straightforward to set up a non-dedutible IRA and avoid the IRA pro rata aggregation rules.

Really looking forward to hitting the 2 comma milestone - hopefully by next year!

Planning ER in 2028! Ten years to go...
From your OP the best I can figure is that you left active service around 2014. Do you have the post 911 GI Bill? That was huge for us funding DS and DD for their undergrad. DD has 19 months left on my GI Bill to fund her MBA.
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Old 04-30-2018, 08:59 AM   #40
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Keith; I keep expecting to run into you on the street in Old Town or at some beach bar in PVR. I swear I think I'd recognize you😎
Three times a week in season, I walk from Alta Vista to the Malecon bridge where the ROMEOs meet and do 8000 steps and breakfast. The last walk of the season was last week M-W-F at 9. Starting again mid-Nov. Sea Monkey once a month in the afternoon with friends from Nuevo.

I don't spend time on the beach anymore. Since the El Dorado started charging 500 pesos per chair, I decided there were better uses for my pesos.
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