Retired Military - Continue in current job?

[Aspiration]

Hi friends. Long post. Story at the beginning, financials in the middle, and my question is at the end.

I retired from the military in 2018 and I am 51 years old. Since then, I've held numerous low-level (fun) jobs. However, in 2022 I signed a well-paying one year contract to teach high school JROTC. I am soon to be facing the decision to sign another annual contract.

While I enjoy working with the kids, I no am not totally motivated to take the program to the levels it could go. It's not just all me....some post-COVID kids are pretty apathetic when presented with challenges of the program (marksmanship, PT, drones, color guard, leadership roles, etc...)

School district is great. School admin is great. I also have a partner teacher and the military provides the curriculum.....so I really have no stress. It just happens to be some really long days -- but I also get lots of time off.

My DW is a realtor and this is her 3rd year. She's not taking a paycheck so her business can fully support itself. She is doing quite well and taking advantage of major national training events (not cheap) that her brokerage puts on. If I do not continue teaching, I can be her "helper" 100% and let her focus on the big items (she's on board with this). Plus, I like driving around and putting up for sale signs with my pup

DW supports any decision I make.

We also live in a LCOL part of the country.

Regarding our budget, we are currently able to save 100% of my $5190 monthly teacher paycheck. In fact, we could save even more and sometimes do. I will say that I enjoy the extra money.

Below is a snapshot of my financial situation.

Assets:

Cola Pension w/ disability (after taxes): $9263 per month (I treat this as my bond allocation)

Total Investments - $360K (all in aggressive low cost equity mutual funds -- S&P, Small Caps, and Total Stock Market)

Residence total equity: $200k

HYSA Savings: $12K…this fluctuates as I recently made some large purchases, but like to keep it around $30K.

Current Employment:

Salary after taxes and mandatary retirement contribution: $5190

Total Current Monthly Income

$14,453

Total Monthly Income Without Job

$9263

Liabilities:

Mortgage: $1034 per month (owe $137K) (this includes property tax)

Insurance:

$750K - 30 year term life expires at 78 years of age (I’m 51) - $1635 annually

$1M - Umbrella Policy - $35 per month

Full Medical (VA and Tricare for Life)

I've not done the FIRE Calculator because I know I'm good to go. There are days where I love my job, but there are also days/weekends when I wonder why I'm even working.

I'd love to hear your thoughts on the emotional side of to stay or jump ship. If you have any financial advice, that is more than welcome.

Thanks a bunch

 

[JDARNELL]

What stood out to me in your write up was “ taking it to the next level.” Retired life is not like a two or three year assignment then on to the next one. If you enjoy your work and it’s fulfilling sign up for another year. If not do what you have to do. No more promotion boards to be made. I’ve been retired from AD for going on 11 years and am happy to be in the check of the month club. Good luck!

 

[aaronc879]

With that income you are set for life. I assume there is a survivor benefit for your wife if you die young. That plus your life insurance should be good in that case. I see no reason to continue working. You are FI but it is your choice if you want to RE. I would but that doesn't mean you have to.

 

[TheWizard]

What stood out to me in your write up was “ taking it to the next level.” Retired life is not like a two or three year assignment then on to the next one. If you enjoy your work and it’s fulfilling sign up for another year. If not do what you have to do. No more promotion boards to be made. I’ve been retired from AD for going on 11 years and am happy to be in the check of the month club. Good luck!

What is AD?

 

[Aspiration]

With that income you are set for life. I assume there is a survivor benefit for your wife if you die young. That plus your life insurance should be good in that case. I see no reason to continue working. You are FI but it is your choice if you want to RE. I would but that doesn't mean you have to.

Thanks. Yes, the survivor benefit for my wife is the life insurance. Beyond that, she will receive a small VA pension and get my social security since I am the higher earner.

 

[Aspiration]

What stood out to me in your write up was “ taking it to the next level.” Retired life is not like a two or three year assignment then on to the next one. If you enjoy your work and it’s fulfilling sign up for another year. If not do what you have to do. No more promotion boards to be made. I’ve been retired from AD for going on 11 years and am happy to be in the check of the month club. Good luck!

Thanks for your reply. Taking it to the next level is really for the kids - not for me. I am content and aspire to no further work advancement. Congrats to you and thanks a lot for your input!

 

[Aspiration]

What is AD?

active duty

 

[HawkeyeNFO]

Is it still fun overall? (as fun as any job could be)

 

[pacergal]

Thanks. Yes, the survivor benefit for my wife is the life insurance. Beyond that, she will receive a small VA pension and get my social security since I am the higher earner.

So your wife will not receive your full pension if you die first? Can she survive on your budget with SS, small pension and savings?

Run Firecalc, check scenarios.
Also, under the Forums section, there is a sticky, with "Questions to answer before you retire">
Early Retirement & Financial Independence Community > Community Forums > Early Retirement FAQs
Reload this Page Some Important Questions to Answer Before Asking - Can I Retire?
Answer ALL of those questions.
There were some things I had not thought of. It is a great thread.

If you enjoy your job, continue! Retirement is all about choosing what you want to do every day.

Also, Thank you for your service to our Country.

 

[ivinsfan]

For someone in a LCOL area you seem to spend quite a bit of money. You have a small house payment and cheap HC. Do you know where all your money goes?

 

[MarieIG]

The premiums on DH's life insurance policy increased by 10x when he hit age 63.

It is not unusual for older folks to drop the life insurance, or simply forget to pay it, when it is needed most. You could have taken the annuity for DW so she has that guarantee when she is old and potentially unable to earn a living and manage her affairs. When someone is "on board" with what you decide, you should consider their long terms needs. You of course are set.

 

[MarieIG]

The premiums on DH's life insurance policy increased by 10x when he hit age 63. You list your pension income, but not what the "small" vet's pension for DW is.

It is not unusual for older folks to drop the life insurance, or simply forget to pay it, when it is needed most. You could have taken the annuity for DW so she has that guarantee when she is old and potentially unable to earn a living and manage her affairs. When someone is "on board" with what you decide, you should consider their long terms needs. You of course are set.

 

[friar1610]

I retired from the military in 2018 and I am 51 years old. Since then, I've held numerous low-level (fun) jobs. However, in 2022 I signed a well-paying one year contract to teach high school JROTC. I am soon to be facing the decision to sign another annual contract.

While I enjoy working with the kids, I no am not totally motivated to take the program to the levels it could go. It's not just all me....some post-COVID kids are pretty apathetic when presented with challenges of the program (marksmanship, PT, drones, color guard, leadership roles, etc...)

I don’t have a recommendation for you. But I just wanted to say that when I retired from the Navy I was very interested in trying teaching. I had no teaching credentials and, given my college major (economics) I would have needed to take a lot of content courses in social studies in addition to the Ed courses to get certified. So I thought the most painless path to an opportunity to try out teaching would have been as a JNROTC teacher. I got certified by the Navy but could not find an opening anywhere near where I lived nor in a location I wanted to move to permanently. So, I never got to do it.

I did partially scratch the teaching itch by doing a lot of volunteer adult literacy and numeracy tutoring. I thoroughly enjoyed that but I realize that working with one adult is a lot different than a classroom full of teenagers.

Best luck in whatever you decide to do!

 

[ExFlyBoy5]

As others have mentioned, it appears that you wouldn't have to work if you didn't want to. DW might find that starting out in the RE world could be a challenge right now. My DW got into around 2006 and the first couple of years were pretty rough (and lots of folks got out of the business when 2008 hit) even in a military town that was busier than most places.

One thing I would look at it the "true" cost of you teaching at a school. If I recall, the income from the school is adjusted depending on your retirement income. I don't remember the specifics but I think it's akin to the whole "being on AD any time after 20 years, you are w*rking for 1/2 your pay".

Also, look for posts from @nords (hey, owners of the forum...how about updating the software to allow folks to know when they are tagged?) He is a great resource for retired mil folks.

 

[ncbill]

The premiums on DH's life insurance policy increased by 10x when he hit age 63.

It is not unusual for older folks to drop the life insurance, or simply forget to pay it, when it is needed most. You could have taken the annuity for DW so she has that guarantee when she is old and potentially unable to earn a living and manage her affairs. When someone is "on board" with what you decide, you should consider their long terms needs. You of course are set.

IIRC, many retired military members (usually in better physical shape than us mere mortals) elect life insurance for the surviving spouse since the latter can only get 55% maximum of the pension & electing that option is pricey at an ongoing 6.5% of the pension.

 

[Aspiration]

Is it still fun overall? (as fun as any job could be)

Yes. this is a great question......I really have a blast with the kids.

 

[Aspiration]

I don’t have a recommendation for you. But I just wanted to say that when I retired from the Navy I was very interested in trying teaching. I had no teaching credentials and, given my college major (economics) I would have needed to take a lot of content courses in social studies in addition to the Ed courses to get certified. So I thought the most painless path to an opportunity to try out teaching would have been as a JNROTC teacher. I got certified by the Navy but could not find an opening anywhere near where I lived nor in a location I wanted to move to permanently. So, I never got to do it.

I did partially scratch the teaching itch by doing a lot of volunteer adult literacy and numeracy tutoring. I thoroughly enjoyed that but I realize that working with one adult is a lot different than a classroom full of teenagers.

Best luck in whatever you decide to do!

Thanks Friar for your input and service.

 

[Aspiration]

The premiums on DH's life insurance policy increased by 10x when he hit age 63. You list your pension income, but not what the "small" vet's pension for DW is.

It is not unusual for older folks to drop the life insurance, or simply forget to pay it, when it is needed most. You could have taken the annuity for DW so she has that guarantee when she is old and potentially unable to earn a living and manage her affairs. When someone is "on board" with what you decide, you should consider their long terms needs. You of course are set.

Thanks for your insightful reply. Her VA pension would be CPI (COLA) adjusted. Not sure on the exact amount. However, it's a great idea to focus now on those future horizons. BTW, she'll also get my social security

 

[Aspiration]

For someone in a LCOL area you seem to spend quite a bit of money. You have a small house payment and cheap HC. Do you know where all your money goes?

Yes, great comment. We enjoy life: travel, nice things (jewelry, watches, etc...).

We do budget and spend less when needed -- but we do not live beyond our means -- always trying to have balance.

 

[Aspiration]

So your wife will not receive your full pension if you die first? Can she survive on your budget with SS, small pension and savings?

Run Firecalc, check scenarios.
Also, under the Forums section, there is a sticky, with "Questions to answer before you retire">
Early Retirement & Financial Independence Community > Community Forums > Early Retirement FAQs
Reload this Page Some Important Questions to Answer Before Asking - Can I Retire?
Answer ALL of those questions.
There were some things I had not thought of. It is a great thread.

If you enjoy your job, continue! Retirement is all about choosing what you want to do every day.

Also, Thank you for your service to our Country.

No. she will not receive full pension when I croak.....but she will get COLA adjusted vA pension, my social security, and our entire estate. Also, she'll get my life insurance payout of $750k if I go before 78.

I'm confident she will be taken care of. Really not chomping at the bit to pull from retirement funds as we have the great pension. With them being 100% equities, it should build up to quite the nest egg.

 

[Bigdawg]

No. she will not receive full pension when I croak.....but she will get COLA adjusted vA pension, my social security, and our entire estate. Also, she'll get my life insurance payout of $750k if I go before 78.

I'm confident she will be taken care of. Really not chomping at the bit to pull from retirement funds as we have the great pension. With them being 100% equities, it should build up to quite the nest egg.

Same here for now. Plan is to complete ROTH conversions each year up until 72 so DW won't be hit with huge tax bill. When I go 6 feet under, she will have 6 figure pension income coming in(her military+her FERS pension+her SS). I don't want her to have the increased tax burden from the 401k/TSP nest egg. If I croak in the next 8 years she gets 1mil. If I croak between 8-18 years, she gets 500k. If I croak after 18 years she gets no life insurance. At that time the house will be paid and nest egg (should) be close to 2mil. At 57, I'm doing contract work. Probably until the end of the year. We'll see. Pays well, easy gig, work from home.

 

[Harris4crna]

Congratulations on having the freedom of choice. We are both as individuals are similar in our financial situation. Sounds like you got the 100% P&T as well as evidence by you monthly income. I too am looking for work, but have turned down everything presented to me. I am keeping the door open for the possibility for work, but knowing I do not need to is truly freedom.

The only difference between you and I is I do not have a mortgage and my wife is still AD Navy with another 5 years to go. I retired at 22 and she will retire at 30. This is why I decided not to go with SBP. Did not make sense to pay monthly for insurance for her only to get 55% in which she owed her own.

Keep posting, I like to follow your journey. Wish we had a military thread here.

 

[Aspiration]

Congratulations on having the freedom of choice. We are both as individuals are similar in our financial situation. Sounds like you got the 100% P&T as well as evidence by you monthly income. I too am looking for work, but have turned down everything presented to me. I am keeping the door open for the possibility for work, but knowing I do not need to is truly freedom.

The only difference between you and I is I do not have a mortgage and my wife is still AD Navy with another 5 years to go. I retired at 22 and she will retire at 30. This is why I decided not to go with SBP. Did not make sense to may monthly for insurance for her only to get 55% in which she is already getting her full pension. Plus she will be getting more than me anyway.

Keep posting, I like to follow your journey. Wish we had a military thread here.

Awesome! Thanks for replying.

It's odd. For nearly 30 years I never once vacillated on if I wanted to stay in the military or not. I knew what the end-game was and that was to stay until retirement. Since I've retired in 2018 it has been difficult to keep employment beyond a year or two. I've never been one to be indecisive. I'm quite confident this is because I now have a choice and don't need the income.

During the work week, I find myself quite content in this job; however, during my weekends and off-times, I go the other direction and begin plotting my exit.

As retired 0-5s, you and your wife will be totally set. I agree on SBP and think it's a total scam unless you do not qualify for term insurance.

I've read your story and my input is for you to just go and be a good dependent and travel the world with her -- who knows, she could be an 0-6 one day?

Take care.

 

[Nords]

Also, look for posts from @nords (hey, owners of the forum...how about updating the software to allow folks to know when they are tagged?) He is a great resource for retired mil folks.

Thanks for the tag, @ExFlyBoy5, and no worries-- it’s one of the reasons I check here every week (or so) to search for my poster name and the “military” keyword.

I'd love to hear your thoughts on the emotional side of to stay or jump ship. If you have any financial advice, that is more than welcome.

@Aspiration, if the job is no longer challenging & fulfilling then you have no reason to keep trading life energy (that you may not have) for money (that you no longer need). If you’ve found something else more interesting (let alone something that supports your spouse) then go explore.

If you're seeking more information or a structure for the exploration, I recommend the book "Designing Your Life." It's about choosing an interesting option and then iterating on it until you find the combination you seek... or at least enjoying it for a few years until you're ready to do something else.

Beyond that, she will receive a small VA pension and get my social security since I am the higher earner.

I’m not familiar with the VA pension you describe. Can you share the name of the program or a link to it?

For those who’ve mentioned the Survivor Benefit Plan, be aware that a rare open season for enrollment (or disenrollment) by all military retirees is available for the rest of 2023. It’s part of eliminating the SBP/DIC offset (which ends on 1 February’s SBP payment) and it’s the first time in a long time that I can remember an open season.
https://www.dfas.mil/RetiredMilitary/newsevents/newsletter/December2022-SBPOS23/

 

[Aspiration]

I’m not familiar with the VA pension you describe. Can you share the name of the program or a link to it?

Hi Nords - thanks for the great advice and book recommendation. DIC is what I was referring to...I suppose that's not considered pension?