Greetings, I’ve been reading this board for a couple of weeks and have found it to be extremely useful; I hope to contribute in the future as we go down this early retirement path and adventure. I am retiring from the Army after 26 years. I have been planning for this moment for nearly ten years and my wife and I made the decision early this year that it was time. My last day on active duty will be September 30, 2014 and I will be 50 years old and my wife will be 49. My two older boys have graduated from college and are working on their careers and my youngest son will use my New GI Bill for his undergraduate degree.
In terms of retirement income, I estimate my monthly retirement income to be approximately $6,500 and my wife’s part-time school nurse job at $500 per month. We have lived frugally and fortunately have no other debt other than the mortgage.
Our home in Olympia, Washington, purchased in 2012, is valued at approximately 650K (it has acreage for our organic farm) and we currently have a balance of $275K financed at 4% for 30 years. We will have approximately 205K in cash savings by the time I retire; this will be used to refinance the current mortgage to a 90K mortgage and will leave us with an emergency fund of 20K. Our projected monthly fixed expenses, including the small mortgage (90K), federal tax and survivor benefit insurance to be approximately $4,000. Yes, we will deplete most of our current savings but we will be able to save a minimum of $1,500 per month upon retirement and will build it back up.
Here is the basic budget plan:
Projected Monthly Income:
Military Retirement Pay $6,500
DW part time employment $500
VA Disability 0 (TBD)
Other income 0 (placeholder for now)
Projected Monthly Fixed Expenses:
Fed Tax -550
Survivor Benefit Plan (6.5% of pay) -423
home insurance -100
90K Mortgage (15 yrs/3.5) -650
car ins/maint -50
Student Loan -150
Term life ins -100
utilities (elect, gas) -200
phone -35
garbage -25
Cable Internet/phone -75
gasoline -100
grocery -700
Home Maint -300
property tax -550
Total expenses/tax $4,000
Summary:
Estimate Monthly Income: $7,000
Estimated Monthly Expense: $4,000
Monthly “misc” expenses: 1,500 (used for unexpected expenses, recreation, hobby, extra mortgage payments, or even savings)
Monthly Savings: $1,500
Thanks again to the many great posts in this forum and I endeavor to be a contributor.
In terms of retirement income, I estimate my monthly retirement income to be approximately $6,500 and my wife’s part-time school nurse job at $500 per month. We have lived frugally and fortunately have no other debt other than the mortgage.
Our home in Olympia, Washington, purchased in 2012, is valued at approximately 650K (it has acreage for our organic farm) and we currently have a balance of $275K financed at 4% for 30 years. We will have approximately 205K in cash savings by the time I retire; this will be used to refinance the current mortgage to a 90K mortgage and will leave us with an emergency fund of 20K. Our projected monthly fixed expenses, including the small mortgage (90K), federal tax and survivor benefit insurance to be approximately $4,000. Yes, we will deplete most of our current savings but we will be able to save a minimum of $1,500 per month upon retirement and will build it back up.
Here is the basic budget plan:
Projected Monthly Income:
Military Retirement Pay $6,500
DW part time employment $500
VA Disability 0 (TBD)
Other income 0 (placeholder for now)
Projected Monthly Fixed Expenses:
Fed Tax -550
Survivor Benefit Plan (6.5% of pay) -423
home insurance -100
90K Mortgage (15 yrs/3.5) -650
car ins/maint -50
Student Loan -150
Term life ins -100
utilities (elect, gas) -200
phone -35
garbage -25
Cable Internet/phone -75
gasoline -100
grocery -700
Home Maint -300
property tax -550
Total expenses/tax $4,000
Summary:
Estimate Monthly Income: $7,000
Estimated Monthly Expense: $4,000
Monthly “misc” expenses: 1,500 (used for unexpected expenses, recreation, hobby, extra mortgage payments, or even savings)
Monthly Savings: $1,500
Thanks again to the many great posts in this forum and I endeavor to be a contributor.