I'm 32 years old and planning for FIRE at 38. This is a hypothetical plan with what I think my life situation will be like at that time. Please provide feedback on whether I'm on the right road or not.
Information as of now
32 years old
Married/wife is AF reserve/self employed
Active duty E7 14 years service
Debt free
Renting a home
Emergency fund is padded
Saving around 40-45K a year right at 80% of my AF pay.
$280K invested in Vanguard Index funds and TSP 84/16 Stocks/Bonds
Will continue to add 40-45K yearly for the next 6 years till I retire from the AF. This will put total invested to $550,000 on retirement date not counting whatever interest it my draw from now till then.
We live comfortably now (she takes care of food and groceries), I take care of everything else with what's left of my AF pay after savings, my Ebay Business, and my side mechanic business.
We spend around 30-40K annually including rent, utilities, everything else.
Hypothetical information in 6 years
38 years old
(Retired E8 w/20 yrs) COLA adjusted, Tricare
Debt free (besides new mortgage possibly)
Married with possibly 1 kid (post 911 GI bill for college)
Wife is AF reserve/self employed
SBP if something happens to me (still unsure on this one)
Nice emergency fund
Will rent shortly after retirement until we find a home to settle for good probably in TN
$550K invested in Index funds not counting interest for past 6 years hopefully more
Still contributing to Index funds just considerably less. Maybe 5-10K year.
Money coming in (in today's dollars)
AF retirement/disability $25,000 (No tax in TN)
Wifes Reserve/self employment $10,000 and retirement pay at 60. $12K yr
Ebay business $10,000 estimated but not taking into account
Mechanic side business $10,000 estimated but not taking into account
Average yearly expenditures $40-50K depending if we try and pay the mortgage off sooner. We'll want to do some traveling as well but overall we live modestly.
The plan in a nutshell, is to retire from the Air Force and live off the retirement, my ebay, my mechanic business both of which I really enjoy doing plus income the wife brings in. We will need to purchase a house probably within a few years from retirement probably in Tennessee.
What do you think about the plan with the information provided, would it work?
There is quite the gap from 38-59.5 almost 22 years when I can start reaping the benefits of the money I worked so hard to put away now SS, TSP, Roth, and some taxable.
How do you guys bridge the gap between ER at 38 yrs old and drawing from investments, TSP, Roth IRA , SS if you can't technically touch if till you're 59.5?
I'll be on a fixed COLA adjusted income from the AF, but the Ebay, and side business will bring as much as I put into it so I'm really thinking of that as gravy on the top and would like to see if my plan would work with just AF retirement.
For you that have ER'd do you see any kinks in my plan something that I'm not thinking of?
Thanks in advance!
Information as of now
32 years old
Married/wife is AF reserve/self employed
Active duty E7 14 years service
Debt free
Renting a home
Emergency fund is padded
Saving around 40-45K a year right at 80% of my AF pay.
$280K invested in Vanguard Index funds and TSP 84/16 Stocks/Bonds
Will continue to add 40-45K yearly for the next 6 years till I retire from the AF. This will put total invested to $550,000 on retirement date not counting whatever interest it my draw from now till then.
We live comfortably now (she takes care of food and groceries), I take care of everything else with what's left of my AF pay after savings, my Ebay Business, and my side mechanic business.
We spend around 30-40K annually including rent, utilities, everything else.
Hypothetical information in 6 years
38 years old
(Retired E8 w/20 yrs) COLA adjusted, Tricare
Debt free (besides new mortgage possibly)
Married with possibly 1 kid (post 911 GI bill for college)
Wife is AF reserve/self employed
SBP if something happens to me (still unsure on this one)
Nice emergency fund
Will rent shortly after retirement until we find a home to settle for good probably in TN
$550K invested in Index funds not counting interest for past 6 years hopefully more
Still contributing to Index funds just considerably less. Maybe 5-10K year.
Money coming in (in today's dollars)
AF retirement/disability $25,000 (No tax in TN)
Wifes Reserve/self employment $10,000 and retirement pay at 60. $12K yr
Ebay business $10,000 estimated but not taking into account
Mechanic side business $10,000 estimated but not taking into account
Average yearly expenditures $40-50K depending if we try and pay the mortgage off sooner. We'll want to do some traveling as well but overall we live modestly.
The plan in a nutshell, is to retire from the Air Force and live off the retirement, my ebay, my mechanic business both of which I really enjoy doing plus income the wife brings in. We will need to purchase a house probably within a few years from retirement probably in Tennessee.
What do you think about the plan with the information provided, would it work?
There is quite the gap from 38-59.5 almost 22 years when I can start reaping the benefits of the money I worked so hard to put away now SS, TSP, Roth, and some taxable.
How do you guys bridge the gap between ER at 38 yrs old and drawing from investments, TSP, Roth IRA , SS if you can't technically touch if till you're 59.5?
I'll be on a fixed COLA adjusted income from the AF, but the Ebay, and side business will bring as much as I put into it so I'm really thinking of that as gravy on the top and would like to see if my plan would work with just AF retirement.
For you that have ER'd do you see any kinks in my plan something that I'm not thinking of?
Thanks in advance!
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