Military Officer 7 years out

[moneymaker]

Hi all,
I’ve posted on here before but not too often. Would just like anyone’s feedback and assessment. I’m an active duty officer with 15 years in and 13 active headed to Bragg in a few short months. Currently max out mine and my wife’s 401ks and Roth’s. My plan is to retire at 20 years active. I’m up for LTC this year and wife currently has worked for the last 8 years. I’d like to fully retire at 20 and not have to work st all so my question is if I should start increasing after tax contributions and decreasing retirement accounts?
Taxable accounts: $50k
Retirement accounts: $350k
Real estate: 3 homes with a conservative $350k equity.

Plan would be to live off pension, and taxable investments from 44 to 60. We are both 36 yr old.
Thanks!

 

[JDARNELL]

Well if you are going to Bragg make
Sure you have the VA check out all your knee damage. Get your real estate paid off getting your monthly nut low and you will live pretty well as a retired 0-5 with a little rental income on top. Maxing our the retirement Accts will be gravy in your later years.

 

[jimnjana]

I retired 10 yrs ago similar situation. I would boost your taxable savings. DW and I both retired army. You won't be able to touch your TSP/IRA unless you do a 72T withdrawal. You can definitely do it, we had less.

 

[moneymaker]

I retired 10 yrs ago similar situation. I would boost your taxable savings. DW and I both retired army. You won't be able to touch your TSP/IRA unless you do a 72T withdrawal. You can definitely do it, we had less.

Thanks for your input. That’s def what I’m leaning towards as well. Granted, quite a bit of would be taxable savings is in real estate, so we are also a little undecided if we want to keep 2 of our rentals or sell them and take about $175 equity between two of them, and invest it in the markets.

 

[moneymaker]

Well if you are going to Bragg make
Sure you have the VA check out all your knee damage. Get your real estate paid off getting your monthly nut low and you will live pretty well as a retired 0-5 with a little rental income on top. Maxing our the retirement Accts will be gravy in your later years.

Actually, I’ve had a few friends tell me that I should go ahead and register, but it still seems far out. Just the last 3 months, I have actually pulled all my medical records together so I finally have a decent handle in that. I’d actually be looking at roughly 50-70% based on what’s already in my file.
Thanks for your input!

 

[JDARNELL]

Make sure you get all your medical stuff documented and anything bothering you get it checked out over the next few years. Documentation is key. I have rentals that I heavily paid down while still on AD. Today they are cash cows and we have seen crazy appreciation off them. But I have no disposition plan really so I am just letting them ride for now. If they get to needy I will let a Mgt company handle them for a while then when that goes tits up I would probably look at letting them go. Might not hurt to increase some taxable over the next few years but I would not give up funding those Roth’s especially if you plan on completely stop working. I assume you are doing Roth tsp. What a wealth building tool. Plus when you get longer in the tooth you could use the G fund for a nice conservative
Income stream without fear of principle loss. The main thing is you are thinking about the next 8 yrs. LBYM. Pile up resources make 0-5 and you will be surprised what life is like after 20.

 

[jimnjana]

I'd keep em if making money and are fine with landlord role. Otherwise, get rid of them. We have a condo hotel rental now after selling two vacation rentals.

 

[moneymaker]

Make sure you get all your medical stuff documented and anything bothering you get it checked out over the next few years. Documentation is key. I have rentals that I heavily paid down while still on AD. Today they are cash cows and we have seen crazy appreciation off them. But I have no disposition plan really so I am just letting them ride for now. If they get to needy I will let a Mgt company handle them for a while then when that goes tits up I would probably look at letting them go. Might not hurt to increase some taxable over the next few years but I would not give up funding those Roth’s especially if you plan on completely stop working. I assume you are doing Roth tsp. What a wealth building tool. Plus when you get longer in the tooth you could use the G fund for a nice conservative
Income stream without fear of principle loss. The main thing is you are thinking about the next 8 yrs. LBYM. Pile up resources make 0-5 and you will be surprised what life is like after 20.

Thanks again. Yes, I feel like we are on a good track. My wife’s income has really helped as she makes basically what I make and it doesn’t matter where she lives either so she’s able to keep her career.

If we keep doing what we are doing, we should have roughly $1.7 million in investments when I retire, not counting RE equity. About $750k in taxable. I may work a couple years to boost the taxable more depending on where we are.

 

[Nords]

Would just like anyone’s feedback and assessment. I’m an active duty officer with 15 years in and 13 active headed to Bragg in a few short months. Currently max out mine and my wife’s 401ks and Roth’s. My plan is to retire at 20 years active. I’m up for LTC this year and wife currently has worked for the last 8 years. I’d like to fully retire at 20 and not have to work st all so my question is if I should start increasing after tax contributions and decreasing retirement accounts?

Plan would be to live off pension, and taxable investments from 44 to 60. We are both 36 yr old.
Thanks!

Moneymaker, while you're projecting your expenses after retiring from active duty, there are plenty of ways to tap your retirement accounts before age 60. All of them are penalty-free and some of them are tax-free:
https://the-military-guide.com/early-withdrawals-from-your-tsp-and-ira-after-the-military/

You might be just fine by withdrawing Roth IRA contributions while doing Roth IRA conversion ladders from your TSP and 401(k).

 

[mickeyd]

Would just like anyone’s feedback and assessment.[unquote]


OK, here is my input.
You both probably have excellent health and possibly not aware how superior and economical your retirement healthcare plan is in the US military. Tricare is a great plan that (at age 65) leads to Tricare-for-life, which is free after you and DW enroll in Medicare A & B.
Thank you for your service moneymaker.

 

[Offgrid Organic Farmer]

Hi all,
I’ve posted on here before but not too often. Would just like anyone’s feedback and assessment. I’m an active duty officer with 15 years in and 13 active headed to Bragg in a few short months. Currently max out mine and my wife’s 401ks and Roth’s. My plan is to retire at 20 years active.

Congratulations.

I retired at 20 years as well.

Having done it myself, this is my worldview.
When you retire, you need to have a retirement home selected.
That home needs to be in a low COL region.
You need to own it completely, no mortgage.
So you can retire with zero debt.

So long as you have no debt, you will be fine on your pension.

... I’d like to fully retire at 20 and not have to work st all so my question is if I should start increasing after tax contributions and decreasing retirement accounts?
Taxable accounts: $50k
Retirement accounts: $350k
Real estate: 3 homes with a conservative $350k equity.

Plan would be to live off pension, and taxable investments from 44 to 60. We are both 36 yr old.
Thanks!

I retired at 42. This year I am 17 years post retirement, and I am still not old enough to draw from our IRA / 401k accounts.

... Sure you have the VA check out all your knee damage.

The VA will not talk to him, so long as he is on Active Duty.

In 17 years of being on a pension I have not had any dealing with the VA. The VA is for vets. As a military retiree, we have significantly better benefits than what the 'vets' have access to.

Actually, I’ve had a few friends tell me that I should go ahead and register, but it still seems far out. Just the last 3 months, I have actually pulled all my medical records together so I finally have a decent handle in that. I’d actually be looking at roughly 50-70% based on what’s already in my file.

My retirement physical doctor promised me that I was going to get 50-% from the VA.

I got 0%.

At my retirement physical, Mil-Med made a complete copy of my medical record, and they gave me the original.

 

[JDARNELL]

Congratulations.



I retired at 20 years as well.



The VA will not talk to him, so long as he is on Active Duty.

.

Yes and no. I didn’t mean while
On AD for his knees. When he said Bragg my assumption was he would be on jump status and when he retires he needs to make sure during his out processing physical they look at his knees. Out of a 21 year career I spent 4 yrs on jump status and made 45 jumps. Combat arms is hard on the body.

There are situations where the VA healthcare treats AD members. They treated me about 9 months before I retired in conjunction with my military healthcare. They also now work in conjunction with separation physicals from AD retirement.

Since I have retired I have only been to the VA twice as I have better care through Tricare. And even Tricare I don’t go to the MTF but use civilian providers. I pay up to my out of pocket cap for that privilege but I get the care I need when I need it and don’t take a slot from others that may not have the ability I do.

As you know you can’t underestimate the value of healthcare that as a retiree we receive.

 

[Offgrid Organic Farmer]

.

The regional Tricare Prime underwriter in my region is Martins Point. They are networked with every hospital, cancer center, joint replacement center and doctors office in this area. I have not found any medical provider that is not accepted by Martins Point.

The value of healthcare coverage is far greater than the pension itself.

I retired in the Kosovo theater, there was no VA available there for me to integrate with. When I returned stateside, my introduction to the VA was more adversarial.

 

[JDARNELL]

The regional Tricare Prime underwriter in my region is Martins Point. They are networked with every hospital, cancer center, joint replacement center and doctors office in this area. I have not found any medical provider that is not accepted by Martins Point.



The value of healthcare coverage is far greater than the pension itself.



I retired in the Kosovo theater, there was no VA available there for me to integrate with. When I returned stateside, my introduction to the VA was more adversarial.

I completely agree. Your experience sounds like mine.

 

[griffithee]

Yes and no. I didn’t mean while
On AD for his knees. When he said Bragg my assumption was he would be on jump status and when he retires he needs to make sure during his out processing physical they look at his knees. Out of a 21 year career I spent 4 yrs on jump status and made 45 jumps. Combat arms is hard on the body.

There are situations where the VA healthcare treats AD members. They treated me about 9 months before I retired in conjunction with my military healthcare. They also now work in conjunction with separation physicals from AD retirement.

Since I have retired I have only been to the VA twice as I have better care through Tricare. And even Tricare I don’t go to the MTF but use civilian providers. I pay up to my out of pocket cap for that privilege but I get the care I need when I need it and don’t take a slot from others that may not have the ability I do.

As you know you can’t underestimate the value of healthcare that as a retiree we receive.

Jump status over an entire career is going to mess up more than your knees. Static line is hard on the neck as well. If you were MFF on status (I have over 200 jumps as part of the SOCOM parachute demonstration team, think Golden Nights but for SOCOM) I have issues with shoulders, elbows, ankles and feet. Landings in combat boots are hard on the feet. Any one in jump status over a career should claim top to bottom, neck, shoulders, wrists, knees, and feet. Just cause they don't hurt as bad now don't mean they won't hurt in a couple of decades.

Thanks much to all here who have served.

 

[moneymaker]

Fortunately, I actually am not jumping!. Thanks all for the feedback. I will def continue to document any medical issues I have though.

I think we should be okay with my current plan. We will continue to save as much as we can, while
Still enjoying life though. But I do def think we will start increasing our taxable.

 

[Offgrid Organic Farmer]

Fortunately, there are plenty of places where you can settle down and support a family on a military pension.

But you need to have your home paid off to do it.

Beyond owning your home any investment portfolio is the gravy.

 

[kitesurfer2]

my brother just inherited my home place, about 40 miles from ft brag just in case you are looking for a place to buy or rent.

 

[wrigley]

In 17 years of being on a pension I have not had any dealing with the VA. The VA is for vets. As a military retiree, we have significantly better benefits than what the 'vets' have access to.

My wife and I are both retired Navy. We have Tricare Prime but also use the VA for pretty much anything we want. The company I work for is made up of about 70% retired military. A large portion of them use the VA exclusively for their medical care.

Mike