Hoping to learn from you all

[J-Lu]

Hello,

I discovered this forum a few weeks ago and have been trying to read as many posts as I can.  I've already learned a lot so far, but know that I have much more to learn.

Briefly, my situation:  DH and I are 36/34.  We had our first child 8 months ago and I am now a stay-at-home mom.  I know that this does not bode well for FIRE, but my conviction to stay at home with my children (at least in the early years) outweighs my conviction to FIRE. 

It is only recently that DH and I have started to think about FIRE, and have only done so at a high level.  I was a fairly good saver when working, and we have 130K in 401(k)/Roth,  75K in after-tax investments (mostly index funds, a few equities, and some MMF), and a rental property.  The plan is to pay off the rental property in 10 years, sell, and then pay off our home mortgage.  Also, this will coincide with DH's Military retirement.  He hopes to then find something he enjoys as a 2nd career, and I may go back to work at that point.

Anyway, as I mentioned before, we have not gotten down to the details and know that we must in order to FIRE.  I'm looking to learn a lot more from this forum.

Cheers!
J-Lu

 

[JPatrick]

Welcome J-Lu.
It sounds like you are well on your way to FI.
I think you made a great decision in deciding to be a stay at home Mom. I'm sure you will never regret it.
When that military retirement arrives you will have solved one of the biggest problems in ER---medical insurance.  Plus, you will have a cola'd annuity for life.  By the way, you will have an important decision to make at that time regarding SBP.  No one right answer for everyone, just give it lots of thought.
You have a nice pile of cash started and plenty of time ahead of you to grow it.  Just make sure you monitor your investments  to insure they are still good choices and not killing you with expenses.

Last, but not least--thanks for having the courage to serve during these difficult times.

 

[Nords]

Welcome to the board, J-Lu!

Also, this will coincide with DH's Military retirement.

Take a look at putting away as much as possible now in low-cost tax-deferred accounts. Your spouse can put up to 100% of his pay in the TSP (to the IRS' $15K limit) and the two of you can put an additional $8K in Roth IRAs. The TSP pretty much covers the spectrum of asset allocation at expense ratios that beat even some Vanguard funds.

If/when you get to the decision point, don't take the REDUX cash. Stick it out for the high-3 retirement plan. Post or PM if you have more questions about this one...

While it's great to look ahead 10 years to an active-duty retirement, that's one heckuva long-term mental burden if the current job sucks. If I have one regret from my 24 years it's that I didn't learn about the Reserves much earlier in my career and then take it one tour at a time. Do what makes you happy (not necessarily the assignment officer) and don't hesitate to pull the plug if it helps you sleep better at night.