Good morning all.
I am a married 29 year old male who has some big decisions coming up that will largely affect my ability to achieve financial independence.
Quick numbers background:
Me: 29
Wife: 26
No kids.
Total combined after tax take home: $106,000.
Roth IRA: $41,000
TSP 401(k): $16,500
Taxable Brokerage: $16,500
All investments are 100% invested in index funds.
We own our home $280,000 valuation, $270,00 owed on 30 yr at 3.15%.
We own both our vehicles 100%.
Other than our house we do not have any credit or loans.
We are now currently maxing out our Roth IRA, 401(k), and saving $18,000 a year in our taxable brokerage account. That also leaves about a $1,500-$2,000 a month saved as cash.
Our yearly expenses including spending typically works to around $55,200.
I am looking to retire early... preferably as early as 50. For a location... we are undecided but we like the idea of world travel prior to settling down somewhere. Additionally... I have always used a number of $100,000/yr retirement income in today's dollars as a planning number. We are not opposed to spending time somewhere like Belize in order to avoid taxes....
Question time. Due to my job in the military, I reenlist in 10 year blocks. I am coming up to the end of my first 10 year block and now debating on whether or not to decide to make another 10 year commitment which will afford me a pension when I am 43. Or... would it be better for me to leave the military, take what would likely be a 150% raise in pay and then adjust my retirement date accordingly.
Additionally... in order to support my early retirement, I am basically planning two retirement savings... a traditional one and then another that will hold me over until I can access my retirement funds without penalty. One idea was instead of holding my $18,000+ a year in a taxable brokerage, I would instead use the money to purchase an investment/rental property with the goal of paying off the investment as to allow the rental income to supplement my non-traditional early retirement prior to withdrawing funds penalty free. Yes... it is a bit riskier, however... only using inflation as the growth on the property and 3% increase in rent a year would provide a significantly better return than an index fund investment over the same period of time.
Anyways... this is where my current state of mind is. Thank you for any guidance you can provide. The FIRE calc is a bit different that I am used to in retirement calculators so I am still trying to figure it out. If anyone has a user guide they could point me to, it would be much appreciated.
Thanks!
Ryan
I am a married 29 year old male who has some big decisions coming up that will largely affect my ability to achieve financial independence.
Quick numbers background:
Me: 29
Wife: 26
No kids.
Total combined after tax take home: $106,000.
Roth IRA: $41,000
TSP 401(k): $16,500
Taxable Brokerage: $16,500
All investments are 100% invested in index funds.
We own our home $280,000 valuation, $270,00 owed on 30 yr at 3.15%.
We own both our vehicles 100%.
Other than our house we do not have any credit or loans.
We are now currently maxing out our Roth IRA, 401(k), and saving $18,000 a year in our taxable brokerage account. That also leaves about a $1,500-$2,000 a month saved as cash.
Our yearly expenses including spending typically works to around $55,200.
I am looking to retire early... preferably as early as 50. For a location... we are undecided but we like the idea of world travel prior to settling down somewhere. Additionally... I have always used a number of $100,000/yr retirement income in today's dollars as a planning number. We are not opposed to spending time somewhere like Belize in order to avoid taxes....
Question time. Due to my job in the military, I reenlist in 10 year blocks. I am coming up to the end of my first 10 year block and now debating on whether or not to decide to make another 10 year commitment which will afford me a pension when I am 43. Or... would it be better for me to leave the military, take what would likely be a 150% raise in pay and then adjust my retirement date accordingly.
Additionally... in order to support my early retirement, I am basically planning two retirement savings... a traditional one and then another that will hold me over until I can access my retirement funds without penalty. One idea was instead of holding my $18,000+ a year in a taxable brokerage, I would instead use the money to purchase an investment/rental property with the goal of paying off the investment as to allow the rental income to supplement my non-traditional early retirement prior to withdrawing funds penalty free. Yes... it is a bit riskier, however... only using inflation as the growth on the property and 3% increase in rent a year would provide a significantly better return than an index fund investment over the same period of time.
Anyways... this is where my current state of mind is. Thank you for any guidance you can provide. The FIRE calc is a bit different that I am used to in retirement calculators so I am still trying to figure it out. If anyone has a user guide they could point me to, it would be much appreciated.
Thanks!
Ryan