CharlieZulu
Dryer sheet wannabe
- Joined
- Jul 14, 2021
- Messages
- 15
Hello everybody! Excited to join the blog.
54 year old military retiree who retired from the USAF in 2016, after about 27 years of service. Started my own business, then decided to run for county-level public office in 2018 and won! About three years into my first four-year term, and will be term limited after 2 terms, if I decide to run again.
Thinking about retirement, have “toyed around” with doing so in about 18 months. Here is my breakdown:
$1,100,000 in my portfolio. 50% stocks, 45% bonds, 5% cash. This portfolio includes about $200,000 in a joint (with DW) taxable account, so that we can access that to keep us funded until access to qualified money at 59.5. We are investing $110,000 yearly, with $36,000 going to the taxable account, $30,000 to cash savings. Balance goes to qualified investments.
House is worth about $1M, and not part of the portfolio, above.
Only debt is our mortgage at 2.25%...about $260,000 left with payments less than $2,000 a month, including taxes and insurance. So, not in any hurry to pay it off. Cheaper than rent!
Military Retirement is about $86,000 before taxes. I have a VA disability rating that adds another $44,400 annually...and tax free. After taxes, we realize about $105,000 annually. Of course, Tricare for both me and DW. We live in an area with several military bases nearby...good access to commissary and exchanges.
Right now, we spend about $115,000 annually, not including investments and saving, but including travel and other fun things.
My job with the county pays $93,000 annually, before taxes. DW earns another $85,000.
We have one adult child who is a college grad with own career, a good salary, and no college debt.
DW’s job is 60 miles away...120 miles round trip...daily. She is in a professional position. I estimate that we would avoid $10,000 to $12,000 annually in expenses related to her job after we retire. Yep...been tracking that for 2 years.
I ran FireCalc and we are solidly above the line with no failures. I beefed our spending way up...well beyond what I can imagine we would ever spend. Still no failure.
Our CFP/CFA financial guy agrees. We are good to go...anytime we want.
So what is holding me up? 2 things:
1. I made a commitment to my constituents and supporters to finish my term. It would be disingenuous to do anything else. I am “expected” to run for a second term, and I expect that I would win.
2. I am terrified of inflation. Following the current news, I think my concerns are well founded.
So, I am pretty much resolved to run for a second term in 2022...and ride out the inflation, and continue to invest at this high level. Sort of disappointed that this is the case, but it will give me peace of mind. The old “Sleep Well at Night” rule. Will still be in my late 50s when it is all done.
Would love to know your thoughts. I consistently note that many early retirees have seen great performance on their investments in the last couple years, but we are also on a 11-12 year bull market, with negligible inflation. Are any of you out there worried about both of those conditions changing?
54 year old military retiree who retired from the USAF in 2016, after about 27 years of service. Started my own business, then decided to run for county-level public office in 2018 and won! About three years into my first four-year term, and will be term limited after 2 terms, if I decide to run again.
Thinking about retirement, have “toyed around” with doing so in about 18 months. Here is my breakdown:
$1,100,000 in my portfolio. 50% stocks, 45% bonds, 5% cash. This portfolio includes about $200,000 in a joint (with DW) taxable account, so that we can access that to keep us funded until access to qualified money at 59.5. We are investing $110,000 yearly, with $36,000 going to the taxable account, $30,000 to cash savings. Balance goes to qualified investments.
House is worth about $1M, and not part of the portfolio, above.
Only debt is our mortgage at 2.25%...about $260,000 left with payments less than $2,000 a month, including taxes and insurance. So, not in any hurry to pay it off. Cheaper than rent!
Military Retirement is about $86,000 before taxes. I have a VA disability rating that adds another $44,400 annually...and tax free. After taxes, we realize about $105,000 annually. Of course, Tricare for both me and DW. We live in an area with several military bases nearby...good access to commissary and exchanges.
Right now, we spend about $115,000 annually, not including investments and saving, but including travel and other fun things.
My job with the county pays $93,000 annually, before taxes. DW earns another $85,000.
We have one adult child who is a college grad with own career, a good salary, and no college debt.
DW’s job is 60 miles away...120 miles round trip...daily. She is in a professional position. I estimate that we would avoid $10,000 to $12,000 annually in expenses related to her job after we retire. Yep...been tracking that for 2 years.
I ran FireCalc and we are solidly above the line with no failures. I beefed our spending way up...well beyond what I can imagine we would ever spend. Still no failure.
Our CFP/CFA financial guy agrees. We are good to go...anytime we want.
So what is holding me up? 2 things:
1. I made a commitment to my constituents and supporters to finish my term. It would be disingenuous to do anything else. I am “expected” to run for a second term, and I expect that I would win.
2. I am terrified of inflation. Following the current news, I think my concerns are well founded.
So, I am pretty much resolved to run for a second term in 2022...and ride out the inflation, and continue to invest at this high level. Sort of disappointed that this is the case, but it will give me peace of mind. The old “Sleep Well at Night” rule. Will still be in my late 50s when it is all done.
Would love to know your thoughts. I consistently note that many early retirees have seen great performance on their investments in the last couple years, but we are also on a 11-12 year bull market, with negligible inflation. Are any of you out there worried about both of those conditions changing?