Very young retirement

[C9785368]

Hello due to undisclosed events I was retired from them military at a young age.

I am rated at 100% through the VA and receiving the income at thate rate indefinitely.

My wife currently works also making minimum wage as she will be attending college soon and wants part time to focus on schooling.

What are some things I can do to have a better future financially?
I am unable to work and I am under 25 years old.

I read about IRA's and such but don't understand them well enough.

 

[REWahoo]

Here is some information a retired military forum member compiled that may be of help:

http://www.early-retirement.org/for...onting-an-early-medical-retirement-38338.html

 

[Greencheese]

Honestly I'd check out the Mr Mustache website for some tips to cut costs. That would go a long way to making the pension stretch further.

 

[zinger1457]

If your disability pay is tax free a ROTH IRA would probably be a better option than a traditional IRA. The ROTH will allow your savings to grow tax free and no taxes when you start taking withdrawals. The ROTH IRA contributions do have to come from 'earned' income so you should check to make sure your disability pay qualifies.

 

[Options]

Hello due to undisclosed events I was retired from them military at a young age.

I am rated at 100% through the VA and receiving the income at thate rate indefinitely.

My wife currently works also making minimum wage as she will be attending college soon and wants part time to focus on schooling.

What are some things I can do to have a better future financially?
I am unable to work and I am under 25 years old.

I read about IRA's and such but don't understand them well enough.

There are many moving parts to "a better future", many of them having nothing to do with financial. There are members here who retired early with very little and are quite content.

The main question for anyone is what kind of life do you want for yourself, now and in the future. Your greatest asset at this point is your young age and time to work on what you want in your life. For someone unable to work with lifetime (I assume) disability benefits, I would start by asking myself quality of life questions, and only then begin to focus on learning more about investing, etc.

All organizations have, or should have, a mission, vision, goals, and plans. Without getting too esoteric, what is your mission at this point in life? Why are you here and what are your gifts as a result of the life you've led (and please don't say you don't have any gifts; everyone does, if only undiscovered ones). What is your vision for your future, and what goals and plans can you realistically create to realize that future? This concept should guide and direct your financial decisions/actions.

I have been studying success and achievement since I was a teenager, and have lost track of how many books I've read, how many audiotapes I've listened to, and how many workshops I've attended on the subject. Without question, the most impactful work I've come across is that of Brian Tracy. The man is brilliant, IMO. If you're so inclined, I recommend listening to this by him as a starting point for creating what's next for you (it was a game changer for me when I first came across it at 32 years old):

http://www.amazon.com/The-Universal-Laws-Success-Achievement/dp/1938774418

To learn about investing, an outstanding resource is the Bogleheads Forum. OTOH, you want to know what is driving your financial decisions. As you're the only who can answer that, it's best to start with knowing yourself.

Good luck and good fortune.

 

[38Chevy454]

Welcome to the forum, stick around and you will learn a lot. Nobody got the position they are in here without education on finances and personal finance.

Without knowing your expenses, it is hard to project a potential savings. You will need to have a good understanding of your expenses and income. There is a rule called "pay yourself first" which typically applies to a 401k type work savings program. But the principle of that is you pay yourself first (into retirement savings), then live off the rest. In fact a second often cited rule you will also hear is "live below your means" or LBYM. This basically means to live within your income, do not have bad debt, and generally be smart with your money so you have some left over at the end of the month. A Roth IRA may be a very good choice for you.

Being so young, I think you might be able to develop a skill that you could work at to make money? Not knowing your disability, you will have to think about what you can do or get some school/training in order to get that job. I used to work with USAF guys, both in-service and civilian. I do know that federal job hiring gives a big advantage for vets and disability. So think about a fed job, they will work to accommodate your disability needs.