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TorchtheFlyingTiger
North Carolina St. Fan
FL
Member since Jan 2008
551 posts

Am I early retirement ready? Updated
I think I'm positioned for early retirement in the next year or so. Expecting $56k annual military pension, $1.2m saved (300 Roth,500 TSP/401k, + taxable accts). Plan to take out 30 yr mortgage w ~$1k payment using previous home's equity for down payment (not included above). No other debt. Early 40s w/ 2 kids in early elementary and wife is stay at home mom. I'll volunteer, pick up a side hustle/ part time job but don't want to be tied down w limited vacation/travel time. No one I know has done it. They all keep working full-time. What am I missing? Why shouldn't I just do it?

Update: Accepted another 3 year assignment to a choice location and no more deployments. Now I'll retire in 2022 w $70k pension at 45 and only have to work if I choose to. Really looking forward to the great new location and the increase pension takes the uncertainty out the early retirement decision. Meanwhile, nest egg has grown to $1.3m plus $200k set aside for retirement house.
This post was edited on 4/13 at 9:26 am


jimbeam
USA Fan
University of LSU
Member since Oct 2011
53034 posts

re: Am I early retirement ready? Updated
Is the pension inflation adjusted?

In any case, I’d say hell yeah.


WikiTiger
LSU Fan
Member since Sep 2007
41055 posts

re: Am I early retirement ready? Updated
https://www.reddit.com/r/financialindependence/

That's the best community out there for the support you're looking for. Great info, great people posting. Give it a read, and post your question there if you get the itch.


TorchtheFlyingTiger
North Carolina St. Fan
FL
Member since Jan 2008
551 posts

re: Am I early retirement ready? Updated
Yes, it's adjusted annually for inflation.


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Jobo
Mississippi St. Fan
Member since Dec 2011
32 posts

re: Am I early retirement ready? Updated
Health insurance for a family of 4 and Medical expenses for the rest of your life will be very expensive
This post was edited on 7/26 at 8:43 pm


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
57065 posts

re: Am I early retirement ready? Updated
You didn't say anything about probably the most important thing.... Your lifestyle. What are you expecting to spend every year?
Health insurance is a bitch.


Golfer
LSU Fan
Member since Nov 2005
71575 posts

re: Am I early retirement ready? Updated
I’d say yes if you can live off the pension and not touch the $1.2M until kids college and a more true retirement age.

Side note. I’m jealous.


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262
Tigerpaw123
USA Fan
Louisiana
Member since Mar 2007
13472 posts

re: Am I early retirement ready? Updated
I would not feel comfortable retiring in that situation


Golfer
LSU Fan
Member since Nov 2005
71575 posts

re: Am I early retirement ready? Updated
I wouldn’t either. But it also sounds like the OP is willing to work, or go back to work, if needed.


thegreatboudini
McNeese State Fan
Member since Oct 2008
4143 posts

re: Am I early retirement ready? Updated
quote:

Am I early retirement ready?


quote:

2 kids in early elementary and wife is stay at home mom.


No


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522
Double Oh
Louisiana
Member since Sep 2008
8187 posts

re: Am I early retirement ready? Updated
Can you pay the mortage, food, electricity, health insurance, etc, etc on 56K a year?

My health insurance for family of 4 is $1200 a month.

How much money will you have left over each month?



TorchtheFlyingTiger
North Carolina St. Fan
FL
Member since Jan 2008
551 posts

re: Am I early retirement ready? Updated
Lifestyle, we obviously live frugally to be in this position on a single income. I'll have health insurance through military with annual enrollment and deductables to be accounted for. I want to travel more but we always do so on a budget. I'm thinking I can draw up to $20-40k annually without jepordizing nest egg.


lynxcat
Rutgers Fan
Member since Jan 2008
20059 posts

re: Am I early retirement ready? Updated
Trying to FIRE with a mortgage is worrisome to me. The other poster that mentioned healthcare costs for a family has a great point as well. Without understanding your expenses, this is impossible to say yes/no.

I think you are close and you could likely make it work but working a few more years to pay off a house outright would make me feel a lot better about retirement.

The pension is a saving grace because it likely lets you stay fairly aggressively invested in the market to build your base without requiring distributions.


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150
Golfer
LSU Fan
Member since Nov 2005
71575 posts

re: Am I early retirement ready? Updated
Other option. Could you do something on your own schedule that would generate income? Maybe buy a four-plex? Consult in your field of expertise?


Mingo Was His NameO
LSU Fan
318
Member since Mar 2016
10782 posts

re: Am I early retirement ready? Updated
I don't think so, not with young kids. As I'm sure you know, they are very expensive, and God knows how much college will be in 15 years. Could you be done, maybe, but I wouldn't want to chance it.


TorchtheFlyingTiger
North Carolina St. Fan
FL
Member since Jan 2008
551 posts

re: Am I early retirement ready? Updated
Insurance will be $600 annual enrollment and $3k catastrophic cap. I assume it will keep increasing gradually.


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Double Oh
Louisiana
Member since Sep 2008
8187 posts

re: Am I early retirement ready? Updated
quote:

I don't think so, not with young kids. As I'm sure you know, they are very expensive, and God knows how much college will be in 15 years. Could you be done, maybe, but I wouldn't want to chance it.




If he picks up a side job he could probably do it but you right about college and what about if he decides to send his kids to private school?


jimbeam
USA Fan
University of LSU
Member since Oct 2011
53034 posts

re: Am I early retirement ready? Updated
I’d work while the kids are in school and vacation a ton.

I never plan to fully retire, and don’t consider retirement as not working at all.
This post was edited on 7/26 at 9:17 pm


TorchtheFlyingTiger
North Carolina St. Fan
FL
Member since Jan 2008
551 posts

re: Am I early retirement ready? Updated
I'll seek flexible work and/or wife may eventually go back to work. I just want to be secure enough to not have to work if it interferes with other priorities. I either retire to location we want closer to family or stay around military locations for years to work in my field and further delay setteling down long term and buying a home again.


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TorchtheFlyingTiger
North Carolina St. Fan
FL
Member since Jan 2008
551 posts

re: Am I early retirement ready? Updated
We're not moving back to Louisiana so private school won't be required. Kids will be public schooled like their parents unless we land a job at a school that covers their tuition.


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