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

re: Am I early retirement ready? Updated
quote:

work while the kids are in school and vacation a ton

That's the intent if I can find a position that gives me that flexibility. Considering teaching JROTC but good schools are few and far between. I don't need the job bad enough to take on a terrible school.


TigerDeBaiter
LSU Fan
Member since Dec 2010
7557 posts

re: Am I early retirement ready? Updated
No offense, but that sounds like an insane plan.

Maybe if you were a bachelor or something it could pencil out.


Double Oh
Louisiana
Member since Sep 2008
8161 posts

re: Am I early retirement ready? Updated
quote:

No offense, but that sounds like an insane plan.

Maybe if you were a bachelor or something it could pencil out.




if i was in his shoes i would try it for sure. I would definetely work for myself so i could come and go as i please. I
Myself i couldnt retire full time i would go stir crazy at home i would have to do something.


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KillTheGophers
California Fan
Member since Jan 2016
3317 posts

re: Am I early retirement ready? Updated
Nope, you are not ready.

quote:

. Early 40s w/ 2 kids in early elementary and wife is stay at home mom.


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51
B4YOU
Member since May 2018
29 posts

re: Am I early retirement ready? Updated
Using a safe 4% withdrawal rate for 1.2M is 48K with a 10% penalty plus that money will be taxed at 22-24%. So you end up with 32K afterward.

If I was in your position, I'd take the pension and start a handyman business. A van, 3-5k worth of tools, a willingness to work for locally competitive wages due to the pension, and a positive attitude because you spend time with your kids would attract business. You could work 5-10 days/month and make 20-40K/year if you take the right clients. Time is a limited resource, money can always be earned.


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

re: Am I early retirement ready? Updated
My tax strategy is to gradually convert 401k balance to Roth IRA while remaining in 12% tax bracket. I can pay the taxes and augment income with previous Roth contributions and by selling taxable investments. As I understand it, long term capital gains is zero until you enter 22% bracket (>$77k+$24k standard deduction). Once converted to Roth I can access contributions penalty and tax free. But I might be misinterpreting the tax rules.
This post was edited on 7/26 at 10:23 pm


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Jake88
George Mason Fan
LSU/Saints Fan
Member since Apr 2005
35983 posts

re: Am I early retirement ready? Updated
quote:

I would not feel comfortable retiring in that situation
Not even close.


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mrgreenpants
Ohio State Fan
paisaland
Member since Mar 2018
154 posts

re: Am I early retirement ready? Updated
quote:

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?


once your pot is greater than 25x your yearly expenses.....imo, you retire.
immediately.

that expected defined pension is just icing on your cake....enjoy.



BearsFan
Baylor Fan
Member since Mar 2016
617 posts

re: Am I early retirement ready? Updated
How long are most public school teaching careers to get pensions? You could teach and have the great hours teachers have + the time with your kids, while working towards another retirement plan.
This post was edited on 7/26 at 10:40 pm


mrgreenpants
Ohio State Fan
paisaland
Member since Mar 2018
154 posts

re: Am I early retirement ready? Updated
which means..
if OP's monthly expenses are less thann $4000 a month....go for it!


re: 4% rule

LINK /



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Twenty 49
LSU Fan
Shreveport
Member since Jun 2014
10999 posts

re: Am I early retirement ready? Updated
quote:

Considering teaching JROTC but good schools are few and far between. I don't need the job bad enough to take on a terrible school.


A local paper published the pay of school board employees, and the high school ROTC guy was in top 10 in the whole parish. Over $100k. I hear they get money from the board and the military. Not sure, but it appears to pay pretty good for a teaching type gig.

I know a friend of a guy who teaches ROTC in the Dallas area. He has military retirement plus that ROTC salary, and they have a helluva nice house.

So it may be worth putting up with a terrible school. Might have to start there and transfer up to better schools as you get seniority.


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
40599 posts

re: Am I early retirement ready? Updated
Find work you enjoy that pays decently. Then you won't care about retirement so much.


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baldona
Auburn Fan
Florida
Member since Feb 2016
8887 posts
 Online 

re: Am I early retirement ready? Updated
quote:

300 Roth


Holy hell man, how did you get $300k in a Roth's with a single military income by early 40s? You must have maxed them with $10-11k from the time you were 18? That's a huge portion of your income. You guys must live off like $40k a year?

I'm guessing your wife was working and stopped with your kids? Is your wife younger?

That's impressively done, well done!

Given all that, no way I'd "retire" or anywhere close until my house was paid off AND my kids college was paid off.

I'd look into teaching or get a cush military contractor job at least for 10-15 years. Something with almost no stress, great hours, and great vacation time. Maybe an NAF contract job or something?

ETA: Even if you don't "need" the money, making $25-30k a year is huge. You can fairly easily do that on 25-30 hours a week with a ton of vacation by being smart. 4-5 6 hour low stress shifts a week is very very easy. I mean your kids are in school anyway. That allows you to pay your mortgage, take multiple vacations, and put some more money to things like college or additional retirement.
This post was edited on 7/27 at 6:06 am


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50
crazycubes
Member since Jan 2016
4498 posts

re: Am I early retirement ready? Updated
quote:

Expecting $56k annual military pension




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257WBY
Baylor Fan
Member since Feb 2014
1760 posts

re: Am I early retirement ready? Updated
Kids are way too young to punch out.


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baldona
Auburn Fan
Florida
Member since Feb 2016
8887 posts
 Online 

re: Am I early retirement ready? Updated
Do you have any hobby's you can work 2-4 days a week? Landscaping, tree trimming, fishing guide, mechanic, carpentry, etc. Hell my dad has become a bee keeper and gets $300 to remove bees from people's houses. Takes him about 4-5 hours per. Its his retirement gig but he still works as a military contractor. He is doing 2-3 of those a week now. Has calls non stop. Its not enough to live off as a full time job, but its a hell of a retirement gig to pull in an extra $25k a year and he works whenever he wants to.

Its one thing to work 5 days a week and hustle to make a living, its another to work 2-4 days a week lackadaisically for $20-40k. The nice thing about doing something you enjoy is you can invest business wise into a hobby, have toys that you wouldn't be able to afford otherwise.


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LSUtoOmaha
LSU Fan
Nashville
Member since Apr 2004
24707 posts

re: Am I early retirement ready? Updated
I think so, only thing concerning really is health insurance


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10
Upperdecker
LSU Fan
BR
Member since Nov 2014
17228 posts

re: Am I early retirement ready? Updated
Yea you are man. The majority of families in America survive on $56k or less. Sounds like your finances are well established, plus you have that $56k every year. Financially you are ready to retire

Now here’s where it gets difficult. You don’t need to work any more financially. But if you don’t do any kind of work for the rest of your life, you’re setting yourself up for early onset Alzheimer’s or dementia. Motivating yourself to find work when you have no need is gonna be difficult, and usually when you retire and do the side hustle thing you have to constantly look for work. If you have the ability to be a consultant I’d strongly encourage you find a company that lets you do like a 2 weeks on/2 weeks off deal

Edit: second thought, I think your kids are too young. Your expenses will increase as they get older
This post was edited on 7/27 at 7:44 am


RoyalWe
LSU Fan
Prairieville, LA
Member since Mar 2018
311 posts

re: Am I early retirement ready? Updated
I don't know how you have your money invested, but you're starting to hit the 'land of critical mass' with your $1.2m saved. If you worked just a few more years and made a decent return you'd be in a lot better position. That $56k pension is a pretty damn nice safety net, so that would give me confidence to be aggressive with my positions.

Having said that, kids (known to be expensive) and medical expenses (unknown even if you get military benefits) would scare the hell out of me. The advice I always heard was to try to live as if you were retired and see how things fare. If you're well within your budget then at least you pass the sanity check. Just don't let cost of living kick you in the balls.


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ATLdawg25
Georgia Fan
Atlanta, GA
Member since Oct 2014
4370 posts

re: Am I early retirement ready? Updated
quote:

Expecting $56k annual military pension, $1.2m saved (300 Roth,500 TSP/401k, + taxable accts)

quote:

Early 40s w/ 2 kids in early elementary and wife is stay at home mom.

It would take more $ for me to be comfortable in this situation


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