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

re: Am I early retirement ready? Updated
quote:

. The majority of families in America survive on $56k or less.


That has no bearing on whether he can retire or not and you know that.

56k and year a million dollars aren't that much if he wants to put his kids through college debt free and, let's say, pay for a wedding. He already said he'd like to travel some as well. On average he should live nearly 40 more years so while he's well ahead of the game, I don't see him really being all that close to retirement.


Teddy Ruxpin
LSU Fan
TX
Member since Oct 2006
32908 posts

re: Am I early retirement ready? Updated
I think FIRE Calc is a good resource everyone should mess with.


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brian_wilson
LSU Fan
Member since Oct 2016
3581 posts

re: Am I early retirement ready? Updated
quote:

LINK /

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.



I am not sure its the best, but they are really friendly unlike MMM or boggleheads.

To OP, I wouldn't retire in that situation, as two young children are going to have wildly unpredictable costs.

You can early retire with a mortgage, I plan to. Paying off a mortgage early is like turning down free money.


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CE Tiger
Chicago Cubs Fan
Metairie
Member since Jan 2008
37980 posts

re: Am I early retirement ready? Updated
There is zero chance I would retire in that situation.


ScottieP
LSU Fan
Baton Rouge, LA
Member since Feb 2004
1931 posts

re: Am I early retirement ready? Updated
quote:

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


$500K in the TSP in your early 40s is impressive especially when living on 1 income with 2 kids.

As for the $56K pension, I'd do some digging. Is that with or without survivorship? I know for civilian pensions there is a pretty big reduction if you elect one of the survivorship options. Don't elect survivorship and you die and your wife gets nothing. At least that's how it works for civilian pensions.

Finally if youre done with the military you could always apply for a civilian job. Veterans get preference in most job listings


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

re: Am I early retirement ready? Updated
quote:

high school ROTC guy was in top 10 in the whole parish. Over $100k

That's including his military retirement. Don't get me wrong it's still very good for a HS teacher. I've been looking at that option for several years and following the vacancies. They calculate pay to match your active duty pay minus incentives, special duty pay etc... But it's only for 10 months per year. Retirement+teacher salary+military paid offset=active duty base pay


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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:


As for the $56K pension, I'd do some digging. Is that with or without survivorship? 

Without, survivorship is overly expensive and I don't think I'll take it. Instead, I'm very well insured past my youngest's 18th birthday. My wife has her Masters and can always go to work if she hasn't already at that point. And there's always that $1.2m to live off.


AUjim
Auburn Fan
America
Member since Dec 2012
2329 posts
 Online 

re: Am I early retirement ready? Updated
It sounds like you are incredibly disciplined and could certainly make it work.

If I were you, I'd 'retire' into my hobby job.



Teddy Ruxpin
LSU Fan
TX
Member since Oct 2006
32908 posts

re: Am I early retirement ready? Updated
quote:

I know for civilian pensions there is a pretty big reduction if you elect one of the survivorship options


I'm curious, but how "big."

I'm calculating under our plan a $600 a month reduction based on a $5,000 a month pension. $400 at $3,500. So basically you lose a months worth of payments per year in our plan if you choose survivorship.
This post was edited on 7/27 at 2:45 pm


slackster
Stanford Fan
Houston
Member since Mar 2009
54707 posts

re: Am I early retirement ready? Updated
If I'm retiring in my early 40s with young kids, plans to buy a house, and plans to travel, I'm definitely NOT making that call without talking to a financial advisor and CPA.

Find someone that charges for the planning if you'd prefer to manage the investments on your own, but it's not something to take lightly given your age.

ETA - you could have $900k saved instead of $1.2M with even a typical downturn in the market. That's easy to stomach when you're working, but not so much when you're retired or actively withdrawing money. Just some food for thought.
This post was edited on 7/27 at 3:00 pm


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30
ScottieP
LSU Fan
Baton Rouge, LA
Member since Feb 2004
1931 posts

re: Am I early retirement ready? Updated
quote:

I'm calculating under our plan a $600 a month reduction based on a $5,000 a month pension. $400 at $3,500


Yeah that's about right.

So take that $56k and drop it to $48k. Then drop off another few thousand for health insurance premiums for you and the family in retirement. That $56k is probably down to $42ish. Unless it works differently for military.


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

re: Am I early retirement ready? Updated
Survivor Benefit will cost $3650 or 6.5%. Surviving spouse recieves 55%. That's max coverage allowed. I need to look closer at whether or not to pay for it, take out more insurance, or go with the life insurance I have.


TheOcean
Florida State Fan
#honeyfriedchicken
Member since Aug 2004
39270 posts
 Online 

re: Am I early retirement ready? Updated
Retiring early 40s doesn't sound like much fun. Also doesn't look like you have enough saved to warrant FIRE if neither you nor your wife are working


13SaintTiger
Harvard Fan
Isle of Capri
Member since Sep 2011
16044 posts

re: Am I early retirement ready? Updated
quote:

Health insurance for a family of 4 and Medical expenses for the rest of your life will be very expensive



You and 19 others must have missed the military pension. He has several benefits at his disposal, Tricare being the main one. He’s good


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40
13SaintTiger
Harvard Fan
Isle of Capri
Member since Sep 2011
16044 posts

re: Am I early retirement ready? Updated
quote:

Retiring early 40s doesn't sound like much fun


geeze


Teddy Ruxpin
LSU Fan
TX
Member since Oct 2006
32908 posts

re: Am I early retirement ready? Updated
quote:

geeze


It's a real concern. A lot of people have trouble adjusting because while you may have free time no one else does.

Key is to find things you like to do so you can keep social engagements going. Being social creatures, early retirement can cause havoc.

I'd like to probably just travel all the time and volunteer, get to know people, and hopefully still engage my brain in problem solving.
This post was edited on 7/27 at 6:33 pm


hungryone
LSU Fan
river parishes
Member since Sep 2010
8479 posts

re: Am I early retirement ready? Updated
I’m loling at the comments that early retirement equals dementia or Alzheimer’s, or a sad life with no friends....seriously? Going to work each day is no protection from mental decline, and there are loads and loads of people who work non traditional schedules, are freelancers, self-employed & don’t work 80 hrs a week who are out living life.

The world is a huge, amazing place full of incredible things. Being a wage slave for an extra decade isn’t going to keep you mentally sharp if you have a brain disease.

While I understand that some are concerned about rising costs of living and unanticipated kid costs, I think you should take a couple of years off and see how it goes. Military retirement isn’t like dropping out of the corporate rat race—you’ll have a good transition story for any potential employer if/when you do decide to re-enter the workforce. Teaching ROTC is a great fallback plan, esp if you are location-flexible.

If you aren’t fixated on material things and live some place w/low housing costs, you’ll be fine.


Double Oh
Louisiana
Member since Sep 2008
8161 posts

re: Am I early retirement ready? Updated
quote:

It sounds like you are incredibly disciplined and could certainly make it work.

If I were you, I'd 'retire' into my hobby job.






And i would do the same if i could make it work. If it doesnt work then i get a real job in the workforce. But with 1.2 million working for you im damn sure going to find a job where i do what i want when i want that brings in some cash flow.


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10
Teddy Ruxpin
LSU Fan
TX
Member since Oct 2006
32908 posts

re: Am I early retirement ready? Updated
Well I know I didn't say that.


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deeprig9
Georgia Fan
Member since Sep 2012
33130 posts

re: Am I early retirement ready? Updated
What does your wife think about your plan?


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