If you can find a state you really like AND they also don't tax military pensions (or SS), that's a good deal.
That is definitely the plan, Friar. Hopefully I can convince DW to move to Texas or Florida once we decide to fully retire.
If you can find a state you really like AND they also don't tax military pensions (or SS), that's a good deal.
When I signed up for a new financial forum, one the the Mods asked me if I was giving too much away (e.g. kcowan signed Keith and my signature had a link to my tell all web site). I said it had never been a problem and it still has not. But then I don't do anything that everyone can't see! They might not agree but that is not MY problem.Maybe I gave too much information away.
Agreed......DW & I post vacation/other pics, etc, but it doesn't mean that we're going to fall for monetary scams or other invasive approaches.But then I don't do anything that everyone can't see! They might not agree but that is not MY problem.
I often meet people in real life who recognize me from the web.
BTW, there isn't anything particularly private about military pay or retirement.
If all "good time" was on AD, perhaps. What if part was in NG or reserves? The amount of retired pay would be reduced. Not as easy to estimate. What if VA disability is used as an offset? Still more complex.
The retirement figure I provided ($60K/yr) isn't exact, and it'll change every year depending on COLA increases. I was simply letting everyone know approximately where I stood financially so any advice could be tailored to my particular situation.
Yes, DW and I should both receive SS and if I stick with this second career long enough I'll receive another small pension.
I grew up a Navy brat, moved every two-three years then attended Texas A&M and received a commission in the Navy. After that I continued to move every two years for the next 23 years. I consider myself a Texan and an Aggie, although I've only lived there 7 years total. For various life reasons, we currently live in MS but it's not too bad: low cost of living, military retirement not taxed by state, warm climate...
While all of us have plans for the future, our goals are not the same. Happiness for some, is a warm puppy, while for others, world travel, adventure, or the perfect home is their nirvana. Still, we all face the same basic challenges, with regard to what we'll have to handle... buying, selling, contracts, taxes, legal issues, wills, problems with kids, relatives, unexpected events etc., etc..
We can't be prepared for everything, but seeing how others have handled those situations, can cushion the shock, and offer choices.
When I signed up for a new financial forum, one the the Mods asked me if I was giving too much away (e.g. kcowan signed Keith and my signature had a link to my tell all web site). I said it had never been a problem and it still has not. But then I don't do anything that everyone can't see! They might not agree but that is not MY problem.
I often meet people in real life who recognize me from the web. and I find that charming.
Well, it has been a year since I started this post so I thought I would look back and update where we are. Still enjoying the forum, topics, and posters immensely.
Thanks to an incredible 2017 market, and continued contributions to our TSP and 401, we have around $900K saved (6.5% Cash, 44.5% Roth, 18% TSP, 5% 401K, 26% Taxable).
We are heavy in stocks, we have almost no bonds. I justify this with my military pension and I think of it almost as a very safe bond fund.
My oldest DD started college but choose to live at home this year. Fortunately she has a full scholarship for tuition so we were actually saving money this year over last when we were paying for her private HS. Next year she is looking to move to the main campus and live in the dorms so we'll need to budget for her room and board.
My youngest is still in HS.
DW took a job with another company with higher pay. This has allowed us to max out her 401K. The company match is better too, so between the two of us and employer matches we are saving around $46K in TSP and 401K. Unfortunately she doesn't enjoy the job as much as her last one, so we'll see what happens there.
If we can get our cash savings up a bit more, I'd like to do a couple of backdoor ROTH's later this year. I've never done it before, but, we don't have any tIRAs, so it should be pretty straightforward to set up a non-dedutible IRA and avoid the IRA pro rata aggregation rules.
Really looking forward to hitting the 2 comma milestone - hopefully by next year!
Planning ER in 2028! Ten years to go...
Three times a week in season, I walk from Alta Vista to the Malecon bridge where the ROMEOs meet and do 8000 steps and breakfast. The last walk of the season was last week M-W-F at 9. Starting again mid-Nov. Sea Monkey once a month in the afternoon with friends from Nuevo.Keith; I keep expecting to run into you on the street in Old Town or at some beach bar in PVR. I swear I think I'd recognize you?
Do you have the post 911 GI Bill? That was huge for us funding DS and DD for their undergrad. DD has 19 months left on my GI Bill to fund her MBA.
Looks like everything's going to work out fine, AginMS. Let me know if you have any questions.Well, it has been a year since I started this post so I thought I would look back and update where we are. Still enjoying the forum, topics, and posters immensely.
Thanks to an incredible 2017 market, and continued contributions to our TSP and 401, we have around $900K saved (6.5% Cash, 44.5% Roth, 18% TSP, 5% 401K, 26% Taxable).
We are heavy in stocks, we have almost no bonds. I justify this with my military pension and I think of it almost as a very safe bond fund.
My oldest DD started college but choose to live at home this year. Fortunately she has a full scholarship for tuition so we were actually saving money this year over last when we were paying for her private HS. Next year she is looking to move to the main campus and live in the dorms so we'll need to budget for her room and board.
My youngest is still in HS.
DW took a job with another company with higher pay. This has allowed us to max out her 401K. The company match is better too, so between the two of us and employer matches we are saving around $46K in TSP and 401K. Unfortunately she doesn't enjoy the job as much as her last one, so we'll see what happens there.
If we can get our cash savings up a bit more, I'd like to do a couple of backdoor ROTH's later this year. I've never done it before, but, we don't have any tIRAs, so it should be pretty straightforward to set up a non-dedutible IRA and avoid the IRA pro rata aggregation rules.
Really looking forward to hitting the 2 comma milestone - hopefully by next year!
Planning ER in 2028! Ten years to go...
Most vets are saving the GI Bill benefits for the expensive college credits. That's especially the case when their young adults are living at home while attending college, or starting with a couple years of community college, or pulling down a bunch of scholarships or work/study.If you don't mind my asking, how were you able to fund your DS and DD for their undergrad and still have 19 months remaining on the benefit?
That's become a perpetual debate among personal-finance bloggers, with no clear consensus.FWIW we generally do not quote our dollar amounts when discussing personal financial matters. Keeping your cards close to the vest and using percentages is a better way to get your point across but not reveal your true numbers. For example you mat say "my pension is 80% of our fixed monthly costs" rather than $60K.
Welcome, AginMS and congrats on your accomplishments (yes, you probably ARE behind some of the folks here, but you also are AHEAD of others. Especially with your well-earned pension (thanks for your service!).
At the end of the day, it's less about the stash, and more about the burn rate. If you have a good grip on that, retirement planning becomes much easier.
Researchers in behavioral economics have demonstrated that humans suck at estimating exponential growth, especially in the early stages where the compounding is barely detectable. I'm concerned that people who are just starting their journey could be discouraged by the numbers of those who've already crossed the finish line.
Master Chief,
Thanks for your kind words. Looks like you and your wife will have a great steady income stream of COLA'd pensions and SS, plus savings withdrawals. Curious if you plan to delay SS or take it at 62 (or some combination)?
Outflows and expenses are definitely THE question I need to answer between now and FIRE. But until the kids are independent, I'm not going to look at it too closely (although I have given it a rough estimate).
Best to you and your wife in retirement.
-AginMS
Another year has gone by so I thought I would add to my story if for no other reason than to keep a mini personal diary of my journey to FIRE.
My wife received a 5.25% raise in February and I applied for and was accepted for a new position at work. While it is a promotion and small pay increase (which is primarily why I did it) it comes with a lot more work and some stress. On the other hand I'm making a bigger difference and there is increased job satisfaction. However, I still am left wondering if it was really worth it. I'm hoping the job becomes less busy/stressful as I gain more experience/knowledge in it.
My wife received a small inheritance this year due to her mother's passing. Both were unexpected.
Thanks to a strong start to the market this year, the inheritance, and continuing to max our 401K/TSPs w/employer matches, we passed the 2 comma club(!) and are at $1.15M with about 15% of that in cash. This is two years ahead of my original projections and gives us some room to stay at or ahead of projections when the market inevitably pulls back.
I think we now have too much in cash so this year I plan to start annual back-door Roth contributions for each of us. I need to read up on that process again.
I want to thank the moderators and daily contributors who help make this forum so special and useful. Although I rarely post, I enjoy lurking and reading the different perspectives of you fine folks.
-AginMS