U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-12-2014, 04:38 PM
 
389 posts, read 642,373 times
Reputation: 315

Advertisements

Well I am 44 and for the past 5 years I have really started to ramp up my retirement possibilities

First I am not a very savvy financial person wish I was so that is why I am here

as this point in time these are my retirements lined up

#1 US army Reserve retirement will retire in 6 years as an E-8 and will collect at 59 3/4
#2 Texas Teacher retirement I have 14 years too go but plan to buy out at least 5 years hopefully
#3 Mutual Fund ( don't know anything about mutual funds) just know that as of right now I am only paying 100 dollars a month wish I was paying more like 500 dollars.

#4 possible second mutual fund through my wifes account (working it this year)

US Army Reserve Thrift Savings Plan there is not much in there like 6000

And of course SS which will be windfalled for me but not my wife...


Ok....How in the heck can I pull all these together and when? at what age? Should I get someone to manage this for me? or how am I doing? guys/gals honestly I am not very good with money I dont splurge ....

Example: I refinanced our home last year at 2.5 great interest but I did it for 30 years should I have done it for 15? at this rate I have decided to pay 50% more on the payment to reduce the mortgage down to 18 years but still ok back to the retirements...what can I do to better our retirement?

thanks in advance
Reply With Quote Quick reply to this message

 
Old 08-12-2014, 05:57 PM
 
143 posts, read 132,773 times
Reputation: 802
First of all, good for you for thinking about this now rather than later in life! Just being aware of the challenge and starting a plan can solve many of your issues.

You did not mention your debt status. With the exception of your mortgage, get out of debt and stay out! That is one of the best ways to move into retirement with a higher degree of confidence. If doing so releases some additional cash, throw it at your retirement. I did this and it was one of the best things I ever did for my retirement.

With respect to the mortgage, some advise paying it off as soon as possible, others think it is better to carry it if you have a low interest loan. I am in the former group, get it paid off as soon as possible but not so fast as to make the burden of your payment jeopardize your overall financial flexibility (reserve fund, unexpected expenses, and just having some fun! )
You have a great interest rate. You can always continue to accelerate payments in the future if additional cash becomes available.

If I were you I would sit down with your wife, select a target date for your retirement and then meet with a fee-only financial advisor to help you establish a plan to make it happen for you. Everyone's circumstance has complexities that need attention. That's why professional help is a good idea.

I am sure others on CD will be able to provide more detailed advice. Good luck with your plans and goals!
Reply With Quote Quick reply to this message
 
Old 08-12-2014, 05:58 PM
 
8,860 posts, read 5,141,353 times
Reputation: 10144
Well, are you setting aside what you can reasonably afford to set aside? Do you have a budget? If not, that is a great place to start. Identify where all of your money is going. Look for expenses which can be trimmed or even eliminated.

Do you have an emergency fund? Do you have any debt other than the mortgage?

You say you are contributing to a mutual fund. Is it in an IRA, or is it a taxable account?

If I had access to the TSP, I would stuff in every dollar I possibly could. The investment costs are almost zero.

I think your mortgage rate is phenomenal. A strong argument can be made that your best course of action is to pay the minimum amount only and invest as much as you can. However, if you want to be mortgage free at retirement, then it could make sense to make that your target. Is that what you are doing? Are you aiming to retire in 18 years?
Reply With Quote Quick reply to this message
 
Old 08-12-2014, 07:10 PM
 
Location: Albuquerque NM
1,661 posts, read 1,527,824 times
Reputation: 3650
Since you have several pensions and your mortgage is at a very low interest rate, I'd focus on putting money into my mutual funds and TSP rather than paying down the mortgage. Build up the TSP and IRAs to have more money for future big purchases and home repairs in retirement (e.g., new roof, car) as well as for additional income. I assume the mutual funds are in the form of IRAs and are tax deferred (unless you prefer a Roth). It is unfortunate that the military does not match TSP contributions except for certain critical positions as one should max out the matching contributions first. Don't be too conservative on the TSP and mutual fund asset allocations (e.g., aim for 50-70% in stocks). And have some life insurance.
Reply With Quote Quick reply to this message
 
Old 08-12-2014, 07:43 PM
 
389 posts, read 642,373 times
Reputation: 315
The Military does not match TSP for military only for civillian accounts that is wny I don't put much money in there and I am not active duty....

I used the US army reserve calculator and at age 59 Ill be getting 3000 per month

I do have an emergency fund
No credit cards for both of us
I have life insurance through Us army and USAA
right now I am saving like 3-4 ways so I am thinned out in that department but whenever say
I get a 60 dollar raise I throw it in my mutual fund since TRS is automatically deducted from my check


My target age for retirement is 59 3/4 (crossing my fingers)
I started late in life but for all those who are struggling let me tell you
I have been one of the lucky ones....love my job, spend time with young soldiers
in the military and get PAID FOR IT!!

we have decided to let the mortgage ride believe it or not we only pay 700 per month plus property tax on a 3900 sq ft home in San Antonio so the interest rate came in big for us and we are trying to invest the rest of the money our target rate for mutual funds is 500 per month that is our goal atleast...

I read your guys advise and it reassures me that atleast I am being proactive and doing the right things for old age hopefully when we get there we will be set.....

So for a financial advice I dont want to pay someone a monthly fee think I'll start with my bank but I am not sure if they do all that they just do investments I'll do a search here in SA and start there...

thanks everyone!!
Reply With Quote Quick reply to this message
 
Old 08-12-2014, 07:47 PM
 
389 posts, read 642,373 times
Reputation: 315
forgot to mention as far as debt goes.....dont have any except for the mortgage
a car payment and a small personal loan that is it...

thanks again
Reply With Quote Quick reply to this message
 
Old 08-12-2014, 07:55 PM
 
143 posts, read 132,773 times
Reputation: 802
Quote:
Originally Posted by tejano2828 View Post
forgot to mention as far as debt goes.....dont have any except for the mortgage
a car payment and a small personal loan that is it...

thanks again
Then you do have debt. Get rid of all but the mortgage.

With respect to the financial advisor.... I am not suggesting a monthly fee. Rather an initial meeting where you supply the advisor with all of your data and then a second meeting where they provide you with a plan. There is no monthly fee. They will charge your for their time. You are paying them for their advice. You will then follow that plan ( or not).
Reply With Quote Quick reply to this message
 
Old 08-12-2014, 08:06 PM
 
143 posts, read 132,773 times
Reputation: 802
And by the way.... Banks are always happy to give you financial advice and a financial plan... which almost always includes you purchasing investments or products that they sell. Last place I would go for financial advice.
Reply With Quote Quick reply to this message
 
Old 08-12-2014, 08:35 PM
 
389 posts, read 642,373 times
Reputation: 315
alright thanks Ill get to it then
Reply With Quote Quick reply to this message
 
Old 08-13-2014, 07:06 AM
 
Location: Port St. Lucie, FL
193 posts, read 332,490 times
Reputation: 262
You are on the right track. Stay the course. I started drawing civil service retirement retirement at 57, Navy Reserve retirement at 60, Social Security at 70, and from my small TSP at 70 1/2. Along the way, I worked a few part time jobs for grins and giggles. I sold an expensive house in California and paid for a cheaper house in Florida near 5 grandchildren. I have a license plate frame that says "E8B4W4+32=BZ". (BZ in the Navy is a flag hoist coded message that means "well done.)
Hope that the government doesn't decide to destroy the COLA and reduce the value of your planned retirement. I see that its time to change the design and color of the uniforms, again.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top