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Old 09-20-2017, 09:45 AM
 
4,576 posts, read 7,071,476 times
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at your age, I'd say keep working and go for the additional pension...for a multitude of reasons.
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Old 09-20-2017, 09:51 AM
 
46 posts, read 20,979 times
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Quote:
Originally Posted by slowdude222 View Post
Tell your kid to join the military and retire in 20 years. Cost of college is too much. The diploma is not as valuable anymore. Time is more valuable than money.
They recently changed the military retirement system no more 20 year retirements. It is now more akin to a 401K with matching funds on 5%. Basically it took out the most attractive reason to join the military.

I did everything in my power to raise my son with the mentality to NEVER join the military other than in a time of invasion to defend our Country.

I did four combat tours a total of 45 months combat time. I was a flight medic for much of my career; I saved many who I am sure wished I hadn't. I regularly dream of the ones I couldn't save.

On my last tour I lost 3 out of 4 of my team medics two to permanent injury and one to a mental break down.

Trust me there are far easier and more noble ways to earn a dollar.
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Old 09-20-2017, 09:53 AM
 
46 posts, read 20,979 times
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Quote:
Originally Posted by Yippeekayay View Post
When you retire now, where would you get your $65K from?
I currently make this in military pension and VA disability.
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Old 09-20-2017, 10:04 AM
 
Location: Paranoid State
13,047 posts, read 10,466,890 times
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Quote:
Originally Posted by Supermex View Post
I am 45 years old. I retired from the military in mid 2015 after 24 years.
Quote:
Originally Posted by Supermex View Post
I did four combat tours a total of 45 months combat time. I was a flight medic for much of my career; I saved many who I am sure wished I hadn't. I regularly dream of the ones I couldn't save.

On my last tour I lost 3 out of 4 of my team medics two to permanent injury and one to a mental break down.

Trust me there are far easier and more noble ways to earn a dollar.


Thank you for your service. Sincerely. Thank you.

Last edited by SportyandMisty; 09-20-2017 at 10:16 AM..
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Old 09-20-2017, 10:14 AM
 
Location: Florida -
8,770 posts, read 10,867,395 times
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It seems like you are basing your entire retirement decision on finances (perhaps you have other plans and are only dealing with finances in this thread?).

I've been retired 10-years (now 70) and we are pretty much set financially, with provisions for inflation and unexpected healthcare issues. I'm still grateful that we can get out of bed every day and face no real pressing external demands on our time or finances.

OTOH, I've found that one can lose interest in too much golf, fishing, cruising, reading and to some extent writing and teaching and idle time in general. My point is that 35-years in retirement (45-80?) is a loooong time -- and a major part of your lifetime! Also, the further you get beyond 50, the more difficult it will be to go back to work (if that's what you want). One other thing, do you have friends who are also retired in their 40's ... or will you be retiring with folks in their 60's and waiting for your friends to catch-up?

The bottom line is that retirement is as much about life as it is about finances.
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Old 09-20-2017, 10:20 AM
 
Location: Haiku
4,188 posts, read 2,605,525 times
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Quote:
Originally Posted by eliza61nyc View Post
For my 50th birthday he took me to Vegas, 8 months later he was gone from Acute myloid Leukemia. I think of all the things we didn't do because "we should save the money for retirement".

So at 50 I was a widow with 3 teen kids.
Your story is like mine, but I was one of those teenage kids. My father died when I was 15. He was 51. He worked all the time but because he did he left the family in good shape financially when he died. My mother did not have to go back to work except for a brief period in the 70's.

I have a friend who is a doctor who quit working in his 40's. He is now 75 and lives partly off the charity of his kids He does not have a home and is a constant worry to them. He manages to get girl friends (mostly widows) and mooches off them. But then he will get kicked out and have to stay with one of his kids.

There is no right answer as to when to retire but it is important to think it through. The younger you retire, the harder it is in the long run.
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Old 09-20-2017, 10:21 AM
 
Location: Paranoid State
13,047 posts, read 10,466,890 times
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Given that your life expectancy is above average, I suggest continuing to work. It will give you more financial freedom from which to enjoy your expected lengthy retirement.

With regards to building a house on your 10 acres of land, I suggest you do the following: Find a real estate defect litigation attorney. This is a subspecialty, so spend a while finding the right person. Buy an hour of his time. Tell him you're planning to build a house, and ask him to spend the first 30 minutes telling you horror stories of residential construction gone wrong. Then, in the second 30 minutes, ask what can be done in contracts to protect you from those horror stories, and what cannot be done. Ask for practical advice. Ask him for names of general contractors who find themselves in quite a bit of litigation -- and avoid them. Ditto for the various skilled trades subcontractors. Ask him if his brother were considering building a new house, who would he recommend as an architect & as a general contractor.
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Old 09-20-2017, 10:24 AM
 
3,100 posts, read 829,155 times
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I'm not sure that an early retirement is yet possible for your numbers.

Your cash-flow should be enough to support a comparable lifestyle in a few years but like a couple of other posters mentioned you don't yet have the assets. Building a house will inevitably lead to more costs than first estimated. You should retire with a portfolio large enough that gains over time will provide a future cushion either for emergencies or an expanded life style.

Those who comment that healthy retirement years can be limited are absolutely right - but all the more reason to have adequate funds in those years to spend on travel etc. without further drawing down or crippling your portfolio.

Plus, you mentioned diverting money from the TSP into taxable investments. Are you foregoing a match to do this? If so, NO. Keep investing up to the match saving that money for the far future. Then save separately for that house. Once you have enough to build (with plenty of overage) only then begin to think yourself ready for retirement.

I retired early with now - 10 years later - mixed feelings. My kid was still young and now is in college. College expenses were prepaid and that's worked well. Sure we traveled in a way that wouldn't have been possible pre-retirement. But I was tied down by her school schedule and so travel time *still* was restricted. I'm not yet comfortable leaving the country for an extended period with her back in the US. Close, but still not quite there. (She doesn't live in a dorm but in our not terribly safe city with late work hours etc. where I still chauffeur.) And, approaching mid-60s, for the first time there are hints of health constraints.

I loved work, but then given cut-backs it was becoming super stressful. The portfolio was large enough that it could - supplemented by a pension - throw off twice the income that I need to live on - but a long-term health emergency still could decimate it.

These issues tend not to be either - or, but finding a workable middle.

You're still on the low side of that middle ground. And will be at 50. Whether you need go all the way to 57 pretty much depends on the cost of that house. (Here, I'm assuming the second pension will be pro-rated if you retire before 57. If not, as you reach 55 or so to *substantially* increase your income with then "only" another couple of years becomes another kind of no-brainer.)
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Old 09-20-2017, 10:31 AM
 
Location: New Oxford, PA
120 posts, read 59,331 times
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Quote:
Originally Posted by Supermex View Post
I am looking for advice from people who have already been through my current situation who can provide me insight.

I am 45 years old. I retired from the military in mid 2015 after 24 years. I took no break and went to work as a government civilian the next day. I have one college student son who is a Sophomore studying engineering. I have been married for 20 years and my wife is a housewife.

I am in good health and have a family history of living into the 90's.

I am torn between quitting my job after my son finishes college or continuing to work for seven more years to get a second pension.

Here is the math.

Current Retirement plus VA disability - 63k a year. (free healthcare for life unless congress changes the law) I also have two rental homes which make a small profit as well. I have 10 acres of paid off land and enough in stocks to build a home in cash. The only concern is most of my money is tied up in the TSP and a Roth IRA which means I can't just pull it out and build my house without a penalty. I have lowered my TSP contributions and started placing most of my monthly savings into a regular vanguard account. I plan on building this up so I can use it to pay for the build if I decide to quit. I spend roughly 50K a year plus all home expenses (my current job covers all home expenses in a stipend) I don't spend any of my current salary, I save about a third, my sons college is another third, and the housing stipend is another third.

I drive a 2007 VW rabbit, I paid $3000 cash for it; my wife also drives an older car.

Ideally I would like to live a higher class lifestyle in retirement and have saved with that in mind. My original plan was work until 57 and have a combined retirement of about 100K a year.

However the fact that I can retire at 50 and still make 75K a year is very enticing.

For what it's worth I could quit today and still make about 65K a year. I would have to take about $120K out of saving to pay for my sons remaining college costs. I am not willing to do that.

For other people who have been through this conundrum, what did you choose? Do you have regrets? Would you choose the same thing?

First, I would sincerely like to thank you for your service.

Secondly, I was in much the same position almost two years ago, minus the stocks. At 46, I had put in the required 25 years into my corrections career to immediately draw a pension and ensure my free healthcare for life. I pretty much ballooned my pension numbers as far as I could through overtime, and the only other way to boost them would be to stay on the job until I reached 55, for an extra 16%. I decided that I would rather spend those 9 years enjoying myself, as opposed to further risking illness or injury.

I have absolutely no regrets.
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Old 09-20-2017, 10:43 AM
 
Location: VT; previously MD & NJ
2,229 posts, read 1,360,218 times
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Number one: Your wife should go to work to build her own Social Security and/or pension and her own savings. Because you never know what may happen in the future, so she should be able to take care of herself if need be.

Number two: If you only have 7 years to go until you get a second pension, that's not so long. And you will both be needing new (or new used) cars soon so the extra money from continuing work will help with that.

BUT you might consider a job transfer to find something you enjoy doing more than your current job. You are already in the federal system so you will get priority over outsiders for any job you apply for. I think you might also get priority points for being a vet.
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