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This post is because I want to maximize my chances of retiring by the age of 45 (sooner if possible). I feel like my current plan is on that path but I am all about ways to improve.
So will try to make this short and right to the numbers to create the least amount of confusion. If you have questions I will try to answer them below.
I am current 37 years old. I am retired from the USMC. I retired after 17 years as a Gunny due to the Temp Early retirement act when they downsized in 2013. I am also at 70% disability via the VA. (go go 5 deployments). Here is what that provides me a month for the rest of my life.
Retirement pay is $1512 a month.
VA is $1542 a month. (basically 3050 combined a month).
Tri-care medical insurance for the rest of my life for me and my spouse (and child till 26 if enrolled in college). Medical insurance is only $500 a year for the entire family. It gets taken out of my pension.
I am currently on year 4 of my second career. I am a police officer and make around 90 grand a year before taxes. What I actually get paid is realistically around 5000$ a month. I also work a good amount of overtime and make an extra $15000 a year. (It's usually more but ill do worst case).
So take home 60,000 + 15000 = 75000 a year.
Va and Military Pension = 36600
Total = 121,600 a year.
I own a home.
Mortgage = 2781 a month (taxes/insurance included). I am paying an extra $1000 on top of that. $3800 a Month.
Now for the state I am with the Police I become "vested" in the state retirement plan after 5 years. I plan to quit at my 10-12 year mark. So that means I will get 20% of my HIGH FIVE YEARS salary (which they include department overtime) once I hit the age of 53. So from 45-53 I will NOT be getting this money. When I turn 53 I will get around $1600 a month (gains 3 % for each year after 53. I spoke with the state police retirement rep and we did a realistic estimate to come up with that number.
So I will have coming in each year when I retire the following:
$36660 = Military and VA
$19200 = Police retirement after 53
Total = 55860
27 years of working.
So additional factors. I bought my house for 475k. Its currently worth around 580-620k Market. I owe around 350k left on it. I plan to have it down to 100k or less by 45.
I get around 4k in taxes back each year. I put that all on the house.
I have a military TSP account with around 27k in it that is in a lifecycle fund. I cannot contribute to it anymore.
I have deferred Comp through the police. I have around 30k in there. They match up to 3000 a year. I usually put in around 4k a year to cover matching. This account should be well past 100k by 45.
My wife and I both have Roth IRA's. Mine has around 15k in it and hers around 10k. We put in 1-2k each year in each account. Mainly like the funds in the Deferred Comp better but I like the diversity of having money in more then just one place.
I have zero debt. Both cars are paid for and Zero balance on credit cards though I do have two credit cards both with 20k+ limits. Credit Scores are both around 770-790.
My wife does not work. I have an 11 year old son. He will be 18 when I turn 45. I have the VA post 9/11 GI bill that was transferred to him and my wife. This means he has his 4 year degree taken care of and will get around 2100 dollars a month for housing as long as he is enrolled full time. They also give 600dollars for books. I do not have to plan to pay for college unless he goes to his Masters/Doctorate. (May make his butt get college loans at that point).
My wife and I both have life insurance policies. Me 500k, her 350k. Both end around 65. My son has a 100k Term life that he can cash out in the future if he wants.
Lastly I am not tied to ANY area. When I retire I want to move to a cheap/safe place to live. We are currently thinking around the Nashville area but far enough away from the city so that I NEVER have to deal with traffic. I have no intent to drive into a big city for any real reason. My house I bought here on the West coast for 475k would cost around 200k there. Gas/grocers reflect these deductions as well. But we are open to anywhere in the US minus Hurricane States and we don't like the East Coast, maybe Vermont and Maine are an option.
I plan to sell my house. Make 400+k profit (thinking this will be closer to 600 but being low end just in case). Use half that money to buy a new house straight cash (retirement home). Use some of the remaining money to purchase a second home as a rental property for income. Everything else into savings. I would also like to have around 100-200k savings by the age of 45. Then on top of that my investments.
But obviously the main perk to all this is the two pensions and the VA and basically free healthcare for life for me and my wife. I can also include Social Security as I have around 19 years of paid in SS. (they don't take out SS for my police job).
So that is it. I know there are hidden cost. I don't want to work past 45. I hate work lol. I love my job but still hate work by default. I want to be young and enjoy retirement. I don't want to retire and not get to go out and have fun.
What else can I do to speed this up? I can work more overtime as my salary increases (which is does by 3 percent each year not counting cost of living increase). I plan to bust my butt over the next 6 years make it like I worked 9 cash flow wise. What else am I missing as hidden cost of retirement or big things that could increase my after employment cash flow.
Thanks in advance! I really want to make this work.
So will try to make this short and right to the numbers to create the least amount of confusion. If you have questions I will try to answer them below.
I am current 37 years old. I am retired from the USMC. I retired after 17 years as a Gunny due to the Temp Early retirement act when they downsized in 2013. I am also at 70% disability via the VA. (go go 5 deployments). Here is what that provides me a month for the rest of my life.
Retirement pay is $1512 a month.
VA is $1542 a month. (basically 3050 combined a month).
Tri-care medical insurance for the rest of my life for me and my spouse (and child till 26 if enrolled in college). Medical insurance is only $500 a year for the entire family. It gets taken out of my pension.
I am currently on year 4 of my second career. I am a police officer and make around 90 grand a year before taxes. What I actually get paid is realistically around 5000$ a month. I also work a good amount of overtime and make an extra $15000 a year. (It's usually more but ill do worst case).
So take home 60,000 + 15000 = 75000 a year.
Va and Military Pension = 36600
Total = 121,600 a year.
I own a home.
Mortgage = 2781 a month (taxes/insurance included). I am paying an extra $1000 on top of that. $3800 a Month.
Now for the state I am with the Police I become "vested" in the state retirement plan after 5 years. I plan to quit at my 10-12 year mark. So that means I will get 20% of my HIGH FIVE YEARS salary (which they include department overtime) once I hit the age of 53. So from 45-53 I will NOT be getting this money. When I turn 53 I will get around $1600 a month (gains 3 % for each year after 53. I spoke with the state police retirement rep and we did a realistic estimate to come up with that number.
So I will have coming in each year when I retire the following:
$36660 = Military and VA
$19200 = Police retirement after 53
Total = 55860
27 years of working.
So additional factors. I bought my house for 475k. Its currently worth around 580-620k Market. I owe around 350k left on it. I plan to have it down to 100k or less by 45.
I get around 4k in taxes back each year. I put that all on the house.
I have a military TSP account with around 27k in it that is in a lifecycle fund. I cannot contribute to it anymore.
I have deferred Comp through the police. I have around 30k in there. They match up to 3000 a year. I usually put in around 4k a year to cover matching. This account should be well past 100k by 45.
My wife and I both have Roth IRA's. Mine has around 15k in it and hers around 10k. We put in 1-2k each year in each account. Mainly like the funds in the Deferred Comp better but I like the diversity of having money in more then just one place.
I have zero debt. Both cars are paid for and Zero balance on credit cards though I do have two credit cards both with 20k+ limits. Credit Scores are both around 770-790.
My wife does not work. I have an 11 year old son. He will be 18 when I turn 45. I have the VA post 9/11 GI bill that was transferred to him and my wife. This means he has his 4 year degree taken care of and will get around 2100 dollars a month for housing as long as he is enrolled full time. They also give 600dollars for books. I do not have to plan to pay for college unless he goes to his Masters/Doctorate. (May make his butt get college loans at that point).
My wife and I both have life insurance policies. Me 500k, her 350k. Both end around 65. My son has a 100k Term life that he can cash out in the future if he wants.
Lastly I am not tied to ANY area. When I retire I want to move to a cheap/safe place to live. We are currently thinking around the Nashville area but far enough away from the city so that I NEVER have to deal with traffic. I have no intent to drive into a big city for any real reason. My house I bought here on the West coast for 475k would cost around 200k there. Gas/grocers reflect these deductions as well. But we are open to anywhere in the US minus Hurricane States and we don't like the East Coast, maybe Vermont and Maine are an option.
I plan to sell my house. Make 400+k profit (thinking this will be closer to 600 but being low end just in case). Use half that money to buy a new house straight cash (retirement home). Use some of the remaining money to purchase a second home as a rental property for income. Everything else into savings. I would also like to have around 100-200k savings by the age of 45. Then on top of that my investments.
But obviously the main perk to all this is the two pensions and the VA and basically free healthcare for life for me and my wife. I can also include Social Security as I have around 19 years of paid in SS. (they don't take out SS for my police job).
So that is it. I know there are hidden cost. I don't want to work past 45. I hate work lol. I love my job but still hate work by default. I want to be young and enjoy retirement. I don't want to retire and not get to go out and have fun.
What else can I do to speed this up? I can work more overtime as my salary increases (which is does by 3 percent each year not counting cost of living increase). I plan to bust my butt over the next 6 years make it like I worked 9 cash flow wise. What else am I missing as hidden cost of retirement or big things that could increase my after employment cash flow.
Thanks in advance! I really want to make this work.
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