Hello,
I am a 35 y/o male who recently medically retired from the military in 2022, and immediately began a W2 salary job as a consultant working from home making $140k now. I am married to my 34 y/o spouse, and we live in Florida. I am seeking assistance to see if we are ‘on track’ to retire at 45 years old based on the below retirement assets and living expenses we currently maintain.
Emergency funds: $190,000 in HYSA @ 3.75% – we’ve kept a lump sum from a recent home sale and we are saving for a pool install and building out a separate structure/mother-in-law suite on our primary property.
Pensions (both tax free and inflation adjusted):
- VA Disability: $50k annually Combat Specialty Pay: $13k annually
Debt: $675k remaining on mortgage. House is worth about 850k.
Tax Filing Status: MFJ
Tax Rate: 24% federal rate; State: 0%
Current Salary: $140k (W2 salary)
Current Spouse Salary: $50k (non-profit small business)
State of Residence: Florida
Desired Asset allocation: Primarily stocks (Vanguard Total Stock Market Index Fund Admiral Shares/S&P 500 Index tracked)
Desired International allocation: approximately 5% of holdings are Vanguard Total International Stock Index Fund Admiral Shares
Insurance:
- $800k term life insurance policy for myself I also pay into the military’s Survivor Benefit Program (annuity) for my wife, which would entitle her to half of my retirement income for life – this is also inflation adjusted. The estimate to date is $2,500/mo if I kick the bucket today. Health Insurance: Military Retiree through TRICARE for myself and spouse; family premiums are $365 for the year.
Annual Savings: $20k (7k into Vanguard Roth IRA; $13k into Employer Roth 401k)
Total Investment Portfolio: $447k
- $30k Traditional 401k Thrift Savings Plan (held in C & S funds – tracks S&P equivalent from what I know)
- $70k New Employer Vanguard Roth 401k in VFFSX - Instl 500 Index Trust $35k Vanguard taxable brokerage account in VTSAX - Vanguard Total Stock Market Index Fund Admiral Shares
- $311k Roth IRA - $280k in Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX); $30K in Vanguard Total International Stock Index Fund Admiral Shares (VTIAX);
- $1k in Vanguard Total Bond Index ETF (BND)
Questions:
- 1.) Based on forecasting tools, we are estimated to accrue $2.1-2.7M in assets by age 45. Based on annual expenses of $100k (approximately), is this feasible to retire early and begin pulling funds?
- 2.) If so, should I be shifting more funds into a taxable brokerage to ‘bridge the gap’ of being able to pull retirement funds once we hit 45 years old? If so, how should those taxable funds be allocated based on age?
- 3.) Are there any other changes needed at this time?
- 4.) Knowing myself well, I will likely get a part-time gig for $30-50k doing something fun here on the beach, at a golf course, restaurant in the area, etc. to keep myself sane.
[link] [comments]