Author Topic: A long, complex question from someone who wants to be a mustachian  (Read 8282 times)

Alittlehelpgoesalongway

  • 5 O'Clock Shadow
  • *
  • Posts: 18
A long, complex question from someone who wants to be a mustachian
« on: September 21, 2015, 09:27:24 PM »
I just registered this evening and after reading posts and forums for many hours during my free time, I figured it is time for me to sign up. 

I have been a Police Officer in Illinois for six and a half years now (yes I know to some people I am some sort of a monster according to the media).  My soon to be fiance is finishing up her doctorate as a forensic psychologist.  She is finishing up her internship with the US federal government.  She should eventually have the 1811 retirement plan.  It is around 34 % pension, plus thrift saving plan and reduced health insurance after 20 years of service.  She is also flat broke with around 400K in student loans at about 6% interest. 

I really want to leave my job and become a special education teacher.  After being a cop or pig or whatever people have to say, I really feel bad for individuals with intellectual disabilities.  Currently for my pension, I contribute 9.91 of each paycheck.   People tell me that the city I work for also contributes the same, but Illinois has a history of corruption and is in terrible dept.  As of June 12 2015, with all of the court overtime I am at 80,000 k a year (less in the years prior).  I am also one of few departments that contribute to social security, and I have had a job, at least part time, since I was 16 to pay for college.  I have 10,200 k in my Roth IRA (Fidelity mutual funds with pharmaceuticals and staples, which I have lost $300 or so in the last year since I started it two years ago- learned from posts this aggressive 90 % stock with no bonds is not good) I have $50,000 in a savings account with no interest (none that matters anyway).  I have $7,000 k left on my 2013 Honda Civic I purchased for the last car i ever buy (hopefully). 



Alittlehelpgoesalongway

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: A long, complex question from someone who wants to be a mustachian
« Reply #1 on: September 21, 2015, 10:08:45 PM »
I guess the first post did not finish in its entirety.  Can I please get help from a mustachian in how to figure out a way to become a true mustachian? I was hoping there was a way to switch my pension into possibly a 401k without getting a serious tax deduction.  I believe there is a better way to grow money rather than work for the eight years and receive 20% of my current paycheck when I turn 60 years old (30 years from now).

Thanks to everyone who has viewed this post, I apologize for the lack of completion.

Sean

frugaldrummer

  • Pencil Stache
  • ****
  • Posts: 641
Re: A long, complex question from someone who wants to be a mustachian
« Reply #2 on: September 21, 2015, 11:49:30 PM »
Hi Sean,
First of all, let me say this. My brother was a cop for 25 years. I'm horrified, like many people, at the examples of police brutality that are being revealed. But I think I speak for most people when I say, I can totally respect the job that police officers do, while wanting to see bad apples removed. The bad apples make life more dangerous for all the good cops out there. And departments that have a culture of tolerating police abuses need to change. We all want to see good cops stay and protect the public.

If you're serious about the career change, I recommend you spend a few days shadowing someone who does what you want to do. Before you invest a lot in schooling, make sure the day to day of the job suits you.

As for the pension question, it's hard to answer without numbers. All I have to compare it to is this: my ex had a defined benefit pension at his work. At one point I ran the numbers on leaving early and taking the lump sum vs just taking the small pension at 65. The lump sum was a lot less than what would have been needed to generate the pension. I  think they tweak it that way to encourage you to stay employed with them. YMMV

sol

  • Walrus Stache
  • *******
  • Posts: 8492
  • Age: 42
  • Location: Pacific Northwest
Re: A long, complex question from someone who wants to be a mustachian
« Reply #3 on: September 22, 2015, 12:12:00 AM »
As a first step, I'd take some of that 50k you have in cash and pay off the 7k car loan you're carrying.  Why are you paying interest on a car when you have so much cash on hand?  Do you just like losing money?

Second, I think you need to find out what your pre-tax savings options are.  In addition to a pension, most workplaces have some sort of pre-tax savings plan like a 401k plan.  Federal employees have the TSP.  Teachers and state/local government workers typically have a 403b or 457 plan (or sometimes both), into which they can contribute savings without paying taxes, that is separate from the pension and social security.  If you're a police officer, you probably have something similar.  Investing in these plans is usually better than investing in a Roth IRA for people above the 0% income tax bracket, because the Roth IRA is paid with post-tax dollars.

The investment limits on these plans are current set by the IRA at 18.5k per year, with some exceptions around the edges, and you should be trying to hit that maximum level every year.  You and your spouse can also both contribute a maximum of 5.5k to your Roth IRAs, also recommended.  If you are truly badass, and can save even more money than that, you can learn about post-tax savings vehicles like a brokerage account. 

Your pension is invested in state bonds or something, so that's not money you can ever get back.  If you decide to leave law enforcement, you may all of those pension contributions or they may refund your contributions to you in cash but you would have lost six years worth of investment returns.  This is usually a terrible idea, so I wouldn't make any hasty decisions just yet.

But as a start, pay off the car loan.

CowboyAndIndian

  • Handlebar Stache
  • *****
  • Posts: 1450
  • Location: NJ, USA
    • KOWines: Deep discount wine/spirits store.
Re: A long, complex question from someone who wants to be a mustachian
« Reply #4 on: September 22, 2015, 06:26:09 AM »
First of all, not all cops are bad. The bad apples are the ones who are in the news. I am sure that the substantial majority of cops are good. So, stop badmouthing yourself.

Second, please put up a case study. A format is specified and is pinned on one of the subgroups of the forum. This will give all the information for Mustachians to give you a response.

Before you leave your job for Special Education, think of the things that you can do to leverage what you have learnt with Police work. That way, your experience would count in the new job instead of you joining at entry level at a teaching job.

In the meantime, get all your financial ducks in a row. When your finances are secure, you will have more options.

Best of luck!


Jags4186

  • Pencil Stache
  • ****
  • Posts: 596
Re: A long, complex question from someone who wants to be a mustachian
« Reply #5 on: September 22, 2015, 07:27:23 AM »
I think it's commendable that you want to switch careers--from one that helps people to anther that helps people.

Let's go over some facts here--you have some tough choices to make:

1) You currently make 80k/yr
2) In 6 years you've saved 60k
3) You want to switch careers to something I assume you would need to go back to school for
4) You are intending on marrying someone who has 400k in debt


You need to crank up your savings big time.  You should have 200k saved, not 60k.  You should be trying to save at least 3k/month between your tax advantaged and taxable accounts.

If you intend on switching careers, you will certainly be looking at going back to school--spending the money you have and possibly going back into debt.  I'd recommend waiting until you are FI to make that change.  You could be there by the time you are 40...IF and a big if you don't do something about #4.

I don't like to spew relationship advice, but the fact of the matter is you are basically condemning yourself to a lifetime of servitude by marrying someone with $400k in debt.  Think about the things that you want in life and then think about how you'd be able to do them starting $400k in the hole. 

pbkmaine

  • Walrus Stache
  • *******
  • Posts: 8292
  • Age: 62
  • Location: The Villages, Florida
Re: A long, complex question from someone who wants to be a mustachian
« Reply #6 on: September 22, 2015, 07:41:22 AM »
I think LEOs have one of the world's toughest jobs, and I thank you for your service.

Some governmental employees have access to a loan forgiveness plan. Does your fiancée? If not, she should pick a job that has one. How did she manage to acquire this much debt? The fact that she did speaks to an ignorance about financial matters that is very troubling. This is your #1 financial issue. The two of you need to figure this out before marrying.

Easye418

  • Bristles
  • ***
  • Posts: 469
Re: A long, complex question from someone who wants to be a mustachian
« Reply #7 on: September 22, 2015, 08:06:38 AM »
I just registered this evening and after reading posts and forums for many hours during my free time, I figured it is time for me to sign up. 

I have been a Police Officer in Illinois for six and a half years now (yes I know to some people I am some sort of a monster according to the media).  My soon to be fiance is finishing up her doctorate as a forensic psychologist.  She is finishing up her internship with the US federal government.  She should eventually have the 1811 retirement plan.  It is around 34 % pension, plus thrift saving plan and reduced health insurance after 20 years of service.  She is also flat broke with around 400K in student loans at about 6% interest. 

I really want to leave my job and become a special education teacher.  After being a cop or pig or whatever people have to say, I really feel bad for individuals with intellectual disabilities.  Currently for my pension, I contribute 9.91 of each paycheck.   People tell me that the city I work for also contributes the same, but Illinois has a history of corruption and is in terrible dept.  As of June 12 2015, with all of the court overtime I am at 80,000 k a year (less in the years prior).  I am also one of few departments that contribute to social security, and I have had a job, at least part time, since I was 16 to pay for college.  I have 10,200 k in my Roth IRA (Fidelity mutual funds with pharmaceuticals and staples, which I have lost $300 or so in the last year since I started it two years ago- learned from posts this aggressive 90 % stock with no bonds is not good) I have $50,000 in a savings account with no interest (none that matters anyway).  I have $7,000 k left on my 2013 Honda Civic I purchased for the last car i ever buy (hopefully).

1.  I think you are missing something crucial here..... you should also consider leaving the state you are a resident in. :) I moved out of that vile state 2 years ago for the better.  Besides great food and great sports team (primarily Cubs/Bhawks), Illinois sucks.  Almost nothing going for it.

2.  WOW $400k Student Loan debt for a Doctorate degree.  Was she a "Van Wilder" aka stayed in school far too long?  What is expected income for a Ph.D Psychologist with the Gov't?  I inherited 1/10 of that SL debt from my spouse and I thought that was a mountain of debt.

Edit:  Average is somewhere between $50-$70k.  People really need to start weighing "Expected Income vs Total Cost of Education".  I think this is ultimately another reason why I chose Finance. $400k will take DECADES to pay off. 

3.  If you switch careers, you are talking back to school and your salary is going to be cut significantly.


I'm a MMM-lite, I think some of these people are insane, but have great intentions and great advice.  I think you should follow your gut while remembering finance.  Switch careers, marry the girl, and pay down debt.  Another thing is I don't know how old you are.  I assume you are nearing 30?

« Last Edit: September 22, 2015, 08:15:22 AM by Easye418 »

Gondolin

  • Pencil Stache
  • ****
  • Posts: 571
  • Location: Northern VA
Re: A long, complex question from someone who wants to be a mustachian
« Reply #8 on: September 22, 2015, 08:35:57 AM »
Sol's advice is (as usual) spot on. You should take it, starting with the car loan.

After that your fiance's loan debt is your biggest problem. I'm hoping you put an extra zero in there because $400k would be the largest student loan burden I have every seen by far (~200k is not uncommon for people who finance law school primarily through loans).

If she can enter the work force at $80-90k (reasonable for a govt G-11 equivalent with a Doctorate) she can pay it off in 9 years if she puts every penny (~$5k a month) towards recruitment and you both live off your salary.

Kaikou

  • Pencil Stache
  • ****
  • Posts: 503
  • Location: United States
  • Kermit is like a box of chocolates
Re: A long, complex question from someone who wants to be a mustachian
« Reply #9 on: September 22, 2015, 08:55:42 AM »
Can you write a case study? Detailed.

TealBlue

  • Pencil Stache
  • ****
  • Posts: 589
  • Age: 38
Re: A long, complex question from someone who wants to be a mustachian
« Reply #10 on: September 22, 2015, 09:09:11 AM »
That's a huge career change!  Best of luck with your decision.

mozar

  • Magnum Stache
  • ******
  • Posts: 2904
Re: A long, complex question from someone who wants to be a mustachian
« Reply #11 on: September 22, 2015, 09:30:55 AM »
As a black person who has personally been mistreated by the police, I still think highly of the police and think most of them are trying to do their job well. It also depends greatly on where you live. The city I lived in 2 years ago there was a lot of abuse from police. In the town I live in now, the police are wonderful.

If you save like crazy you could get to 300k in 5 years and then take the hybrid approach of being semi-retired. You could withdraw 12k a year while you go to school and you will only need to make enough money to make up the difference between your stache and your living expenses. Also with a long time horizon, 90% stock is OK, unless you are extremely risk averse.

SunshineGirl

  • Pencil Stache
  • ****
  • Posts: 735
Re: A long, complex question from someone who wants to be a mustachian
« Reply #12 on: September 22, 2015, 09:46:48 AM »
That amount of debt in a significant other would give me great pause.

While considering your options, can you find a weekly volunteer opportunity in special ed?

The_path_less_taken

  • Pencil Stache
  • ****
  • Posts: 654
Re: A long, complex question from someone who wants to be a mustachian
« Reply #13 on: September 22, 2015, 09:57:18 AM »
I just registered this evening and after reading posts and forums for many hours during my free time, I figured it is time for me to sign up. 

I have been a Police Officer in Illinois for six and a half years now (yes I know to some people I am some sort of a monster according to the media).  My soon to be fiance is finishing up her doctorate as a forensic psychologist.  She is finishing up her internship with the US federal government.  She should eventually have the 1811 retirement plan.  It is around 34 % pension, plus thrift saving plan and reduced health insurance after 20 years of service.  She is also flat broke with around 400K in student loans at about 6% interest. 

I really want to leave my job and become a special education teacher.  After being a cop or pig or whatever people have to say, I really feel bad for individuals with intellectual disabilities.  Currently for my pension, I contribute 9.91 of each paycheck.   People tell me that the city I work for also contributes the same, but Illinois has a history of corruption and is in terrible dept.  As of June 12 2015, with all of the court overtime I am at 80,000 k a year (less in the years prior).  I am also one of few departments that contribute to social security, and I have had a job, at least part time, since I was 16 to pay for college.  I have 10,200 k in my Roth IRA (Fidelity mutual funds with pharmaceuticals and staples, which I have lost $300 or so in the last year since I started it two years ago- learned from posts this aggressive 90 % stock with no bonds is not good) I have $50,000 in a savings account with no interest (none that matters anyway).  I have $7,000 k left on my 2013 Honda Civic I purchased for the last car i ever buy (hopefully).




Welcome.

1. Stop badmouthing cops: especially because you are one and know exactly how difficult the job is.
2. Listen to Sol: pay off the car loan
3. You have to follow your heart. She's got debt? So?
4. You REALLY have to follow your heart: job not working for you? Change it. State not working for you? Move.

Life is short. This moment, right now, is your life. If you're not happy with it you need to start doing something to change it.

There are other forums on MMM where people will go over the investment moving plans....not my gig.

But I wish you and the future wife great success.

Also....if you fine tune the search option in the various forums, switching investment plans often comes up.

Good luck.

Easye418

  • Bristles
  • ***
  • Posts: 469
Re: A long, complex question from someone who wants to be a mustachian
« Reply #14 on: September 22, 2015, 10:02:15 AM »
I just registered this evening and after reading posts and forums for many hours during my free time, I figured it is time for me to sign up. 

I have been a Police Officer in Illinois for six and a half years now (yes I know to some people I am some sort of a monster according to the media).  My soon to be fiance is finishing up her doctorate as a forensic psychologist.  She is finishing up her internship with the US federal government.  She should eventually have the 1811 retirement plan.  It is around 34 % pension, plus thrift saving plan and reduced health insurance after 20 years of service.  She is also flat broke with around 400K in student loans at about 6% interest. 

I really want to leave my job and become a special education teacher.  After being a cop or pig or whatever people have to say, I really feel bad for individuals with intellectual disabilities.  Currently for my pension, I contribute 9.91 of each paycheck.   People tell me that the city I work for also contributes the same, but Illinois has a history of corruption and is in terrible dept.  As of June 12 2015, with all of the court overtime I am at 80,000 k a year (less in the years prior).  I am also one of few departments that contribute to social security, and I have had a job, at least part time, since I was 16 to pay for college.  I have 10,200 k in my Roth IRA (Fidelity mutual funds with pharmaceuticals and staples, which I have lost $300 or so in the last year since I started it two years ago- learned from posts this aggressive 90 % stock with no bonds is not good) I have $50,000 in a savings account with no interest (none that matters anyway).  I have $7,000 k left on my 2013 Honda Civic I purchased for the last car i ever buy (hopefully).




Welcome.

1. Stop badmouthing cops: especially because you are one and know exactly how difficult the job is.
2. Listen to Sol: pay off the car loan
3. You have to follow your heart. She's got debt? So?
4. You REALLY have to follow your heart: job not working for you? Change it. State not working for you? Move.

Life is short. This moment, right now, is your life. If you're not happy with it you need to start doing something to change it.

There are other forums on MMM where people will go over the investment moving plans....not my gig.

But I wish you and the future wife great success.

Also....if you fine tune the search option in the various forums, switching investment plans often comes up.

Good luck.

I don't think he is badmouthing police.  It sounds like he is just fed up and is bitching a little bit. 

The_path_less_taken

  • Pencil Stache
  • ****
  • Posts: 654
Re: A long, complex question from someone who wants to be a mustachian
« Reply #15 on: September 22, 2015, 10:12:37 AM »
I just registered this evening and after reading posts and forums for many hours during my free time, I figured it is time for me to sign up. 

I have been a Police Officer in Illinois for six and a half years now (yes I know to some people I am some sort of a monster according to the media).  My soon to be fiance is finishing up her doctorate as a forensic psychologist.  She is finishing up her internship with the US federal government.  She should eventually have the 1811 retirement plan.  It is around 34 % pension, plus thrift saving plan and reduced health insurance after 20 years of service.  She is also flat broke with around 400K in student loans at about 6% interest. 

I really want to leave my job and become a special education teacher.  After being a cop or pig or whatever people have to say, I really feel bad for individuals with intellectual disabilities.  Currently for my pension, I contribute 9.91 of each paycheck.   People tell me that the city I work for also contributes the same, but Illinois has a history of corruption and is in terrible dept.  As of June 12 2015, with all of the court overtime I am at 80,000 k a year (less in the years prior).  I am also one of few departments that contribute to social security, and I have had a job, at least part time, since I was 16 to pay for college.  I have 10,200 k in my Roth IRA (Fidelity mutual funds with pharmaceuticals and staples, which I have lost $300 or so in the last year since I started it two years ago- learned from posts this aggressive 90 % stock with no bonds is not good) I have $50,000 in a savings account with no interest (none that matters anyway).  I have $7,000 k left on my 2013 Honda Civic I purchased for the last car i ever buy (hopefully).




Welcome.

1. Stop badmouthing cops: especially because you are one and know exactly how difficult the job is.
2. Listen to Sol: pay off the car loan
3. You have to follow your heart. She's got debt? So?
4. You REALLY have to follow your heart: job not working for you? Change it. State not working for you? Move.

Life is short. This moment, right now, is your life. If you're not happy with it you need to start doing something to change it.

There are other forums on MMM where people will go over the investment moving plans....not my gig.

But I wish you and the future wife great success.

Also....if you fine tune the search option in the various forums, switching investment plans often comes up.

Good luck.

I don't think he is badmouthing police.  It sounds like he is just fed up and is bitching a little bit.





Agreed. But I don't like the "pig" term. And "monster".

There are idiots in every profession. Doesn't mean you're one of them. Doesn't mean that the good ones should feel tarnished by the bad ones.

bacchi

  • Magnum Stache
  • ******
  • Posts: 3720
Re: A long, complex question from someone who wants to be a mustachian
« Reply #16 on: September 22, 2015, 10:31:16 AM »
Yes, this needs to be a case study. Where's all your money going?


Kaikou

  • Pencil Stache
  • ****
  • Posts: 503
  • Location: United States
  • Kermit is like a box of chocolates
Re: A long, complex question from someone who wants to be a mustachian
« Reply #17 on: September 22, 2015, 12:47:56 PM »
I just registered this evening and after reading posts and forums for many hours during my free time, I figured it is time for me to sign up. 

I have been a Police Officer in Illinois for six and a half years now (yes I know to some people I am some sort of a monster according to the media).  My soon to be fiance is finishing up her doctorate as a forensic psychologist.  She is finishing up her internship with the US federal government.  She should eventually have the 1811 retirement plan.  It is around 34 % pension, plus thrift saving plan and reduced health insurance after 20 years of service.  She is also flat broke with around 400K in student loans at about 6% interest. 

I really want to leave my job and become a special education teacher.  After being a cop or pig or whatever people have to say, I really feel bad for individuals with intellectual disabilities.  Currently for my pension, I contribute 9.91 of each paycheck.   People tell me that the city I work for also contributes the same, but Illinois has a history of corruption and is in terrible dept.  As of June 12 2015, with all of the court overtime I am at 80,000 k a year (less in the years prior).  I am also one of few departments that contribute to social security, and I have had a job, at least part time, since I was 16 to pay for college.  I have 10,200 k in my Roth IRA (Fidelity mutual funds with pharmaceuticals and staples, which I have lost $300 or so in the last year since I started it two years ago- learned from posts this aggressive 90 % stock with no bonds is not good) I have $50,000 in a savings account with no interest (none that matters anyway).  I have $7,000 k left on my 2013 Honda Civic I purchased for the last car i ever buy (hopefully).




Welcome.

1. Stop badmouthing cops: especially because you are one and know exactly how difficult the job is.
2. Listen to Sol: pay off the car loan
3. You have to follow your heart. She's got debt? So?
4. You REALLY have to follow your heart: job not working for you? Change it. State not working for you? Move.

Life is short. This moment, right now, is your life. If you're not happy with it you need to start doing something to change it.

There are other forums on MMM where people will go over the investment moving plans....not my gig.

But I wish you and the future wife great success.

Also....if you fine tune the search option in the various forums, switching investment plans often comes up.

Good luck.

I don't think he is badmouthing police.  It sounds like he is just fed up and is bitching a little bit.





Agreed. But I don't like the "pig" term. And "monster".

There are idiots in every profession. Doesn't mean you're one of them. Doesn't mean that the good ones should feel tarnished by the bad ones.

I agree. I found it rather off putting. I don't know what his personal situation is like on the job, but hopefully he can find a better career well suited for him.

Mntngoat

  • 5 O'Clock Shadow
  • *
  • Posts: 51
  • Location: Southern California
Re: A long, complex question from someone who wants to be a mustachian
« Reply #18 on: September 22, 2015, 04:24:53 PM »
how does someone  rack up $400K in debt without a full time position yet?  I'm guessing she is late 20's?  if you two get married you should plan on living on one income and using the other  to pay off the student loans.

ML

sol

  • Walrus Stache
  • *******
  • Posts: 8492
  • Age: 42
  • Location: Pacific Northwest
Re: A long, complex question from someone who wants to be a mustachian
« Reply #19 on: September 22, 2015, 04:54:59 PM »
how does someone  rack up $400K in debt without a full time position yet?

I can only think of two ways for a student to acquire that much debt. 

The easy way: borrow money to start a business which fails spectacularly.

The hard way:  borrow money to pay extravagant living expenses for many years in a row without giving any thought to your own future ability to repay the debt.

The most expensive colleges in the US run about $60k/year including living expenses.  If your parents were very wealthy, thus disqualifying you for any student aid, and you're not very bright, thus disqualifying you for any scholarships, and you were too lazy to get a job in college, you could conceivably borrow up to $300k in five years, assuming you're too disorganized to graduate in a normal four-year period.  At this point, everything about your life is already terrible.

Another possibility is that you didn't go to one of the handful of schools that costs $60k/yr for five years, but instead went to one of the larger number of schools that costs $50k/year for four years, were a great student, and then went to medical school for four more years at $50k/year.  That would get you to $400k in debt assuming you never got any aid, any scholarships, or any job for 8 years.  But it also gets you very high earning potential when you finish.

More likely, and the only way I've personally seen anyone fuck themselves this hard, is to go to a regular 4 year college with an ordinary $30k/yr price tag, but then take out an extra $40k/year because they really want to buy a new car and have a fancy apartment and new iphone every year and hey all my friends are skiing in Switzerland this weekend want to come?  Those people get no sympathy from me.

Kaikou

  • Pencil Stache
  • ****
  • Posts: 503
  • Location: United States
  • Kermit is like a box of chocolates
Re: A long, complex question from someone who wants to be a mustachian
« Reply #20 on: September 22, 2015, 05:50:44 PM »
how does someone  rack up $400K in debt without a full time position yet?  I'm guessing she is late 20's?  if you two get married you should plan on living on one income and using the other  to pay off the student loans.

ML

yes I would like to know too? And like someone said upthread her starting salary is in the 50000 to 70000 range. Wtf?!

Rosy

  • Handlebar Stache
  • *****
  • Posts: 2038
  • Location: Florida
Re: A long, complex question from someone who wants to be a mustachian
« Reply #21 on: September 22, 2015, 06:09:19 PM »
I'm hoping it is 40K instead of 400K in Student Loans.
Police officer is a tough job and it sounds like you may just suffer from burn out.
Even in our low paying state there are well paying opportunities for ex police officers as security personnel (airport-immigration-homeland secuirty)-supervisor positions etc. which might be something you could do while studying for your career change.

Is it possible that your lady would start out making great money and that for the next four years she might earn around 100K and save 75% of it - which would kill off that insane SL while you prepare for a career change?

The first order of business is to wipe out all debt and preferably have a paid for house - no matter which state. Sol is right about paying off the car and digging deeper into what investment - contribution opportunities you have.
Perhaps it is possible to get a pay out and move on - but for now, stay put until you have all your facts and can play out different scenarios.

Consider getting all the information together for a case study - there is a sticky post on how to do a case study.


Alittlehelpgoesalongway

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: A long, complex question from someone who wants to be a mustachian
« Reply #22 on: September 22, 2015, 08:19:53 PM »
I would like to thank all of you who took the time to respond to me.  I am going to respond to each person who responded, and then look to complete a case study.  As for other expenses I incurred during the last six and half years, here they go- $3500 for a new bathroom for my parents. $10,000-paid off parents mortgage-$3000-I bought an old boat which I need to sell-$3000 for schooling to become an EMT-Basic and a firefighter.  I took a leave of absence for two months to try and complete the firefighting when I was younger.  I then got hurt, and had to complete six months of therapy on my hand, so I had to go back to my job.  During this time I also visited a career counselor and looked into other jobs.  Also realized I needed to get out of being a first responder period.  I also messed up with my first car purchase by buying an SUV with bad gas mileage and my commute is terrible.  This cost me a lot of money.

frugaldrummer- thank you for your post, not a lot of people I work with plan on staying in my profession for 25 years any longer.  Two people have resigned from my department in the last month.  I will be shadowing in October when I get on day shift.

Sol-thank you for the hard nosed approach, and so the saying most men would rather deny a hard truth than face it.  I plan on facing it.  I have the option of contributing to a 457plan.  I will also follow you lead and pay off the car this Friday.  She is doing private practice after her 20 with the feds.  I am going to try to find out if i still get the money the city was supposed to invest if i leave earlier than the 8 years.  At 8 years, it is 20% current paycheck when I turn 60. 3% increase after that till death. 

cowboy-case study coming

jags-she is going to set up income base repayment.  She should start $70-90k a year with incentives as to where in the country she is willing to relocate to.  The feds also pay for the move, and help with selling your home.

pbkmain-After 10 years she can qualify for loan forgiveness.  She is now on a strict budget, and combined we averaged 10 weddings a year for the last 4 years which is frickin killing me.  She took loans from undergrad to doctoral program. (took extra classes to finish completely by 30 years of age.  She also finished her dissertation early.  This year, she needed to retain the student status, which is another $5,500.  At least she is getting a $54 k stipend. 

easye-No she was not a van wilder.  Just 11 years of schooling.  Finished masters early.  During different portions of her degree, she had to incorporate a lot of drive time for various projects.  In 5 years, she should be over 100k.  I too don't like those terms, but I get called it all the time.  I also get death threats all the time, which is getting rather old.  I know it comes with the job, but I'm rather burned out. 

Gondolin-yea she starts at a g11 next year.  She will put in her 20 years.

Kaikou-going to look into case study after this post.

IDdebtbuster-Thanks for the optimism.

mozar- I am really sorry about your bad experiences.  I want all the crappy cops gone too.  I really enjoy that our department does CPA classes, which teaches people about the job, and you even go do hands on learning with building searches and traffic stops to name a few things.

sunshinegirl= I tried talking a class with my job before.  I work rotating 12 hour shifts minimum (late calls plus an hour drive time does not help) Im currently not paying for rent which also helps now.  I also can have court from 8-4 any weekday, regardless of if i am on night shift.  The poor quality of life is getting to me.

pathlesstaken- Is your userid a reference to Robert Frost's poem?  1)Im just venting my burnout
2) going to call the bank friday to pay off the car 3) I like 3 4)She is currently out of state.  $54 k stipend this year.
Thank you for your reply

bacci=case study coming

mntngoat-Undergrad, masters, doctoral program.  Part time jobs in between, and she still needed insurance.  She is 29 in October.  We used a Venture One card for her traveling when she needed to do all of her meetings for her match sites. 

Thanks again everyone, off to look into the case study. 

Alittlehelpgoesalongway

  • 5 O'Clock Shadow
  • *
  • Posts: 18
Re: A long, complex question from someone who wants to be a mustachian
« Reply #23 on: September 22, 2015, 08:38:43 PM »
Just reviewed the spreadsheet for the case study.  Should have my girlfriends new monthly budget as well as mine by this coming weekend.  I'm sure I will get a lot of slaps to the face, but I appreciate all the help that is given.


P1

  • 5 O'Clock Shadow
  • *
  • Posts: 64
  • Age: 36
  • Location: California
Re: A long, complex question from someone who wants to be a mustachian
« Reply #24 on: September 22, 2015, 10:07:26 PM »
I think your first step is to marry someone else. You might actually get somewhere in a few years if you didn't have nearly half a million in useless debt to worry about.

Kaikou

  • Pencil Stache
  • ****
  • Posts: 503
  • Location: United States
  • Kermit is like a box of chocolates
Re: A long, complex question from someone who wants to be a mustachian
« Reply #25 on: September 22, 2015, 11:12:52 PM »
I think your first step is to marry someone else. You might actually get somewhere in a few years if you didn't have nearly half a million in useless debt to worry about.

Wow

former player

  • Magnum Stache
  • ******
  • Posts: 4273
  • Location: Avalon
Re: A long, complex question from someone who wants to be a mustachian
« Reply #26 on: September 23, 2015, 12:52:42 AM »
I think your first step is to marry someone else. You might actually get somewhere in a few years if you didn't have nearly half a million in useless debt to worry about.
His fiancé has got her qualifications, she's got a job, she is working in the public sector and will get loan forgiveness.  She is the sort of person (lots of qualifications, government work with decent but not stratospheric pay) loan forgiveness programmes were set up for.  What's your problem?  I do think that if they marry and have joint finances they will probably need some life/disability insurance to cover worst case scenarios, and time off for children would need to be thought about carefully.  Apart from that, no reason for them not to have long, happy and prosperous married lives.

I wonder if OP has looked into salaries for special ed: they are usually pretty low.  He does need to make the most of his current salary and set himself up financially before taking on the costs of training.  But as pointed out, as a trained and experienced police officer the opportunities for security work to supplement income will be there for him.

begood

  • Pencil Stache
  • ****
  • Posts: 963
Re: A long, complex question from someone who wants to be a mustachian
« Reply #27 on: September 23, 2015, 06:49:00 AM »
Poking my head in here... Alittlehelpgoesalongway, your EMT/firefighter training, years in LE, and desire to teach Special Ed tell me you feel a deep-rooted need to serve, and in a tangible, physical way. Nobody wants to have others refer to them as monsters or pigs, but I would think it would be especially hard for you, since from what you've told us, you're obviously trying to HELP PEOPLE.

Are there community service positions on the force you work with? Community building, neighborhood patrols, working in schools, that kind of thing? It would seem like a good fit for you, and it might make staying in your current profession more palatable.


Jags4186

  • Pencil Stache
  • ****
  • Posts: 596
Re: A long, complex question from someone who wants to be a mustachian
« Reply #28 on: September 23, 2015, 08:59:43 AM »
I think your first step is to marry someone else. You might actually get somewhere in a few years if you didn't have nearly half a million in useless debt to worry about.
His fiancé has got her qualifications, she's got a job, she is working in the public sector and will get loan forgiveness.  She is the sort of person (lots of qualifications, government work with decent but not stratospheric pay) loan forgiveness programmes were set up for.  What's your problem?  I do think that if they marry and have joint finances they will probably need some life/disability insurance to cover worst case scenarios, and time off for children would need to be thought about carefully.  Apart from that, no reason for them not to have long, happy and prosperous married lives.

I wonder if OP has looked into salaries for special ed: they are usually pretty low.  He does need to make the most of his current salary and set himself up financially before taking on the costs of training.  But as pointed out, as a trained and experienced police officer the opportunities for security work to supplement income will be there for him.

Okay so lets say she works for the public sector.  As far as I'm aware you have to put in 10 years of service and still make payments the whole way.

Let's say she's JUST paying interest only--I don't know if that's even possible on these types of plans.  That's $24,000 interest a year...$240,000 in interest.  That's 24k/yr that could be invested at 6% and being worth $330kish at the end of 10 years.

I'm not saying you can't marry this person. But you should consider this as a factor in "do I want to spend my life with someone who would make this terrible type of decision."  And believe me...this was a terrible terrible decision she made.

bacchi

  • Magnum Stache
  • ******
  • Posts: 3720
Re: A long, complex question from someone who wants to be a mustachian
« Reply #29 on: September 23, 2015, 09:12:30 AM »
You have a 457? Well, dayam. Once you free up some cash, you can max it out. It'll not only lower your tax bill but it'll also give you some income for if/when you change careers. A 457 is perfect for early-retirees and career changers.

As for saving money, even without seeing the case study I can recommend that you and the SO be more selective about weddings. And make sure that your own wedding isn't a fancypants wedding either.

Mazzinator

  • Pencil Stache
  • ****
  • Posts: 570
  • Location: Pa, Ga, Fl, Pa, Az, Tn, Va, Hi, Va, Pa, NoVa
Re: A long, complex question from someone who wants to be a mustachian
« Reply #30 on: September 23, 2015, 09:48:31 AM »
Please look very closely at PSLF and IBR details!!!!

The_path_less_taken

  • Pencil Stache
  • ****
  • Posts: 654
Re: A long, complex question from someone who wants to be a mustachian
« Reply #31 on: September 24, 2015, 07:09:54 AM »
I would like to thank all of you who took the time to respond to me.  I am going to respond to each person who responded, and then look to complete a case study.  As for other expenses I incurred during the last six and half years, here they go- $3500 for a new bathroom for my parents. $10,000-paid off parents mortgage-$3000-I bought an old boat which I need to sell-$3000 for schooling to become an EMT-Basic and a firefighter.  I took a leave of absence for two months to try and complete the firefighting when I was younger.  I then got hurt, and had to complete six months of therapy on my hand, so I had to go back to my job.  During this time I also visited a career counselor and looked into other jobs.  Also realized I needed to get out of being a first responder period.  I also messed up with my first car purchase by buying an SUV with bad gas mileage and my commute is terrible.  This cost me a lot of money.

frugaldrummer- thank you for your post, not a lot of people I work with plan on staying in my profession for 25 years any longer.  Two people have resigned from my department in the last month.  I will be shadowing in October when I get on day shift.

Sol-thank you for the hard nosed approach, and so the saying most men would rather deny a hard truth than face it.  I plan on facing it.  I have the option of contributing to a 457plan.  I will also follow you lead and pay off the car this Friday.  She is doing private practice after her 20 with the feds.  I am going to try to find out if i still get the money the city was supposed to invest if i leave earlier than the 8 years.  At 8 years, it is 20% current paycheck when I turn 60. 3% increase after that till death. 

cowboy-case study coming

jags-she is going to set up income base repayment.  She should start $70-90k a year with incentives as to where in the country she is willing to relocate to.  The feds also pay for the move, and help with selling your home.

pbkmain-After 10 years she can qualify for loan forgiveness.  She is now on a strict budget, and combined we averaged 10 weddings a year for the last 4 years which is frickin killing me.  She took loans from undergrad to doctoral program. (took extra classes to finish completely by 30 years of age.  She also finished her dissertation early.  This year, she needed to retain the student status, which is another $5,500.  At least she is getting a $54 k stipend. 

easye-No she was not a van wilder.  Just 11 years of schooling.  Finished masters early.  During different portions of her degree, she had to incorporate a lot of drive time for various projects.  In 5 years, she should be over 100k.  I too don't like those terms, but I get called it all the time.  I also get death threats all the time, which is getting rather old.  I know it comes with the job, but I'm rather burned out. 

Gondolin-yea she starts at a g11 next year.  She will put in her 20 years.

Kaikou-going to look into case study after this post.

IDdebtbuster-Thanks for the optimism.

mozar- I am really sorry about your bad experiences.  I want all the crappy cops gone too.  I really enjoy that our department does CPA classes, which teaches people about the job, and you even go do hands on learning with building searches and traffic stops to name a few things.

sunshinegirl= I tried talking a class with my job before.  I work rotating 12 hour shifts minimum (late calls plus an hour drive time does not help) Im currently not paying for rent which also helps now.  I also can have court from 8-4 any weekday, regardless of if i am on night shift.  The poor quality of life is getting to me.

pathlesstaken- Is your userid a reference to Robert Frost's poem?  1)Im just venting my burnout
2) going to call the bank friday to pay off the car 3) I like 3 4)She is currently out of state.  $54 k stipend this year.
Thank you for your reply

bacci=case study coming

mntngoat-Undergrad, masters, doctoral program.  Part time jobs in between, and she still needed insurance.  She is 29 in October.  We used a Venture One card for her traveling when she needed to do all of her meetings for her match sites. 

Thanks again everyone, off to look into the case study.


Yep. And I do SO understand the need to vent!  ;-0

Since you're new to the boards, lemme just say: there are some people here who take the "poke it with a stick to see if it screams" approach.

Ignore them.

Most of us here are nice, most days. Your mileage may vary.