Good Day generous and knowledgeable Mustachians! I am a 30 year old Active Duty Marine finally able to start growing my stache. I have read a good bit of the blog posts over the last year, but would like help/advice on my specific situation. Please let me know if I need to change anything about how I presented the information, or if you need any other info.
Monthly Totals
$10,057.05 Total Gross Income
($4,233.73) Total Fixed Expenses
($1,300.00) Total Variable Expenses
($600.00)- Total of Revolving Discretionary Accounts
$3,923.32 Available Funds per Month
Monthly Income
-Gross
$2,734.50 Basic Pay
$357.55 Basic Allowance (Subsistence)
$1,647.00 Basic Allowance (Housing)
$450.00 Special Duty Assignment Allowance
$1,490.00 Rental Income
$~3,000.00 Sole Proprietorship Business (Profit)
$10,057.05 Total Gross Income
Current Monthly Expenses
-Fixed
$1,650.00 - Mortgage (Primary)
$981.00 Mortgage (Rental)
$341.00 Family Van (still owe 15k @5%APR)
$110.00-Student Loans (still owe 5k @3%APR)
$~300.00 Utilities total (AVG)
$120.00 Auto Insurance
$140.00 Cell Phone Family Plan
$90.00 Cable/Internet Services
$$365.00 Mandatory deductions from my Paycheck (including Fed/State tax)
$136.73 Roth Thrift Savings Plan Contribution
$4,233.73 Total Fixed Expenses
-Variable
$250.00 Gas
$700.00- Groceries
$150.00- kids Items
$100.00 Pet Care
$100.00 Household
$1,300.00 Total Variable Expenses
-Discretionary
$600.00- Total of Revolving Discretionary Accounts
***I do not spend this amount a month, but the $600.00 is the contribution and the balance rolls-over (Miscellaneous purchases, entertainment, gifts to include Christmas and family vacation with the residual)
Net Worth
$509,680.00 Total Assests
$455,100.00 Total Liabilities
$54,580.00 Net Worth
Assets
$293,000.00 Primary Residence
$157,000.00 Rental property
$16,500.00- Vehicle
$4,500.00- Savings and Checking Accounts
$4,680.00 Roth TSP Investment Account
$20,000 Estimated Household Possessions
$14,000- Retail Value of Cost of Goods Sold (Business)
$509,680.00 Total Assests
Liabilities
$284,000.00 Principle on Primary (4.4%)
$145,000.00 Principle on Rental (3.7%)
$14,800.00 Principle on Vehicle (5%)
$5,000.00 Student Loans (3%)
$6,300.00 Credit Debt (Business on 0% CC)
$455,100.00 Total Liabilities
Above is a snapshot of where I am. I have been in the Marine Corps just shy of 7 years, and plan to do at least 20 years in order to rate a retirement. I will be eligible to draw a pension at age 43 13 Years from now (if the current policy exists then ) and in todays money would be about $2,400 before taxes. Im not interested in full early retirement. Once I retire from the Marine Corps in 13 years, I would like to work part-time, and be financially free enough to be able to hold a job for enjoyment. In other words not have a second career, but a job in line with more of a hobby or mentoring position with the youth. For the sake of this scenario, assume a job which grosses 30k in todays money. I am able to contribute $17,000 max/year (no match from employer) into a Roth TSP (my current 12 Month Performance Indicator Percentage is 18.5%). Since I will not be able to draw from the TSP until 59 1/2, I will need money tucked away to supplement my pension and part-time job salary to carry me from 43 until that age (From reading the blog, I assume that this will be achieved with Index Funds) Im not sure how to estimate my annual spending at that point, but I do know that I would like to travel quite a bit and live the life of a semi-retired person (Golf + other hobbies/entertainment).
1.) I am looking for help with how to best split my available balance into the index funds and TSP or if there is another suggested investment strategy. Also, should I be trying to pay down the principle ahead of schedule on any of my liabilities with this balance?
2.) I am presented with the opportunity about every 3 years to buy a new home with only 5% down. As I get change of station orders, my primary residence becomes a rental (or I can sell), and I can take out another mortgage for a primary at the conventional 5% down. Is there any guidance as far as how many rentals I should hold on to vs when I should sell one of my previous homes? One of the biggest challenges is that they can potentially be spread out all over the country. (Currently my rental is in New Orleans (Hometown), and primary (and potential future rental) is in Houston, TX)
***While I will/do appreciate all comments/advice, I am mainly looking for help in the specific areas mentioned above, and in-line with my projected future as described. I sincerely appreciate any future assistance with my situation!
Thank You in Advance,
MilitaryMustache