My current situation: retired military, current federal employee, late 40’s, no dependents besides an elderly dog; live in HCOL area.
My short term goals are to continue building my savings and potentially buy a holiday home (3 hours away) for approximately ~160k with my sister. We have discussed the purchase in-depth and have tried to work through potential obstacles/issues we could see happening. The plan would be to list it as a holiday rental and I/we would use it once or twice a month. Post retirement I’d split my time between the two residences as much as possible.
My mortgage is my largest concern at the moment. I’ve had roommates off and on over the last couple of years, and once COVID is less of an issue, I’ll likely rent out a room again in order to pay down the balance. My vehicle is new (2017), and won’t need to be replaced anytime soon. I have renovated most of my home (paid for in cash) so don’t foresee any major housing expenses in the near term. As an FYI, I have tracked my expenses for the last year, and intend to keep doing so in the future. I can break out some of the figures below if necessary!
Long term I’d love to retire at age 55 (in 7 years), but I wouldn’t be able to collection my pension until I reach minimum retirement age of 57. At age 55 I’ll have 30 years of federal time (including military + current federal time). I suppose I could hold out for an additional two years but I’ve lost the passion for my work and frankly am tired of staring at a computer screen for 9-hours a day. I’d be happy taking a part time job making enough money to cover some expenses, and either pulling money from investments or cash until my pension (approximately ~$35,000/year) kicks in. As a military retiree, my insurance costs are minimal; right now TRICARE costs me approximately ~300/year.
I don’t have any specific questions, just looking for general guidance on the figures below, and any feedback you might have!
2020 figures:
Gross salary: 176,597.00
Federal Pay: 149,364.00
Military Retirement: 27,233.00
Deductions: 94,409.00
Federal Taxes: 25,097.00 // 2,944.00 (28,041.00)
State Taxes: 6,853.00 // 1200.00 (8053.00)
TSP contribution: 19,500.00 (will add “catch-up” funds once I turn 50)
OASDI: 8,537.00
FERS retirement contribution: 6572.00
Medicare: 2,154.00
Military Deposit: 2,700.00
Life insurance: 594.00
Union: 402.00
Dental/Vision: 750.00
Allotment to cash savings/sinking funds/investments: 21,250.00
Net Pay: 78,724.00
ASSETS: 445,581 (w/o home equity) / 957,500 (incl. home equity)
Cash: 40,000.00
Taxable brokerage: 262,417.00
TSP: 143,140.00
E-Trade: 24,000.00
House: 512,000.00
LIABILITIES: 335,000.00
Mortgage: 319,000.00 (refinanced Jul 2020 for $323,000 @ 2.99% VA loan; Zillow value: 490,000)
Military Deposit (buyback military time towards federal retirement): 16,000 @ 2% (currently put $200/month towards debt)
2020 Expenses per month: (~63,000 per year)
Housing
Mortgage: 2000 (I pay approximately $175 extra per month; payment includes annual property tax of ~4k and insurance ~1k)
HOA: 381
Maintenance/improvement: $300 (includes $ for bathroom renovation; not typically this high)
Transportation
Gas, tolls, maintenance: 140
Insurance: 50
Utilities
Phone: 72
Electricity: 80
Internet: 73
Food
Groceries: 400
Dining out: 80
Dog
Dog food: 65
Dog sitter: 20
Vet: 400 (elderly dog had a couple surgeries this year; $ towards pet insurance)
Fitness: 160
Outfitting home gym because of COVID; swimming, running, biking, snowboarding. This is essentially my therapy!
Yearly expenses: 350
Includes: electronic replacement, extra taxes paid for 2019, pet insurance, Virginia personal property tax for vehicle, garden, Amazon Prime, YNAB, and health insurance
Clothing: 150
Major face punch here; I’m definitely limiting my purchases in 2021!)
Home decor: 100
Includes some bathroom renovation purchases
Entertainment: 170
Events, newspapers, subscriptions (TrainerRoad, Hulu, Netflix), movies, books
Gifts: 30
Personal: 150
Travel: 50
Thanks for your time and feedback!