Author Topic: Did a rough tax estimate - should my husband just retire now?  (Read 2653 times)

Giro

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Did a rough tax estimate - should my husband just retire now?
« on: January 08, 2015, 08:39:26 AM »
So, it looks like my husband's income just isn't really worth it.  His salary is about $87K and it bumps us up pretty high.  My best estimate is that we only see about $50K of that income.  That includes the phaseout of exemptions, higher tax bracket, etc.  I know $50k is nothing to sneeze at but we would save a good deal with him staying home also. 

His military retirement is $50K.  My salary is $130K.  His side business is about $10K. 

If he stayed home and worked on his business, he could probably get it up to $15K.  We would also save $5K in latch key for my daughter.  That is only for about 3 more years though. 

Is this something that you guys would seriously consider or not?  He is a government employee, so pension eligible in about 6 more years. 

Gone Fishing

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Re: Did a rough tax estimate - should my husband just retire now?
« Reply #1 on: January 08, 2015, 09:09:16 AM »
Hard to say with the info provided.  Some more detail on expenses, stache size, and your desired retirement date would be helpful.

DoNorth

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Re: Did a rough tax estimate - should my husband just retire now?
« Reply #2 on: January 08, 2015, 09:13:07 AM »
Yes!

My military pension is $60K; wife's freelance business is about $50K.  I'm a federal employee also and even as a GS-14, take home every two weeks (after TSP contributions) is $2500.  I will probably resign toward the end of the year.  Just one thing...you only need five years to be pension eligible, albeit in a deferred status.

nereo

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Re: Did a rough tax estimate - should my husband just retire now?
« Reply #3 on: January 08, 2015, 09:27:53 AM »
what does your husband want to do?  what are your goals and desires?  What would his pension be like if he worked another 1, 2, or 6 more years? What are your current assets and your current liabilities? What's your "FI-number"?
You really haven't provided much in the way of details.  It sounds like you could certainly live on your salary alone and still save lots and lots of money. 
So yes, he could quit.
OR he could continue to work and save, and both of you could reach FI a few years sooner, and then you both could quit.

Giro

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Re: Did a rough tax estimate - should my husband just retire now?
« Reply #4 on: January 08, 2015, 11:07:23 AM »
All excellent questions, thank you so much.

Depending on the day, my husband would like to retire or work anyway from 5-10 more years.  We are pretty much cheapskates, so we really are already FI.  We could live on his military retirement easily.  We have no debt.  We save about 50% or more of our gross income.  We would live on even less if he quit and stayed home. 

I think he would be really happy if he could stay home and play guitar and work out.  His side business is musician and he could do significantly more shows if that was his "full-time" work. 

The only glitch is that my employment is not that secure.  I've never been laid off or anything but I could be pretty much at any time.  I'm a federal contractor and I've always been of the mindset that if you work hard, stay relevant and educated/trained you can always find employment.  But, I'm not getting any younger and I know that it's not always easy to do all of those things.  I turned 40 just a few months ago.

:)

Cheddar Stacker

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Re: Did a rough tax estimate - should my husband just retire now?
« Reply #5 on: January 08, 2015, 11:17:49 AM »
...so we really are already FI....We could live on his military retirement easily....We would live on even less if he quit and stayed home...I think he would be really happy if he could stay home and play guitar and work out.  ...The only glitch is that my employment is not that secure... 

Slightly edited, but when you just read these parts, it's a no brainer.

You are FI. You don't need any more money than the pension he already qualifies for. It would make him happy.

Your employment is irrelevant, because it's unnecessary income, so you can retire as well whenever you're ready.

Do it.

nereo

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Re: Did a rough tax estimate - should my husband just retire now?
« Reply #6 on: January 08, 2015, 12:50:41 PM »
...so we really are already FI....We could live on his military retirement easily....We would live on even less if he quit and stayed home...I think he would be really happy if he could stay home and play guitar and work out.  ...The only glitch is that my employment is not that secure... 

Slightly edited, but when you just read these parts, it's a no brainer.

You are FI. You don't need any more money than the pension he already qualifies for. It would make him happy.

Your employment is irrelevant, because it's unnecessary income, so you can retire as well whenever you're ready.

Do it.
+1.  You've won the game, so the only point in playing is if you still enjoy it.  Both of your decisions now about working should revolve around this question: "is this what I want to be doing with me time".  Since you can already live off his pension alone it doesn't matter that your employment is not that secure. Your employment now is also optional. Do YOU want to stop working?
Congrats.