Author Topic: How am I doing?  (Read 4474 times)

astadt

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How am I doing?
« on: November 16, 2013, 11:04:32 PM »
Hi All,

This is a long time coming, Ive been an active member on this site since 2011 and have given lots of advice to folks around here... I figured I shouldnt hide my profile. Let me know what you think.

I am a 29 year old military officer living in a very high cost of living local and am engaged to a wonderful if not so frugal lady who is 30. My goal is to retire from the military in 12ish years and never work again. Luckily there are several huge factors that will most likely allow this to be possible.

Take home salary is $7800 and I get $300 a month from a car loan that i extended to a family member.

Budget: We are pretty different when it comes to saving money, my SO has always made so much money she never really had to think about budgeting, but my philosophy is that at least over budget for things, and shave off the top when we underspend.

Averages
Rent- $2500 per month We've decided that for the time being we are going to be renters. I am in favor of taking the plunge but seeing that we move every few years Im on board for now.
Utilities - 150
Health Care 0
Gas- 300
Cable- 50
Internet- 40
Car/Renters/Life insurance- 200 (Life insurance is to augment SGLI, locking in my rates w/ USAA, $12)
Phones- 150
Gifts- 100
Dinning- 600
Allowances 100
Groceries- 300
Travel- 400
Miscellaneous- 200
Furniture/household- 200
Car care 100
Savings 2700

Savings Break down
TSP (9%) 500
Roth 458
Lending Club 300
Vanguard 1000
Cash 442

Debts- ZERO

Assets
Cars x3 (I own the loaned one)
Roth 24,000
TSP 9,200
Taxable investment - 41,000
Cash Savings 20,500
Cash Savings 5300
Cash Checking 13,700
Cash Cash 1100 (yes i keep cash on hand)
Lending Club 10500 (22% after 11 months)
Total 125300 Not counting the cars. I am currently heavy on cash as the market is overvalued and am still contributing over 15% of my take home pay to the market. I will reevaluate after QE ends and the market stabilizes.

I am counting on having my pension but you honestly never know these days if the govt can keep their promises. That being said I feel Im on the right track and these numbers dont include my SOs net worth of over $500,000... I dont consider that my money and its wrapped up mostly in investment properties in a different country. The SO also volunteers full time for a very rewarding charity. She worked for so long in a high stress environment, that Im completely supportive of her efforts. And if needed she could go back to the grind and make way more then i do. Even though she dedicates a lot of time to the charity, she still feels like shes retired!

We want to have a few kids and travel more once we're in real retirement. Ive told her Im not paying for my kids college haha. I bet she'll make me haha.

Thats about it. Now lay it on me!



arebelspy

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Re: How am I doing?
« Reply #1 on: November 17, 2013, 09:16:00 AM »
astadt, you're an old school member; you signed up for the forums day 1!  (But apparently took a year break or so at some point.  Glad you're back.)   Congrats on the engagement!

I don't see cigarettes in the budget, but it could be under misc. or something.  When's the last time you smoked?   I know you mentioned in Brett's thread that you had quit 6 weeks before (that was back in 2012). Did you manage to kick it completely?

We want to have a few kids and travel more once we're in real retirement.

Have you actually thought that through?  You're planning on being done 12 years from now.  Your SO will be 42, and unlikely to be able to have kids at that point.

The biggest issue I see in your post is the various times you point out that SO and you have different opinions or philosophies.  It will be helpful for you two to communicate more and try and get on the same page or reach a middle ground you both are comfortable with on different issues (college spending, budgeting, etc.)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

astadt

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Re: How am I doing?
« Reply #2 on: November 18, 2013, 01:11:11 AM »
astadt, you're an old school member; you signed up for the forums day 1!  (But apparently took a year break or so at some point.  Glad you're back.)   Congrats on the engagement!

I don't see cigarettes in the budget, but it could be under misc. or something.  When's the last time you smoked?   I know you mentioned in Brett's thread that you had quit 6 weeks before (that was back in 2012). Did you manage to kick it completely?

We want to have a few kids and travel more once we're in real retirement.

Have you actually thought that through?  You're planning on being done 12 years from now.  Your SO will be 42, and unlikely to be able to have kids at that point.

The biggest issue I see in your post is the various times you point out that SO and you have different opinions or philosophies.  It will be helpful for you two to communicate more and try and get on the same page or reach a middle ground you both are comfortable with on different issues (college spending, budgeting, etc.)

Im surprised i got in on day one... i was busy doing stuff for a while and wasnt active but i got to lurk from time to time.

No cigarettes as I stopped smoking in early 2012. I used the lozenges and just sucked on them for hours... after a while i stopped wanting those too. Highly recommended technic for those who are quitting.

As for the SO, we'll try for kids in the near future and not after we retire. And we are a little far off on philosophy but we do communicate very well and the whole, "do we need this because i would rather save the money to build something really big with you" concept is taking hold. We also say, I saved the family ... this much money a lot as well. She has come a very long way now that she isnt pulling in major $$

Arebelspy, Im surprised you didnt scold me on my market timing...

scrubbyfish

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Re: How am I doing?
« Reply #3 on: November 18, 2013, 01:38:55 AM »
All I know when I read your post is that I'm envious! So I think that means you're doing very well :)

Congrats on such success at a young age! Delicious!

arebelspy

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Re: How am I doing?
« Reply #4 on: November 18, 2013, 08:23:25 AM »
Arebelspy, Im surprised you didnt scold me on my market timing...

lol.  You know what you're doing, I'm assuming, so It's a choice I'm fine with.

It's silly when someone doesn't understand why market timing is usually a fool's game, knows nothing about investing, but just "feels" they shoudn't invest yet until some future crash they heard about from their tin-foil hat neighbor.  I don't think that's the case with you.

I'm more likely to scold you on your high AA in p2p lending.  ;)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Zaga

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Re: How am I doing?
« Reply #5 on: November 18, 2013, 10:16:49 AM »
Why are you only putting $500 a month into your TSP?  I would think you'd want to max out every year.

astadt

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Re: How am I doing?
« Reply #6 on: November 18, 2013, 11:30:08 PM »
Why are you only putting $500 a month into your TSP?  I would think you'd want to max out every year.

Great question.

I plan on retiring at 41 and not 59 1/2. I want most of my money is taxable accounts. That being said I bet I could sit down and think of a better number than 9% going in.

The only things i like about TSP is the G fund and how low cost they all are.... i need more number love to keep me interested.

Nords

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Re: How am I doing?
« Reply #7 on: November 24, 2013, 09:59:12 AM »
I am a 29 year old military officer living in a very high cost of living local and am engaged to a wonderful if not so frugal lady who is 30. My goal is to retire from the military in 12ish years and never work again. Luckily there are several huge factors that will most likely allow this to be possible.
A couple of thoughts to consider:
You're at the point in your career where the fun stopped for me.  From here on out, take it one obligation at a time and be ready to move to the Reserve/National Guard if the fun stops.  12 years is a very long time, especially if you can't enjoy what you're doing and you're gritting your teeth to get to 20.  I could say something trite like "It's only money", but the fact is that you and your SO have assets and human capital and are highly likely to achieve FI without the military pension.  Don't risk your health for the easy answer.

As for the TSP, take a look at the Roth TSP.  When you separate or retire, it's much easier to roll to a Roth IRA and then withdraw the contributions.  Take a hard-hearted look at your Lending Club returns and decide whether that money could do better in the TSP with much less long-tail risk.