Author Topic: Need advice out how to play out my financial life!!!  (Read 1023 times)

Shuman4413

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Need advice out how to play out my financial life!!!
« on: September 26, 2018, 08:18:29 AM »
27 years old happily married with two babies
Income
73k salary
24k military disability
Total income 97k
Healthcare for life for me and family paid
State PA
Savings 4k
401k 0
Assets 0
Debt 38k on stupid toyota 4runner
No other debt
We rent
What would you do to be able to retire early? I would always have healthcare and 2k a month coming in regardless if working or not. I would love to retire early but need some suggestions how to accomplish this. Everyone I talk to about retiring early looks at me as if I am crazy as shit. I have read all the mmm classics. I just need help putting a plan together. I'm always analyzing and cant come up with something solid.....
Our monthly expenses are about 5k
Any suggestions would be great!
Thanks fellow mustachians...


ixtap

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Re: Need advice out how to play out my financial life!!!
« Reply #1 on: September 26, 2018, 09:03:46 AM »
I suggest you do a full case study, as outlined in the sticky. It doesn't make sense that you are bringing in 8k, spending 5k and have no savings. 3k seems a bit excessive for taxes in your case.

On paper, early retirement is easy: know your expenses and save enough to cover those expenses.

What precisely you should do depends on a number of factors.

 It looks like you still owe the shiny new MSRP on the 4runner, so you are probably underwater on that (owe more than you could sell it for). But what is your interest rate?

Do you plan to save for the kids' education?

Is the military disability inflation adjusted or will it always be 2k?

Does the salaried employee have access to a 401k or similar plan?

Shuman4413

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Re: Need advice out how to play out my financial life!!!
« Reply #2 on: September 26, 2018, 09:10:31 AM »
Reason for no savings is just finished paying off other debt for the last year and 2k is inflation adjusted and I clear $7050 a month after taxes. Thank you

Shuman4413

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Re: Need advice out how to play out my financial life!!!
« Reply #3 on: September 26, 2018, 09:12:38 AM »
3.74% for 4runner
Have gi bill for kids
And I do have access to 401k but dont know If I should use it since I want to retire early
I think I need enough to cover 2k-3k a month expenses

MDM

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Re: Need advice out how to play out my financial life!!!
« Reply #4 on: September 26, 2018, 07:17:58 PM »
And I do have access to 401k but dont know If I should use it since I want to retire early
You should.

See Investment Order and How to withdraw funds from your IRA and 401k without penalty before age 59.5.

erutio

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Re: Need advice out how to play out my financial life!!!
« Reply #5 on: September 26, 2018, 08:11:05 PM »
Dude, you have 3 posts and you post the exact same things everytime, like a copy and paste.

Come back and post some information with some substance.  A real case study.  And follow up with your posts.  You have a large audience of eager helpers if you can get your information together.

Shuman4413

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Re: Need advice out how to play out my financial life!!!
« Reply #6 on: September 27, 2018, 07:46:12 AM »
Just posted in case study and tried to provide as much information as I can please take a look over there and let me know if I am missing anything thanks