Author Topic: Need help with ideas/ making up my mind  (Read 2914 times)

Jay-Fazed

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Need help with ideas/ making up my mind
« on: June 25, 2014, 09:58:33 AM »
Hello all! I I recently have had an opportunity to gain employment at my old job, which comes with a very healthy salary. Here are a few things about myself. I'm 26yrs old , married with three kids( I know that's crazy), no plans for more kids( don't want a special car). My wife works and makes about 32k yr (pre tax), we own all our vehicles and toys, have no consumer debt beyond our mortgages ( I had a home before I met her that I rent now for a tidy profit). We have 10k in savings, 45k in retirement accounts. Now I'm currently attending college and receive $1500 a month for cost of living ( GI Bill) other than school I don't bring home anything anymore ( recently have to replace a a/c unit in my rental and my profit is eaten up for two months). I was recently offered my old job in the private contracting field based in Afghanistan/ Africa/ recently Iraq, making anywhere from 160k-200k depending on what I negotiate. So my question would be where would a mustachian put this extra money? We make enough right now on my wife's salary but not much to save with just that. My goals are similar to most( retire from normal work and make life choices on what makes my family the happiest). Any ideas ? Thanks

schimt

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Re: Need help with ideas/ making up my mind
« Reply #1 on: June 25, 2014, 10:31:25 AM »
how long do you plan to hold this job over seas? You are in a great position to reach financial independance early.

I think most people in here would recommend max out your IRA, your 401k and her's if she has one, then throw the rest in a low cost mutual fund preferably with Vanguard, such as VTSAX or VFINX.

Good luck with everything!

schimt

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Re: Need help with ideas/ making up my mind
« Reply #2 on: June 25, 2014, 10:32:37 AM »
Also highly recommend JL Collin's Stock Series if you haven't already read it.

http://jlcollinsnh.com/stock-series/

NewStachian

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Re: Need help with ideas/ making up my mind
« Reply #3 on: June 25, 2014, 10:49:10 AM »
Not an easy choice. A few questions for you:

1) How do you feel about spending that much time away from your family?
2) Would you be finishing your degree or abandoning it? What kind of employment could you get once that's done?
3) Would you have a clearly-defined plan for investments if you deployed? How much would you be able to reduce your working career by?
4) Would that type of job be available after you finish your degree?

Being ex-military myself I have seen several friends who have done what you're describing. All of them were single and only did it for about a year. I also know friends who make more than that right here at home doing things they enjoy and setting their own hours. I would recommend identifying what makes you happiest and exploring that route while maximizing your income. If you can get paid $160K-$200K overseas you can probably find a job for $100K here doing similar work, especially once your degree is finished.

Numbers Man

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Re: Need help with ideas/ making up my mind
« Reply #4 on: June 25, 2014, 10:50:58 AM »
Make sure you spend part of your bounty on some term life insurance.

Cwadda

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Re: Need help with ideas/ making up my mind
« Reply #5 on: June 25, 2014, 11:05:44 AM »
If you're negotiating between 160k and 200k, go under 191k so you're eligible to contribute to a Roth or Traditional IRA.

Jay-Fazed

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Re: Need help with ideas/ making up my mind
« Reply #6 on: June 25, 2014, 11:19:49 AM »
Well as far as being away from family I've been almost conditioned for that. I don't enjoy it but after 6yrs of army then 2 private contracting we are used to it. I would only go back for a year this time though. And every six months I get 30days paid vacation so it's not too bad. But my wife an I said that if we didn't have a clear end goal then it would be wasted time away to take the job. I forgot to mention that I'm a partner in a real estate business with a very good friend that I did my ARMY and contacting job with. Part of the reason for possibly taking the job is that it's very hard as a new company to get a line of credit without actually having a job, even if you personally fund your company with 150k.  My wife put the max that her company contributes into her 401k, I will this year finally start maxing my Roth, and if I take the job I can put away a healthy amount with my employer contributions, but I have no plan of staying with the company. It's a good company but it's very hard to get employment with them in the states. As far as my degree goes.... I won't abandon it. It's a free ride so it would be like spitting in my own face for not going. As crazy as it might sound, I love Colorado enough that I would stay here and try to find a new job. I'm a UAV operator ( drones) and it has been an exciting career , but in America uavs aren't widely accepted and they primarily only do boarder patrol operations. I've been sitting this last year waiting for something in the forested department to pick up this program but it just cost too much. So finding a job in UAVs is very tough unless you like hostile environments.  My degree plan is in Physics  and it's not really compatible with my line of work ( unless you spin it and talk about aerodynamic theory). I will for sure look at the book mentioned. I'm just wondering what should I do with the extra income. I don't spend very much but I know that money in the bank is only so useful before it's just wasting away in there. I wouldn't take more than 175k due to my wife's work and my rental income. It would put us in an entirely different tax bracket.

NewStachian

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Re: Need help with ideas/ making up my mind
« Reply #7 on: June 25, 2014, 12:21:16 PM »
If you're negotiating between 160k and 200k, go under 191k so you're eligible to contribute to a Roth or Traditional IRA.

He'd have a significant amount of income taken off AGI (like $75k or something). He would also need to be below about $115k to get any deduction from a traditional IRA due to being employed.