So here are my current basics. I am a military member using TSP as my primary retirement account which I max out annually. I am current stationed overseas in a tax free area so am using the Roth option to escape ever paying taxes on anything I contribute now.
I currently have roughly 150K spread out between my traditional and Roth TSP accounts. These funds are essentially unavailable to me until I hit the statutory retirement age of 60+.
I have equity in my home of 100K. I know this isn't the same as a TSP regarding unavailability because I can sell this to get that money but my long term plan is to keep this property for rental income through my early retirement at least. So while I could tap this in an emergency, for planning purposes I am going to declare this and any increase in its value as unavailable until post 60+
Outside of this I have 100K in what I will call liquid assets, essentially things I can turn into cash inside an hour (savings, brokerage accounts). This is what I can access for early retirement withdrawals pre age 60.
So I went through all the calculators and what I ended up with, assuming I maintain my current cash savings rate and TSP contribution rate, of having an allocation of 500K in liquid assets and 700K in inaccessible wealth when I retire in 9 years at age 45 (this doesn't include money set aside to purchase a new primary residence with cash). My retirement goal was 1M for a 40K annual 4%SWR, so this is pretty good. However, since I can only withdraw out of that 500K using that withdrawal rate I will have less than 100K I can access at age 59. This makes me uncomfortable, because god knows what the housing market or TSP rules will be like by then, let alone something like an unexpected medical condition.
Of course during my 15 year retirement before 60 my TSP and hopefully mortgage equity will increase so I should be fine post 60. My question is whether its a good idea to redirect my current TSP contributions to pre 60 accessible accounts so I have more of a safety margin in my early retirement? Is there some hidden folly I am not seeing in doing this?
Note: I am being extremely conservative here. 40K is my goal SWR but my annual spend rate is 30K (or it will be when I kill this mortgage pre early retirement). I also hit military retirement safe harbor this year and could begin drawing the pension in three, so this decision is not life or death. I just don't want there to be an unexpected crunch between 45 and 60 years old.