Ah, Mustachers,
Despite all my studies of this site and others, I'm not sure how to proceed and thus would appreciate a good punch in the face.
Here's the scoop:
Just got a promotion at my current job to 87K minus 11% which goes to the pension fund (eligible at 55 after 10yrs at the gig -- got 8.5 yrs to go on that count, if I leave before that I get 80% of what I put in (20% to taxes)). I can actually see staying there that long (provided I don't get dumped along the line during cost cutting measures that happen every semester). Anyway, this gig will give me a pension (based on years of service and last 3 years of salary). If I retired as soon as I could and my salary didn't change, it would be about $1250/month. Current monthly expenses run about $3000 which includes $1000 to mortgage principle/interest.
Have about 165K in a TIAA CREF account that can't be touched until 65. No more going in there. Another bit of retirement money in a traditional IRA ($6200).
Debt is about 185K in mortgage (no loans, CC, etc).
And I have about 50K in various and sundry accounts -- nothing with great interest, this was for emergency fund, savings, etc.
So here's where I need help.
A. With the raise, I'll now have an additional $1200 per month. I'm thinking of putting $600/month towards the mortgage (get it way down over the next 8.5 years, but that won't pay it off). When I can get rid of mortgage, monthly expenses are down to $2000 ish. If pension is $1200 then I need to generate $800/month minimum.
B. So about generating $800 per month. First, that 50K. WTH do I do with it so it produces a bit more income, grows better over the next 8.5 years? Roth IRA and dividend stocks? I want to be able to access it should the SHTF... Also, that extra $600/month to invest -- same thing about where to put it. Ideas?
C. Come 59.5 I'll be able to grab the $ in the IRA (that won't be too long after the 8.5 yr away retirement date) but that is chump change...
D. 62? A bit of soc security? Prior to this gig, I was putting $$ in there...
E. Come 65, I'll be able to access the TIAA CREF retirement money (or put it into an annuity or something).
Hit me.
In English and Latin,
ToughMother.