Hello all,
This is my first post after lurking for many months...
I have a new surprise situation that I really need help with and I know the wonderful MMM community is about the only place I can get the good advice I need. Here goes...
I am in the process of getting medically retired from the Army after 16 years if active duty service. My wife and I are both in the Army. She has 18 years of active duty service, and will be eligible for retirement in 2 years. My current situation is as follows:
Retirement savings:
TSP~60K
Roth IRA~50K
Cash savings ~10K
Other info: We have a rental property that is costing us about $70 per month. The $70 basically represents PMI (I know. Now.). We are building good equity.
Right now we have about 55K in debt. Highest interest is 10% as we have excellent credit scores (I found mustachianism too late).
Our income is about 125K per year.
Besides our debt payments, our monthly outlay is about 3K per month, with sporadic splurges (while pretty frugal, my wife has not converted the MMM lifestyle yet).
I will soon be receiving 50K in inheritance.
I invest for my wife and I. She has zero tolerance for financial risk. The TSP and IRA are in my name, the cash savings in hers.
Once I get medically retired, I will make between 2 to 3K per month. Once retired, my wife will make about 2K per month before any VA compensation.
What I want to know is:
Do I use my inheritance to normalize cash flow or do I save it? Our debt, besides our mortgage, will be paid off fairly quickly.
Do I continue to save for retirement? I feel with our future retirement earnings an my wife's impending come-to-MMM moment, we will be well-funded before any "bridge careers".
Any thoughts?
Any feedback will be greatly appreciated.
