Am I dreaming or is there a possibility: Retire at 45?

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five2one
Posts: 136
Joined: Thu Jul 05, 2018 6:05 pm

Am I dreaming or is there a possibility: Retire at 45?

Post by five2one » Sun Jul 15, 2018 6:21 pm

Doing some planning for post-military life and the numbers look promising...almost too good.
This is blowing my mind as I try to wrap my head this possibility.

Essentially, I can retire at 45 from military with sufficient income that it would cover basic necessities plus car payment and have a little left for investing. I would still work but I would be a WANT TO not NEED TO and kids would be in middle school approaching HS.
The financial numbers would include investing.

Aside from current budgeting numbers and kids college, what am I missing?

The downside is we would be in a slightly smaller home but sufficient and with VERY GOOD schools.
Granted, this is a complex topic and I will lean on my financial advisor for solid data & feedback.

Those who have gone down this road, what surprises (good / bad) did you find along the way?

Thanks

stan1
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Joined: Mon Oct 08, 2007 4:35 pm

Re: Am I dreaming or is there a possibility: Retire at 45?

Post by stan1 » Sun Jul 15, 2018 6:39 pm

What would you want to do with your time? I know many military retirees who still like working. Some want fast paced jobs where they stay active and feel like they are contributing to something important. Others are more selective about choosing jobs they enjoy. Many need the extra income.
Any way they worry less about layoffs because they have their pension and retiree health benefits to fall back on if needed.

abonder
Posts: 261
Joined: Sat Nov 03, 2012 10:52 am

Re: Am I dreaming or is there a possibility: Retire at 45?

Post by abonder » Sun Jul 15, 2018 6:48 pm

You can get a lot of great advice here...so much so that you might not need to consult an advisor. I would suggest posting in the recommended format so you can get detailed and structured feedback.

As for the broader questions about early retirement - all I can say is that this is a great place to get a range of views. There’s a lot of early retirees here.

I’d say that, if you can stay in your smaller home, you’ll probably help yourself greatly, regardless of whether or not you choose early retirement. Also, if you kids are approaching middle school, then you’re not too far from having them launched...in which case having a smaller domicile is preferable.

Sasquatch
Posts: 291
Joined: Mon Apr 09, 2018 12:44 pm

Re: Am I dreaming or is there a possibility: Retire at 45?

Post by Sasquatch » Sun Jul 15, 2018 7:42 pm

Does your retirement health insurance benefits cover your entire family? A visit to a hourly fee CFP might be worth consideration. If you go back and read posts there is so much information available it’s mind bogle-ing (forgive me, I couldn’t help the pun) :D

totallystudly
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Joined: Sat May 31, 2014 9:02 pm

Re: Am I dreaming or is there a possibility: Retire at 45?

Post by totallystudly » Sun Jul 15, 2018 7:52 pm

What do you have saved in your tsp? Do you own a home or would you be buying first time? Typically the military retirement isn't enough to retire on just that, especially if you are used to living on much more and don't have savings or investments to at least maintain your current income.

If you had a paid off house or mostly paid off house with mid 6 figures in retirement accounts, it would be a totally different story.

tim1999
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Joined: Tue Dec 16, 2008 7:16 am

Re: Am I dreaming or is there a possibility: Retire at 45?

Post by tim1999 » Sun Jul 15, 2018 8:03 pm

What are you going to do with your time? Do you have hobbies that you are interested in pursuing further? If so, do they cost money? I would not want to retire at 45 only to have to sit watching TV/playing video games or just go for walks in the park because I could not afford to do anything more.

abracadabra11
Posts: 135
Joined: Sat May 01, 2010 2:09 pm

Re: Am I dreaming or is there a possibility: Retire at 45?

Post by abracadabra11 » Sun Jul 15, 2018 8:15 pm

...I will lean on my financial advisor for solid data & feedback
Recommend you use this board to post additional details about your financial situation and the work performed by your adviser. You may be able to retire more comfortably after reconsidering the nature of this relationship.

warner25
Posts: 415
Joined: Wed Oct 29, 2014 4:38 pm

Re: Am I dreaming or is there a possibility: Retire at 45?

Post by warner25 » Sun Jul 15, 2018 8:20 pm

It can certainly be done, so you're not totally dreaming. A retired officer's 20-year pension and benefits are probably better than a median working family's income and benefits. And if you've constrained your expenses over the course of your career to be equal or less than your pension, you also probably have about a million dollars in savings (which makes me wonder, why are you talking about car payments?). I'm halfway there myself.

The big question that comes to my mind is: What does your spouse think? After probably a dozen PCS moves all over the world, multiple deployments, etc. where does she (I'm making the assumption) want to live, and what kind of lifestyle does she desire? Is she OK with a "slightly smaller home," for example, or is she tired of making sacrifices at this point? What about college for your kids? In another post you mention using your GI Bill for your own education.

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