I’m planning on retiring in the next four years and am curious as to how many folks continue to save and invest post military retirement. While I originally had intentions of retiring entirely, I’d really like to work part time to be able to sustain my current lifestyle of being able to travel and indulge in my car hobbies.
My wife (retired military) and I are expecting to have roughly $500K saved across our retirement accounts by the time we retire. It’s not a ton, but I’m banking a lot on our military retirement and don’t think we will really touch our TSP/IRAs until much later (if at all). We are anticipating having around $7000/mo in income from military retirements and have some rental properties we are hoping to liquidate to hopefully pay for our “final” home in cash.
I’ll be retiring relatively young (43), have any of you stopped contributing to retirement accounts post military retirement despite you continuing to work?
Saving post retirement
byu/Outofcontrolpilot inMilitaryFinance
Posted by Outofcontrolpilot
2 Comments
You have to watch out for oversaving. There comes a point where you need to enjoy your self if you already have a military retirement with a post job. I would only max roth ira(tsp if you get government job)each year and get my house paid off at that point….you are miles ahead of most civilians. As long as you dont have any crazy addictions enjoy retirement and invest in the basics.
Remember you won playing the long game. Not a lot of people have that discipline 🫡
DONT FORGET TO LOOK INTO VA BENEFITS!
You should start with the end in mind and work forward. How much will the $500,000 grow to? Do you have your emergency fund? What are plans for future expenses like cars? I personally stopped maxing out my TSP because I didn’t want to overfund my TSP but I’m still add to my ROTH IRA (long-term care bucket), sinking funds (next car, yearly expenses, 529, son’s car ) and brokerage account (future home expenses). My pension will be close to $100,000 a year (O-5 @ 28.5 years) and I want to enjoy my money now.