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  1. #1

    Time Versus Money

    I am looking for advice from people who have already been through my current situation who can provide me insight.

    I am 45 years old. I retired from the military in mid 2015 after 24 years. I took no break and went to work as a government civilian the next day. I have one college student son who is a Sophomore studying engineering. I have been married for 20 years and my wife is a housewife.

    I am in good health and have a family history of living into the 90's.

    I am torn between quitting my job after my son finishes college or continuing to work for seven more years to get a second pension.

    Here is the math.

    Current Retirement plus VA disability - 63k a year. (free healthcare for life unless congress changes the law) I also have two rental homes which make a small profit as well. I have 10 acres of paid off land and enough in stocks to build a home in cash. The only concern is most of my money is tied up in the TSP and a Roth IRA which means I can't just pull it out and build my house without a penalty. I have lowered my TSP contributions and started placing most of my monthly savings into a regular vanguard account. I plan on building this up so I can use it to pay for the build if I decide to quit. I spend roughly 50K a year plus all home expenses (my current job covers all home expenses in a stipend) I don't spend any of my current salary, I save about a third, my sons college is another third, and the housing stipend is another third.

    I drive a 2007 VW rabbit, I paid $3000 cash for it; my wife also drives an older car.

    Ideally I would like to live a higher class lifestyle in retirement and have saved with that in mind. My original plan was work until 57 and have a combined retirement of about 100K a year.

    However the fact that I can retire at 50 and still make 75K a year is very enticing.

    For what it's worth I could quit today and still make about 65K a year. I would have to take about $120K out of saving to pay for my sons remaining college costs. I am not willing to do that.

    For other people who have been through this conundrum, what did you choose? Do you have regrets? Would you choose the same thing?

  2. #2
    Your son has 2 years to go so you would be 47 when he graduates. and working for 7 more years to get another pension would leave you retiring at 54. With 100K plus per year and healthcare. That's what *I* would do!

  3. #3
    This is my vote. Spend the next 7 years working and socking away the good money. Buy a good car before you retire that will last for many years.

    Then retire in your mid 50's. Most people would love this.

    Can your wife do a little part time work to qualify for benefits?

  4. #4
    Just for clarification my son is doing a dual degree Mechanical and Nuclear Engineering program and I am encouraging him to do an MBA after this. This will take roughly 4 more years, and I am giving him 6 months to find a job.

  5. #5
    I think we might look at money differently. I would probably want you to have a lot more in savings than you do.ce.

    The important factors, do you enjoy (of at least do not hate your job)?
    If you do not hate the job I would consider waiting until your son graduates and has a job. Then retire if you have something to do. I would probably go for the second pension.

    I think you should find an hourly financial planner to review your plans and give you some advice. Not thinking of someone to manage your investments. Just to offer advice.


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