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Hi All
I have 18 years of experience , out of which 9 years I worked in Manufacturing industry in Quality and Planning area, then I shifted my career to SAP Functional in Manufacturing domain and in IT industry now for last 8+yrs. In between I have done executive MBA from IIM Kozhikode.Am I eligible to work in consulting in Bain India and Bain any other country?
Any advice on getting started in UX?
Finish strong tomorrow. #Bankerproblems
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You are assuming uniform high growth in your investments, which is unrealistic.
In a down market it’s possible your investments could be significantly depleted by the end of your college plan.
There could also be further expenses such as kids wedding, home deposit, etc that you choose to pay for.
You do get a huge safety net from the military pension & insurance and your eventual social security, to such a great extent that you don’t really *need* anything from your investments (aside from a commitment to fund your kids college)
I think the question would be do you continue working for a few more years, to give you more safety, a larger home when returning from traveling, and a bit more luxury choice when traveling.
There’s no correct answer here, your choice.
Also if I understand correctly, No survivor benefits also seems like a curious choice?
What if the worst happens and he dies when he is 50? It seems you could survive on social security, but not sure if you have another plan?
Getting him a 25 year term life policy could be an option?
This is a great insight!
Mentor
If you find that your burn rate is higher than expected after 7 to 10 years, and/or investment growth stalls for a long period of time, then what? Would you go back to work?
Your calculations are pretty aggressive, especially with the looming potential of a prolonged economic recession from an economic policy that is too heavily tied to AI and generally pissing off the rest of the world. I’d commit to working another 3 to 5 years longer than you currently expect to so you can build a buffer for the worst case scenario.
Mentor
That’s a good mentality to have.
You may want to weigh the mental strain on having to go back to work 7 to 10 years into retirement vs just working an extra 3 to 5 years up front to help build that bigger buffer that is more likely to survive a longer timeline.
…receive approximately $8k per month from military pension and VA benefits for the rest of his life (don’t plan on paying survivors benefits). Healthcare will be covered by Tricare. Our monthly expenses will be $12-14k per month for the first 5 years until all our kids go to college, so we’ll be withdrawing $4-6k per month from our Roth contributions to bridge the gap. After that we plan on selling everything and slow traveling the world on $5k per month and investing the remaining $3k from his benefits. The plan is to travel for 5-10 years until we get tired, at which point we’ll move back to the U.S. and buy our forever home close to family.
What am I missing? Poke holes in my plan? I need to make sure that we’re covering all our bases.
I’ll be 46 and he’ll be 40 at retirement.
Right so you’re putting more than 10% of your portfolio into something making maybe 3.5%. And I know that’s the average return I just don’t feel confident we’ll hit that. Especially as that includes multiple 20% years here recently. It’s not to say it’s not doable that’s just where my concerns are.
I would not do this. Sounds like you need another 10 years or so and a more realistic growth rate. I’m also not following where the funds would come for the dream home. How much do you anticipate that will cost?
3% annual appreciation for 19yrs
I’m in a similar boat but I’m going to be dropping to a less demanding job to have steady income and my spouse will be retiring with the military pension. We have significantly more saved than you have listed and I would not feel comfortable without a job and 6 kids. Have you tried living on your expected income post retirement? Kids are really expensive, especially the older they get (food, clothing, technology, sports, etc). I would recommend you try living on the reduced income before you stop working - unless you’ve already tried and it works.
Why didn't you elect survivorship benefits on the pension ?
So you'd use the term to buy an annuity to replace penaion? Have you calculated the NPV of what that would be in a lump sum?
It’s quite an aggressive plan and hinges on 10-11% investment returns over all the next 5-10yr. It also does not factor in kid’s higher education expenses (unless they are on their own for that). How many kids? And ages?
Besides the retirement accts, any other savings and taxable investments asset?
$5k for monthly travel is unrealistic unless you plan on backpacking and just doing no frills type of trips.
My views could be influenced by me living in a HCOL area, perhaps where you are cost is much lower.
I would take a lavish trip when he retires. See if you can take a couple months of LOA. Relax, unwind, check off some bucket list items, then go back to work for another 5-10 years.
You don't have enough to retire. You need at least $1.4M and that's for 1 person. Are you going to pay over $1000/mo for health insurance with a $9000 deductible?
They have VA benefits for healthcare and an $8k per month pension is worth $2.4M in FIRE terms.