Monday, March 28, 2016

Retirement savings going forward

Since the husband is leaving the military, he will no longer be able to contribute to the TSP. His new job is with a state university, which comes with some great savings options.

First, there is a 403b plan--just like the 401k plan. And they offer really good investment options. There's also a 457 plan, which you can contribute to in addition to the 403b. So that's $36,000 of tax advantaged savings alone. They also have a HDHP with an HSA. For 2016, a family can contribute $6,750. Add on two IRAs at $5,500 each, and we can put $53,750 into tax advantaged accounts during 2016. And, I'm also considering going back to work--meaning that $53,750 could increase to $71,750! That seems crazy good! We just have to keep up our frugal lifestyle in order to make it happen. If we manage to get through several years without a wrench being thrown in our plan, retirement could come sooner than later.

As I mentioned, we're buying a house. Ideally, this house would be mostly, if not completely paid off before we pull the plug. Our income is not going to be high enough right now to make significant progress on our mortgage, but that may change if one of us gets a promotion or raise.

Big update!

In the last few months, lots has happened. The husband has gotten a great job down in Florida. It's still a few months before he leaves the military and starts the job, but we are looking forward to it.

We looked at renting an apartment or a house near his job, but that didn't appear to be cost effective. Buying a house was a better option, financially. So, given that, we've found a house and are in the process of buying it.

I'm really looking forward to this change. Mainly, that we're "settled." We don't have to move again next year. That fact alone makes it awesome. It's been fun moving around, but I'm tired!