How Do We Balance Gazelle Intensity With Our Retirement Goals?
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Kate lens in washington, D. C. Hi glen. How are .

you Better than .

we deserve? What's up in your world?

Um so my husband is active to the air force and spent in seventeen years and we're in the left hall here before he retires ah and we were a bit later the game with investing in all of that. And he has about fifty thousand in his or one or his grow and we are in baby steps three now we causes that and got through our our baby steps and were going to be done with baby set and set three the question how um and thirty seven hundred forty four thanks .

for your service by the one okay and your questions.

Well thank you. The question is, should we stay in order, try to come up with, can we hit a hundred k in his raw before he retires, get that magic number in order to do that? You know, I am not sure I had IT out of your guys the show or a just a financial conversation is that you can get one hundred thousand dollars into your um into an an uh a retirement fund because it'll just have to run you won't able to get any more into IT. Um that battle set is the best for IT could grow the fastest for the next you know twenty years or so. The full retirement is .

that do you do you work outside the home?

Nothing more. We have two kids and now home with the two.

So when hey retires of this twenty year trip, he's going to get the twenty year wonderful military retirement and he will have some fifty two, one hundred years somewhere in their sp rough, the three of savings plan that the military offers. He can roll that to an individual rough to be managed by you gas with your smart vesta pro at that time um but that's not the end of the story. He's not gonna be, but starting something years old.

I mean, so what's he going to do in what's the next chapter of his life? gonna? He forty .

four right now, forty seven.

He he leaves pop, it's just a child. So what else is going to do after that?

Um he was and he wants to go back to school.

And so and onor, it's one of the few things my tax dollars go to that make me proud so um thank you again and yeah go to be the world's best P T, and make a hundred a year and larger for o one k doing that. By the way, as long as you have an earned income while is in school, if he goes on does something and that's not military retirement, you have ever earned income, you can do two routh areas every year yours. And here is individual.

You think we should roll his his military roll over into an individual I didn't think about yeah.

that helps you to manage IT Better because the tsp has decent plans. The sea plan is okay. The s and the iron ore, okay, and that's what we tell people to put in most other in the sea because basically in S M P index is what IT is.

So it's gna do pretty well, but you can do Better. Or the smart rest pro picking mutual funds that are outperformed that once he's out OK, you can't do IT till this out, but then you guys just continue to do individual rows. And in his next chapter, you're going to continue to save if you're going to be fine if you don't make IT to one hundred. Case of my point, you haven't missed the boat on being million hairs.

Yeah, yeah. I think that's my sitting is the money that we would have to put in, in order to hit the hundred k would literally keep us disable?

No, yeah. no. When you get a baby step for, you need to be intentional, not intense. Intentional can include a level of intensity. But IT doesn't mean we don't go on vacation, we don't go out to eat, and we don't have a new couch with a spring .

sticking through.

There we go, you to start having a life one hundred case is not that magical yeah and .

it's interesting, kate and actually davia, I would be interested in your thoughts on this because there is a lot in the in the social media RAM with people giving financial advice or even in podcast, youtube all that where they're like, oh, hit millionaire at us by this age h hit one hundred k in your in your rough and me.

there's these so it's a tiktok. Well, not necessarily.

but that is a piece of that's a way people talk about being intentionally have a number out there, a dollar amount. And what interesting kate in or at least for me, that's why I want to get your thoughts on the step. But there's a point where that number can become almost this idle thing.

If we just hit this my life, everything's going to be OK. Don't we're not to make IT? Yeah and it's a little bit arbitrary. That's why I love the first financial piece, right? Like we talk about ancient because peace can mean all different things, all different numbers for different people, right?

Because you have hit a million dollars doesn't mean you necessarily have piece if if depending on who you are as a person, right? And if anything, you're like scratching to get more. Oh, I don't feel fulfill now. And now that finishing moves and moves and moves.

So there's something more holistic that I want you guys to talk about as a family and not just a number because as numbers, they feel intent to me like I get like eagle oriented and like shoot for a goal, but have a goal that has like you guys in IT like the character and who you are, what you want for your family. I think there's something there that's more fulfilling and again, peace maybe to make sure that we can retire and enjoy life. But there's just something and people do that a lot.

and I don't know, artificial to the point that IT drives your point to takes away the couch in the second car and next, that is not right. So because you still can't get there, we don't want you to retire. Kay, here's the point. If you say fifteen percent .

of his and what's you make, okay.

So you know, let's call IT one hundred k for round numbers, fifteen K A year for three years at forty five. That's what no growth. Yeah so you're .

there here we fifty .

now plus four times. M .

yeah, I get I mean.

yeah, he does. You're not that far and you're gonna some growth that that that c plan probably up twenty percent the last twelve months.

Yeah yeah, the numbers IT has .

been looking nice. Yes, done good.

I mean, stock market done. And what you mean about the .

I fifteen percent out right now? If you on fifteen percent out now, IT does get you two hundred k and you still get a budget of life in there, then everybody's winning in this. And by the way, go ahead and extrapolate out with a couple years off for P T. School and then kick back and at eighty to ninety to one hundred k for the remaining working years of his life, the next what twenty some years or so as A P T, and and put fifteen percent of that income away into retirement. Meanwhile paying off your house and you can be worth about eight, ten million dollars when you get to sixty to IT.

I'll hold you to that.

I'll give you a call back. yes. Well, if you do what I tell you to, you work so I mean, I i've got million's all over amErica that they're called baby steps million's.

They're all over the place because I follow this stuff. It's not cause i'm magic. It's cause compound interests magic. It's caused just steadily investing is the key and it's not one hundred. Now the fun thing, Rachel, about I didn't know this social media trunk because as you know.

I don't do social media but but I think I ve had some of our personal or not try to hit a million about that .

is as matt as easy. So here's the thing. I don't like the artificial pressure that puts on you this weird, which is what he was strugling with. But what I do like is this, if you are investing and your averaging stock market rates of return, you're going to average more than twelve percent.

So let's dumb that down to ten percent if you're making ten percent on your money, here's some easy math for your a lump sum will double every seven years. So if you're thirty five and you have one hundred thousand, no, he's going to be forty, okay, so he's forty five and he gets a hundred thousand boxer, whatever the number. Yes, OK.

Then you can say that. Then you could say, okay, then seven years later, that's going to be two hundred and fifty two and fifty nine, that's going to four hundred. And at sixty six, that's going to be eight hundred and that's adding nothing to IT.

Yeah and so we're gona have one point six million in our seventies with adding nothing to IT. So I can't like that goal. That's a good reason to reach for a hundred because I I want to turn into that. Yes, but I think our fifteen percent rule will get you there faster.

Yes yes, and not work the bank yeah. And there's a fifteen percent role that I like that it's a habit and that's so much about winning with money. It's just how you view IT and how you use IT in that fifteen percent.

I have IT verses like i'm going for the specific number I think we can get. So I don't infatuation ait IT was like, oh, I just had this number by thirty five. You, it's all great. It's all great and then you're like, well, you get there and like, have you really created a life that's a lot like there's just life is more .

holistic than a number. If hit my ight go by a certain date at my fitness plan as a failure. No, it's not.

You still lost weight and you still change your habits, which is more important than eating. Weight loss go by a certain day. That's your point. Amen, brother. dave. We go, sister. actual.

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