Posted on 09/16/2020 9:31:20 PM PDT by nickcarraway
Dear MarketWatch,
I have five years until I retire. I have a nest egg of $1 million and will also have a monthly military pension of approximately $6,000, and Social Security on top of that.
I like cycling 60 miles a day and want to retire in a place that is known for good, safe cycling. I hate hot humid weather and don’t want a lot of snow. I love craft beer. And I would prefer a place with limited or no income tax on a military pension.
Where should I retire? Fort Collins, Colorado, and Asheville, N.C., seem like good places, but the cost of living in Fort Collins seems above average, and I am told Asheville has a lack of housing.
What other places should I consider and how do they compare with the two locations already mentioned? My wife likes the sound of “the Hill County in Texas,” but she knows the heat is bad.
Dear Charles,
The Fort Collins and Asheville areas sound lovely. And popular places tend to be more expensive — that’s just the reality of supply and demand. If that’s where you want to be, the trade-off might be as simple as a smaller house/condo/rental.
You also could seek cheaper housing a bit further from these two cities — Greeley, Colo. (don’t believe everything about the smell), or Hendersonville, N.C. (recommended here), for example. Or what about Raleigh-Durham, with the American Tobacco Trail as the trail network’s spine? You’d have to accept more humidity with that one, however.
I started my search by looking at the League of American Bicyclists’ bicycle-friendly communities. Five, including Fort Collins, are platinum. Housing in only one is cheaper than Fort Collins, but I don’t think you’ll appreciate the snow in Madison, Wis. I ruled out Davis, Calif.,
(Excerpt) Read more at marketwatch.com ...
Have ridden there. Great island circle with a beach bar.
Marfa Texas
The craft beer revolution of the last 15-20 years makes your first statement at least debatable. You very well may have the edge in bicycle extremists.
Why settle down? Buy a motor home and travel the USA and Canada, seasonally speaking. Don’t need to tow a car if you are a serious cyclist.
I made 17K as an E-4. Talking shit about vets is garbage.
He’s probably >=O-6 with close to 30 years.
Most new issues are coming out with a 3 handle out long, say 3.00 percent due 2050. So your 1mm in bonds will yield you $30,000.00 tax free a year, and you still have your 1mm.
However, with the time value of money and inflation, you'll need to do "tax swaps" of your bond inventory every couple of years.
If bonds aren't for you, buy common stock of companies that Soros and China can't manipulate: CVX, XOM, D, SO, T, etc....make sure they have a juicy dividend of say 3, preferably 4%+ That way you'll get income and the possibility of capital appreciation.
Your 6k retirement income is taxable, so you are really going to make 3.5k/mo after taxes. Your 1mm nest egg should supplement your income, not for depreciating toys.
My worst clients were 2 married 0-6s, they wanted new corvettes, RVs, boat, etc. I, as an 0-3, would chew their ass out on their retirement plans, and I would make them email me "I know this is against the plan for retirement we discussed, but please liquidate funds for a new car in the amount of 80k. We appreciate your advice in preserving our wealth, but we want this car." - That way I'm off the hook since they ignored my financial advice when the market turns or they do something stupid like wreck and are liable for millions.
Anyways, find an financial advisor that was an S-2 from USAA or Navy Federal Credit and listen to them. Have fun. You may want to consider buying a SMALL home in a state tax free state (FL, TX, NV,etc) and get an RV to travel. Everything is online and remote now so you don't have to be stuck in one place. I'm about to sell my FB position from my laptop at Petit Jean Mountain State Park, AR RV spot ;) .
Good luck.
I WISH it were not taxable. It is, except for VA disability.
I WISH it were not taxable. It is, except for VA disability. And San Antonio amid environs are very bicycle friendly.
Great place! Went to MIOBC and MICCC there! I loved taking off for a weekend and just go riding around SE AZ. Lots to see as a history major!
The Forgotten Coast of Florida. It runs along the panhandle from St. Marks to Mexico Beach.
Beer loving, bicycle friendly, gun friendly.
Well, that’s unfortunate. I thought military pensions were treated that way.
Thank you for your insight.
Not sure how 30 years in the military would give him enough time to max out his SS @$3k a month. And you aren’t going to get to be a COL or above if you aren’t in 30 years. The math on this doesn’t seem to work.
But, with 9k a month in retirement, plus...they can retire wherever you want.
With his big pension and SS checks he does not even need to tap into his 1million nest egg if he lives fairly modestly. There’s no perfect place to live- always a trade off. Stay out of leftist run commie-topias.
Try St George UT. This is a cycling mecca.
What kind of cycling? Just bar to bar for beer? Try Key West.
Marfa, Texas! Yes, good call!
Also, the Land Between the Lakes area in western Kentucky/Tennessee (that part of the Tennessse River that is dammed up into the area they call “Kenlake”) is one the best-kept secret retirement destinations.
Plus 1 million saved. Yowsa. Good planning.
Welcome to the club.
I am in the same situation as you. I, like you, paid into both social security and the Fed retirement system. My work that deducted fica tax wasn’t a huge amount but enough that I qualified for social security. When I applied, I was told that I would receive only half of the calculated social security payment because I was also receiving (earned and paid for) Fed retirement.
When they deducted fica from my pay they did not deduct “half” the amount of the tax but took the whole amount and now that I have qualified to receive social security they say I am only going to receive “half” of what other people are entitled to.
I paid the full required amount into both systems so why am I now denied the full benefit?
Another interesting tidbit is that medicare premiums are automatically deducted from my social security. Each year there is a very small cost of living increase and each year the medicare premium goes up the exact amount of the COL increase. Interesting! They give with one hand and take it back with the other.
And now for those of you who criticize Government retires, not all Gov employees are fat cats in Washington D.C.. Many are employed by the Department of Defense supporting our military in various less than desirable locations around the world. Yes it was my choice and, now, I expect to be paid for my service, as was advertised.
You had the same opportunity as I, to choose where to work. I chose the more difficult path which promised a decent retirement. Don’t bitch at me because you didn’t want to endure some hardships in order to have a decent retirement.
And by the way, most union retires have a larger retirement than I do, that is why your auto, for example, costs you an arm and a leg. Go complain about that.
Rant over.
Wow, the military pays better than the private sector...
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