Welcome to 2025!! Let's talk about the financial plan for the year. My husband will retire officially from the military on February 28, 2026. We have 14 months to prepare for this change. We have been planning for this in many ways for years, sending more to our retirement fund than many and keeping our expenses low.
Our main goal is to stockpile cash to assist with the transition. Worst case scenario it's money will live on to supplement my husband's retirement pay (which is less than half of what we receive now). Best case scenario, he will find another job (which he wants to do) and we can use the cash towards buying a new vehicle to replace his 2007 Honda Ridgeline.
We are shifting our retirement contributions. He will continue to contribute 17% of his Basic Pay to the TSP (Thrift Savings Plan). We will stop automatic contributions to our Roth IRA's and put that money into a CD paying over 4.5%. If he has a job before the 2025 contribution deadline (April 15, 2026) will send this money in for investment. We do max out both of our Roth IRAs (we are over 50), so this will result in $16,000 by year end and $18,666.66 by the retirement date.
I am estimating on the high side that we can save an additional $45,000 by year end. On the low end maybe closer to $40,000. It's a fine line this year of stockpiling cash, but also enjoying the higher income while we have it. This cash will get funneled to CDs or money markets where we can be earning some interest. I think we are around 4% APR on our main savings account. I will keep my eye out for good offers!
I will continue to save all interest earned and deposit credit card rewards money into our savings account. We do use credit cards and pay them off in full every two weeks, we do not pay interest on our credit cards.
I will note mostly for myself that we ended 2024 with $51,826.53 in cash. We will approach or exceed $100,000 in cash by year end or when my husband retires.
I have no doubt, based on years of experience, that we will make great progress on our goal. Just having a goal and working towards it means we will get close, meet it, or even exceed it.
