Dual mil couple, (E-7 and E-6 age 34 and 33 respectively) spouse is about to get a substantial SRB, aprox 75k pre tax. We have no debt other than mortgage, approximately 200k in TSP (combined, mine is about 75% of that). We have emergency savings, and a reserve fund of about 20k saved for emergencies, with a plan to have 28k in that account to have back up cash to rent the house we are living in out when we inevitably PCS next. We are planning to retire at 20 I’ll be E-7 with an outside shot of being E-8 high three. She will likely retire as an E-7 high three.
I am hesitant to dump the SRB into retirement because we are planning on purchasing our forever home in the next 7-10 years or so. My initial inclination is to invest a majority of it into an SP500 index fund (FXAIX) to keep it growing and easy to liquidate to use for a down payment on our forever home/property once I retire. We are also planning to use some of it for an overseas vacation in the next few years.
Any advice outside of my plan for what to do with the windfall?
Posted by stanlejm