I will have an annual passive income of 47k after tax upon retirement at age 43. I don't know if I will be eligible for VA disability, since I am actually quite healthy with an active lifestyle. For now, I decided not to factor in any disability.
I am hoping to land a job with 60-80k post-tax after military, depending on how my job search goes. If not, I will just go to school full-time with GI Bill.
The only benefit of renting out my current house is to have the renter pay for my mortgage. But it will just even out considering my monthly mortgage rate and insurance, so no extra passive income. I also have 25 years left on it, so I don't know if it will be worth keeping it. My another worry is the huge capital gains tax, if I decide to sell it one day years later. I know I probably won't come back to this area or this particular house.
My partner and I plan on purchasing one in a HCOL area. With my VA loan and our combined income, we can technically afford one without a huge down payment. But of course, having a huge sum of cash will give us more options.
Am I missing anything? I have about 350k in my TSP. I am not super concerned about looking after myself when I am eligible for Social Security and TSP withdrawal.
Ideally, both my partner and I want to settle down in San Diego or PNW.
Thank you in advance for any feedback or areas I may be overlooking.
Retiring soon. Debating whether to sell my house.
byu/throwawaysnrn inMilitaryFinance
Posted by throwawaysnrn
5 Comments
Even if your house keeps it same value as today in 25 years (it wont). You now have a house others have paid for and you can now sell… or keep, or leverage for other properties, say a lake house? If you sell.. the journey ends there. Obviously there are struggles with landlord issues, but that is why you pay a property manager and call it good.
You can exclude $250K (individual) or $500K (joint) of capital gains tax, if it’s your primary residence that you’ve lived in for two years.
https://www.irs.gov/taxtopics/tc701
Put down every ailment you have during your final physical. If you have served for 20 years, you have some problems with you.
I highly recommend submitting your VA disability paperwork. Work with a VSO like DAV. Just because you’re healthy and feeling good now doesn’t mean you don’t have anything in your medical record you need recorded.
If I were retiring, the last thing I would want to worry about is a rental house. They’re pretty stressful and you’ll be at the point where you can get a Cush job and ride it out until you don’t want to