I’m a veteran retired in his 50s! These are my life-saving financial tips:
For those who are new here and just stumbled upon this article, I am Billy, a part-time blogger, and retiree, who wants to share tips and tricks from my own experience and help other people be happy with their finances.
That’s why for today I have planned to tell you my story, the story of a retired veteran who was taken to a “jobless” life sooner than initially thought. But you’ll probably say, “I bet you already planned your retirement life!” Sorry to disappoint you, but not. This is far from the truth.
I began thinking about retirement only on my 40th birthday when everything hit me in the face like a train. (No joke!) Bear with me until the end of the article, and you will learn a lot of life-saving financial tips (trial and error).
I am a retired veteran in his 50s who has worked for the government for many years, managed businesses, and navigated life like everyone else. I had a straightforward plan: work until I was 65 or 70, then relax.
However, my wife had another plan regarding retirement, and I didn’t know about it until the last minute. If you’re married too, you know what I mean. When I lost my job in 2022, instead of being angry with me, she spotted an opportunity where I saw insecurity.
We had discussed her dream of living on the road full-time and retiring early since purchasing a small camping trailer in 2002. With our son, we traveled throughout the Western United States and Canada over the years, but she wished for more.
But enough with spoilers; I just wanted to give you a little bit of insight into how a veteran who retired in his 50s managed to be responsible for giving other people financial tips regarding retirement. Let’s start!
Changes came in waves (and I didn’t realize that)
Since I said that this article will be solely based on my true story, I will start with the beginning, how things started to change from the birth of my grandkid and end with me being unemployed and overwhelmed with no picture of the future.
Our home was located in Asheville, North Carolina, on a large lot with a stunning view of the Blue Ridge Mountains. We were very happy here, and I, for sure, wasn’t exactly ready for what was about to change. Our life was nice, quiet, and modest. We went to our daily jobs (until my wife had other plans); we worked a lot, but we also took the mandatory vacation once a year. Finances weren’t wow, but we managed to maintain a nice lifestyle.
When my son and his wife had a kid, my wife decided to go on a solo trip because I was working. Little did I know that the trip to Boise, Idaho, would be life-changing for both of us and I would soon be a veteran retired in his 50s. I became a grandfather, and a new chapter was soon to unfold. When my daughter-in-law sent me pictures of my wife with the baby a few days into her visit, I noticed a smile I hadn’t seen in a long time.
Planning our move began as soon as she got home. Although it needed some work before we could sell, our house was in good condition, so the small reparations didn’t cost me a fortune. We finally listed the house, and to my surprise, we also found a buyer pretty quickly, and in less than a week, everything was ready to be sold.
Selling the house and making a travel budget
We sold the house to some very nice people, and we were happy about this thing because we didn’t want our nest to end up in some lazy people’s hands.
From the entire amount of money we got from selling the house, we kept a portion available for urgent needs while guaranteeing our long-term security by rolling the proceeds into our IRAs and savings.
We needed the ideal setup for our new way of life—something cozy yet functional and not very extravagant. We downsized from a big house to a well-equipped travel trailer, choosing a Forest River fifth wheel that was easy to tow and had lots of space. We combined it with a used Ford F-250, which is a dependable and reasonably priced choice for moving to our new house.
It was finally happening for me my amazing wife; our new chapter was about to begin! As a veteran retired in his 50s with an extraordinary road map to explore in front of me and a very excited wife ready to travel any minute, I had to do calculations and find solutions for how to maximize our budget. It wasn’t easy but hey, we managed.
Predictable monthly expenses were our top financial priority, so we concentrated on a few crucial tactics. Before we set out, we reduced our debt. We minimized our belongings to fit in the RV, paid off our credit cards, and sold anything we didn’t need. That meant we wouldn’t have to pay for storage units or incur needless costs.
I was on a quest to find discounts, even if they were small
Let’s be honest, no matter how good you are with money, seeing a big discount for a certain product or service is a blessing. Especially in this era where every single thing is expensive as hell.
That’s why one of my best pieces of advice regarding financial tips is to use discount programs to cover your regular expenses. This is what we did!
We enrolled in memberships like Passport America and Thousand Trails, which saved us hundreds of dollars in campground fees, and took advantage of the long-term stay discounts offered by many RV parks.
To make sure we get the most out of every dollar we spend, we also use cash-back credit cards for groceries, gas, and RV maintenance.
I hired a professional to help me manage the money for retirement
Rarely things will go as planned, or if you’re a bit luckier, they will. However, if you feel the ground you’re standing on is a bit shaky and you feel like retirement is suffocating you, leaving you hopeless, don’t be afraid to ask for help.
To make sure you have a plan that will not only let you live your best life but also help you make your money last, it is essential to have help from someone knowledgeable about military retirement. Selecting a knowledgeable advisor who will work with you to reach your objectives while looking out for your best interests is crucial.
I hired a professional to help me manage our finances for retirement. After all, I didn’t want to spend my retirement days staring at financial reports and stock charts because, to be honest, I didn’t even know how to do the calculations properly without missing something. My top goal has always been to protect our assets over time while producing a consistent income. With the help of the professional, we managed to have a combination of dividend-paying stocks, municipal bonds, and moderate-growth stocks.
Among the greatest benefits? Municipal bonds allow a sizable amount of the income in our portfolio to be tax-free, which helps us stretch our budget. In addition, we have a healthy emergency fund in a high-yield savings account, a Roth IRA, and traditional IRAs. I also experiment with low-risk investments in my small, self-directed portfolio.
One thing is for sure: we are not rich people, but we have enough to be happy and tranquil in this new chapter of our lives. We will eventually have to choose when to begin taking withdrawals from our IRAs and applying for Social Security, according to the broker. However, we don’t have to rush that.
Not many people can afford to hire a professional to help them manage their retirement funds, but luckily we have books for this. How to Invest for Retirement: A Simple Path to Retiring Rich, Independent, and Free by Anthony S. Park is a book that is a more affordable option than hiring a professional financial advisor, yet it contains valuable and insightful information. It’s easy to read and understand, and if you’re interested, you can purchase your copy for $13.99.
Never neglect your health!
Now you may ask, what does this have to do with your financial tips, you old man? Well, if you’re planning on retiring earlier than you should, then consider your health insurance too.
For us, this was very important. Besides all the money we had to have for the road, fuel, etc., we were also aware of the fact that we weren’t yet eligible for Medicare. We chose a high-deductible health plan with a Health Savings Account (HSA). In addition to providing us with tax advantages and a safety net for medical costs, it reduced our premiums.
Always think about taxes
I don’t know how to put it, but there is no chance as a retiree we can skip taxes. We absolutely cannot and the sooner you understand this the better. It’s true that as a veteran you might pay less, or you will have certain benefits depending on your situation, but knowing how your “money actions” can affect your overall tax burden is crucial because it might even become more complicated.
There may be tax repercussions when required minimum distributions are taken and funds are taken out of accounts. To make the best decisions and prevent paying out more than you anticipated or planned, it’s critical to know what will be incurred in advance.
Keep your expenses in check
As a veteran retired in his 50s ready to hit the road and have a home on wheels, I had to be careful of how much I spent. Besides having a great professional who is available anytime to help me if I have questions regarding my retirement funds, the money I and my wife are spending was my duty to handle.
We’ve talked, and we set a 4% rule (this is my true story, and this is what worked for us, but you are free to set your own percentage rule). The 4% rule is intended to keep up with inflation, but it cannot tolerate significant increases in spending beyond that point.
Even though the occasional splurge is normal, making it a habit might damage your finances. I suggest tightening your belt if you are unable to return to work for several reasons. This may vary from person to person, depending on your retirement budget and how much you want to spend on unnecessary items.
Even though our house is currently on wheels, we continue to lead ordinary lives. We have costs such as paying for a campground shower or using a coin laundry every few weeks. To stay in touch, communicate, and view my son and his family through Zoom, we also pay for Starlink internet, which was the best price-wise and connection speed.
Invest if you can (and don’t be afraid of it)
This new chapter of our lives began with so many rapid transitions I thought it was a dream. And even now when I write about it, I can still agree with this.
We were lucky enough to sell our home in less than a month; we had a little bit of savings, and we also had the 401(k), Roth IRA, and traditional IRA. We also wanted to invest in something, but we weren’t sure what was profitable, so we talked to our financial advisor.
I’m telling you this because it’s never too early to begin investing and saving. You won’t have the same source of income when you retire. To ensure that you can enjoy your golden years in total financial comfort, you should begin saving for retirement early and frequently.
Even if you’re eligible to withdraw money penalty-free…
…Try to stay away from this as long as you can. Why? As previously stated, we discussed everything with our advisor and inquired about the maximum amount of time we could put off our withdrawals. And let me tell you why.
When funds are taken out of your retirement account, they are no longer eligible for (possible) compound interest. It might make sense if you need the distributions to pay for living expenses after being laid off or if you retire early. However, it might not make sense to start taking withdrawals from your 401(k) if you find another job and pay your expenses that way.
Create a retirement you’ll love to live in
Do I regret making these life decisions for our new chapter? Absolutely not. I wish I had embarked on this adventure earlier, but I count myself fortunate. Things worked out even though I should have planned for retirement sooner.
I draw back the shade beside my bed every morning, in part to let in the morning light and in part to remind myself of our location. The view is ever-changing.
We spend one full day camping in Tennessee’s breathtaking hills and the next day touring New England’s historic towns. We explore new trails, eat local cuisine, and go to museums, historical sites, and unusual celebrations, such as Nebraska’s yearly Sandhill Crane Migration Festival.
We also make sure to get our granddaughter some books or small items to send her, and then we see each other on Zoom and talk about what she likes the most. She is constantly full of stories and eager to share them with us, whether it’s about a funny moment at school or her most recent drawings.
As a veteran who retired in his 50s, a husband, and a grandfather, I can say that my life is pretty awesome. And I cherish it the most!
Bottom line:
Life is more than just working 9 to 5 for a bad employee, paying bills and minding inflation, watching horrible news on TV, eating, sleeping, and repeating.
Discovering who you are, and your interests, traveling more, spending more time outside, and being pleased with and thankful for your life should all be important aspects of living.
Life could be so much simpler, but we as human beings like complicating it A LOT. Take some words of advice from a fellow retiree just like you: You deserve the best things in life! Trust yourself a little bit more.
Please leave a comment below if you have a special retirement story to share as well.
Related useful article: Is Your Water Bill High? Here’s How to Save More Money.
