GI Jane Finances

November 14, 2010

Suze Orman: How am I doing?

Filed under: Uncategorized — Tags: , , — gijanefinances @ 9:18 am

I am still marvelling over Suze’s “How am I doing?” guest all week.  Jason, a 39-year-old married man, retired from the Air Force after 20 years.  It appears like he retired as an E-8.  He is in his second career and would like to know if he can retire by age 60?  Jason gave himself a B- for what he had done so far:

Retirement: $190,807

Emergency fund: $73,015

Investments: $166,975

He and his wife saved: $430,797 total.

Mortgage: $269,904

House valued at $295,000.

Income: $6197 a month.

Suze gave him an overall score of B+, but gave a C+ in retirement savings.  I think he has done phenomenal job for retirement.  I have no idea why Suze neglects the pension and only focuses on investments. She ironically opened up the segment about the need to live off dividends.  People need to accumulate tons of money, so they can “live off the dividends” later.   I would think that one would have to have millions of dollars to match what a federal pension does every month.  I would give Jason an A+.

GI Jane

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2 Comments »

  1. If there is a pension in there, then he is probably okay. However, $190,000 isn’t a ton in retirement with that amount alone. He needs to be able to live off the interest for awhile and that amount of money won’t last for that long without having to touch the principle.

    Comment by me in millions — November 15, 2010 @ 11:29 pm

  2. Yes, he does have a pension after 20 years in the military. I think his pension is $2313.45 a month. If he did not have a mortgage, I assume he could live off of that (not knowing what his bills are). His investments and retirement savings are huge considering that there is not a match for military personnel. Plus, he is only 39 years old, but not sure if the wife contributed to the nest egg or not.

    Comment by gijanefinances — November 16, 2010 @ 6:17 am


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