Pension at 47, want to start a business, interested in your thoughts
Hello all!
I am a 23 year old male, married, and interested in starting a business in the near-ish future and wanting opinions.
My finances are as follows:
-Currently 58K salary(~3k/month after taxes). Will increase to ~103k by end of next year/beginning of 2017
-Wife makes ~1k/month after taxes
-40-48% savings rate currently depending on the month, not planning to increase expenses when I get raise
-Federal employee, extremely secure job
-$7,600 in TSP/Roth IRA
-$8,500 in Cash
-Only putting 5% into TSP right now to get full 5% match
But here is the kicker.. I am going to be eligible to retire at 47 with a pension equal to 39% of my top three earning years. I will also have the opportunity to work until 56(unless I get into management which will allow me to work longer) and get a 48% pension.
This pension makes me really question focusing on extremely early retirement(think early 30s) when I can save what I am now or less and have a pension that is equal to what a lot of people's goal is for a SWR on top of my savings.
The issue is that in the near future I would like to save up enough money to start a construction business on the side(building new homes to sell) and it takes money that I could be putting into my TSP and reallocates it to a savings account so that I can have it available to start the business. My father builds houses and is willing to help me get started by teaching me how to build and the profit margins are extremely high, so it is extremely tempting to put money towards this instead of in my TSP.
I know that in the end it is a decision I need to make myself, but I would love to hear some opinions in case I am missing something, or at the very least talk about my options are. I know that I can save plenty to retire before I even qualify for my pension, but it is hard to do with that much guaranteed income is on the table for the rest of my life.
Thank you,
AC
Posted Dec 2, 2015, 10:49 PM UTC