The Retirement Mindset

This will be a brief discussion as I’m not sure what that means, and I’m not currently planning on shifting to the retirement mindset anytime soon. My long term plan has always been to pay off the mortgage and remain debt-free before we think about a self-sustaining income/lifestyle. Due to the COVID-19 layoff, we’ve been granted the opportunity to explore those realities sooner than planned.

Thus far, it seems that if we decided to really buckle down and eliminate most if not all discretionary spending, then we’re already capable of living on my pensions alone. Notice the plural. The pension I draw due to my service-connected disabilities has been a key source of income now that I’m not earning any sort of a normal salary. We, fortunately, had a bit of an emergency fund, just because our checking balance had built up to a decent level by the time of the layoff. That balance has been slowly dropping, but there’s also been a great deal of arguably discretionary spending as mentioned in the last post.

We’re going to try and cut way down on that for the next few months and see if we can get that balance crawling back upwards. At our present payoff level (essentially the minimum), our mortgage should be paid off in about five and a half years. We had been paying it off at about three and a half times the required amount for the three years since I switched to fee basis, so we made quite a dent in the principal. We’ve been paying the mortgage off since late 2013, so we’ve managed about twenty-five year’s worth of payments in under seven years so far. Once the mortgage is paid off, that should free up about 1.5K in monthly expenses. We’ll still have the rather high property taxes and insurance that are just part of living where we do. I sometimes wish they had a state income tax and would pass on some relief to property tax rates, but I doubt that will happen anytime soon. Our property taxes and insurance are the equivalent of many people’s rent.

The biggest concern with the reduced income is if we get hit by a large financial requirement like home/car repairs, major dental/medical expenses, etc. If we had a few of those in succession, we could quickly drain the remaining cash balance we have at present. If I’m able to return to work in the next year or so (hope), then the goal is to build the cash reserves up a bit more and then work on paying off the mortgage. If I’m able to sustain the work level I had previously, this should be manageable in about two years. Having the mortgage paid off will give us quite a bit more breathing room. At that point, any work that I did would be mostly for discretionary income purposes. I can see working one day a week indefinitely at that point.

So, I don’t know if I’ve adopted the retirement mindset just yet because I’m hoping to be able to return to work and if I’m being honest, I don’t want to completely cut out the ability to earn discretionary funds by virtue of the odd shift here and there.

A Few Milestones

Today marks nine years since my retirement from the Army, and it’s been overwhelmingly positive in retrospect. I got a good job, moved back home, and have spent a significant amount of time furthering my development as a musician, songwriter, and producer. There have been ebbs and flows over these years, some times of drama, but mostly a nice steady arc to the days. We got a great house six years ago, and I’ve been enrolled at Berklee Online for the past several years. Aeyong has turned our yard and house into a natural conservatory of sorts, and we’ve got a beautiful green space that envelops our house and will only shelter us further with time. We lost Bridget to the inevitable march of time, but have since welcomed Skittles, our Chihuahua mix and resident spoiled princess of the brood.

I spent about five and half years working the regular grind as a federal employee, but about two and a half years ago I switched to “Fee Basis” which is somewhat equivalent to a contractor, but without the contract. I get paid directly for the work and there’s no ongoing agreement or contract that binds either the VA or myself. That being said, our clinic has had Fee Basis examiners the entire time I’ve been there and long before as far as I know. That switch is probably the single biggest improvement in quality of life I’ve ever experienced, even compared to my retirement from the Army. I went from working full time to working nine days a month and earning twice as much. This is largely predicated by my ability to perform a large number of exams and handle complex cases that the regular federales don’t like to bother with. It’s really been a perfect storm of an employment situation for me.

I’ve had significantly more time to work on my various passions, and I’ve added filmmaking, video editing, video effects, drawing, and writing to the multitude of musical disciplines that provide great fulfillment and purpose to my life. As part of the added boon of income, we’ve been paying our mortgage off at more than triple the required amount, and so we’re hopefully going to see it paid off in the next two years, about twenty two years ahead of schedule. There’s one big milestone that we need to pass, and that’s another salary waiver approval for Fee Basis employees. The VA has been allowing Fee Basis to earn double their normal authorized annual salaries due to shortages of personnel and it’s been a policy that’s required renewal every two years. This year marks the end of a two year period, so we just need one more approval. By all signs it should happen because the VA has been one of the departments that’s seen expansion under the last several administrations.

Once the house is paid off, I intend to keep working at about the same rate I do now, but being completely debt free will put us in a position where we could probably survive without me working at all. I like the extra security of financial surplus, not to mention discretionary income, so I imagine I’ll keep working indefinitely, albeit on the reduced schedule which will eventually decrease even further. A lot more has happened over the last nine years - we’ve both passed fifty and it’s receding below the horizon, we’ve attended a lot of great concerts, and taken a few small trips. We plan to travel more once the house is paid off, although we’re limited by our dogs and some health issues. It can also be argued we’re both home bodies who really enjoy living in our own little world.

File under short term milestone, I’ve quit practicing any musical instruments for the past month, trying to get this chronic elbow tendonitis to fade away. It’s been in the left elbow for almost two years, and the right elbow started acting up a few months ago. It’s just the cumulative effect of playing so many different instruments - guitar, bass, drums, keyboards. It got worse when I bought acoustic drums and had been working on my double stroke by repetitively practicing the stick bounce off the drum head. That shock is transferred directly to my lateral elbow and it really has taken its toll. The problem with the elbows is that we’re constantly using them, and even something as trivial as picking up a coffee cup or tearing a piece of paper can tweak the injury. I have seen some improvement in the symptoms, so I’m hoping to start gradually re-introducing some practice to my schedule starting next month.

One benefit of the extra time is that I rekindled my interest in drawing and writing (which have been gathering dust for years) and I’ve made some progress, although I have a long way to go. I look forward to combining all my various disciplines into great storytelling in the future.