big8pointer
Dryer sheet wannabe
- Joined
- Jun 15, 2018
- Messages
- 22
Hello Everyone.
I come to the site regularly to read members post's and have learned a lot by doing so. Thus, I have now decided to post and get some advice from members.
I am a 60 year old male, turning 61 in November, and my wife is 52. My wife's 24 year old son currently lives with us and has a full time job.
We are looking to move from NJ to either TN or SC . This would mean we would quit our jobs. I currently hold full-time employment with $100K/year salary and carry the health insurance for wife and I. My wife works part-time with @ $30K/year salary.
At this time, it is undetermined whether my wife's son will move with us.
We currently own a town home with a 30 year mtg @ 3.625% and 24 years left on the mtg. We have a $228K principle balance on the loan of $258K. Town home valued at @ $370K - $380K.
Assets include -
$70K in non-IRA CD's, $86K in IRA CD's. CD's have average APR of 2.5% and terms of 1 years and 1.5 year.
$41K in bank savings accounts.
IRA - $420K
ROTH IRA - $116K
Brokerage - $62K
Wife IRA -$49K
Wife ROTH IRA - $46K
$115K in my 401K account invested in Fidelity 500 Index fund
My equity IRA and Brokerage accounts are made up of 53% common dividend paying stock's, 30% REIT's, 10% Preferred Stock, 6% BDC's and 1% CEF's. My wife’s IRA equity accounts made up of 67% common dividend paying stock's and 33% REITs.
As it stands now, my equity accounts throw off $37,400/year in dividends. My wife's throw off $5,000/year in dividends. We would not be able to access her dividend income until at least when she turns 59.5 years of age. The CD's deliver @ $4,000 of interest per year.
We basically would be using the dividend's and interest to live on. Plus, I am thinking that I could also pull S.S. In November of next year when I turn 62. That would be @ $2,100/mth.
So, our plan would be to sell our town home here in NJ sometime in the Spring/Summer of next year. If we sell for @$375K, we would clear somewhere @ $135K. We would either move to apartment in eastern TN or SC somewhere south of Charlotte, NC. The apartment's we have been looking at in these areas would have monthly rent anywhere from $1,000/mth for 1 bedroom (son does not move with us) to @ $1,300/mth (son moves with us).
Given that I would be quitting my job, we would most likely secure health insurance through the ACA.
While in apartment, we would determine if we wish to build a house in a HOA based community complex that offers amenities such as pool, clubhouse, etc. such as what Lennar builds in the Fort Mill SC area or D.R Horton and Smithbilt builds in the Knoxville TN area. We would look to utilize an asset depletion mortgage to purchase with $100K down payment.
Doing some of the math of mortgage payment and taxes in these areas, we could pay same or less in monthly payment (P.I.T.I) vs paying rent.
This is a big decision to make, but if we could do this, it would give us freedom to enjoy ourselves and do the things we want to do vs getting up each work day at 3:30am to deal with the rigors/stress of a job .
Looking for some thoughts and suggestions from members on our plan of action to throw in the towel on a hectic life and to start early retirement.
I hope I provided enough information for everyone.
Thank you and very much appreciated on folks thoughts.
I come to the site regularly to read members post's and have learned a lot by doing so. Thus, I have now decided to post and get some advice from members.
I am a 60 year old male, turning 61 in November, and my wife is 52. My wife's 24 year old son currently lives with us and has a full time job.
We are looking to move from NJ to either TN or SC . This would mean we would quit our jobs. I currently hold full-time employment with $100K/year salary and carry the health insurance for wife and I. My wife works part-time with @ $30K/year salary.
At this time, it is undetermined whether my wife's son will move with us.
We currently own a town home with a 30 year mtg @ 3.625% and 24 years left on the mtg. We have a $228K principle balance on the loan of $258K. Town home valued at @ $370K - $380K.
Assets include -
$70K in non-IRA CD's, $86K in IRA CD's. CD's have average APR of 2.5% and terms of 1 years and 1.5 year.
$41K in bank savings accounts.
IRA - $420K
ROTH IRA - $116K
Brokerage - $62K
Wife IRA -$49K
Wife ROTH IRA - $46K
$115K in my 401K account invested in Fidelity 500 Index fund
My equity IRA and Brokerage accounts are made up of 53% common dividend paying stock's, 30% REIT's, 10% Preferred Stock, 6% BDC's and 1% CEF's. My wife’s IRA equity accounts made up of 67% common dividend paying stock's and 33% REITs.
As it stands now, my equity accounts throw off $37,400/year in dividends. My wife's throw off $5,000/year in dividends. We would not be able to access her dividend income until at least when she turns 59.5 years of age. The CD's deliver @ $4,000 of interest per year.
We basically would be using the dividend's and interest to live on. Plus, I am thinking that I could also pull S.S. In November of next year when I turn 62. That would be @ $2,100/mth.
So, our plan would be to sell our town home here in NJ sometime in the Spring/Summer of next year. If we sell for @$375K, we would clear somewhere @ $135K. We would either move to apartment in eastern TN or SC somewhere south of Charlotte, NC. The apartment's we have been looking at in these areas would have monthly rent anywhere from $1,000/mth for 1 bedroom (son does not move with us) to @ $1,300/mth (son moves with us).
Given that I would be quitting my job, we would most likely secure health insurance through the ACA.
While in apartment, we would determine if we wish to build a house in a HOA based community complex that offers amenities such as pool, clubhouse, etc. such as what Lennar builds in the Fort Mill SC area or D.R Horton and Smithbilt builds in the Knoxville TN area. We would look to utilize an asset depletion mortgage to purchase with $100K down payment.
Doing some of the math of mortgage payment and taxes in these areas, we could pay same or less in monthly payment (P.I.T.I) vs paying rent.
This is a big decision to make, but if we could do this, it would give us freedom to enjoy ourselves and do the things we want to do vs getting up each work day at 3:30am to deal with the rigors/stress of a job .
Looking for some thoughts and suggestions from members on our plan of action to throw in the towel on a hectic life and to start early retirement.
I hope I provided enough information for everyone.
Thank you and very much appreciated on folks thoughts.