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How should I quit working?
Old 01-13-2013, 01:58 PM   #1
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How should I quit working?

My house is old and not suitable for old age and needs cleaned and painted and carpet.
I am 64 and have 658K saved and can get SS anytime.
I threatened to quit this week because I was mad at the company.
I am feeling stress and had high blood pressure before, do not want.
I need about 36K to live so with 24K SS and 8K rental income I only need about 4K from investments but want more for a cushion so plan to keep at least 400K invested.
My mortgage is about 132K house worth 230K or so.

I could quit cold now and leave the company scrambling to cover my job and hire replacement. I am the only one that can do my job so a 3 month notice or more would be nice for them. I hate working in January and Feb and get a huge bonus in December and profit sharing in January. I know if they think I will quit they will give me a bigger bonus so I will stay longer.

So I need time or money for house fix up hiring people is way easier than doing all the work.
I need to buy a new house.
I need to sell my old house.
My tenant will move with me and he plans to work 5 more years at age 65 so I should buy near his job or near my family not in the boonies on a good lake.

How do I go about selling one house and buying another.

If I buy first I can move some of our stuff so the current house is easier to clean but would mean qualifying for a mortgage or taking too much out of my taxable and ROTH savings I have 111K in taxable and 240K in ROTH but I don't want them empty.
If I sell first I have to clean and paint while living here then be homeless until I find a place to buy but could pay cash.
I could maybe find a rent to own or rent a place for a year between houses.
I could buy vacant land then build a huge garage to hold our stuff then when I sell the house put a double wide on or get a home built.


So when do I quit if I might need a new mortgage for retirement? What time of year should I quit? Maybe give notice after New Year's so I can train replacement by spring. While training replacement I will use many sick days since I always have more than 192 and I have over 600 hours vacation. My predecessor started doing lots of doctor appointments and vacation days and stayed 4 months to train me. That wouldn't be bad if I don't feel like housework go to work and watch the trainee work.
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Old 01-13-2013, 02:05 PM   #2
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Have you considered the economics of renting long term?
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Old 01-13-2013, 02:25 PM   #3
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Have you considered the economics of renting long term?
Yes but we have too many toys. We currently have 4 cars and trucks and 3 boats, motorcycle, camper and lots of smaller stuff. Currently have 6 car garage and a carport and shed yet two vehicles are outdoors. I could sell one truck and two boats but we are using the rest. We only need a small house but he wants acreage and I want a huge garage or barn or both so building might be the only way to get what we both want. Since I am the owner and he is the tenant I get to decide but want them happy too since he has been paying me rent for 26 years.
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Old 01-13-2013, 09:19 PM   #4
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From another post yesterday, it seems that you can't get a mortgage if you aren't working.

I am thinking that the best way would be to:
a) find a place to rent,
b) move out of the old house (as much as practical; tenant could stay),
c) put your stuff into storage,
d) clean up the old place,
e) sell old place,
f) buy new place, move in,
g) quit job.

Your situation is similar in many respects to ours. Please keep us updated.

Best of luck.
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Old 01-13-2013, 09:32 PM   #5
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Quote:
Originally Posted by Ed_The_Gypsy View Post
From another post yesterday, it seems that you can't get a mortgage if you aren't working.

I am thinking that the best way would be to:
a) find a place to rent,
b) move out of the old house (as much as practical; tenant could stay),
c) put your stuff into storage,
d) clean up the old place,
e) sell old place,
f) buy new place, move in,
g) quit job.

Your situation is similar in many respects to ours. Please keep us updated.

Best of luck.
In Canada, that would not be the best plan, because no tax is payable on capital gains on the sale of one's principal residence. There is no such exemption for a rental property.

I needed to clear out and spruce up my old home before selling it in 2011, but I continued to live there during the chaos.

I agree with the sequence of "sell old place" followed by "buy new place".
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Old 01-13-2013, 10:01 PM   #6
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I'd just send your boss this link and call it good--



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Old 01-13-2013, 11:05 PM   #7
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Quote:
Originally Posted by Ed_The_Gypsy View Post
From another post yesterday, it seems that you can't get a mortgage if you aren't working.

That really, really isn't true. It depends entirely on the financial situation. SS income will count, rental income will count. Even withdrawals from an IRA can count. It just depends.

However, it may be easier to do sooner rather than later since there are some proposed regulations for qualified mortgages that might make it more difficult.

To the OP -- if you want a mortgage you might want to talk to a mortgage broker now about your options. See what you can qualify for under both the current rules and the proposed rules.

Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z) > Consumer Financial Protection Bureau
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Old 01-13-2013, 11:48 PM   #8
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Seriously, at what point in your life will all those possessions become more of a liability to you than an asset? (It appears that has already begun to happen).
Sell everything you haven't used in the past one year. Put everthing else in storage except what you will use to stage your home for sale. Sell before buying unless you get a deal on the perfect home for you (and renter). With check in hand from home sale - give notice at work. Feel the power! Best, Joe
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