Back after a 2 year hiatus and no chance of ER

[SLC Tortfeasor]

So I haven't posted here in about 2 years. During that time I've gotten married, had a kid, sold a house, bought another house, and in the process completely given up on my ER dream.

The main culprit was the house. Our old house was fun, funky, hip, urban, and generally cool. And very affordable. But it wasn't a satisfactory for our new family for a bunch of reasons (neighborhood, layout, etc.). So we bought a new house with the intention of getting into the best school district, having a big yard for the kid to play in, never having to remodel again, etc. All of that costs a lot of money, so we got the biggest mortgage we possibly could (at least we put down 20%) and bought a ridiculously big, luxurious house on one of the city's most prestigious streets.

So even though I knew better, we are now the classic high-income-yet-cash-strapped young family. Our hope is that our incomes will rise over the years and that we'll "grow into" our new house.

There are lots of stories of young dreamers well on their way to ER success, unfortunately this isn't one of them. But at least we've got an awesome house!!

Just thought I'd share. Good luck to everyone else.

 

[REWahoo]

SLC, good luck on your pursuit of the American dream. Don't abandon all hope of ER - some of us managed to achieve eR (not-quite-so-early retirement) and that's not a bad thing.

I sincerely hope everything works out for you.

 

[Bestwifeever]

Welcome back. Congratulations on the marriage, baby, house!!! Sounds like you have a very lovely home for your family to enjoy.

 

[samclem]

Welcome back. Well, it sounds like you probably didn't buy the house at the top of the market, and in 15-20 years maybe it will be worth a lot of money and you can downsize your way to ER. Regardless, best of luck, and thanks for checking in.

 

[Purron]

It sounds like you have a wonderful life. People who love you and a lovely home. I'm certain many people would love to trade places with you.

 

[donheff]

I think this scenario fits a lot of the 20 or 30 somethings that dream of ER. A little bit of life comes along and their dreams change. Nothing wrong with that. I suspect for 98% it makes a lot more sense for young folks to focus on finding rewarding work - or at least work that isn't toxic - rather than focus all of their efforts on getting out. But SLC, now is the time to take a deep breath and start evaluating how you can return to a LBYM lifestyle in the new house. Another 10-20 years down the road and your dreams may shift back around and you will value a reasonable exit plan. Don't accept your opening statement: "no chance of ER."

 

[73ss454]

Ah yes, the old Fork in the road. Everyone needs to make these decisions.

 

[Rich_by_the_Bay]

Don't despair. If inflation soars for a while, you'll be paying back a fixed mortgage with inflated dollars and maybe that will give you some breathing room to save. Also, if housing prices rebound years down the road you can right-size and free up some cash.

So shoot for retirement at a conventional age, stay the course and you might be surprised.

Meantime, count your blessings - worth a lot more than just money.

 

[TooFrugal]

You were smart to buy into a good school district and buy a new home that doesn't need a lot of remodeling.

Everyone has to make the financial choice best for their own families.

It sounds like you have no regrets on the house so you made the decision that was right for you.

 

[segfault]

...never having to remodel again...

Now, that's funny, right there! If you do that, in 30 or 40 years it will look like those old harvest gold / avocado green kitchens and bathrooms look now.

 

[kumquat]

Congrats.

I bet, in the long run, you'll think it was worth working a few extra years in order to have a few things you wanted to enhance the years you did work. Why scrimp, save, do without and then die?

 

[Martha]

As you can see, it isn't all about not working.

Hope you are enjoying your job and family. I can't believe that it has been two years since you stopped by.

 

[Sarah in SC]

Thanks very much for sharing your "road less (or more) traveled" story with us. A good reminder that everything we do is a choice.
Good luck and best wishes with the new family.

 

[Amethyst]

SLC, some of us are Nesters, and that's just how we are. If you know you can afford your house, that's all that matters.

Congratulations on all the wonderful things you and your spouse have achieved, and certainly don't give up on ER, just keep planning and saving as much as you can and retire as soon as makes sense.

Be sure to put aside lots of emergency $$ for the house as it ages. As you surely are aware, big, expensive houses cost much more to fix when they break. Repair people take one look at expensive neighborhoods, and double their estimates just because they think you have money.

Amethyst

 

[JPatrick]

Let's see...

Good:
*Wife
*Kid
*Nice Home
*Nice Income

Bad:
*ER not in sight.

So 4 for 5 ain't bad in life, baseball, three point shooting, and many other things.

You are looking good!!

 

[SLC Tortfeasor]

Hey, thanks for all the nice supportive comments, folks! I had forgotten what a great forum this is. Makes me want to hang around here and start contributing again!

 

[Beer man]

The Full Catasrophe

In my own life the words of Zorba the Greek keep intermittently coming to mind.

 

[Beer man]

Not that I completely agree with Zorba, but it always gives a chuckle!

 

[EO 11110]

You will probably do okay. Interest rates are very supportive of trading up right now. Also a lot of the froth has been blown off of prices.

If you don't mind me asking, what multiple of income did you pay? We bought our house at 1.5 times our income. Through the magic of inflation that same price is now 0.75 times our income.

 

[SLC Tortfeasor]

You will probably do okay. Interest rates are very supportive of trading up right now. Also a lot of the froth has been blown off of prices.

If you don't mind me asking, what multiple of income did you pay? We bought our house at 1.5 times our income. Through the magic of inflation that same price is now 0.75 times our income.

About 3.2, unfortunately. Believe me, I am praying for rampant inflation. Unfortunately it doesn't look likely to pick up any time soon.

 

[SLC Tortfeasor]

In my own life the words of Zorba the Greek keep intermittently coming to mind.

Ha, I enjoyed this clip. I am deep in the catastrophe. I never, ever, ever wanted a house like this in a neighborhood like this. Then my kid came along and completely changed most of my priorities.

 

[Amethyst]

Your house sounds far grander than ours (then again, we are not tort-feasors so our income is also more limited), and we just got an estimate of $58,000 to replace our roof. So, beware.

A.

 

[REWahoo]

... we just got an estimate of $58,000 to replace our roof.

Yikes! What type of roof are you replacing?

 

[toofrugalformycat]

DH and I bought a modest house in the early 80's that within a year had lost half its value. And yet we ERed in our 40's. We were determined. We paid off the d*&%$m house as fast as possible so it didn't really matter what it was worth. At least you have a historically low interest rate, whereas ours was sky high.
Enjoy your wonderful life!
But I suggest that you shouldn't be like the obese person who thinks they will inevitably always be obese, so they might as well eat donuts. I'll bet you can still stash a little cash each month, if you think you can.

 

[Amethyst]

A$$-fault shingle! And the house is not that big, and not one of those complicated multiple-pitch roofs either. As I've said before, this is one pricey area to live in.

Not trying to garner pity, though; I just threw it out there as a cautionary note for the youngsters, so to speak.

A.

Yikes! What type of roof are you replacing?