8 year Update

[lostgator]

For background, see this thread: http://www.early-retirement.org/for...decide-whether-or-not-to-refinance-58295.html


Things are continuing to move forward. I again want to thank you all because this board is where I reached out for help and got some solid advice. I just wanted you all to know where we are at now. We now have $1M in our combined retirement accounts. We just sold our primary residence to the person we bought it from (and we are going to rent his house). We will be receiving a check for about 430k, as we paid down our mortgage pretty good.

Our beach house is still a thorn in our side but I plan on either selling it or refinancing it. If I refinance it it will will at least cash flow to the tune of 1k a month. If I sell it I will get a check for maybe 10k. (It is worth far less than we paid for it, but it rents well).


Both my wife and I are eligible for state pensions in 4-7 years (if we make it, around 4500 / month each; she is 4 years away, me 7 years away).

In sum, since we last talked, my wife and I have pretty much maxed out our 403b and 457b accounts (and my Roth, plus some taxable) and have lived on what is left. We benefited from a strong market. We also got lucky in that the guy that sold us the house wanted it back (despite a declining market). Anyway, I wanted to to post my story because if nothing else it is a tale of someone who was pretty much broke 8 years ago who is feeling pretty good today. Thanks again to all who helped me and PMed me years ago. You got me off my butt! (e.g., cliffp)

 

[Jerry1]

A couple of things I remember well, on my way to retirement, are when I paid off my house and when I crossed over one million. If feels good to get on track and be on track.

Congratulations!

 

[Dtail]

Congrats. Nice update. Always good to hear success stories.

 

[dirtbiker]

For background, see this thread: http://www.early-retirement.org/for...decide-whether-or-not-to-refinance-58295.html


Things are continuing to move forward. I again want to thank you all because this board is where I reached out for help and got some solid advice. I just wanted you all to know where we are at now. We now have $1M in our combined retirement accounts. We just sold our primary residence to the person we bought it from (and we are going to rent his house). We will be receiving a check for about 430k, as we paid down our mortgage pretty good.

Our beach house is still a thorn in our side but I plan on either selling it or refinancing it. If I refinance it it will will at least cash flow to the tune of 1k a month. If I sell it I will get a check for maybe 10k. (It is worth far less than we paid for it, but it rents well).


Both my wife and I are eligible for state pensions in 4-7 years (if we make it, around 4500 / month each; she is 4 years away, me 7 years away).

In sum, since we last talked, my wife and I have pretty much maxed out our 403b and 457b accounts (and my Roth, plus some taxable) and have lived on what is left. We benefited from a strong market. We also got lucky in that the guy that sold us the house wanted it back (despite a declining market). Anyway, I wanted to to post my story because if nothing else it is a tale of someone who was pretty much broke 8 years ago who is feeling pretty good today. Thanks again to all who helped me and PMed me years ago. You got me off my butt! (e.g., cliffp)

Congratulations on the financial turnaround. Turns out you didn't grab a bigger shovel!

Are your pensions COLA adjusted? My wife is a professor, and sadly, hers is not, which makes a big difference for long term planning.

 

[Gumby]

Well done!

 

[kcowan]

A great example of a personal turn around. Thanks for taking the time to post.

 

[Dd852]

First of all, congrats. What you’ve done is not simple or easy. However this bit made me twitch a bit “We just sold our primary residence to the person we bought it from (and we are going to rent his house). We will be receiving a check for about 430k, as we paid down our mortgage pretty good.

“

Maybe it’s because I’ve spent so many years in asia that I’ve absorbed some of the “folk wisdom” but I truly believe you need to control the roof over your head in order to have true peace of mind. I understand real estate has not been a happy road for you at all, but ...

As long as you eventually have a plan to buy, ok. But I wouldn’t want to be retired and at the mercy of a landlord and unpredictable rents.

Personal preferences vary of course, but I must say paying off my apartment and knowing I’d never have to pay rent or mortgage again was the day I knew I was free.

Congratulations of course. I’m not trying to minimize what you’ve accomplished. But do think about the necessity of securing shelter.

 

[kimcdougc]

Congratulations on your turn around. I personally get inspired by stories like yours. Good job!

 

[lostgator]

The sale closed and we are in our rental. Happy as a clam for right now. Our check at the closing table was for more than we thought, so that was even better news. Strangely, there is no sadness upon giving up the home we lived in for the past 15 years. The new owner will love it and we are happy to leave the maintenance and mortgage payment behind.



To follow up on some of the comments: I don't plan on our pensions being COLA'd. It happens, but it is subject to the whims of the State legislators. I think the last time they gave a boost was 10 years ago, so no...for planning purposes we are not factoring that in.


Also, yes, we will be buying a house one day. However, that day will be when we move out of our current town (and job) and move to our retirement location. Of course, that is the plan today, when we think we are getting below market rent with a very benevolent landlord. If this turns out not to be true then we will adjust our plans pretty quickly.