Ready but not

[DaveK]

Howdy,, I just happened along this forum by searching for info on early retirement, as some of you did I'm sure.
Let me tell a bit about myself and my desires.
I'm 46 years old,, I make 76K a year salary plus around 20K bonus a year.
My job has no retirement. I have no bill's except my mortgage. My home is worth $650K and I owe $100K,, payment's of $950.00
My hope is to at least semi retire or retire fully at the age of 50. I would be willing to , well have to,, sell the home and scale down being's most of my retirement money is in this house.
I have started buying building lot's and turning them and plan to simply put the profit's toward paying down the mortgage on my current home.
Other than the eqity in my house I only have about 50K in saving's.
I am not married but do live with a lady and we are as devoted to each other as any married couple. She get's $2400 a month from the gov. She is a widow and would lose the income if she marries. So that income would also be coming in.
Any thought's ?? Are my plans in line, or will I be stuck a workin stiff for ever ??
Oh,, I would think that I could live on $36K a plus what my mate get's.

Thanks in advance for your thought.s Oh,, I also do not have anyone to leave anything to , So I don't care if I die a broke man..

                                      Dave

 

[retire@40]

Other than the eqity in my house I only have about 50K in saving's.
I am not married but do live with a lady and we are as devoted to each other as any married couple. She get's $2400 a month from the gov. She is a widow and would lose the income if she marries. So that income would also be coming in.
Any thought's ?? Are my plans in line, or will I be stuck a workin stiff for ever ??
Oh,, I would think that I could live on $36K a plus what my mate get's.

Keep working, my friend.  You need to have a lot more than $50K saved up to consider retiring.

And, I wouldn't count on the income from your girlfriend to support you in retirement.

Pay down that mortgage, save another $200K - $300K, and you'll be in the ballpark, but that's if you're able to sell your home at it's current value or higher and downsize a lot.

 

[Mr._johngalt]

Howdy,, I just happened along this forum by searching for info on early retirement, as some of you did I'm sure.
Let me tell a bit about myself and my desires.
I'm 46 years old,, I make 76K a year salary plus around 20K bonus a year.
My job has no retirement. I have no bill's except my mortgage. My home is worth $650K and I owe $100K,, payment's of $950.00
My hope is to at least semi retire or retire fully at the age of 50. I would be willing to , well have to,, sell the home and scale down being's most of my retirement money is in this house.
I have started buying building lot's and turning them and plan to simply put the profit's toward paying down the mortgage on my current home.
Other than the eqity in my house I only have about 50K in saving's.
I am not married but do live with a lady and we are as devoted to each other as any married couple. She get's $2400 a month from the gov. She is a widow and would lose the income if she marries. So that income would also be coming in.
Any thought's ?? Are my plans in line, or will I be stuck a workin stiff for ever ??
Oh,, I would think that I could live on $36K a plus what my mate get's.

Thanks in advance for your thought.s Oh,, I also do not have anyone to leave anything to , So I don't care if I die a broke man..

                                      Dave

Your lady friend's government check alone is more than we (2 people and 4 dogs) live on per month,
totally. That includes everything.

JG

 

[cute fuzzy bunny]

Remember that dying a broke man is pretty tough to engineer unless you take matters into your own hands.

Counting on another persons income is not a good long term idea unless you're financially co-dependent, which is a worse long-term idea for other reasons.

Sounds like you need a bit more saved up, or be in a no-debt situation before you can 'skim by' with a low/no income level.

And dont mind John...he eats cardboard boxes and checks road kill for freshness

 

[Mr._johngalt]

Remember that dying a broke man is pretty tough to engineer unless you take matters into your own hands.

Counting on another persons income is not a good long term idea unless you're financially co-dependent, which is a worse long-term idea for other reasons.

Sounds like you need a bit more saved up, or be in a no-debt situation before you can 'skim by' with a low/no income level.

And dont mind John...he eats cardboard boxes and checks road kill for freshness

Nope, fillet mignon with a nice Chardonnay is more like it. We do dumpster
dive and shop/negotiate like crazy. Not reduced to road kill just yet.
BTW, is cardboard on the "Wab" diet?

JG

 

[retire@40]

Nope, fillet mignon with a nice Chardonnay is more like it.

Fillet mignon with Chardonnay? Isn't that like putting peanut butter on your tuna fish?

I usually pair up fillet mignon with cabernet, or other full bodied reds. I have chardonney with lobster and fish.

 

[haha]

Fillet mignon with Chardonnay?  Isn't that like putting peanut butter on your tuna fish?

I usually pair up fillet mignon with cabernet, or other full bodied reds.  I have chardonney with lobster and fish.

Oh No, an attack of the LBYM winies.

 

[DaveK]

I wouldn't rely on her income. Ya just never know.. but I was hoping in 2 years have my current home paid in full,,, that gives right at $650k in the pocket,,, build a downsized home for around $250k and invest the rest.
Maybe still have to work a part time job part of the year.

 

[cute fuzzy bunny]

Yeah I wasnt going to say anything about the completely inappropriate pairing of a delicate red meat that usually carries a sauce and a strong end white wine.

I dont eat anything with chardonnay unless I can get one of the australian, italian or french versions that they dont barrel with oak chips. Last few california chardonnays I had were like eating the end of a picnic table. I've been going with sauvigon blancs with most fish and chicken dishes, although a fume blanc or even a Gerwurstraminer if the dish is spicy...the sweet wine/spicy food combo is pretty good.

Oh yeah, and half the time it comes out of a box (there ya go, haha...by the way, is that the "nelson" from the simpsons "ha ha"? Note below, the original followed by an obligatory pirates parrot version.

 

[retire@40]

...$650k in the pocket...build a downsized home for around $250k and invest the rest.

Don't forget the real estate agent's pocket (if you use one) and Uncle Sam's pocket, and maybe even your state and local government's pocket before you shove the whole thing in your pocket.  I don't know what capital gain you will have since you never told us what your cost basis is, but these are a few things to consider.

 

[GTM]

I would think that I could live on $36K a plus what my mate get's.

650k in your pocket minus 250K for another home leave 400k in the bank.

That's not enough to support the 36K per year you need to live.

 

[HFWR]

White wine is for girly-men.

 

[cute fuzzy bunny]

AY-Men brother HFWR!

I probably wouldnt have it all all if it werent fer mah wife.

 

[unclemick]

Even thou you guys spelled it wrong - Freddie Melancon always drank beer with everything - to the best of my knowledge.

 

[Spanky]

Don't forget the real estate agent's pocket (if you use one) and Uncle Sam's pocket, and maybe even your state' and local government's pocket before you shove the whole thing in your pocket. I don't know what capital gain you will have since you never told us what your cost basis is, but these are a few things to consider.

Is it still true that only only gain over $500K is taxble for a married couple?

 

[retire@40]

Is it  still true that only only gain over $500K is taxble for a married couple?

Yes, if you meet the 2 out of 5 year rule.  But this guy ain't married, so it's anything over $250K for him.

 

[MooreBonds]

I am not married but do live with a lady and we are as devoted to each other as any married couple. She get's $2400 a month from the gov. She is a widow and would lose the income if she marries.

You might want to check on 'common law' definitions in your area. If she lives under the same roof as you for so many years, states consider you married by common law. If that happens, then the federal gov't could, in theory, possibly take away her widow benefits.

 

[DaveK]

There is no common law in Oregon,, we checked that out... As far as cost.. I'm into this place $325K total,,, landscape,, RV shop and all.
So, a non married person can only show a $250k profit without capital gain ??
HMMMMM,,,, off ta work I go.... Maybe stayin here isn't that bad,, If I end up with no mortgage and work a part time job life could be good.

 

[retire@40]

If I end up with no mortgage and work a part time job life could be good.

Full-time work stinks
Part-time work is better
Self-employed part-time work is much better (this is as far as I've gotten so far)
I'm guessing complete retirement is the best, but that's just theory on my part.