Jumping right in

[cletis]

Hello, I turned 40 this summer. I barely have any bills. My house is paid for (worth about 275k) and I have about 200+ in outside funds and about 200+ in 401K funds. I also have some land worth about 180k. I want to sell my house and land next summer, which would put me at about 650k and 200+ (401k) at 59 1/2. My wife will keep on working and prob make about 25k a year. I'll do something but not sure what yet. We want to move but don't know where. I'm trying to make it work in my mind but just don't know. Any advice? Don't beat me up too bad because of my age. I've worked enough hours to work two life times, probably like many of you have. Thanks Cletis

 

[bow-tie]

How much do you spend a year?
What are you invested in?

 

[cletis]

Right now we probably spend around 47k a year. I've looked at it a couple times and it should be close. With my wife bringing in around 25k that leaves us needing around 22K. The biggest expense will be insurance. Possibly 10K a yr. That puts it back at 32k needed. Both our vehicles are fairly new with low miles.

 

[TromboneAl]

200+ (401k) at 59 1/2.

Note that you don't need to wait until 59.5 (google 72t).

 

[maddythebeagle]

If you are interested in moving to a lower cost area, that might help...although a lot here would say a 250k house is already moderate and at 40, I still think you should try for 10-20k in self employment income....or take a seasonal job that you would enjoy...

 

[cletis]

That 200+ that I have in 401k right now should be quite a bit larger by the time I hit 59 1/2. I do want to do something I'd enjoy and a seasonal job sounds right. I really don't care to work. I have never been able to do what I would like and when I was able I was always going 100mph and didn't even enjoy it. Since I want to sell my home and move. Does it makes sense to use the money from my house and invest it? Possibly rent for a while? Thanks Cletis

 

[kjpliny]

Right now we probably spend around 47k a year. I've looked at it a couple times and it should be close. With my wife bringing in around 25k that leaves us needing around 22K. The biggest expense will be insurance. Possibly 10K a yr. That puts it back at 32k needed. Both our vehicles are fairly new with low miles.

If you spend 47k per year, you will need more than 47k income due to taxes, unless you're talking net.

 

[Jay_Gatsby]

There are lots of seasonal "jobs" that are more fun than work. If you like the outdoors, you can apply to be a part-time park ranger. If you enjoy traveling, then you could be an international/domestic courier. It all depends on what you want to do, and how it will impact your ER lifestyle. I don't see the need to sell your house right now, as part-time work and your wife's income ought to cover things for the foreseeable future. You won't live high off the hog, but you'll still be RE (more or less).

 

[cletis]

I'm going to sell my house regardless because my area is in one heck of a boom and like everywhere else the building construction is way overbuilding. I don't forsee the economy slowing here for the next few years but I'm scared to death that it will and I'll be stuck here. Cletis

 

[twaddle]

So, your uncovered expenses are $32K, but did you factor in renting a place if you sell your home?

I assume you've already played with FIREcalc: FIRECalc: A different kind of retirement calculator

 

[Fred333]

I would go and sell it. The sale will give you a good chunk of change to work with for the future.