52AndOutorNot
Confused about dryer sheets
I’ve been reading this forum for at least five years and have found the advice here illuminating. Thanks to all of you for your posts. By way of background, I’m 42 years old and live with my boyfriend. We purchased a house together last year that we hope to grow old in. I’ve listed my income and numbers only, his are not included. I’m divorced and reluctant to marry again or mix assets, both of us are fine with the situation as it is. I’m responsible for 80% of our mortgage, remodel and other housing costs. All other consumable expenses (groceries, lawn service, etc) are split 50/50. Here are the high level details:
Home: $715K current value ($157K equity; $558K owed; planning two year ~$400K remodel to be paid in cash; area home values range from ~$1M - $2M, we bought a 125 year old fixer upper in an ideal location)
Salary: $525K plus bonus (salary just received a big bump due to promotion to partner; annual bonus ranges from $40K - $80K)
401K: $600K ($213K 401K, $122 Roth 401K, $265K after-tax contributions; since I’m now an “owner” of the company I pay my contributions plus matching company contributions, ~$24K annually plus any after-tax)
Pension Plan 1: $32K (self-funded firm managed, will pay in $39K this year)
Pension Plan 2: $90K (company will contribute ~$23K based on my age and years of service this year)
Remodel savings: $100K
Savings: $75K
HSA: $6K
First, I’ll address the house which is comparatively expensive. This is very much our dream home and in a perfect location for us. The remodel will bring the house up to date and we are putting in grab bars, transitionless showers, etc that will allow us to grow old in the home and house my aging father should he move in with us. If we eventually need live-in assistance the basement has a separate entrance, full kitchen and full bathroom which we can convert to a single living space. During the next two to three years I’d like to complete the major remodel as well as start paying down the mortgage if possible. I’ve already put $100K cash aside for the remodel so have about $300K left to save (some of which my boyfriend will cover). We own the property jointly, though in actuality I have 80% ownership and he has 20% (need to get to attorney to formalize the agreement but financial records bear that out). If I die, he’ll get the house outright and enough of my life insurance policy to pay off the mortgage and not have to move. The remainder of my life insurance and other assets would go to my family.
My net worth is low compared to my salary, but I just started earning a high salary after being promoted. I’m targeting to have $1M in my retirement/pension accounts by age 45 which will hopefully grow to ~2M - $3M by age 59 ½. After age 45, I’d like to focus on saving in post-tax accounts for 6 or 7 years. My goal is to retire at 51 or 52 years old and have enough to live off of until I’m 59 ½. Current retirement assets total $722K. With $86K added per year (not including any after-tax contributions I make), I should hit $1M by 45. I have other non-liquid assets not listed above, including a rental property that I own with my siblings but haven’t included here since it’s not exclusively mine and the decision to sell will be a group one.
My focus right now is to get the remodel done and then start paying down the mortgage. My current expenses including housing costs are about $6K per month, or $72K annually. My taxes are approaching $150K annually.
Any thoughts you can share on my plan are appreciated, besides the house being a money pit.
Home: $715K current value ($157K equity; $558K owed; planning two year ~$400K remodel to be paid in cash; area home values range from ~$1M - $2M, we bought a 125 year old fixer upper in an ideal location)
Salary: $525K plus bonus (salary just received a big bump due to promotion to partner; annual bonus ranges from $40K - $80K)
401K: $600K ($213K 401K, $122 Roth 401K, $265K after-tax contributions; since I’m now an “owner” of the company I pay my contributions plus matching company contributions, ~$24K annually plus any after-tax)
Pension Plan 1: $32K (self-funded firm managed, will pay in $39K this year)
Pension Plan 2: $90K (company will contribute ~$23K based on my age and years of service this year)
Remodel savings: $100K
Savings: $75K
HSA: $6K
First, I’ll address the house which is comparatively expensive. This is very much our dream home and in a perfect location for us. The remodel will bring the house up to date and we are putting in grab bars, transitionless showers, etc that will allow us to grow old in the home and house my aging father should he move in with us. If we eventually need live-in assistance the basement has a separate entrance, full kitchen and full bathroom which we can convert to a single living space. During the next two to three years I’d like to complete the major remodel as well as start paying down the mortgage if possible. I’ve already put $100K cash aside for the remodel so have about $300K left to save (some of which my boyfriend will cover). We own the property jointly, though in actuality I have 80% ownership and he has 20% (need to get to attorney to formalize the agreement but financial records bear that out). If I die, he’ll get the house outright and enough of my life insurance policy to pay off the mortgage and not have to move. The remainder of my life insurance and other assets would go to my family.
My net worth is low compared to my salary, but I just started earning a high salary after being promoted. I’m targeting to have $1M in my retirement/pension accounts by age 45 which will hopefully grow to ~2M - $3M by age 59 ½. After age 45, I’d like to focus on saving in post-tax accounts for 6 or 7 years. My goal is to retire at 51 or 52 years old and have enough to live off of until I’m 59 ½. Current retirement assets total $722K. With $86K added per year (not including any after-tax contributions I make), I should hit $1M by 45. I have other non-liquid assets not listed above, including a rental property that I own with my siblings but haven’t included here since it’s not exclusively mine and the decision to sell will be a group one.
My focus right now is to get the remodel done and then start paying down the mortgage. My current expenses including housing costs are about $6K per month, or $72K annually. My taxes are approaching $150K annually.
Any thoughts you can share on my plan are appreciated, besides the house being a money pit.
