I think that you are in a good position. Congratulations, you had a plan to put away money for retirement and are almost there. A little hiccup with your impending layoff, but since you have a plan, there’s a little cause for panic.
I echo all others, review expenses, and see where you are at.
As far as your income properties, what was the purpose behind those? What was your plan and goal?
In general, I would say that a rental property doesn’t cash flow should be sold, there are circumstances, however, that warrant keeping them. I do not know where they are located, but if these are properties located in Palo Alto purchased 20 years ago, I would say keep them. If they are in a location without a huge growth potential I would probably advocate selling them, at least make a plan for the disposition of the properties. Likely better to do per year than all at once.
But I come back to what was the intent of these properties? if they’re purchased for appreciation and that is happening, I would keep the rest. But if you don’t have a plan, I would probably divest as soon as possible. I am a proponent of rental properties, I never counted on appreciation for ours, but have been lucky enough for them to double in value over the last eight years. Our cash flow however, has increased from $150 bucks per door per month to over $500 per door per month despite the increase in property tax insurance and with some capital project each year.
I suspect that at this point, if your husband is wanting to work some more years, he could probably cut back on his investment savings and coast while letting the nest egg grow. that would likely give you the cash to cover the shortfall that you need.
Sit down, review your plan, how lkk on ng do you both want to work, review the rental property intent, how much do you spend and how much do you want to spend. Your plan for what to do in retirement is also important.
You should be proud of yourself for being this close!
