My stats, any advice? job is not stable

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Maltipoo
Posts: 2
Joined: Tue Sep 10, 2019 1:14 pm

My stats, any advice? job is not stable

Post by Maltipoo » Tue Sep 10, 2019 2:10 pm

Hello all,

Life is really hard for middle age people.

Me -- 43yrs, husband -- 45 yrs, two kids (12 & 10yrs public school)
total retirement (401k+roth) -- 1.3M
primary house $700K
rental house $300K - income $1500/month
vanguard mutual funds $550K
Others (company stocks --100K, 529 -- 100K, cash -- 50K)

Problem: both me and husband jobs are not stable, our industries are fading, very hard to find another job, even we could, maybe income cut in half.

Plan: I will try to find a teacher position, low pay but more stable. Husband wants to be independent, maybe invest more on rental houses. But I do not think it is good time to buy right now.

Goal: invest better therefore some income could be generated. Need suggestions? Please help.

bloom2708
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Location: Fargo, ND

Re: My stats, any advice? job is not stable

Post by bloom2708 » Tue Sep 10, 2019 3:11 pm

What do you owe on the primary residence and rental property?

Seems you are doing fine, but if you owe $600k on the house and $250k on the rental and have 2 car loans, that can certainly shift the vibe.

You don't say what your jobs are. Are they good companies but certain products/areas are in decline? I moved from development to finance in a good company. Has been a career extender (48). Sometimes you have to evaluate and shift around.

With your savings, do you HAVE to make as much? We got way ahead. Paid off all debt. We don't have to make as much. My wife is home with the kids after 25 stressful years at megacorp. Debt and spending are as much a factor as saving/investments.

Hopefully others have ideas.
"We are not here to agree with you; we are here to provoke thoughtfulness." Unknown Boglehead

KyleAAA
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Re: My stats, any advice? job is not stable

Post by KyleAAA » Tue Sep 10, 2019 3:14 pm

With that liquid net worth in your early-mid 40s, if you never saved another dime you'd still have a very comfortable retirement. I'd forget about trying to invest better and retrain for a 2nd career instead. You really just need to tread water at this point.
Last edited by KyleAAA on Tue Sep 10, 2019 3:52 pm, edited 1 time in total.

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Elsebet
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Location: Washington state

Re: My stats, any advice? job is not stable

Post by Elsebet » Tue Sep 10, 2019 3:51 pm

Maltipoo wrote:
Tue Sep 10, 2019 2:10 pm
Life is really hard for middle age people.
Maltipoo wrote:
Tue Sep 10, 2019 2:10 pm
Me -- 43yrs, husband -- 45 yrs, two kids (12 & 10yrs public school)
total retirement (401k+roth) -- 1.3M
primary house $700K
rental house $300K - income $1500/month
vanguard mutual funds $550K
Others (company stocks --100K, 529 -- 100K, cash -- 50K)
Life is hard with those kinds of assets?
"...the man who adapts himself to his slender means and makes himself wealthy on a little sum, is the truly rich man..." ~Seneca

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Meg77
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Location: Dallas, TX
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Re: My stats, any advice? job is not stable

Post by Meg77 » Tue Sep 10, 2019 3:54 pm

Chin up. You're in your early 40s and are multimillionaires. Not only that, you've got a pretty high degree of financial flexibility since most of your assets are not tied up in retirement accounts.

Your goal is to invest more in income producing assets, and your husband wants to buy another rental. Assuming he's capable of managing it (or managing a property manager), I think that's a pretty decent idea. If you wait for a "good time to buy" you may be waiting a long time. For most of history, real estate has ticked up slowly but steadily with few real downturn opportunities except in certain pockets that are hard to predict in advance. There's no reason to assume we will have another 2008 type crisis at least as far as real estate is concerned. So if you're waiting for that to buy, you could be out of luck big time. Lots of people have been waiting for stocks to fall in order to buy for 5+ years now.

I'm just saying, if you plan to flip a property your purchase price matters a LOT, but if you plan to hold it indefinitely for retirement income, it arguably doesn't matter much at all.

Other ideas -
Wait for a buyout offer or negotiate your own layoff/severance package versus just quitting to take a low paying job. If you change your attitude to "I don't need this job so if I lose it I'll be excited to move to the next thing," you may be able to reduce some anxiety and just pocket that extra pay as long as possible while you line up a second act mentally - or even get started on one as by buying real estate or tutoring on the side in your case.

Pay off any debt or reduce your spending to be within your future predicted income level in order to reduce fixed costs and/or boost savings now while you have more income coming in. You sound more stressed about money than the numbers indicate, so I have to think there are some budgetary issues causing friction.

Good luck! Just remember, if you can tread water for 8 more years, you'll be empty nesters and your current portfolio may have nearly doubled in value. Another 10ish years after that it may double again if you don't start drawing on it. You should be sitting pretty for retirement even if you don't save another dollar. Not saying that is a good strategy, and no promises the market/your portfolio does that in those specific years, but there's no reason to fear it won't either.
"An investment in knowledge pays the best interest." - Benjamin Franklin

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unclescrooge
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Re: My stats, any advice? job is not stable

Post by unclescrooge » Tue Sep 10, 2019 9:24 pm

Elsebet wrote:
Tue Sep 10, 2019 3:51 pm
Maltipoo wrote:
Tue Sep 10, 2019 2:10 pm
Life is really hard for middle age people.
Maltipoo wrote:
Tue Sep 10, 2019 2:10 pm
Me -- 43yrs, husband -- 45 yrs, two kids (12 & 10yrs public school)
total retirement (401k+roth) -- 1.3M
primary house $700K
rental house $300K - income $1500/month
vanguard mutual funds $550K
Others (company stocks --100K, 529 -- 100K, cash -- 50K)
Life is hard with those kinds of assets?
May God give everyone such hard lives!

usagi
Posts: 122
Joined: Wed Jun 05, 2019 1:08 am

Re: My stats, any advice? job is not stable

Post by usagi » Tue Sep 10, 2019 10:13 pm

Maltipoo wrote:
Tue Sep 10, 2019 2:10 pm
Hello all,

Life is really hard for middle age people.

Me -- 43yrs, husband -- 45 yrs, two kids (12 & 10yrs public school)
total retirement (401k+roth) -- 1.3M
primary house $700K
rental house $300K - income $1500/month
vanguard mutual funds $550K
Others (company stocks --100K, 529 -- 100K, cash -- 50K)

Problem: both me and husband jobs are not stable, our industries are fading, very hard to find another job, even we could, maybe income cut in half.

Plan: I will try to find a teacher position, low pay but more stable. Husband wants to be independent, maybe invest more on rental houses. But I do not think it is good time to buy right now.

Goal: invest better therefore some income could be generated. Need suggestions? Please help.
My view, you might want to go to a counselor and discuss what appears to be difference between you and hubby's view on finances. What I am reading is you want more stability and he wants independence which comes at the expense of your comfort level and not his. I really do not see where you have a financial issue as much as comfort level issue. And once again, I suggest this is something best discussed via a counselor who interviews both of you separately and then tries mediate the delta. It should be no big deal, but one of the conversations that is better handled with a diplomat between you to keep a benign honest conversation from turning into an argument.

rascott
Posts: 692
Joined: Wed Apr 15, 2015 10:53 am

Re: My stats, any advice? job is not stable

Post by rascott » Tue Sep 10, 2019 10:23 pm

Only on BHs will you find people claiming life is hard with a $3m+ net worth in their 40s.

ivk5
Posts: 820
Joined: Thu Sep 22, 2016 9:05 am

Re: My stats, any advice? job is not stable

Post by ivk5 » Tue Sep 10, 2019 10:27 pm

What are expenses? Why didn’t that seem important to mention?

RevFran
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Joined: Sun Jul 07, 2019 4:48 pm

Re: My stats, any advice? job is not stable

Post by RevFran » Wed Sep 11, 2019 6:39 am

Is it possible to sell the 700k house and move into a 400k or 500k house?

Re teaching: investigate the pension and post-retirement health care for public school teachers in your state. You don’t say whether you intend to fund a private school job, not requiring certification, or whether you intend to go back to school to get certified and work for the public schools. There are many factors to consider there, but run the numbers on cost of going back to school vs the almost certainly better retirement package if you work for X years in your public system. Also investigate whether your state has a lateral entry teaching certification system eg http://www.ncpublicschools.org/licensure/lateral/
Last edited by RevFran on Wed Sep 11, 2019 6:49 am, edited 1 time in total.

Topic Author
Maltipoo
Posts: 2
Joined: Tue Sep 10, 2019 1:14 pm

Re: My stats, any advice? job is not stable

Post by Maltipoo » Wed Sep 11, 2019 6:46 am

Expenses are the maintaining house, kids activities, kids aftercare & camps in summer, travel, food, gas ect. We do not even go out to eat a lot and never used a cleaning lady. We spend at least $800/per month on gas and tolls between me and husband because of our jobs requires to travel but not paying for the mileage. Everything adds up I think it is around ~150K per year (before tax).
My worry is not for retirement, it is before the retirement, I wish I am 60 yrs now.

student
Posts: 3723
Joined: Fri Apr 03, 2015 6:58 am

Re: My stats, any advice? job is not stable

Post by student » Wed Sep 11, 2019 7:04 am

It may be hard to maintain an upper middle class lifestyle but I think you will never have to worry about putting food on the table, unless something extraordinary happens. Actually, I believe you are almost guaranteed at least a middle class lifestyle. You have 1.3m in retirement. Even without adding any money to it, it will grow to a nice sum at retirement. Assume you lose both jobs, you still have 1.8m after tax after selling both houses. You can move to a low cost area and spend $300,000 on a nice house. For example, https://www.realtor.com/realestateandho ... 04?view=qv in Memphis metro area. (Technically, it is in MS. https://en.wikipedia.org/wiki/Olive_Branch,_Mississippi) Now you still have 1.3m in retirement and 1.5m in taxable after tax. The 1.5m should give you $60,000 per year (in today dollar) until you are 67 to collect SS and for the money in retirement to take over. Getting a job at starbucks will get you health benefits.
Last edited by student on Wed Sep 11, 2019 10:18 am, edited 2 times in total.

RevFran
Posts: 23
Joined: Sun Jul 07, 2019 4:48 pm

Re: My stats, any advice? job is not stable

Post by RevFran » Wed Sep 11, 2019 7:26 am

Re the worry being not retirement but now: a good teacher pension might make it more comfortable to draw some of the non-retirement account savings now.

The current residence seems like the most fungible expense. As one currently downsizing for similar reasons: it’s emotionally hard at first but 3 months after moving, you never think about your old house again. (And it’s great to have cut property tax in half!) Maybe investigate condos, townhouses with reasonable HOA and less expense for individualized upkeep

sd323232
Posts: 103
Joined: Thu Jun 21, 2018 4:45 pm

Re: My stats, any advice? job is not stable

Post by sd323232 » Wed Sep 11, 2019 10:09 am

unclescrooge wrote:
Tue Sep 10, 2019 9:24 pm
Elsebet wrote:
Tue Sep 10, 2019 3:51 pm
Maltipoo wrote:
Tue Sep 10, 2019 2:10 pm
Life is really hard for middle age people.
Maltipoo wrote:
Tue Sep 10, 2019 2:10 pm
Me -- 43yrs, husband -- 45 yrs, two kids (12 & 10yrs public school)
total retirement (401k+roth) -- 1.3M
primary house $700K
rental house $300K - income $1500/month
vanguard mutual funds $550K
Others (company stocks --100K, 529 -- 100K, cash -- 50K)
Life is hard with those kinds of assets?
May God give everyone such hard lives!
If OP still not happy with those stats, I'm not sure I can help since I'm not anywhere close to their level. The only advice I can tell OP, be grateful with what you have and remember there are people out there doing much worse. And really struggling. God bless everyone.

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