I would like to know the community’s thoughts on my financials. Even though I think most would agree the numbers are good, there is plenty of room for face-punching, so fire away.
However, I am particularly interested in your thoughts on our monthly surplus. I used to throw it all in our taxable account, but now I split it about 50/50 in the taxable account and extra payments on the RV loan. What say you...more/less to the loan?
I also would like to know your thoughts on whether I should sell Rental #2 and use the proceeds to pay down (or off) some of the other loans. It is about halfway through a three-year lease, but I do not like the high property tax. After the lease is up, it will have about $27,000 of depreciation recapture on it, which will have to be reported as LTCG. On a side, note I would like to sell Rental #1 too, but it has over $115,000 of depreciation recapture on it, and I am not enthusiastic about paying that tax. One of my goals is to simplify, so I am not really interested in doing a 1031 exchange into something else.
Life situation: MFJ with three kids. Our oldest child did not want to move to Florida so she lives with my father-in-law. We also largely support a third adult and her daughter. Five pets roam the house too.
I am on active duty in the armed forces and can retire in four years. My spouse is also on active duty and can retire in seven years. The adults are 41, 41 in two days, and 45. The kids are 16, 14, 14, and 13.
Summary:
Balance sheet:
Assets: $3,213,000
Liabilities: $818,000
Net worth: $2,395,000
Monthly income statement:
Income: $28,150
Expenses: $23,150
Net income: $5,000
More Detailed:
Assets:
1. Primary residence: $445,000
2. Secondary condo: $200,000
3. RV: $90,000
4. Rental #1: $579,000
5. Rental #2: $300,000
6. Rental #3: $200,000
7. Investments:
Taxable: $555,000
Roth IRAs: $161,000
401(k)s: $548,000
Education accounts: $107,000
8. Checking/Savings accounts: $28,000
9. Three cars and a camper, values are not tracked
10. Two Post 9/11 GI Bills transferred to the kids
11. Two paid-off $254,000 whole life insurance policies, cash value $44,000 each
Liabilities:
1. Primary residence: $395,000; loan terms: 3.375% / 30 year fixed VA (28 years remaining)
2. Secondary condo: $153,000; loan terms: 3.375% / 15 year fixed (14 years remaining)
3. RV: $75,000; loan terms: 4.25% / 20 year fixed (18 years remaining)
4. Rental #1: $186,000; loan terms: 4.5% / 30 year fixed (25 years remaining)
5. Credit cards: $10,000; terms vary; paid off monthly
Monthly Income:
1. Salary 1: $10,800
2. Salary 2: $9,600
3. Rental #1: $2,150
4. Rental #2: $2,000
5. Rental #3: $1,350
6. Taxable Account Dividends: $1,800
7. Interest: $450
Monthly Expenses:
1. Primary residence:
PITI: $2,333
HOA: $133
2. Secondary condo:
PITI: $1,250
HOA: $435
3. RV: $544
4. Rental #1:
PITI: $1,635
HOA: $100
5. Rental #2:
Property tax: $600
Insurance: $110
6. Rental #3:
Property tax: $180
Insurance: $80
7. Allowances: $233
8. Auto:
Fuel: $333
Service: $333
Insurance: $65
Tolls: $50
9. Charity: $300
10. Clothing: $300
11. Dining: $400
12. Education: $166
13. Entertainment: $350
14. Furniture: $240
15. Gifts: $166
16. Groceries: $1,280
17. Gymnastics: $1,350
18. Home repairs: $560
19. Daughter’s rent: $250
20. Miscellaneous: $1,500
21. Personal Care: $37
22. Pet: $120
23. Recreation: $150
24. Telecom-Internet: $75
25. Telecom-Netflix/DirecTV Now: $50
26. Telecom-Wireless: $328
27. Utilities-Electricity: $200
28. Utilities-Water: $60
29: Taxes: $3,000
30: TSP Deductions: $3,800