New here..im debt free with questions

[Easy]

Hey folks,

Just wanted a general opinion on how I'm doin financially from a different point of view (BTW great site!).

I found out recently that i might get laid off when my company is bought out (blue collar job).  I am considering finding a fun job and with less hours and graveyards.  My financial situation looks like this:

350k in 401k

All cars paid off
No credit card debt
Primary Residence paid off
2 rent houses that generate take home of 1500 month, after taxes, ins. etc
Monthly bills @2k (everything)
No other debt at all
3 kids and have ones college paid for in advance and saving for the other 2

Thats about it, i currently make 100k/year and wife about 40k, if i get laid off our dual incomes will probably go to about 50k year.  However our next jobs are gonna be fun, lol just less money.  Oh our ages are 42,43

Thanks in advance

[plantingourpennies]

If you want to retire at 85 and live in a retirement home for a few years before the lights go out, you're in great shape.

If you want to retire next year and be an average consumer for the next 45 years, maybe not so much.

Do you know what your goals are, and how much income/net-worth you will need to achieve them?

Best,
Mr. PoP

[Lans Holman]

If you want to retire at 85 and live in a retirement home for a few years before the lights go out, you're in great shape.

If you want to retire next year and be an average consumer for the next 45 years, maybe not so much.

Do you know what your goals are, and how much income/net-worth you will need to achieve them?

Best,
Mr. PoP

I appreciate the brutal honesty on this site as much as the next guy, but this just seems like snark for the sake of snark.  This guy has expenses of 2k a month, 1500 in rental income and a nice chunk in a 401k, and you're trying to say he'll be lucky to retire at 85?  He could retire right now if not for wanting to help the kids pay for school.
I would say congrats to Mr. Easy, personally.  Now, if you're still looking for help, I think we need to see where that 2k is going.  With the house and cars paid off, that seems like a lot for discretionary spending.  Also, I'm a little confused on how your income would go down by that much if you get laid off.  Would your wife also be changing jobs?

[Zamboni]

I think you're doing great!  3 kids and you've saved a lot in your 401k along the way.  I personally could live indefinitely solely on what your rental income is bringing in, so I have no idea what Mr. PoP is talking about.  I think I'll avoid that blog.

As Easy says, though, people will need more information if you want more feedback. 

[aj_yooper]

Welcome to the MMM blogs!

+1 to Easy.  Your savings are very good, you have no debt, and your expenses are low and are nearly covered by your rental income so I would say you are doing very well.  Like Lans asked, what are your goals and what is it going to take to reach them?

Since you anticipate being unemployed, you are probably saving on turbo-drive. 

[rollie]

Great job! If your expenses are $2000, and your rental income is $1500, then take your new $50,000 income, subtract taxes, subtract another $6,000 to cover your gap in expenses, and you have probably almost $30,000 left. That's what I assume you'd be putting away for the kids' college fund. The question is, how long does your wife want to work, and then secondly, do you plan to have an income of $10,000 forever? Lastly, if your kids can go to their state school, can you have that cash saved up rather quickly? Many things to consider along those lines. It seems that once your kids colleges are taken care of, buying one last rental with at least $500 in cash flow per month should take care of you into retirement, since you only have a $6,000 gap on your own expenses. Then you're free. At least that's my back of the napkin calculation.

[plantingourpennies]

I appreciate the brutal honesty on this site as much as the next guy, but this just seems like snark for the sake of snark. 

Not much snark intended-just pointing out that if he wants anybody to say how he is doing, he has to let us know what he is aiming for.  We don't know what his goals are beyond possibly seeking a different work/life balance in the near term.

Best,
Mr. PoP

[2527]

I think you are in great shape.  Rental income and wife's income exceed monthly expenses.  You're in a position to find a job you like, or even both of you, if that is what you want to do.  Just be mindful of paying for college and keeping health insurance.   

[Lans Holman]

I appreciate the brutal honesty on this site as much as the next guy, but this just seems like snark for the sake of snark. 

Not much snark intended-just pointing out that if he wants anybody to say how he is doing, he has to let us know what he is aiming for.  We don't know what his goals are beyond possibly seeking a different work/life balance in the near term.

Best,
Mr. PoP

It kind of sounded like you were saying he would be lucky to retire at 85, but I guess now I see what you were going for.  Accusations of snark rescinded.  Cheers.

[Easy]

I plan on buying another rent house within the year if the job holds out, and my wife is going to sell her business and probably go back to teaching.  So if i do get a pink slip wifes income around 45k and mine will be around 20k or so.  Kinda hard to calculate right now because a lot is in the air.  The children are young and they all have 529s so at least 6 years for first college bills.  Oldest kids college is paid for already.  Just thinking about chillin out for a while, been woirking since 19 under a hard hat.  Never been unemployed a day in my life and never thought about an early retirement, until the company was bought out and that possibility looms.  I guess the real question is Im a little scared, but I also have some income coming in, just scared to jump off the cliff, though i may be pushed lol.

[footenote]

Now is a great time to relax and think about what you really want to do! Don't look at it as "work / no work." Look at it as "What would I really enjoy vocationally?" It will probably provide some-to-decent income.

Would you like your next gig to be less physically strenuous? Anything you have always wanted to learn how to do? Relax - you're in great shape and you have lots of options... Keep us updated!

[happy]

I agree with Footnote. This is where your discipline with money all those years is paying off.  If the figures you gave us are correct, and you live on 2k, get rental of 1.5k, then you only need to fund 6k a year.  Seems the only thing stopping you both from retiring now is whether you can access the 401 and saving for the kids college. 

Maintain your fiscal discipline, and look around for something you'd really like to do. Stop thinking you'll be laid off, made unemployed etc. Think "I'm taking a break" or "reassessing my options"...some positive language that carries no shame with it.

Congratulations you are in great shape.