Author Topic: Early retirement, divorce, new job, and SO many questions!  (Read 1326 times)

SecondCareerist

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Early retirement, divorce, new job, and SO many questions!
« on: October 26, 2019, 01:07:10 PM »
I am new here and have been reading up a storm, but still have so many questions. After taking early retirement, I went back to work mainly because of my divorce and a need to keep busy. Here are my stats:

I am 56 years old

Pension -     37,000/year
Salary -       80,000/year
Extra jobs -   8,000/year   (as a former teacher, I have a slew of side-gigs, $8,000 is my average over the past 5 years)

Mortgage balance - 165,000
Assorted debt -          8,000

Monthly expenses (including mortgage payment) - $2300 per month

Due to my divorce, I no longer have any real assets other than my house which is worth 205,000

Here are my questions:
1. My new job is quite a distance from my current home. Is it a good idea to buy a condo close to work to cut back on my travel expenses? Prices are really good right now and I would be able to cover my mortgage payment on my existing home by renting it out to a tenant. Actually, I'd probably come out about $200 ahead by doing this.

2. Should I stay in my current home and pay off all of my debts and then save like crazy to buy a house with cash down the road?

3. How much should I put aside to have when I really, really retire? I plan to work full-time until I am at least 65 years old. People in my family live a long time, mid-90s on average. My pension is for life, but COLA is not a sure thing with teacher pensions.

Thanks so much for any recommendations you can give me. If anyone can recommend a book that would help me, I will read that thing cover to cover.

mistymoney

  • Pencil Stache
  • ****
  • Posts: 823
Re: Early retirement, divorce, new job, and SO many questions!
« Reply #1 on: October 26, 2019, 01:18:20 PM »
is the pension a substitute for soc sec? Or will you be eligible to collect soc sec at 62 as well?

SecondCareerist

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Re: Early retirement, divorce, new job, and SO many questions!
« Reply #2 on: October 26, 2019, 01:26:54 PM »
I will get around $800 from social security, unless the Windfall Elimination Provision bill passes at some time in the future. Even though I have contributed to social security every year of my life since I was 16, I don't qualify for full benefits as I chose to become a teacher. Firemen and policemen have the same issue.

Tuskalusa

  • Bristles
  • ***
  • Posts: 442
Re: Early retirement, divorce, new job, and SO many questions!
« Reply #3 on: October 26, 2019, 05:25:39 PM »
Is there a reason you want to hang on to your current house?  Could you sell it and move to a condo?

SecondCareerist

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Re: Early retirement, divorce, new job, and SO many questions!
« Reply #4 on: October 26, 2019, 06:56:38 PM »
House prices are low right now in Dallas. If I sold my home, I wouldn't make any money on it.

marty998

  • Walrus Stache
  • *******
  • Posts: 7280
  • Location: Sydney, Oz
Re: Early retirement, divorce, new job, and SO many questions!
« Reply #5 on: October 26, 2019, 08:53:59 PM »
House prices are low right now in Dallas. If I sold my home, I wouldn't make any money on it.

Yes but is the condo a cheaper option? If you sell and downsize, you could have a reasonable sum of money to invest and improve your future living standard.

SecondCareerist

  • 5 O'Clock Shadow
  • *
  • Posts: 11
Re: Early retirement, divorce, new job, and SO many questions!
« Reply #6 on: October 27, 2019, 05:56:54 AM »
My current home is in a suburb, prices are lower there. To get closer to work I'd buy a small condo (less than 1,000 s/f) that would cost about the same as my larger home's current value.

I was thinking of renting out the suburban home for a few years so that I could make some money on it by selling it when the prices go back up.

What I'd love to do would be to rent out the current suburban house and then when it does sell in the future, use that money to pay off the mortgage on the condo in town.

Is this a bad plan?

Should I just suck it up and deal with the hours I spend on the interstate commuting back and forth?

ZMonet

  • Stubble
  • **
  • Posts: 212
Re: Early retirement, divorce, new job, and SO many questions!
« Reply #7 on: October 27, 2019, 06:16:59 AM »
If I were you, I'd simplify and sell the suburban home.  Unless you have special knowledge about real estate, there is no reason to think that the house (real estate) will rise in value quicker than any other asset class.  Also, being a landlord isn't for everyone...My vote would be to keep it simple.

Tuskalusa

  • Bristles
  • ***
  • Posts: 442
Re: Early retirement, divorce, new job, and SO many questions!
« Reply #8 on: October 27, 2019, 07:09:56 AM »
If it were me,I’d sell the house. Overall, your plan won’t change much. You will just be saving like crazy to buy a new house, but you’ll be closer to you jab, and in the city where you plan to move. You’ll also be free of debt and full of options.