All I can do is skimp and try to divert more money to either savings or paying down debts. Am I missing something? Anything I can do to fix this?
How do you have a house worth $139,000 but total assets of only $106,900?
I get Total Assets: $224,400
Total Debts: $177,500
Net Worth: $46,900
How do you have a house worth $139,000 but total assets of only $106,900?
I get Total Assets: $224,400
Total Debts: $177,500
Net Worth: $46,900
How do you have a house worth $139,000 but total assets of only $106,900?
I get Total Assets: $224,400
Total Debts: $177,500
Net Worth: $46,900
OMG--you're right! I HAVE POSITIVE NET WORTH!!!!! I was so upset over this...
I'm discouraged and feel like I'm out of time with no chance to catch up. My husband and I, combined, make $98,000 (before taxes) in a LCOL area--but for most of our marriage, we made under $50,000 and racked up credit card and car debt (stupid, stupid, stupid). We paid all that off in 2014 and finally started sinking money into 401Ks. BUT IT'S NOT ENOUGH.
Total Net Worth = -$71,100
The Math:
House Value: $139,000
Mortgage left: $104,000 @ 3.375% fixed / 15 years
2012 Chevy Cruize Value: $3,600
Paid off
2015 Honda Accord Value: $11,800
Debt left: $13,500 @ 1.9% fixed (just purchased used in November, makes me sick that I'm underwater!)
Student Loan: $60,000 @ 2.75% fixed
Husband's 401K: $49,000
My 401K: $16,000
Emergency Savings: $5,000
Total Debts = $178,000
Total Assets = $106,900
Difference = -$71,100
This is bad, right? My husband is 46. I'm 37. We have kids in upper elementary school. Negative net worth is an emergency, right? So what do I do?
I already refinanced the mortgage to this new lower rate. I can't refinance the federal student loans. I have no expectations that my house value with rise (small town Western PA--not a thriving area) and realtors have advised us not to waste money on remodels because we won't get the money back.
All I can do is skimp and try to divert more money to either savings or paying down debts. Am I missing something? Anything I can do to fix this?
My husband is 46. I'm 37. We have kids in upper elementary school.A1. That you could be just fine.
Q1. Am I missing something?
Q2. Anything I can do to fix this?
Paycheck frequency: | Annual | Annual | |
Paycheck Items | Earner #1 | Earner #2 | Annual |
Gross Salary/Wages | $49,000 | $49,000 | $98,000 |
401(k) / 403(b) / TSP / etc. | $11,813 | $11,813 | $23,626 |
W-2 Box 1 | $37,187 | $37,187 | $74,374 |
Subtractions for AGI | Annual | Annual | Annual |
SL int. (approx.) | $1,568 | ||
1040 AGI | $72,807 | ||
Payroll Taxes | Annual | Annual | Annual |
Social Security | $3,038 | $3,038 | $6,076 |
Medicare | $711 | $711 | $1,421 |
Income Taxes | |||
Federal tax | $1,476 | 2018, MFJ, std., 2 dep | $1,476 |
State+local tax | $4,053 | PA state calc'n | $4,053 |
Total income taxes | $13,025 | $13,025 | |
Monthly | |||
Income before other expenses | $5,112 | $61,349 | |
Monthly Average Expenses | Comments | ||
Mortgage | $737 | Input to Item. Ded. | $8,845 |
Miscellaneous | $3,333 | $40,000 | |
Non-mortgage total | $3,333 | $40,000 | |
Loans | |||
Student Loan | $572 | $6,870 | |
Car | $386 | $4,633 | |
Total Expense | $5,029 | $60,348 | |
Total to invest | $83 | $1,001 | |
Summary: | |||
"Gross" income | $8,167 | $98,000 | |
Income taxes | $1,085 | $13,025 | |
After-tax income | $7,081 | $84,975 | |
IRA+401k/403b/TSP/457 | $984 | $984 | $23,626 |
Living expenses | $4,070 | $48,845 | |
Non-mortgage loans | $959 | $11,503 | |
After-tax investable | $83 | $1,001 | |
Time to FI?: | |||
Guess at time to FI | 18 | years | |
Safe Withdrawal Rate | 4.00% | percent | |
Real return on tax-deferred investments | 5.00% | percent | |
Real, after tax, return on taxable investments | 4.25% | percent | |
Current Savings | |||
Tax-deferred (e.g. trad. IRA/401k) | $65,000 | ||
Projected Savings at Retirement | |||
Taxable | $212,317 | ||
Tax-deferred (e.g. trad. IRA/401k) | $821,086 | ||
Total projected stash | $1,033,403 | ||
Projected Expenses in Retirement | |||
Non-loan, non-work expenses | $40,000 | ||
Annual non-tax retirement expense | $40,000 | ||
Income taxes | $821 | ||
Total | $40,821 | ||
Stash needed for retirement @4.0% SWR | $1,020,526 | ||
Have $12,877 extra. |
Filing Status | 2 | 1=S, 2=MFJ, 3=HOH | |
# Dependents | 2 | ||
# Children <17 | 2 | ||
# Children <13 | 2 | ||
# Children for EIC | 2 | ||
Adult #1 | Adult #2 | ||
Age | 46 | 37 | |
Full-time student? | 0 | 0 | |
AGI | $72,807 | ||
Std. Deduct. | $24,000 | ||
Act. Deduct. | $24,000 | ||
Exemption | $0 | ||
Taxable | $48,807 | ||
1040 Tax | $5,476 | ||
Non-refund. CTC | $4,000 | ||
Tax after n-r credit | $1,476 | ||
Net Tax | $1,476 | ||
Mtg. Int. (approx.) | $3,475 | 1000000 | |
State tax | $2,960 | PA | |
Local tax | $1,092 | 1.5% | |
Item. Deduct. | $7,527 | ||
Version | V11.02 |
Loans: | Orig. Prin. | Orig. Length | Curr. Prin. | Yrs left | Rate |
Mortgage | $104,000 | 15 | $104,000 | 15 | 3.375% |
Student Loan | $60,000 | 10 | $60,000 | 10 | 2.75% |
Car | $13,500 | 3 | $13,500 | 3 | 1.9% |