Case Study - How Close to hanging it up?

[Nickle Drafts]

Been very fortunate over the years, but it appears the luck might be running out at my job.  Layoffs may be coming, and while I don't want to take it for granted, the Mrs. and I are exploring our options for retirement.  We are looking at the possibility of moving away from our high COL area to Colorado to be near family, and have flexibility on locations.  Here are the specifics:


Income: Currently making $158,000 at work
              Have private mortgage where we receive a monthly payment of $223   

Current expenses: $2,500 monthly mortgage payment
                              $950 annual payment for life insurance
                              $1,200 annual car insurance
                              $700 monthly for food
                              $550 for gas (company reimburses for $200)
                              $120 monthly for kids sports
                              $250 utilities
                              $130 cell phones (wife and I, company reimburses $75)
                              $50 cable bill
                              $265 HOA (yes, I've been face punching myself for a while                 
on this)

Assets: $305,000 401k through employer
             $440,000 house
             $102,000 in cash
             $45,000 share of private mortgage with balloon payment due in7 years
             $9,000 I stock and stock options
             2 cars paid off with low mileage

Liabilities: $350,000 mortgage (20 year 4%)
                 No other debts

The problem is due to having been burned in the market crash, my cash has bee wasting away in a money market fund for pretty much forever, and I need to put it to work.  Also, don't know how to access the 401k cash to begin reaping the rewards (I am 40).  In short, we're looking at making some large changes (ie. the Colorado relo for a lower COL), and the wife is on board, the question is how close are we to freedom?

Thanks

[MDM]

Nickle Drafts, welcome to the forums.

Have you tried http://www.cfiresim.com/input.php and the spreadsheet in the How to Write a Case Study thread?

Those are just a couple of tools to help you analyze your situation.  A good way to proceed is try one or both yourself (and ask for help if needed), then present your own conclusions and see if folks agree.

Regarding "how to access the 401k cash", see http://www.forbes.com/sites/janetnovack/2013/01/15/11-ways-to-tap-retirement-cash-early-without-a-10-penalty/ and the various links therein.

Good luck!

[Thegoblinchief]

A lot of it will come down to the house you relocate to, but your asset pool would generate something like $10-$15k p.a. right now.

You could expat to some foreign countries right now and retire, but I get the impression that real estate in CO can still be pretty pricey, so even your existing home equity plus cash wouldn't necessarily buy a house outright.

[Nickle Drafts]

Thanks for the ideas and the links.