I need some help , and the web has led me here. I'm 36 this year and have been working in the Automotive business since age 20 . I've over spent and under saved as much as the next guy/girl but I've had some great experiences . Now , I think its time to start planning a change that will give me far more time to do what I really enjoy . I am NOT investment savvy ( as you'll see below ).
My home
Market Value: $165,000
Original Purchase price: $131,000
Original Mortgage Amount: $129,000
Interest Rate: 3.75%
Mortgage Term: 30
Term remaining: 22
Amount remaining on mortgage: $108,000
Gross Rents: My neighborhood typically brings $1400/mo
Principal and Interest (the P&I of your PITI - should match with the above info): $600/mo
Taxes and Insurance (the T&I of your PITI): $214/mo
HOA costs: $188/yr
Deferred maintenance notes:
Savings Account earning next to nothing $160,000
401k $58,000
Vanguard POSKX $4,980
4 paid off motorcycles that I thoroughly enjoy , Mercedes Sprinter van that has been converted to an RV Paid off , Prius paid off
Thoughts from head have been travel 5-6 years in the Van as a midlife retirement while leasing out my home , Buying a second property of similar values and rents with my savings and leasing both for a longer term solution , Buying a handful of rental mobile homes here in MS with the $160k savings . Any ideas/advice from the Mustachians?
J.
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Please use the following guidelines/format as applicable to your situation to ensure we have ALL the information we need to help.
Topic Title: Reader Case Study - your question here
Life Situation: IRS filing status ( Single No Dependents, number & ages of dependents, and anything else (state/country of residence, age, etc.) you are comfortable sharing. Jackson, MS although I'd like to spend more time than not in North Carolina , Asheville area.
Gross Salary/Wages: Before any deductions $10k/Mo
Individual amounts of each Pre-tax deductions 401k, HSA, FSA, IRA, insurance, etc. - whatever you have 8% into a standard 401k with 4% match from employer .
Other Ordinary Income: Provide sources and any relevant details, the more the better
Qualified Dividends & Long Term Capital Gains: If these are significant for you
Rental Income, Actual Expenses, and Depreciation: If these are significant for you
Adjusted Gross Income: This should equal the additions and subtractions above.
Taxes: Federal, state/local, and FICA. These should be consistent with your AGI and Life Situation. For non-U.S. posters, we’ll have to take your word for these. $3800/mo federal taxes, med, ssi. around $1200/mo in state taxes
Current expenses: Provide breakdown and relevant details. Aim to have “Miscellaneous” somewhere ~2.5%. Much lower and you may be providing too much detail, much higher and you have an obvious problem of not understanding your spending. Food $500/mo , fuel $80/mo , Vehicle insurances $278/mo , Health Insurance $210/mo , Utilities $188/mo , Cell $86/mo , Mortgage $814/mo ( $600 P&I , $214 T&I) .
For mortgage payments, separate the P&I (which stop when the mortgage is paid) from the T&I (and anything else) which continue as long as you own the property.
Expected ER expenses: (optional, if relevant)
Assets: Amount & description - include current asset allocation plan if you have one
Definition of assets: Any item of economic value owned by an individual or corporation, especially that which could be converted to cash. Examples are cash, securities, accounts receivable, inventory, office equipment, real estate, a car, and other property.
Liabilities: Description, original loan amount, rate, original length, and monthly payment (which should be consistent with a spreadsheet PMT calculation). Add current balance and time remaining if close to final payment. Mortgage only , no debt other than that.
Specific Question(s): Providing a detailed breakdown is important, so is asking for specific information so we know what kind of help/advice you are looking for.