can I afford to maintain my household if I don't work again?

[Anonymous]

I worry that my current job is going away in a couple years and I might not be able to take home the same salary. I'm 52, single and 2 kids in middle school.

Current income: $200K
Retirement accounts: $2.5M
Rental properties income: $3500 & $1500 & $1500/month gross (no liens)
529: $80K
College savings not in 529: $300K
CDs / emergency savings: $300K

I do not have debts other than my primary mortgage balance $420K @ 2.75% and $4020/month including escrow. My biggest expenses are going to be the monthly mortgage, health insurance for 3, property insurance, maintenance repairs, taxes, etc.

Worse case scenario - can I afford to maintain my household if I don't work again?

[Anonymous]

so you would depend on the 6500 in rental income? what are your expenses like?

[Anonymous]

OP, you can ask AI with the data you have above. GL

[Anonymous]

You should start planning NOW some sort of lateral move, either in your field, or in something different but for which you can parlay your skills. It doesn't need to pay as much, but I don't think you should retire just yet. Your rental property income is a wonderful cushion, but it's going to be hard to live off of that with 3 people. Don't you dare touch your retirement account.

[Anonymous]

What are your expenses?

[Anonymous]

Thats incredible savings for a single person, especially having that much in retirement accounts!

[Anonymous]

Anonymous wrote:Thats incredible savings for a single person, especially having that much in retirement accounts!

+1 Can you move to a lower cost of living location if your job goes away?

[Anonymous]

The rental income $6500 is gross income.

Monthly expenses
Mortgage: $4020
HOA: $120
Gas: $147
Electric: $400
WIFI: $90
Phone: $40
Housekeeping: $200
Credit Card: $1000-$1500 (food/gas/entertainment, medical copay)
Water: $65
Auto Insurance: $200

[Anonymous]

Anonymous wrote:

Anonymous wrote:Thats incredible savings for a single person, especially having that much in retirement accounts!

+1 Can you move to a lower cost of living location if your job goes away?

Yes - In 6 years. Moving is an option after my children are done with high school & in college.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thats incredible savings for a single person, especially having that much in retirement accounts!

+1 Can you move to a lower cost of living location if your job goes away?

Yes - In 6 years. Moving is an option after my children are done with high school & in college.

I mean, I think you can make it work. You already know how to save, presumably also how to be frugal. What seems high is your mortgage, but you can live off savings until you get to Social Security. You've also got the rental income, so that helps a lot.

You seem like the textbook case of when to use the rule of 55, if your current employer's plan allows it.
https://www.fidelity.com/learning-center/personal-finance/what-is-rule-of-55

[Anonymous]

What is the net rental income?

[Anonymous]

You might not be able to get a similar paying job, but look for a job that pays something (think of it as a supplement to your rental and retirement income) and comes with health insurance, because that is the big cost and a big unknown regarding availability of getting insurance in the marketplace.

[Anonymous]

Anonymous wrote:You might not be able to get a similar paying job, but look for a job that pays something (think of it as a supplement to your rental and retirement income) and comes with health insurance, because that is the big cost and a big unknown regarding availability of getting insurance in the marketplace.

I forgot to say to expect your auto insurance to at least double when your kids get their licenses.

[Anonymous]

Do you have social capital? Parents who might help you?

I think it's still possible to phase back into work in a lower salary job and I would do that to reduce dipping into assets early on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You might not be able to get a similar paying job, but look for a job that pays something (think of it as a supplement to your rental and retirement income) and comes with health insurance, because that is the big cost and a big unknown regarding availability of getting insurance in the marketplace.

I forgot to say to expect your auto insurance to at least double when your kids get their licenses.

There is always the option of making the kids pay for that or not to drive.

We know more and more people forgoing early teen driving. It's expensive because it's risky.