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

[Anonymous]

what? how is your phone bill $40?

[Anonymous]

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

How did you get so much in retirement— were you all tech? And THREE paid off rental properties on a $200k income? Please share your secrets!

[Anonymous]

Anonymous wrote: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

Get rid of housekeeping. If you keep your income < 400% federal poverty level, you could be eligible for pretty good subsidies for ACA.

But, you have very little wiggle room with only 300K saved since you cannot withdraw from your 401k for another several years.

[Anonymous]

Anonymous wrote:

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

don't think that applies for OP.

"You must leave your job during or after the calendar year you turn 55."

[Anonymous]

Worst case scenario, you can always sell one of the properties to last till retirement.

[Anonymous]

It's simple. If your income exceeds your expenses, you're fine. If your future income becomes less than your future expenses, then you have to either increase your income or reduce your expenses. Don't forget health care, long-term care, taxes, and future Social Security income in your projections.

[Anonymous]

Anonymous wrote:what? how is your phone bill $40?

Family discount

[Anonymous]

Anonymous wrote:What is the net rental income?

2025 - estimated $45,000 after expenses but before income tax

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

don't think that applies for OP.

"You must leave your job during or after the calendar year you turn 55."

Right. She thinks she might lose her job in a few years. So it just depends on timing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What is the net rental income?

2025 - estimated $45,000 after expenses but before income tax

Consider selling these properties. If you net $1MM from selling these properties and invest in treasuries you will earn $45,000 a year risk-free (and you avoid state tax, but you would have to pay federal income tax).

Obviously, if you net more than $1MM, multiple that by 4.4% to figure out the income.

[Anonymous]

You have plenty but the problem is that you are 52 and can't get into your retirement accounts without penalty until you at 59.5 and 300K in taxable. So if you were to lose your job in the next 6 years, you would need to sell a property. So in the meantime, I would put any extra money beyond 401K income in taxable.

[Anonymous]

Anonymous wrote:You have plenty but the problem is that you are 52 and can't get into your retirement accounts without penalty until you at 59.5 and 300K in taxable. So if you were to lose your job in the next 6 years, you would need to sell a property. So in the meantime, I would put any extra money beyond 401K income in taxable.

That's not quite true, OP could do a 72(t) withdrawal. Normally I would say this is probably a bad idea, but OP has a pretty sizeable retirement account so this might be an option to consider.

[Anonymous]

Anonymous wrote:

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

How did you get so much in retirement— were you all tech? And THREE paid off rental properties on a $200k income? Please share your secrets!

Every time I have wondered this, the person had family money.

[Anonymous]

I think you’d be cutting it too close once you factor in healthcare. But you also don’t need to replace the full $200k if you lose your job.

[Anonymous]

Short answer is no. Health insurance will bury you regardless of the gross income from the rental properties. Current day costs, premiums will run you $1800-$2200 a month plus you will have a deductible of $10,000 to $15,000 for your family. This is unfortunate but a reality. Plus, your current expenses only run a razor, thin margin with your gross income from your rental properties. You could get a way less pain, less stressful job that has health benefits. Do not sell the rental properties. You will be paying capital gains taxes. Keep the passive income from the rentals.