Sunday, May 20, 2018

Hello, Again

I took mom to the lake this weekend.  Not much happening there.
I don't know about you but to me these weeks are just flying by.  Now that I don't have a mortgage, I need to get serious about saving for my early-semi-retirement, or job change, or long vacation, or whatever you want to call it.  The sale of my house gave me $50k to start off the fund and it is invested in a mutual fund.  I figured out that I can realistically save $2K a month.  My goal is to save enough to give me $1,000 per month until I am old enough to start withdrawing money from my 401k.  I should reach that goal in three years.  Ugh, three more years.  It seems too far away. 

My original plan was to just eliminate my debt and live off of my rental income but that income is unreliable at times and this $1,000 a month will give me a cushion when the rentals are vacant.  Also, health insurance is still an unknown.  There used to be a lot of low cost major medical plans and plans with health savings accounts but they seem to have disappeared.  Now, when I put in my expected income, the calculators say that Medicaid is my only option.  I don't know whether that is good or bad.

Since I just had a birthday, three years from now will put me at 49.  Maybe I should just go for 50. Or maybe I should stop putting it off and just jump ship now.  I don't want to regret leaving a good job too soon but I don't want to regret missing out on other parts of life.  Will I ever find a balance?

On to the update:

Rental house 1- Rented with a good tenant who pays on time.  After putting some of the rent aside for taxes, insurance, and maintenance, I have $600 to go in my early retirement account.

Rental house 2- Rented.  After expenses, I should have $500 for my early retirement account.

Mobile home - My nephew is living here and I only charge him $50/m plus whatever the electric bill is.  There is a water tank there with 2500 gallons of water.  If he uses it up he will have to get it filled at $150 per 3000 gallons.  He doesn't have a job yet.  I told him that if he lines up an interview then he can use my truck and then when he lands a job he can buy it from me for minimal cost.  So far, he hasn't taken me up on that offer. 

Tiny shed-house - I hated to do it but it is stuffed with my extra belongings right now.  I didn't have time to downsize like I wanted too.  I wanted to leave it empty so that I could get the wiring and plumbing, walls and floors done with ease.  That plan has been put on the back burner but it is still my goal to live there in when I semi-retire.

The house I live in now is owned by my mother.  I don't pay rent but I pay all of the utilities.  My side of the house is full of boxes that I need to sort through.  It is always on my to-do list but I rarely have time for it on the weekends.

Pets- I still have my three dogs.  I'm not fostering right now but hope to get back in to it when I live in my tiny house although it will be crowded.  Perhaps the mobile home can be my kennel. Who knows what things will be like in three years.  One of my sisters is moving to Texas, the other is moving to Ohio.  Maybe I'll decide to move.  I can't say I haven't thought about it.


philo said...

Woohoo, Daizy's back!
You should know that I have been checking every day. I's glad all appears to be OK.

Lizzie@her MFW Homeworld said...

Hi Daizy
Do you think you could be adding in stuff to make you extra secure because you are a bit nervous of just diving in? Having said that do you want to give up work and stay at home with your mum all day long?? Are you too much of an introvert for long days, every day, in company? so many choices!!! 50 is a nice round number though, aim there!

Jean said...

Thank you, as always, for the update! Any chance you could find a job that you like that has benefits? You are young to have to carry your insurance costs till you become eligible for medicare. Also, I am a boxer (one who puts things in boxes) and have finally realized that putting off the going through them, is somehow serving me. I have been talking with a counselor who helped me see it is part of my pattern of not living now. Happy to say I am finally going through things, an hour at a time, and am letting go of lots of stuff!! What a relief! Just want to encourage you to keep on living your own life! You are an inspiration!

Dave said...

Wow, Daizy dear, it is really good to see you here again. I was wondering what happened to my (and other's) comments on your previous post which never seemed to appear until a few days ago. And happy birthday! Wish we could have celebrated it with you.

Becoming debt-free was a key step forward toward my becoming semi-retired, and eventually, fully retired. I paid off my mortgage in 1998 and semi-retired 3 years later (halved my weekly hours worked); 7 years after that I fully retired. Lowering my expenses this way was crucial.

You do have that pretty good rental income although I agree it is not fully reliable. You do need a cushion in case you have any extended down periods whether it is due to vacancies or delinquencies.

While it may depend on your Plan's rules, in general you can withdraw from your 401k at age 59.5. However, if you separate from service at age 55, you can begin withdrawing from it right away. Maybe you can work, perhaps reducing your hours, through age 55; then you can tap into the 401k sooner than if you get out before 55.

Arizona is one of the many states which expanded Medicaid under the Affordable Care Act ("Obamacare"). If you income is low enough, you will qualify for it. I'd say this is a good thing because you can avoid the often rising premiums to buy an ACA-Exchange policy.

Can you continue living in your current house, owned by your mom, which would keep your living expenses low because you would be on the hook for only the utilities (that is, no rent or mortgage)? What about food, insurance?

There is a great website called where lots of your questions can be answered. I am a member there and have been there for 9 years. You would find it a great resource.

I have emailed you a few times over the years, feel free to respond if you want to know more.