I am a 50 year old divorced mother of two, trying to build financial security for myself. One of my chicks has flown the nest; one is still flapping his wings and preparing for takeoff.
I enjoy reading personal finance blogs and watching Vlogs. I am working on dong a better job planning and budgeting. If I had planned and budgeted better, I would not have resorted to a Heloc draw to pay for my new roof.
I live in the beautiful central valley of California.
random, unedited thoughts...
Just because your Nest Egg projection is about $ 566, 600. age 65, it doesn't abruptly stop. You may not be adding contributions but whatever the allocation will continue to earn income and most likely replace withdraws. Retirees don't just remove their entire holdings in one sweep.
How do you envision retirement? Will you stay in house or downsize to smaller accommodation? What activities will fill your day? Do you see yourself travelling to expensive/international/exotic locations? Would you move to wherever DKs settle? Will you maintain excellent health?
That's great. I'm about that age now and recently started to really throw some money into stocks and 401k. It's always fun to compare, and get an idea of how long it took people to amass their wealth. I've never built up the courage to knock on random peoples' doors in affluent neighborhoods("rich neighborhoods") and ask how they got there. Was it luck, an inheritance, a good job, a business, investing?
I noticed that you have a car loan. Any reason for that? Since you're still in the asset accumulation phase, I would think twice about a 15k car loan. Instead of sending in car payments, you could be sending that money to your retirement account or taxable investment account.
Did you ever think of getting a 3-4 year old car instead? I bet you could have found an inexpensive honda for under $5k-6k.
Hi Andrea, yes that's true, I could have bought a less expensive car. But I chose to buy the car I did and I'm happy with it. I have had very good results in the past by sticking with nearly new used cars.
For cars, I think it's always best to buy them cash. Sometimes financing takes away the perspective of how much you're actually spending. 15k is a lot of money to spend on a depreciating asset. By the time you're done with payments, it will be worth half what you spent...if you're lucky.
I also wanted to add that "whatever makes you happy" now, isn't always going to lead to a good decision in the long run. When I was in high school, I financed a brand new honda civic. That was a huge mistake, as I ended up moving out for college with a car payment. I soon found out that I could have been investing that money instead. After 5 years of sacrificing just to make the payments, the car was worth a third of what I financed. Investing it would have been a better decision, but it was a lesson learned.