Am I sinking, swimming, or above it all?

33 years old, recently divorced and here’s my deal…

Residing in Northeast Ohio, I plan to move South to the Carolinas in the next few years. I own a home that’s current value is $230,000. I have a note on it for $167,000 that I am paying interest only on. Suffice it to say that, if sold today, I will make the difference b/t $230k and $167k. I plan to be here for not more than 5 years. So, I am not paying principal on it.

I have $50k in mutual funds earning, on average, 6%. I have $7k in a money market account, I have $3k in a checking account. I have $35k in a 401k, another $61k in another 401k account, $28k in a traditional IRA and $8k in a ROTH IRA. I have $8k in my company stock. I also own a car that has a value of about $15k and is paid for.

I make $87k in salary, $7-10k in bonuses and I have a company car/phone/internet that gives me about a $12k/year benefit. So, I realize about $107k in income each year. I have full health care with a $1,500k deductible and an HSA that the company contributes $500 to each year. I have no pension, but do have a matched 401k, up to 6%. I contribute 6% to it each month.

My expenses are $627/month for the house, $300 in utilities, $200 in groceries and that’s about the end of it. Don’t get me wrong, my Visa bill ends up around $1,500 every month for travel, clothes, “things,” groceries, etc. I have no consumer debt other than the house. I pay my credit card, in full every month.

Recently divorced, I split everything we had. It was a very easy divorce and we both ended well – i.e., we didn’t give the attorney everything.

My concern: I feel like I walked into a meeting with my pants down. Everything I did for 10 years (while married) feels like for not. I am concerned I don’t make enough, that I don’t have enough saved and that I will not make it to my goal of retiring by/before 60. Deep down, I don’t think that’s the case – having what I do in savings (never mind the equity in the house) is a good spot for a divorced individual at 33.

I guess what I am looking for is some general guidance and some direction that I’m on the right track at 33.

Thanks for considering and your thoughts.

You have WAY more than I did at your age. My opinion: You’re on track. You do know you should probably start to really double down on the retirement plan, it comes along way faster than you think. Good luck with your new life.

Thanks for your input, I appreciate that! What do you mean about “double down?”

My focus starting at about 40 was to REALLY start saving money. Max out the allowed 401 contribution, etc etc. It’s not fun, but you will be so much happier later in life.

Well, one question is, what do you intend to do in the Carolinas, and where, and will you be buying, renting, or what?

FWIW, we’re in the same place living, spending and debt wise…but you are miles ahead of me savings-wise. Your house is worth more than mine too.

And, for some reason, I’m just not nervous about it at all. So, don’t be nervous.

Do you want to marry me? :slight_smile:

You can buy my house! 2BR, 2.5 Bath townouse!

Scenic Murrells Inlet, just South of Myrtle Beach.

Appx 35 Seafodd restaurants in the inlet alone (It’s the “seafood capital of SC”)

Golf everywhere! Beaches! Come on down !

Yeah–I know married couples with families who have less than you do. I’m pretty sure my family doctor has about that salary, and his wife only has a job because she likes to work.

If it were me, I know I could live on half that salary, if even that much. So if you are worried about your savings, try seeing if you can live on 50k or so. But I seriously doubt you need to.

(Then again, I live on 15k and my parents on 40k)

You are on an awsome track. For perpective, I’m in a similiare situation - just ended a 10 year relationship. We are upside down on our mortage, so we are fighting over splitting up debt, not assets. I make a good salary and have some money put away, but not as much as you, and not enough when I look at possibly paying this mortgage by myself now. You have financial freedom (no mortgage you can’t walk away from) and a plan on where to go and live.

I only wish I could say my situation was as similiar, other than the divorce/lost 10 years/age thing. You’ve got me beat, so smile, buck up, and know you are doing great.

I will be working for the current company I am with doing, basically, the same thing. Likely I will reside around Charlotte. I plan to buy a house that I can fix up (myself) and live in. That’s what I did in Ohio.

Are you female, average to petite build and in good shape with a good head on your shoulders? :slight_smile:

I’ll respond to this post here and cover many of the others’ comments, too. I appreciate the candid feedback here. I was raised to pay myself first and then everyone else - i.e., save. Don’t get me wrong, basics like your house went absolutely first. Anyway…

I guess I lack perspective relative to what others’ have, make and do with these things/situations. Sure, I see the reports that we save -1.6% as a nation. I just don’t put a lot of stock into all of that, to be honest. I appreciate it, but I don’t think it’s the baseline that represents “me.”

I want to retire before 60. I’d love to have a place somewhere (Florida, Colorado, etc.) that I can call mine and use with my family, etc… I don’t need over the top, but I don’t want to live like a poor person to enjoy it all in retirement. That’s not me. I don’t need 5 star establishments - I stay at Hampton Inn’s, or Fairfield Inns when I travel and use Priceline, etc. to source the best deal. I also don’t want to stay at a no name place. I think I’m an average Joe that likes some of the taste of the “slightly finer” things in life.

With that said, I worry others’ outpace me in income and savings, especially after divorce. When I say “others’,” I mean those the same age and in a similar industry sector.

If anyone has any tips relative to where I should place my money, I am ears to that, too. I used a mixed approach to my mutual funds/401k - mostly aggresive, 80% stocks and 20% bonds. I try to mix b/t international and domestic funds that outperform the average.

Thanks again to everyone and keep the input coming!

you’re doing a lot better than I am, and I make 3 to 8 times what you do. But, I have to pay $6500 per month to my ex, my house has no equity, and I’ve been living off loans and credit cards for the last 6 months.

I wouldn’t mention this at all, except your concern seems to be how you compare to others. Rejoice that you’re not in my shoes. (although, in my defense, I know I’ve got considerable income coming in sometime in the next few months that will right the ship.)

Don’t take this too seriously, but right now there seems to be a trend toward investments that pay you to wait. Since fixed income securities are paying abysmal rates, a lot of people are taking on a little more risk and going for things like preferred stock, convertible bonds and common stock in companies with good dividend yields.

You are on a luxury cruise. And I wonder whether you didn’t already know that.

Honestly, if I was, I wouldn’t have asked. Going through a “plan” for 10 years of your life and then having it turned upside down causes one to take pause and reflect. Trust me when I tell you the fog hasn’t cleared up for me yet…

I think you are doing well, but your goal of retiring before 60 without a pension is suspect.
Not many ‘average Joe’s’ can do that.

[moderating]
Moved from GQ to IMHO.
[/moderating]

I have no idea whether you’re in a good position to retire at 60. But you can get an estimate on this by working out what you expect your living costs to be at retirement age, mutiplied by a good 30 years or so. I.E. these days you could be living in retirement for almost as long as you earn an income now. So if you want an income of $50K (adjust to taste), you’ll need a rough $1.5m to get you through. Based on your current ability to save, can you save this amount in the 27 years you have left?