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.