Is it possible to support a family in Philadelphia area on $99,000 income (condo, student loans)

[freddok]

My wife and I (2 kids are grown and on their own), manage OK on her retirement pay from the IRS (she took early retirement for health reasons) and my pay as a Claims Examiner with the VA with 11 years of service with 89K a year, owning a row house in pretty good shape that's appreciated in value to about $110K in the lower Northeast in Wissinoming near the Tacony border with reasonable mortgage payments in a neighborhood with nice neighbors, and owning a nice newer-model car, so someone making around 100K a year with a family would probably be able to do even better. Our retirement plans include eventually buying a second slightly larger home cash from my 401(k) in Northeast PA near Shenandoah, Shamokin, or Girardville where my family originally came from when I am near 60 to use as a vacation/weekend house when visiting family up there (I'm 55 now) and moving up there when I retire around 66 or 67 and renting out our Philly house for additional income so it can stay in the family for one of my kids to pick up when my wife and I pass on. Sorry for the long dissertation, but, yes, it's more than possible to love nicely in Philly for around 99K a year depending on the neighborhood; Fishtown may be a good choice...a Lodge Brother/friend of mine lives there and his home value has appreciated a tidy bit.

[2002 Subaru]

Originally Posted by MB1562

That would be pretty tough on a $99K income with kids though.

Yeah, but the girlfriend will also be working ... If she makes say 40k a year, it could be easily doable.

[kyb01]

Originally Posted by freddok

My wife and I (2 kids are grown and on their own), manage OK on her retirement pay from the IRS (she took early retirement for health reasons) and my pay as a Claims Examiner with the VA with 11 years of service with 89K a year, owning a row house in pretty good shape that's appreciated in value to about $110K in the lower Northeast in Wissinoming near the Tacony border with reasonable mortgage payments in a neighborhood with nice neighbors, and owning a nice newer-model car, so someone making around 100K a year with a family would probably be able to do even better. Our retirement plans include eventually buying a second slightly larger home cash from my 401(k) in Northeast PA near Shenandoah, Shamokin, or Girardville where my family originally came from when I am near 60 to use as a vacation/weekend house when visiting family up there (I'm 55 now) and moving up there when I retire around 66 or 67 and renting out our Philly house for additional income so it can stay in the family for one of my kids to pick up when my wife and I pass on. Sorry for the long dissertation, but, yes, it's more than possible to love nicely in Philly for around 99K a year depending on the neighborhood; Fishtown may be a good choice...a Lodge Brother/friend of mine lives there and his home value has appreciated a tidy bit.

Are you saying you want to take an early distribution from your 401k( you will have to pay penalties, I believe, if you do this before you are 59.5 years old) to buy a second a home? Unless you absolutely have to I would not take that distribution if I were you. Continuing to build your retirement fund makes more sense, jmo.

[freddok]

I'll only be taking out the money **after** 59.5...possibly not until I retire at 66. Thanks again for the advice.

[1ondoner]

Real estate can be considered as a financial asset and it's possible to use your 401K to invest in rental property without taking an early distribution. This is something I would like to do but the problem is the administration of the property.

Most financial firms are set up to manage stocks, bonds and mutual funds, so the fees from managing RE make it prohibitive unless one has a yuuuuuge 401K investing in a a good number of rental units.

Originally Posted by freddok

I'll only be taking out the money **after** 59.5...possibly not until I retire at 66. Thanks again for the advice.

[roma258]

Originally Posted by 2002 Subaru

Yeah, but the girlfriend will also be working ... If she makes say 40k a year, it could be easily doable.

Yeah, I was gonna say the same thing. $99k with a kid might be doable, but there's not gonna be much cash left for going out or even buying in a nice area. If the girlfriend finds a decent job, you'll be fine. Having just spent 10 years in Fishtown, it's an awesome area for someone in their late 20s who wants places to go out for dinner/drinks, good bakeries (Philly Style Bagels- amazing, Little Baby's Ice Cream, etc...) and it's still kind of affordable. We sold out 2 bedroom rowhouse back in the spring in the $240k range. Or go a bit further north in a slightly less developed hood, but you'll get more bang for the buck and much nicer appreciation. Skip Manayunk- bro central. Passyunk East is another walkable area with lots of great places to stroll along the avenue, about a 15% premium on Fishtown. Center City is beyond reach unless you want to rent. University City is pricey and less walkable, but very pretty and a lot leafier. Best thing you can do is get a realtor and visit some neighborhoods.

[loose cannon]

Again these post are ludicrous. I have never made more than 26k on my life. And you wonder if you can survive on 99k. Oy vey!!!

[CarnivalGal]

Originally Posted by dsclaw88

Fair point. Thanks everyone for the input. Any suggestions for alternate suburbs outside of Lower Merion school district and wayne-radnor school districts?

I assume there has to be some good school districts in close proximity north/south of philly.

Check out Media. Great schools, easy public trans to the city, very walkable, beautiful parks, and lots of really cool shops, restaurants, and bars. They also do a lot of festivals and such.

[FamousBlueRaincoat]

Originally Posted by loose cannon

Again these post are ludicrous. I have never made more than 26k on my life. And you wonder if you can survive on 99k. Oy vey!!!

I'm constantly wondering if people in these discussions live on the same planet as me - let alone the same city/metro area.

[2002 Subaru]

Originally Posted by loose cannon

Again these post are ludicrous. I have never made more than 26k on my life. And you wonder if you can survive on 99k. Oy vey!!!

LOL! I get exactly what you're saying. " My wife and I earn a combined 167k a year, can we live afford to live in a nice neighborhood??"