What advice would you offer 38-year-old me? (dating, single, benefit)
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Couple of things here I didn't see mentioned on housing, but should be thought about.
We have entered an economy where quality jobs are consolidating into fewer and fewer metros. Atlanta is a winner in that case, and is likely to remain a winner. Getting in now, locking in a relatively consistent housing payment, is likely to pay off many times years from now.
I live in a medium-sized college town in northeast TN now. I recently bought an inexpensive townhome in a "vinyl box" development for $69,900. The outside is all vinyl siding, but the inside is tastefully updated, if a bit basic.
All in, my mortgage + COA fees are around $525/month. Renting a similar 2BR/2BA townhome built by the same developer (though not in this same neighborhood) would be nearly twice that. At that kind of delta, it doesn't take long at all to make up your transaction costs. If I had to, I could probably float the mortgage for awhile until I could either rent the unit (I have a personal friend who is LL over several properties and his property manager will basically run anything)
I used to live in an affluent suburb of Indianapolis in a plain, older apartment complex. Keep in mind - this place was only desirable on price by neighborhood standards. I lived there for three lease cycles. Rent went up by 7%, on average, over those three years. Some more, others less. And I wasn't even in a hot market.
I know several guys around my age (late 20s - early 30s) who were able to ride equity waves in various areas, not just the hot coastal markets, to hundreds of thousands in equity, and were then able to relocate to a smaller town, slower paced lifestyle with a paid for house.
I agree Atlanta is probably going to be a "winner" and overall feel it was a good choice to move back to here and to move back when I did. At least for certain aspects of my life (financially) it made sense to return.
That is realllly low for a townhome! Although I could probably get something around that price in College Park for those who are familiar with the Atlanta area. (I vowed never to live in Clayton county again though .)
Anywho, your mortgage is nice! I don't know if you saw one of my earlier posts about eyeing a 1 bedroom condo going for 85kish with a low HOA in the city. If I were to buy that seems like a good fit for me...something small but located in the right spot and with a mortgage less than my annual salary. I could save a TON doing that I think. Again I'm not excited about tying myself down to a place but I do need to decide if buying makes sense at any point soon.
As mentioned my rent in Atlanta doubled in the past 5 years so the next few years might not be pretty. My current place isn't the most upscale but it's in desirable area and it's very new but again it's $1150 a month for a studio.
I`m a recovering alcoholic and when I got sober at 35 I was flat broke with no job prospects. At 38 I found work I didn`t hate and started working my ass off. I started buying rental property at the age of 43 and now at age 60 I own eight properties. I have very little social security benefits and wife has no retirement to speak of.
But we should be o.k.
The key is finding work you like or at least don`t hate in which you can earn decent money. Then work hard and save, save and save. Many like to invest in stocks but since I know nothing about stocks I went into real estate. Not that I made a killing mind you. Got clobbered in 2006 but rebounded in 2011.
Good luck.
Congrats on getting sober
I don't hate my current job...it's ok. Some days I strongly dislike working but it's mostly associated with the stress level and time commitment. Other than that for the pay it's tolerable. I spent a lot of time in my 20s and early 30s reading self help books and doing career tests and trying to find work I love but I guess I kinda gave up on that
From my perspective, the biggest risk is that pension and the employer who contributes to it. A private sector defined benefit pension is heads and shoulders more risky than a public sector defined benefit pension.
If it were me, I would spend lots of time pouring over the financial documents of the pension plan. I also would spend a lot of time analyzing the business model of my employer. 100+ year old companies might or might not have good prospects going forward. I might even go so far as to contact professors of accounting who specialize in pensions and ask them if they are aware of any academic analyses that focuses on or has bearing on my employer &/or its pension plan. I would probably contact professors of actuarial science the same question.
It is my sincere hope the answer is positive.
At the same time, I personally view a private sector pension has being highly risky. There are just so many bad things that might happen that could result in the employer not fulfilling its pension obligation.
You've definitely given me some serious homework to do!
Thanks for the tips/suggestions. I will definitely have to look into all of this.
Do not include SS in your calculations. Assume it won't be there and plan accordingly.
Well, I just try to save as much as I can.
But as far as SS goes I figured it's too early for me to start thinking about how much I'll get so it's really not included in any long term plans at the moment.
I agree Atlanta is probably going to be a "winner" and overall feel it was a good choice to move back to here and to move back when I did. At least for certain aspects of my life (financially) it made sense to return.
That is realllly low for a townhome! Although I could probably get something around that price in College Park for those who are familiar with the Atlanta area. (I vowed never to live in Clayton county again though .)
Anywho, your mortgage is nice! I don't know if you saw one of my earlier posts about eyeing a 1 bedroom condo going for 85kish with a low HOA in the city. If I were to buy that seems like a good fit for me...something small but located in the right spot and with a mortgage less than my annual salary. I could save a TON doing that I think. Again I'm not excited about tying myself down to a place but I do need to decide if buying makes sense at any point soon.
As mentioned my rent in Atlanta doubled in the past 5 years so the next few years might not be pretty. My current place isn't the most upscale but it's in desirable area and it's very new but again it's $1150 a month for a studio.
Mid-sized (though Atlanta is obviously not mid-size, but counts for this discussion), mid-cost interior metros will get the next wave of home appreciation. The run-ups in places like Boston or San Francisco are once ever in percentage terms. That ship has sailed and it's becoming ever more difficult for "normal" people to afford those places. They're basically playgrounds for the top 10% or so and the subsidized poor.
No one here can determine what is exactly the right move for you and your situation. I understand the fear of being "tied down," but that only really becomes a problem if you cannot sell (for whatever reason), cannot find work (a problem where I am), or cannot afford to float the mortgage for awhile until the property sells as you relocate. Given the massive gap between renting anything even semi-decent and owning in this area, I'll take a gamble on owning.
Even if your current company went belly up today, you could probably find something in Atlanta. It may not be what you make now, but with an $85k mortgage, your odds of having serious cash flow issues due to the mortgage are probably slim.
...perhaps it is because I'm nearing 40 and many people I know are settled down and have kids. I think being an outlier in this way 'can' be a bit difficult as although I am usually very consistent in my feelings on this sometimes, lately they have been wavering just a bit.
The principal difficulty will be in terms of social-life... friendships, acquaintances, entertainment. Atlanta may be prosperous and urbane, but it is very much heartland/southern, regarding its culture - at least relative to the Coasts. Most adults of a certain age will interact with other adults via their children's activities. This of course is no reason to entirely revise the principal tenets of one's world-view. But it is a consideration, as one ponder's one's housing options, workplace circumstances, hobbies and so forth.
The good news is that in another 5-10 years, the parents will have moved to a phase of life, where their children are older and more independent. And you will cease to be the recipient of quizzical and upbraiding looks, where supposedly "well-intentioned" people will try to be "helpful".
Go to work for a governmental entity that still has a defined benefit pension and max everything out that you can, such as IRAs and deferred comp plans. But not in Illinois. My Illinois retiree acquaintances are starting to sweat about the viability of their pensions. Yes, I know it's constitutionally protected, but you're not going to be able to get blood out of a turnip much longer.
I would not count on any state that has a really generous pension plan. My state is doing well but the pension plan is not gravy. It's not like some believe with fancy, ridiculous "retire at 50 and get your full salary for life" plans or anything. We have to save like everyone else.
On another note, never in my life have I met someone who regretted the decision to not have kids. I do know people who were sad that they were never able to have children and who couldn't adopt for whatever reason, but literally nobody I've ever met said "gosh i wish I had had a kid". Most of them who didn't like kids then don't like kids now, and while it's true they grow into adults, it's still no guarantee.
You can always help out a family member and be an "aunt" to someone. No need to have kids you don't want!
It sounds like you've considered a lot of things and have been given a lot of good advice. I retired young at 52 and went back to work part-time. Still some job income to help pay off residual bills but also an incremental way to deal with the idea of being retired. Everybody's wired a little different in that regard and you're the only one who can decide what age works best for you. If you do work part-time for a while though, you can stretch out your retirement savings while getting your head ready for the next part of the game called full retirement.
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I don't know if you saw one of my earlier posts about eyeing a 1 bedroom condo going for 85kish with a low HOA in the city. If I were to buy that seems like a good fit for me...something small but located in the right spot and with a mortgage less than my annual salary. I could save a TON doing that I think. Again I'm not excited about tying myself down to a place but I do need to decide if buying makes sense at any point soon.
