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Personal Finance (Not Investing) • Can Wife and I afford 2nd vacation property?

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Ages 44 and 40

Income = $200,000 a year - Both are teachers with guaranteed 3% raises over the next 3 years (jobs very stable and almost impossible to get fired)

Net Worth = $1,140,000

Retirement = $720,000 in Roth IRA, 457B and 403B

Pensions = both my wife and I are eligible to retire in 7 years (I doubt we will) and right now those combined pensions would be $90,000 in total with small cola and 100% survivor benefits. Healthcare is also covered at a cost of $250 for family. Our pensions allow us to collect Social Security as well

Kids ages 16,12,5 and we have college savings of $50,000 so far. A little light but can easily cash flow public univ in our state no problem even with buying 2nd property

Debt = no debt other than we owe $130,000 on our home which is valued $550,000. We have 1.99% rate on 15 year mortgage with 11 years left

Currently we invest $4200 a month into our retirement. This money Is split between Roth IRA, 403b, HSA, 457B

We will get an additional $1900 starting this month because we no longer have to pay daycare cost with youngest going to kindergarten.


Property we want to buy is $200,000 and payment will be around $2200 so the plan is to just use the $1900 from above and invest $300 less a month from 457B.

This unit can also be rented out and make around $10,000 -$20,000 a year even when we use it. The reason for purchase is I have been offered a summer job at a very nice private golf course which I will probably make $10,000 and get free golf. The unit is a condotel in a very nice area with plenty of pools...beaches and other things for kids to do while I work 2-3 days a week.

Do I have permission?

Statistics: Posted by bg5 — Thu Aug 08, 2024 12:11 am — Replies 8 — Views 1131



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