Advice Needed

**Telephus44** · 12-29-2011, 03:52 PM

I'm also a "make your money work for you" kind of person, so I would invest it, but I also know that not everyone works that way. But if it took him only 10 years to get to $100,000 - and he's just shoveling it into a savings account - he's going to end up with a lot of cash that's not doing anything. Does he want to buy real estate? Travel? Retire early? Fund charities? Live in a mansion? Sail the world? I'd be curious if he didn't even have a plan for the money.

**Giro** · 12-29-2011, 04:02 PM

He is only allowed to have $100K in that account. I have already set that rule. He likes to be sitting on 100k. I have no idea why but I won't take it away from him. It makes him feel "wealthy". I keep telling him he's losing money everyday on that...but whatever. If 100K balance makes him feel wealthy and safe, he can have it. whatever. Everyone knows 100k in a savings account is not "wealthy". But, I guess I should leave him alone about it.

After this house, we will have 3 properties. I have a rental, our current house will be a rental for a little while (but we owe money on this one - ALOT) and the new house.

I just want to live comfortably and not have to worry about bills. Right now, we basically live on his retirement check and we use our regular paychecks as fun money and savings. So we only live on about 30% of our income. That is what makes me feel good. We can both lose our jobs and still have food and a place to live.

**khaski** · 12-29-2011, 04:27 PM

I am confused as to why you are still looking to buy this house at all right now...you're about to lose your job, you may have 'prospects' but it sounds like no firm offers yet...and sure, it appraised for $280k, but sounds like you're the only reliable offer since at least August (4+ months ago) on the house. If it were realy such a 'steal' it wouldn't sit on the market all this time, forcing the bank to take a SUPER lowball offer. If I were you, I'd just let the house go- another will come along in time, once you're re-employed. I would not drain away savings, or take a loan from retirement, to buy a third house- no matter how quickly you 'think' you'll be re-employed. Even if you are comfortable with the retirement, taking on another property just sounds risky to me right now.

Maybe I'm just yelling 'FIRE' here, but to me, your plan, either way, sounds VERY risky with you about to lose your job.

**Giro** · 12-29-2011, 04:38 PM

This is the argument I've had with myself for the past couple of weeks. I am nervous about using our savings and facing unemployment.

But, what exactly is the risk? I'm not increasing our expenses, I'm just decreasing our savings. This property doesn't cost us anything we aren't already paying each month.

I cannot sell this property for at least a year...probably much closer to two years. The housing market where we live is HORRIBLE. Wonderful properties are sitting on the market for months and months sometimes a year and longer.

We don't need my income to pay our bills.

idk. your point is valid.

**khaski** · 12-29-2011, 08:38 PM

In further reflecting on it, I guess what I -should- have said is:

You might want to, before committing to this new house, be sure you have enough $ on hand, now, without a new job, and after buying the house one way or other, to cover all 3 properties for 'x' amount of time without tenants (you must decide what time frame 'x' is that makes you comfortable). Don't know how the rental properties are doing staying filled with reliable tenants in your area....but think of the reasonably 'worst case' scenario of having two empty properties and your residence and figure out how long you could swing that, without a new job. If you can do it, and you really ove the new place...why not?

**Giro** · 12-29-2011, 08:45 PM

that is fair. We will have one mortgage, the home in which we currently reside. If we both lost our jobs and we had no tenants, we could live indefinitely because we can live on just his retirement and pay our bills. We don't have car loans. We could not pay for private school for my daughter and we wouldn't be able to buy new luxury cars (but we aren't really the luxury car type).

I'm conservative. He's SUPER conservative. We live below our means. We have a guaranteed income every month.