I am 49 years old, live in a metropolitan area, and have a $540,000 mortgage. My income is in the six figures ($185,000 a year excluding bonuses). I don’t have monthly credit card debt, but I do have about $1,500+ bills piling up each month. I am a single male and live a relatively quiet life. I go to the movies and eat out with friends as one of my few social occasions, but I stopped going to theaters and concerts because of the expense.
this is my problem. I have 25 years left on my mortgage (you read that). I will never be able to pay off my mortgage by the time I retire at 67, and the prospect of working at this level for the next 20 years (my job involves travel, which is very stressful and sometimes uncertain. ) is devastating. tired. Waking up in the morning, my first reaction is “let’s go again”. Or, on a bad day, you might say, “Oh no.” Sometimes getting out of bed can be difficult.
Most evenings, you work until 6pm, come home to an empty apartment, cook (or order) dinner, watch TV, go to bed, and repeat the next day. I try my best to join the club (I’m a member of the local hiking club where he meets twice a month). Watching sitcoms makes me wonder when was the last time life got this easy. I worry about being lonely, not being able to retire, and someday having to work until I die. At least my student loans were paid off.
What are your thoughts on being able to retire at 67? Finally in time for the weekend. Arriving by Friday leaves him with a two-day gap before he resumes work on Monday, and most Sundays he is “feared” for the week ahead. How can I make my life easier without spending sleepless nights thinking about the future?I have a 401(k) and about $300,000 in the bank and her $100,000 is deposited. Am I doomed? I feel that way most days.
50 years old soon
Dear Allmost
When you turn 67, you might look back at your 49-year-old self and say, “He had it all.”
You’re not destined, you’re scrolling through the rest of your life like destiny, and you haven’t given yourself enough credit to get to where you are today – and you’re one of many facing retirement. are in a luckier position than the Americans ofa far more advantageous and privileged position than many other people in the world.
You need to find perspective, and you also need to create a gratitude list for everything you have: job, home, savings, 401(k). There will always be people who are better off than you. Living in the future or past instead of the present is a stupid game. Especially when you can keep saving money day by day, week by week, month by month to pay off your mortgage.
If you take a deep breath, exercise, eat well, get enough sleep, and see what’s causing it by seeking the help of a qualified therapist depending on how you’re feeling in the next week or next month, your situation will become your point of view. may change with It really continues. You can handle work-related stress today. No one has full control over the future. You are not alone.
Randy WatzekRaymond James, a financial adviser to Birch Lane Group, says he sees your situation and your state of mind. “People are in the midst of busy, stressful lives and thinking about money issues makes it even more stressful. ” In other words, you lose sight of the big picture.
He also says that you are probably in much better shape than you think. The median net worth for those aged 65 to 74 is about $266,000. According to US Federal Reserve dataa. “Almost Fifty is only 49, but she’s already better off than most retirees because she has a 401(k) in a bank with at least $400,000 and a home equity,” Watzek said. says.
See these 18 years as a blessing. “If Almost Fifty simply maximized his 401(k) contribution and he made a 6% return, then at age 67 he’d have a 401(k) that potentially made him 140. It could be over $10,000,” he says. “Even if Almost Fifty didn’t contribute a penny to his 401(k), even if he made 6% of the return, the 401(k) would go from $300,000 to $670,000.” He could grow to over $800,000 by the time he’s a year old.”
With regards to mortgages, it’s impossible to make an accurate judgment without knowing the details and interest rates, Watzek said, but he said he hasn’t taken out a mortgage in the past year or so, when interest rates doubled to about 7%. Hypothetically, an extra $700 a month could pay off in 18 years before the golden age of 67.
Your $185,000 salary is above the Social Security maximum taxable income level of $160,200 in 2023. That means you will pay 6.2% Social Security tax until you hit that cutoff point. “Assuming a consistent high-income work history, Social Security benefits are also likely to be capped, potentially exceeding $3,000 per month,” Watzek added.
Nothing is set in stone and you certainly have the power to make a difference over the next 18 years. Dan Heron, principal at Elemental Wealth Advisors in San Luis Obispo, California, recommends deciding what kind of retirement you envision. Planning is much healthier and more productive than staring into the dark abyss of the future.
“For example, if you want to continue living a familiar and simple life, assuming you can work remotely, why not consider moving out of where you currently live to reduce your living expenses? ’ he says. “Perhaps if I sell the house with a $540,000 mortgage and reduce the mortgage, I may be able to forgive the mortgage altogether.”
Look for job openings on LinkedIn and other sites. Even if you don’t take them, it helps you know what else is out there. Or, in fact, it reminds me how lucky I am to have this job. You might find it even more stressful to take another job where you’re unknown and having to build your reputation from scratch.
If you’re really dissatisfied with your current job, you might consider prioritizing quality of life over pay. “Staying miserably in a job for another 25 years can have long-lasting mental and potentially physical consequences,” Herron says. “Once you understand what you want your life to look like and what makes you happy, you can start talking numbers.”
Your financial and mental health should be nurtured and cherished. Seek advice on both. But take care of your own emotional and mental health first. be kind to yourself. You can’t enjoy the former without the latter. You may be irritable, you may be depressed. Alternatively, you may be at risk for clinical depression. These are all possibilities. Awareness is the key.
A few years ago I met a friend while riding my bike in Manhattan. I wasn’t wearing a helmet, so I was told, ‘You have valuable luggage in there.’ Of course he advised me to wear a helmet. I give the same advice. Take care of yourself first. Then your journey by bike, car, train, plane, or 401(k) will eventually settle itself.
Readers write to me with all sorts of dilemmas.
By emailing your question, you agree to publish your question anonymously on MarketWatch. By submitting your story to Dow Jones & Co., publisher of MarketWatch, you authorize us to use your story, or versions thereof, in all media and platforms, including through third parties. You understand and agree that.
The Monetarists regret that they cannot answer the questions individually.
More about Quentin Fottrell:
I dated an amazing man. I didn’t drink but he added $36 to the bill because of his wine. Split the check evenly. Should I have raised my voice?
“I’m barely paying my bills, so I’m exhausted.” My fiancé said he would pay half the mortgage. What do you think happened next?
“We live in purgatory”: My wife has a multi-million dollar trust fund, but my mother-in-law manages it. We’re making $400,000 and spending more than we can afford.
