Evaluate my Financial Status

You gotta open up a 529!

Other than that I’d say top 40% for your cohort.

You'll be extremely worried about retirement in 10 years. And you should be because you don't have anywhere near enough saved and way too much debt. If you pay for the kids college you can't afford it. If they pay then you screwed them with debt.

You won't be able to keep that house in retirement.

How do you have a $1.2 million dollar home with a guest house on a $165K income?

Your retirement savings is very small compared to your income. Likewise, savings is very low.

medium_pace wrote:

How do you have a $1.2 million dollar home with a guest house on a $165K income?

They probably bought it for much less. Would you believe they paid 500-600k and it's price has doubled?

JCCB wrote:

I make 65k.

Husband makes 100k.

We rent out our guest house and make approx. 24k a year on that.

House worth 1.2 million.

390 mortgage.

140 K owed on Heloc.

85k in retirement fund.

20k in savings.

We are in our mid 40s. 3 kids. Little has been saved for college.

Pretty good for a gay couple, I'd say.

lr auditor wrote:

JCCB wrote:

I make 65k.

Husband makes 100k.

We rent out our guest house and make approx. 24k a year on that.

House worth 1.2 million.

390 mortgage.

140 K owed on Heloc.

85k in retirement fund.

20k in savings.

We are in our mid 40s. 3 kids. Little has been saved for college.

Pretty good for a gay couple, I'd say.

I worked in new construction home sales and I don't remember a gay couple who wasn't paying in all cash. So, yeah, they normally are financially stable.

To the OP:

Pick up Dave Ramsey's "Total Money Makeover" and attend the Financial Peace University class. You have too much debt. I would also suggest selling your home and getting one for half the cost. That would immediately make you debt free and you could contribute a ton to your retirement plans over the next few years with that money and the money you'll save with not having a mortgage.

As for the 529 plan, my wife and I will never have one. They can pay for their own college. I was on my own and found an NAIA school that was willing to give me a full ride for running (mostly athletic money, partially academic, but full ride). $40k/yr education for free. My kids can decide and take care of themselves. If they decide to go into debt, that's their deal. They will be adults at that time.

JCCB wrote:

I make 65k.

Husband makes 100k.

We rent out our guest house and make approx. 24k a year on that.

House worth 1.2 million.

390 mortgage.

140 K owed on Heloc.

85k in retirement fund.

20k in savings.

We are in our mid 40s. 3 kids. Little has been saved for college.

Top 10% for sure, but you should have invested in crypto. My net worth is 800k, I'm in my 20s and basically do nothing.

JCCB wrote:

I make 65k.

Husband makes 100k.

We rent out our guest house and make approx. 24k a year on that.

House worth 1.2 million.

390 mortgage.

140 K owed on Heloc.

85k in retirement fund.

20k in savings.

We are in our mid 40s. 3 kids. Little has been saved for college.

Out of curiosity, how did you afford a $1.5 million house on a 165k / income? INherited money?

Real Lyfe Nobodee wrote:

As for the 529 plan, my wife and I will never have one. They can pay for their own college. I was on my own and found an NAIA school that was willing to give me a full ride for running (mostly athletic money, partially academic, but full ride). $40k/yr education for free. My kids can decide and take care of themselves. If they decide to go into debt, that's their deal. They will be adults at that time.

That's a great way to cause your kids to dig themselves into a huge financial hole that they will spend the rest of their lives trying to get out of.

Danny Bandana wrote:

Real Lyfe Nobodee wrote:

As for the 529 plan, my wife and I will never have one. They can pay for their own college. I was on my own and found an NAIA school that was willing to give me a full ride for running (mostly athletic money, partially academic, but full ride). $40k/yr education for free. My kids can decide and take care of themselves. If they decide to go into debt, that's their deal. They will be adults at that time.

That's a great way to cause your kids to dig themselves into a huge financial hole that they will spend the rest of their lives trying to get out of.

This. There is a drastic difference between affordability of higher education a few decades ago and now. It is way too common that individuals need help with college education or down payment on a house. Otherwise they get caught in the paying off loans and paying to rent and barely left with anything to start saving for a house down payment.

Real Lyfe Nobodee wrote:

As for the 529 plan, my wife and I will never have one. They can pay for their own college. I was on my own and found an NAIA school that was willing to give me a full ride for running (mostly athletic money, partially academic, but full ride). $40k/yr education for free. My kids can decide and take care of themselves. If they decide to go into debt, that's their deal. They will be adults at that time.

Not gonna tell you you're an a$shole but why would you set your kids up like that? Perhaps they're not as athletically gifted as you - do you know how expensive college is these days? You want them to start their adult lives in a pile of debt? You sound like a turd.

JCCB wrote:

140 K owed on Heloc.

.

You gotta pay off that helicopter...

2/10 just because you got some serious answers

JCCB wrote:

I make 65k.

Husband makes 100k.

We rent out our guest house and make approx. 24k a year on that.

House worth 1.2 million.

390 mortgage.

140 K owed on Heloc.

85k in retirement fund.

20k in savings.

We are in our mid 40s. 3 kids. Little has been saved for college.

Doesn't sound like you have enough saved and too much debt. I don't know that the "norm" is but compared to myself.

48yrs-no kids

113K salary

Live in g/f makes about 25k-

We rent-2500/mo

I own a small condo (worth about 390K) I rent out-net 6K/yr on it. Owe 120K on it. (will sell in a year or so to buy bigger place to move to)

272K in retirement funds

240K savings

JCCB wrote:

I make 65k.

Husband makes 100k.

We rent out our guest house and make approx. 24k a year on that.

House worth 1.2 million.

390 mortgage.

140 K owed on Heloc.

85k in retirement fund.

20k in savings.

We are in our mid 40s. 3 kids. Little has been saved for college.

"390 mortgage" Does that mean you owe 390k or you have a $390/month payment?

You need to take the next 5 years and spend nothing; save everything. You're way behind.

Rice and beans, beans and rice.

HELOC wrote:

JCCB wrote:

I make 65k.

Husband makes 100k.

We rent out our guest house and make approx. 24k a year on that.

House worth 1.2 million.

390 mortgage.

140 K owed on Heloc.

85k in retirement fund.

20k in savings.

We are in our mid 40s. 3 kids. Little has been saved for college.

"390 mortgage" Does that mean you owe 390k or you have a $390/month payment?

You need to take the next 5 years and spend nothing; save everything. You're way behind.

Rice and beans, beans and rice.

Yeah, they have a 390/mo payment on a house worth 1.2 mill. Put down the bong.

You guys are living hand-to-mouth more than I think you understand.

Sell the house and get an actual income property that's manageable by one person and much lower cost. Pay the income property off in mostly cash. Put the rest of the cash in savings. At the end, you should be able to add several hundred thousand dollars to savings.

I don't know if this is a new thing, but, I know a few "house rich" retirees. They don't want to move yet can barely afford to live there. It's kind of sad. Don't be that person.

Seriously, time to come to reality.

Sell the house. Invest at least 200k of that. Add 1k per month to a retirement fund of some sort. If you can average 8% return over the next 20 years you can have about $2,000,000 to retire with. Get rid of the helicopter. You make 165k/year, not 1.65mil/year.

Comin' to Reality wrote:

Get rid of the helicopter.

HELCO = Home Equity Line of Credit

Not a Helicopter.