{"id":46754,"date":"2023-08-10T09:37:52","date_gmt":"2023-08-10T13:37:52","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/retire-at-67-i-can-barely-make-it-to-the-end-of-the-week-im-49-with-25-years-left-on-my-540k-mortgage-am-i-doomed\/"},"modified":"2023-08-10T09:37:54","modified_gmt":"2023-08-10T13:37:54","slug":"retire-at-67-i-can-barely-make-it-to-the-end-of-the-week-im-49-with-25-years-left-on-my-540k-mortgage-am-i-doomed","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=46754","title":{"rendered":"\u2018Retire at 67? I can barely make it to the end of the week\u2019: I\u2019m 49 with 25 years left on my $540K mortgage. Am I doomed?"},"content":{"rendered":"
I\u2019m 49, I live in a major metropolitan area and I have a $540,000 mortgage. I earn six figures ($185,000 a year, excluding bonuses). I do not carry credit-card debt month-to-month, but I do rack up charges of about $1,500 or more every month. I am a single man, and live a relatively quiet life \u2014 I go to the cinema and eat out with friends as one of my few social outlets, and have given up going to the theater and concerts due to the expense.<\/p>\n
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Here\u2019s my problem: I have 25 years left (you read that right) on my mortgage. I will never be able to pay off my mortgage before I retire at 67, and the prospect of working at this level \u2014 my job involves travel and is very stressful and, at times, uncertain \u2014 for the next 20 years is crippling. I\u2019m exhausted. I wake up in the morning, and my first response is, \u201cHere we go again.\u201d Or, on a bad day, \u201cOh, no.\u201d Sometimes, it\u2019s a struggle to get out of bed.<\/p>\n
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\n \u201c<\/span>\u2018I worry about being alone, not being able to ever retire, and I fear I will have to work until I drop dead one day.\u2019\u201d<\/span>\n <\/p>\n<\/p><\/div>\n<\/p><\/div>\n
I work until 6 p.m. most evenings, and come home to an empty apartment, and make dinner (or order in), watch TV, go to bed and do it all over again the next day. I try my best to join clubs (I\u2019m a member of a local hiking club, which meets twice a month). I watch sitcoms, and wonder when life was so carefree. I worry about being alone, not being able to ever retire, and having to work until I drop dead one day. At least my student debt is paid off.<\/p>\n
The idea that I could retire at 67? I can barely make it to the end of the week. When I make it to Friday, I am left with a two-day void before I start work again on Monday, and most Sundays I get \u201cthe fear\u201d about the week ahead. What can I do to make life easier, and not have sleepless nights about the future? I have a 401(k) with about $300,000 and $100,000 in the bank. Am I doomed? That\u2019s how I feel most days.<\/p>\n
Almost Fifty<\/p>\n
<\/p>\n<\/p>\n<\/figure><\/div>\n
Dear Almost,<\/h2>\n
When you are 67, you may look back at your 49-year-old self and say, \u201cHe had it all.\u201d<\/p>\n
You\u2019re not doomed, you\u2019re doom-scrolling through the rest of your life, and not giving yourself enough credit for getting to where you are today \u2014 and you are in a more fortunate position than many Americans who are facing retirement, and a far more advantageous and privileged position than many people in the rest of the world.\u00a0<\/p>\n
You need to find perspective, and you also need to make a gratitude list for everything you do have: a job, a home, savings, a 401(k). There will always be someone better off than you. Living in the future or the past rather than the present is a fool\u2019s game, especially when you can continue to save money and pay off your mortgage \u2014 a day, a week, a month at a time.<\/p>\n
Your circumstances will likely change along with your perspective, if you take a deep breath, exercise, eat well, get enough sleep, and \u2014 depending on how you feel next week or next month \u2014 seek the help of a qualified therapist to figure out what\u2019s really going on. You can deal with your work-related stress today. No one has full control over the future. You\u2019re not alone.<\/p>\n
Randy Watsek, financial adviser at the Birch Lane Group of Raymond James, says your situation and state of mind is something he sees a lot. \u201cPeople are in the middle of their busy and stressful lives, and thinking about money issues only compounds the stress. It\u2019s like when a soldier is in the middle of a battle and fighting to survive.\u201d In other words, you lose sight of the bigger picture.<\/p>\n
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\n \u201c<\/span>\u2018You can continue to save money and pay off your mortgage \u2014 a day, a week, a month at a time.\u2019\u201d<\/span>\n <\/p>\n
\n \u2014 The Moneyist<\/span> \n <\/small><\/p><\/div>\n<\/p><\/div>\n
He too says you are in a lot better shape than perhaps you realize. The median net worth at 65-74 years of age is around $266,000, according to U.S. Federal Reserve data. \u201cAlthough Almost Fifty is only 49 years old, he has at least $400,000 in the 401(k) in the bank, plus home equity, so he is already better off than most retired people,\u201d Watsek says.<\/p>\n
See those 18 years as a blessing. \u201cIf Almost Fifty simply maxed out contributions to the 401(k) and earned a hypothetical 6% return, the 401(k) could potentially be over $1.4 million at 67,\u201d he says. \u201cEven if Almost Fifty didn\u2019t contribute a dime more to the 401(k) but earned a hypothetical 6% return, the 401(k) could potentially grow from $300,000 currently to over $800,000 at 67.\u201d<\/p>\n
On the subject of your mortgage, it\u2019s impossible to tell exactly without looking at the details and knowing the interest rate, Watsek says, but assuming you did not take out a mortgage in the last year or so when interest rates doubled to around 7%, it\u2019s possible that paying an extra $700 a month could pay it off in 18 years \u2014 by the time you turn that golden age of 67.<\/p>\n
Your $185,000 salary is above the Social Security maximum taxable earnings level of $160,200 for 2023. That is, you pay 6.2% Social Security tax until you reach that cut-off point. \u201cAssuming a consistent high-income work history, that means Social Security benefits are likely to be at the upper end as well, which could be over $3,000 a month,\u201d Watsek adds.\u00a0<\/p>\n
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\n \u201c<\/span>\u2018Nothing is set in stone, and you have the power to make a change \u2014 certainly over the course of the next 18 years.\u2019\u201d<\/span>\n <\/p>\n<\/p><\/div>\n<\/p><\/div>\n
Nothing is set in stone, and you have the power to make a change \u2014 certainly over the course of the next 18 years. Dan Herron, principal at Elemental Wealth Advisors in San Luis Obispo, Calif., recommends determining what kind of retirement you envision for yourself. Making plans is a lot healthier and more productive than looking into the future as a dark abyss.<\/p>\n
\u201cFor example, let\u2019s say that you want to continue to live the simple life you are accustomed to, maybe consider moving \u2014 assuming you can work remotely \u2014 from where you currently reside and reduce the cost of living,\u201d he says. \u201cPerhaps you can sell the home with the $540,000 mortgage and downsize, thus potentially allowing you to get rid of the mortgage all together.\u201d\u00a0\u00a0\u00a0\u00a0<\/p>\n
Keep a lookout for jobs on LinkedIn and other sites. Even if you don\u2019t take them, it will help you see what else is out there \u2014 or, indeed, remind you that you are lucky to have the job you do. It may turn out that you realize taking another job where they don\u2019t know you, and where you will have to build a reputation all over again would be even more stressful.<\/p>\n
If you are really unhappy at your current job, you may consider putting your quality of life before your salary. \u201cSticking with a job for another 25 years while being miserable can have long lasting mental and potentially physical repercussions,\u201d Herron says. \u201cOnce you have figured out what kind of life you want to live and what makes you happy, then you can start talking numbers.\u201d<\/p>\n
Your financial and mental health are to be nourished and treasured. Seek advice for both, but take care of your emotional and mental health first. Be kind to yourself. Without the latter, you can\u2019t enjoy the former. You may be in a funk, or you may be depressed, or you could be at risk of becoming clinically depressed. These are all possibilities. Awareness is key.<\/p>\n
A couple of years ago I bumped into a friend as I was cycling my bike in Manhattan. I wasn\u2019t wearing a helmet, and he said, \u201cThere\u2019s some precious cargo in there.\u201d He was, of course, advising me to wear a helmet. I\u2019m giving you the same advice: take care of yourself first, and the journey \u2014 by bike, car, train, plane or 401(k) \u2014 will eventually take care of itself.<\/p>\n
Readers write to me with all sorts of dilemmas.\u00a0<\/em><\/strong><\/p>\n
By emailing your questions, you agree to have them published anonymously on MarketWatch. By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties<\/em><\/strong>.<\/p>\n
The Moneyist regrets he cannot reply to questions individually.<\/em><\/strong><\/p>\n
More from Quentin Fottrell:<\/strong><\/p>\n
I had a date with a great guy. I didn\u2019t drink, but his wine added $36 to our bill. We split the check evenly. Should I have spoken up?<\/p>\n
\u2018I\u2019m living paycheck to paycheck and I feel drained\u2019: My fianc\u00e9 said he would pay half of the mortgage. Guess what happened next?<\/p>\n
\u2018We live in purgatory\u2019: My wife has a multimillion-dollar trust fund, but my mother-in-law controls it. We earn $400,000 and spend beyond our means.<\/p>\n<\/p><\/div>\n