Might Lose My Job!

[bows00]

I have posted several times with hopes of retiring in the US and living there. And I couldn't wait for that to happen, and this is a case, I should've watched what you wished for. I found out today that there will be good chance I will be losing my job after 25 years of service in a US Federal Government position. I will not bore you with the details, but here is my financial dilema...I have a mortgage:$1750/month with 5 years left to pay off $100K. Condo could be sold for at least $400K.I have approximately $700,000 in my 401KAnd $60,000 cash.My plan? I am thinking of pulling 100K out of my 401K to pay off the condo. That would provide me with rental income of about $1200/month (and I understand the early withdrawal penalty would be huge because I am only 50).Then bolt for the Philippines. At 50 years of age, what are my chances of making it without running out of money? And yes, I will have to tone down big time on the partying.Any suggestions?

[Old55]

IMO.... Sell the condo.

[bows00]

why? Where will I get the income?

[billten]

Not so sure about the plans but, IMO you need a minimum of $50,000 to get all set up over here, house, car, etc. etc. and then the living is easy. $1,000 month is easily doable (but then i live a quiet life). I spend less on my house (taxes, power, propane, etc.) than i do on running my car (taxes, gas) and my budget of p40,000 is usually plenty. IME people get screwed getting over that 'setting up' hump or spend way too much. Its easy to lose your mind at first... ;-)

Edited March 13, 2012 by billten

[Old55]

IMO, do not play with your 401K money keep it locked up and working for you.Sell your condo. You owe 100K. Its worth is 400K. You could get as much as 300K cash for that asset.I'm not sure what you would do with your household goods store them for now or sell them only you know best.Go online there are lots of tools to calculate how to budget <300K over 9 1/2 years to live on in Philippines. You can get into your 401K at age 59 1/2.Or live in Philippines for a year or two then move back to the States and work a few or more years and then retire. Lots of choices but IMO don't get into that 401K money now.

[Garpo]

What other jobs are available to you where you are at? If you relocate to the Philippines you might as well figure that you will not be able to work. If you can find a decent job then I would suggest that you take the job and stay where you are at. Work until you can at least draw your 401k without penalty and probably pay off your mortgage so by the time you make the move to the Philippines you really will not have much to worry about.If you have no chance at another job then you could make it here on what you have now but it would be a risk and one that I would not take if I was you. Having property back their and trying to lease or rent it out for income while you are living here is a pretty big risk in my opinion and you would probably be better off just selling the place and living on that until you reach 59.

Edited March 13, 2012 by Garpo

[joeatmanila]

Hold on!!! Do not get desperate!!!The fact you are 50 it does not mean you cannot get another job!!! I do not know your education or background etc. Look though towards other directions than you have been used to by now.It happens to all of us when we have many years in one job we do not look around, we have no idea what else we can do.Just do not give it up, look what you can do, look towards the most impossible directions...i have no clue what you were doing or what you are able to do but for sure YOU CAN DO!!!!!

[Jake]

I have a mortgage:$1750/month with 5 years left to pay off $100K. Condo could be sold for at least $400K.I have approximately $700,000 in my 401KAnd $60,000 cash.My plan? I am thinking of pulling 100K out of my 401K to pay off the condo. That would provide me with rental income of about $1200/month (and I understand the early withdrawal penalty would be huge because I am only 50).Then bolt for the Philippines.At 50 years of age, what are my chances of making it without running out of money? And yes, I will have to tone down big time on the partying.Any suggestions?

I think your plan to pull 100K to pay off the remaining balance of your condo sounds good to me.Take an extended vacation to PI, canvas potential residential sites and long term commitment ofserious relationship(s) -- and then decide whether the Philippines will be your permanent home.Try to adapt yourself as a local rather than a tourist. For example, your tourist dollars will burnquickly going from one beach resort to another with all the luxuries that comes along with thatlifestyle.For any unforeseen circumstances that may be beyond your control (peace and order situation,multiple failed relationships) then you still have that ace up you sleeve by coming back to yourcondo. I'm sure you can find a reputable property manager to supervise your renters while you'reaway.As far as finding another job -- make your money work for you. The hell about joining the rat raceagain. Enjoy the rest of your life starting at the young age of 50. Go back to your hobbies thatkept you young and healthy. It was a blessing in disguise when I lost my job two years ago. I nowplay tennis almost on a daily basis and feel like I'm in my 30's. I'll be 62 this coming June.Good luck to you sir -- Jake Edited March 13, 2012 by Jake

[Dave Hounddriver]

5 years left to pay off $100K. Condo could be sold for at least $400K.

I don't see the problem. Selling for 400 pays off 100 and leaves 300K. Any broker worth his paycheck can get you 8% average per year. That means you will have an income of 24K a year which is better than average.

[chimellie]

Don't do anything drastic yet, if I were you just sit tight don't make any big move until you try to live in the Philippines first. After you get laid off, take a long vacation there, live like you have already retired and moved there. Don't live like a tourist, after a few months if you really like it then go back to the States and make your big moves like selling the condo, invest the money into mutual funds or goverment bonds so you will have income until you turn 591/2 then you can start tap into your 401K, maybe like 5 percent a year. In 3 or 4 years I will do the same before I give my resignation with my employer here, I would take 2 or 3 months off from work and stay in Cebu to test it out , if I like it then I will take the early retirement, if not then I can always go back to my job until 62.