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[FUTURE2035]

We are 40 years old and one 6 years old child.
house is paid off 500k
4 rental house (paid off) 250k
401k and other retirement accounts 120k
529 plan 35k for daughter.
cars paid off.
Every year we put 20k to retirement account and try so invest in real estate.
Please do u think We should change something. Thanks in advance for suggestions

[dczech09]

Its great that you have the house paid off and some rental props. I think you need to focus on retirement now.

You are setting aside $20k per year for retirement which is perfect!

Based on my own studies, at age 40 your retirement savings should be equal to 2.70 to 3.90 times your annual income. So I am guessing that you are probably a little behind.

Again, the fact that you are doing so well on the house front is great. Your daughter should be set for college, so now focus on that retirement!

[esb3357]

Personally I would take the rental income and dump that into stock, bonds and baskets other than real estate.

[UnknownXV]

Its great that you have the house paid off and some rental props. I think you need to focus on retirement now.

You are setting aside $20k per year for retirement which is perfect!

Based on my own studies, at age 40 your retirement savings should be equal to 2.70 to 3.90 times your annual income. So I am guessing that you are probably a little behind.

Again, the fact that you are doing so well on the house front is great. Your daughter should be set for college, so now focus on that retirement!

The houses count towards retirement though. It will massively reduce their monthly expenses, and can be sold if it came to it.

[FUTURE2035]

Tx for your reply. The rental houses give us net income of 1,700 after taxes, insurance and repair fund.
I was thinking to keep buying small rental houses until we have 10 of them. they will provide 4k free of everything and keep saving 20k in retirement account per year and putting 4 k to 529 plan. The 20k for retirement is 10 k for husband and 10 k for wife.

We really dont like to be tracking stocks so much so our retirement account is invested in vanguard s&p index, and some 2035 target fund mainly.


Please give me your opinion if you think should be doing differently
Tx!!

[FUTURE2035]

bump, any other opinion will be appreciated

[bjl584]

You didn't mention how much cash you have on hand. Do you have an Emergency Fund? Typically you will see people advising to hold 3 to 6 months worth of expenses in cash. I would argue that you should hold up to a year's worth since you are in the rental property business. One bad roof or furnance could wipe out your cash holdings.

[FUTURE2035]

personal fund 25k
business fund 20k