Can I get opions on how I look financially

[scfr]

I know every area is different. But I am a little confused. A 300K home is only bringing in $700 a month in rental income? By outright you mean no mortgage right? Seems like a house worth that much should bring in much more than just $700 a month. I know in the area I live in it would bring in at least double.

Netting $700 per month isn't bad. Rent could easily be double or more, but even if the home is owned outright there are still lots of expenses (property taxes, yard & other maintenance, any utilities that are included, management fees, etc.) plus income taxes.

[jpg7n16]

I'm pretty much of the opinion that once you're out of high interest debt, have a good EF, and are on track to reach your retirement goal, that you can set really any financial goal you want.

Considering Hierarchy of Needs -- it's needs first and then desires/wants. You've got the physical needs of today covered, and with your retirement savings are on track for the physical needs of tomorrow covered as well. Good job


For your situation ($1.3 million net worth, and very stable financial standing), buying a $50k car is not too outlandish of a goal. That's less than 4% of your net worth. I don't see that jeapordizing your financial future in any way.


So add my vote in the "go for it" column.

[MonkeyMama]

How long have you had that salary? Depending on the answer to that question, I'd expect you to have a bit more saved for retirement, although it's great the house is paid off.

Can you afford the car? Yes. Should you buy it? That's a judgment call only you can make.

Agreed. Agreed Agreed. I didn't comment "how OP was doing" because definitely not enough info. How long they have had the income, is the biggie. Having 5 times your income saved at age 44? Not bad, but not spectacular by any means. On the flip side, I think it's hard to assume anyone has had that kind of income since their 20s. & the tax burden on that kind of income can be quite high. So, who knows.

Of course, OP has since amended statement to say basically is a millionaire. So maybe closer to 7 times income saved? I am a little more impressed now? Doesn't change my answer at all. OP has to make the judgement. Maybe the car will really give him that much enjoyment - to him could be worth the money.

[Andrew Jackson]

Netting $700 per month isn't bad. Rent could easily be double or more, but even if the home is owned outright there are still lots of expenses (property taxes, yard & other maintenance, any utilities that are included, management fees, etc.) plus income taxes.

True. But OP has not given us enough information to tell what exactly is included or not included in that $700 a month income. Hopefully it is not $700 a month not including up keep, property taxes and income taxes.

[scfr]

Not bad, but not spectacular by any means.

Agree completely, and I have to admit that I'm surprised at the number of "Atta Boy ... go treat yourself to the car" type of responses here. Interesting how different people whose opinions I respect can see things so differently.

Here's another example of how differently people can see things: I do NOT consider OP a "millionaire." OP has stated that he is married,and that he has listed combined household assets. I don't consider anyone in a 2-adult household a millionaire unless their total household assets are $2M or more. Single person, $1M = millionaire. 2-adult household, $2M = 2 millionaires. 2-adult household, $1M = 2 "$500Kaires"

OP, I realized that I missed the most important question. How does your wife feel about this potential purchase?