Count Up: My Intentional Life Change - Status Report

As it turns out, the theme of my first quarter of the rest of my life is about money. Now into April and the second quarter of the year, I can see that I accomplished several things with my financial future in best stead. I refinanced my home moving from a 30-year mortgage to a 15-year. With the better rate, my monthly out lay is only a few dollars more but I have gained two big benefits. First, I am now nearly tripling the amount of equity. Instead of $150 per month, I gain $450. And, I no longer am escrowing, I am simply saving the amount to pay my taxes myself. When I retire and move to a more or less fixed income, but with this change, I will have less of a monthly nut. I will still save to pay for the property tax or I will use my savings then to pay it. For me, that is a big burden removed that gives me more money oxygen to breathe. 

I also changed my financial advisor. I chose one who is less incented to sell me stuff. The last one at Morgan Stanley kept pushing “alternatives”. This is the year 2015, but I kept picturing Enron or

Bernie Madoff. I don’t have a great memory for specifics, but I do remember the reaction to these two scandals from 2001 and 2008. I wanted something much more simple to understand and concrete, even if that is the miracle drug for what may ail my portfolio.

Of course, this quarter is IRS taxes too. I guess fortunately, I got a refund. I am hesitant because it was sizable and clearly I am not doing things right. I’d rather have the money in my pocket. It did go to paying off a lagging credit card, instead of a trip or something more fun. No, come to think of it, the remnants on the card were from my trip to Spain in February. All is well.

Yesterday, I received a report that shows the amount I will receive from my pension, monthly for the rest of my life, once I retire.  It’s not a lot, but I am grateful, that there is a constant source of income from outside my savings and Social Security. My next financial hurdle is to determine whether to stay, rent out or sell my current home. I like the idea of a rental property. I like the idea of renting-out where I live now because I see evidence that they rent quickly. Mine is larger with three bedrooms and two baths where most have 1½ baths, so I should be able to rent it and create some income. The question is, when do I do that? Now while I am working? If I wait, I don’t know how the banks will look at my credit once I retire… especially since I took a 20% pay cut with only working 4 days each week. My friend Karen pointed out that my talking about it feels like when I was deciding to get a divorce. I talked and talked about it, till I got it completely rationalized, event though I knew from the beginning exactly what I wanted. I know I want to move and rent my place. (As long as I don’t have to go through a move.)

I will continue to look at other revenue sources… coaching and consulting for example, over the next few months to learn what that could yield and what resources a launch would take.

In addition, I want to figure out one major volunteer project to align with during retirement. I want to find an issue that I can throw myself into and maybe make a difference. While others are working, I can keep the passions alive to get things going. I am leaning toward saving the planet. Is that big enough? I also think about joining the Peace Corps once  I stop working. I like the idea of a complete adventure for a month or three. I’m interested in looking into that and similar volunteer experiences. I like the idea of moving to a small place which I can lock up and leave for a couple months at a time… maybe with a lake view.

One theme for the next quarter will be where will I live and another theme of the next quarter is how will I live? The report I mentioned earlier had a date late in November for my potential retirement. I found that unnerving. The date is too soon. I will likely work longer to build up all coffers, but then again, if I can put everything into place, I will walk away from work without fear and with confidence that all will be well, to quote the saints!