My ex-husband gambled away our $900,000 life savings. Do I use my 401(k) to buy a home?
“I am a tenant and I have no real estate since my divorce.” (The subject of photography is a model.) – Getty Images/Istockphoto
I enjoy reading more Moneyist. I need some advice and I hope you can provide some enlightenment.
Short Background: My second husband had gambling addiction and was unaware of me, cleaned our savings and joint investment account for six years for a total of $ 900,000. He directed these accounts and made me sure we were in $ 1 million. However, I never showed me documents to prove it, and I didn’t ask me because I completely loved and trust him; Files also discussed taxes.
I have never seen the losses in our tax returns until a judicial accountant divorce it. I learned a difficult lesson to eliminate my financial responsibility – a very, very difficult lesson – I learned. I am 65 years old and I have been making six figures in a new job for the last four years. 401 (K) is about $ 80,000 and I have savings. I had a legacy I paid all my debt. I am a tenant and I have no real estate since my divorce.
I am a dual citizen of the USA and the UK and I am about to move to England for a new position within the global company I work for. I hope to work for five more years and then retire. Unfortunately, I will no longer contribute to social security, but I will contribute to the UK pension system, which will not be good for me because it should work for 10 years to achieve this benefit. However, the cost of living will be cheaper there.
I will stay with family members a few months after my movement. For the next five years, I hope to find something affordable (11% contributing) that I can put my 20% bonus in the company pension plan as well as my 20% bonus. Now it’s about saving every penny, dollar and penny. (Don’t worry for him, a very old woman who is already wealthy and smart enough to put her name in any of her assets got married again.)
I was planning to contribute up to 70 years of age in order to get the maximum amount in relation to my social security. However, I was a little confused, I was under the impression that I had to contribute to the age of 70 to get the maximum amount, but even if I stop contributing to England with this movement, I would take the same maximum amount of dollars by waiting until 70. Is that true?
Should I remove 401 (K) and use it as a down payment in a house in England? As I get older, I have serious concerns about financial stability and not in my plans to search for another marriage. I hoped to buy a small soil and put it in a prefabricated way Hebhome I paid money on it and until I retired, so at least I have the security of my own house and I am not subject to increasing rents as you get older. I will probably live outside of social security and everything I have managed to accumulate.
Any financial wisdom you can give is highly appreciated.
You are on the cliff of your new life and England is a great place to start. – Marketwatch illustration
I greet you for the courage to reach this point.
Whenever I encounter a difficult or unpleasant development, I say to myself: “Quentin, this is another human experience you have.” You had to travel in such an unexpected divine road in your life. Anyone who experiences financial losses through bad investments or the mistakes of the third party will know the durability to take you so far. Now you are in the cliff of your new life and England is a great place to start.
Financially, when you buy a house of $ 80,000 (I am connected to the dollar to keep it simple) when you move to England, if you use $ 80,000 to buy a house, you’ll have a payment of $ 1.420 per month at an interest rate of $ 6.7%. After 10 years, you will stay on a mortgage $ 195,000, and with an annual 3% increase, it results in a house worth 403,000 dollars. This is $ 208,000 equity.
On the other hand, if you leave $ 80,000 in 401 (K) for the next 10 years, you will probably have $ 157,372 in 401 (K), assuming a 7% return annually (to keep it simple). So you’ll come forward $ 50,600, but you’ll still rent. Mathematics/logic shows that you are better than purchasing. The scales will allow you to invest 401 (K) if you have more money, but you will not live in your own home for 10 years.
Good News: If you wait for your full retirement age (67) to collect social security, you will benefit from the benefits of delayed pension loans. Every year you delay, your help increases by 8% until it reaches the age of 70. Your social security advantages will be determined by 35 profitable years. If you decide to wait, you can collect these advantages when you reach the appropriate Fra or beyond.
Your common UK/US citizenship will serve you well after reversing the reserve. According to PensiaS UK, an unusual profitable organization that helps people plan their retirement, where you live for a relaxed pension in England, depending on the place where you live for a moderate retirement of £ 44,000 per year and £ 32,000 per year. In the US, you need to be closer to $ 1.25 million based on the latest estimates. Real world investor, An investment website.
The US has a tax agreement with the US, that is, you don’t have to pay twice in your income or investments when living as a bilateral UK/US citizen in the UK. However, if you are no longer employed by a US company, you are usually not allowed to contribute to 401 (K). In addition to the UK, Germany and Canada, in addition to others, it has treaties that allow loans for US taxes.
The truth is that a happy and peaceful retirement will depend on whether you have enough money to meet your expenses, lifestyle and quality of life. Although some people retire millions of dollars to take a journey and live big, the latter is not governed by money. It is managed by your own tastes. For example, do you prefer a weekly card game with your friends or do you prefer to be a member of a private country club?
Until retirement, five years and more to build a community.
