Dear MarketWatch, I’m trying to get some outside guidance on being able to retire in the next 5 to 7 years. I might have to work until I am 59 1/2 to be able to start using retirement funds.
We have about $1.4 million in 401(k) and Roth accounts, $30,000 in stocks, a rental house that we owe $245,000 on and it grosses $1,700/month and pays for itself, a short-term rental that we owe $158,000 on and grosses about $48,000/year (nets between $10,000 and $15,000 depending on expenses). We own our own home with no mortgage, and no car payments. We currently have two kids in college and we are paying for their tuition. The albatross around our necks are $150,000 in credit card and unsecured loan debts. The world got expensive and our expenses got out of control. We have most of them at low-interest rates, but it is still an overwhelming amount that we are trying to chip away at and are paying $2,000-$3,000/month on them. We make between $225,000-$250,0000/year combined, and the range depends on my commissions at work. Our plan is to use any bonus from work and profits from the short-term rental to pay down debt. That could be around $20,000/year. Also using Mint to budget and set goals on paying off ever …