40yo with no retirement plan and a small mess of investments.

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The first thing to do is stop leaving money on the table with that 401K match.


>My current car is 14years old. Need to upgrade, unfortunately to something a bit high end, thanks to my line of work. No matter what anyone says, no one’s “line of work” requires a specific quality of car. You are trying to justify this decision. There are plenty of lawyers that drive Camrys. >Exploring adding a studio/apartment in the backyard. Terrible idea. You don’t have the money to spend. You are WAY behind on your retirement savings. WAY behind. A house is not a retirement account. You have no idea what the value of the property will be when you decide to move, nor do you want to be in the position of being forced to sell the house and move someplace much worse because you have no other retirement savings. >Thinking I’d get 30% of the investment back if I sold the home. You’d be lucky if it adds value to the home at all. How many single family home owners are looking for a house with an apartment building in the back yard? >I’m seeing a pattern of about ~$1500 leftover a month to burn. What should I be doing with it? You should be investing in your company’s 401k up to the IRS maximum. >for the first time in my life I’m getting serious about retirement, Real talk: you aren’t being serious about retirement if, at 40 years old, with a random smattering of investments, you are considering taking out loans in order to build a studio in your yard instead of investing in your 401k. You need to take a cold, hard look at what you have and run some numbers through a calculator. If you don’t actually get serious about retirement, you will never be able to retire.


You make $100k/year, 40 yo, have a grand total of <$300k that you’ve managed to save up, and consider yourself frugal? You need to rethink that word. Your current retirement plan is 100% based upon hoping that your home value increases a lot. You need to start maxing out retirement accounts ASAP, you are behind. Also build up an emergency fund, I’m guessing you could last ~1month if laid off.


Your house is not a very good nest egg for retirement and you will not be able to tap into the value without taking significant hits (downsizing, reverse mortgage, renting out etc). You gotta follow the prime directive and really start pumping up your 401k and an IRA if you want a lifestyle anywhere close to what a typical 100k/yr life style would be.


DIY renovations generally do not result in increase in property prices. Adding a detached dwelling is even worst. 30% investment back is like 15k out of 50k spent. Why the fuck would you spend this money in the first place? You can easily get a 2nd hand car in very good condition for a few thousand dollars. you don’t need something high end due to your line of work. You barely even have anything saved for retirement. How are you not enrolled in your 401k at 40y/o is beyond me.