My wife had cancer and gave up working. Should I sell our rental building — and put half the proceeds in my investment account?

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'I earn $150,000, have $300K in my 401(k), and owe $255,000 on our home, with 20 years left on the mortgage.'

Dear Quentin, I’m 45 years old and I’m married with two kids, ages 3 and 7. My wife was diagnosed with cancer at the height of the pandemic, and stopped working due to the side effects of her treatment. She is currently cancer free, but still recovering from chemotherapy and unable to work. Frankly, it will probably be years before she can rejoin the workforce.

I also have a three-unit building where my mom lives. She lives rent free and the other two units are rented out. I have very little positive cash flow from that property, and I am currently investing in some remodeling projects. These types of buildings have skyrocketed in value recently, and I consider it a wise idea to invest in it.

Given today’s house prices — and this is just speculation — I calculate I could clear about $500,000 after the sale of my house, my three-unit building, and the house where I grew up in South America, which my mom still owns. That should be enough to cover a sizable down payment for a large enough home for all of us .

The good news: You are on a solid financial footing. You have a healthy 401, far above the average for someone of your age. Last year, the average 401 balance for Vanguard participants was $129,157, the company said, and the median balance was $33,472. What’s more, only one-third of U.S. adults even have a 401. You earn nearly four times the average annual salary in the U.S.

 

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Yes

If the rental is unencumbered, keep it.

thanks

put all the proceeds into $DPW

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