My ex -husband played our $ 900,000 savings. Do I use my 401 (k) to buy a house?

I really enjoy reading money. I need some tips and hope you can provide some enlightenment.

Short backstage: My second husband had addiction to gambling and cleaned our savings and an investment account for nearly $ 900,000 in six years. He handled these accounts and assured us that we were $ 1 million. USD in the territory. However, he never showed me the documents that would prove it, and I did not listen to it because I loved and trusted him so much; He also handled applications taxes.

I have never seen a loss in our tax returns until the forensic accountant revealed everything at the time of divorce. I learned a difficult lesson – a very, very difficult lesson – about giving up my financial responsibility. I am 65 years old and have been doing six figures in a new job for the last four years. I have about $ 80,000 in my 401 (K) and $ 10,000 savings. I had inheritance with which I paid off all the debts. I am the tenant and I have no real estate from my divorce.

I’m a double US and UK citizen and I’m going to move to the UK for a new position in a global company I work. I hope to work for another five years and then retire. Unfortunately, I will no longer be able to contribute to social security, but I will contribute to the UK pension system that will do nothing good for me because I need to work for 10 years to learn this benefit. But the cost of living there will be cheaper there.

Don’t miss it: I have the social security benefits of my ex -spouse. Should I retire at the age of 65 and travel?

After my move, I will be with family members for a few months. I hope to find something available, which I will be able to provide 50% of my £ 80,000, as well as my 20% bonuses to the company’s pension plan for the next five years (they make 11% installment). Now everything is about preserving every penny, dollar and central color. (Don’t worry about him, he has already re -married a much older woman who is rich and who is also wise enough to not contribute to any of his assets.)

When it comes to my social security, I was going to contribute to it up to 70 years to get a maximum amount. However, I am a little confused, I got the impression that I needed to contribute to the age of 70 constantly to get a maximum amount, but others said that even if I stop contributing to this move to the UK now, I would still get the same maximum dollar, just waiting to 70. Is it true?

Should I pull 401 (k) and use it as a contribution for a home in the UK? I am a serious concern about financial stability because I am getting older and it is not in my plans to look for another marriage. I was hoping to buy a small plot of land and put on the Hebhome collected on it and pay when I retire, so at least I have the security of my home and would not be subject to raising taxes. I will most likely live from social security and everything I will be able to accumulate.

Any financial wisdom you can give is highly regarded.

Once bite twice shy

Don’t miss it: ‘POOF! His money can disappear ”: my boyfriend is 75 years old. His portfolio has fallen by 4%this year. Do we forgive his advisor?

I congratulate you on the courage that you needed to reach this point.

When I come across severe or unwanted development, I say to myself, “Quentin, this is another human experience you have.” You had to travel through one such unexpected detour of your life. Anyone who has suffered financial losses due to bad investment or third party misconduct will know what endurance she will need to reach you so far. Now you are on your new life and the UK is a great place to start.

From a financial point of view, you will probably go ahead if you use that $ 80,000 to buy a house when you move to the UK if you bought a house for $ 300,000 (I stick to dollars to make it simple), using $ 80,000 for $ 6.7%. You would have $ 195,000 from a mortgage in 10 years and, with an increase in 3%, will eventually result in a $ 403,000 house. This is a equity of $ 208,000.

On the other hand, if you left $ 80,000 in your 401 (K) over the next 10 years, assuming that moderate 7% annual return (again to make it simple), you should/may have $ 157,372 in your 401 (k). So you will leave $ 50,600, but you would still rent it. So math/logic shows that it is better to buy. Scales would advise you to invest your 401 (K) if you had more money to invest, but you would live in your home for 10 years.

Good news: You will still take advantage of the advantages of delayed pension credit if you wait for the full retirement age (67) to collect social security. Every year you are late, your benefits increase by 8%until you are 70 years old. Your social security benefits will be determined by your 35 biggest earnings. If you decide to wait, you will be able to gather those advantages when you reach the appropriate FRA or beyond.

Don’t miss it: We live in End Times when we can’t retire from $ 1 million

Joint UK/US citizenship will serve you after your fate. You will need around £ 44,000 a year for a convenient retirement in the UK and £ 32,000 a year from the average retirement retirement, all of which, according to where you live, data, Pensions UK, a non -profit organization that seeks to help people plan their retirement. Based on the latest Real World Investor, investing website estimates, the US will need $ 1.25 million. USD.

The US has a tax agreement with the US, which means you don’t have to pay income tax for your income or investment in the UK as a double UK/US citizen. However, if you are no longer using US companies, you are not usually allowed to contribute to 401 (K). In addition to the UK, Germany and Canada, among other things, have contracts that allow you to credit the US taxes paid.

Some warning notes: The US dollar has the worst years, as President Richard Nixon has been office, and some analysts believe he will become weaker in the second half of the year. Nevertheless, the UK pound also had a hard time a concern about the British economy. A weaker dollar means you won’t get so much explosion for your money. Currently expect to receive about 74 pence per US dollar. (You would have received a better offer a couple of years ago.)

The truth is a happy and peaceful retirement will depend on whether you have enough money to cover your costs, lifestyle and quality of life. While some people need millions of dollars in retirement to drive and live big, the latter cannot be owned by money. This is controlled by your own taste. Would you like, for example, a weekly card game with friends, would you rather be a member of an exclusive country club?

You have five years before retirement and more to create a community.

Related: “I have an economic degree”: I am 70 years old, earn $ 250,000 a year and I have $ 3.7 million. USD investment. Is it time to retire?

Previous Quentin fottrell columns:

“I felt invisible, disrespectful and painful heart”: My firstborn son doesn’t want to do anything with me. Did I cut it off?

“I’m going to give up my US citizenship”: I move to the UK how should I invest my $ 30,000 cash?

“Sales agent is long dead”: My $ 250,000 Life Insurance policy costs $ 2,000 a month. I’m 80 years old. Is it time to sink it?

;