Submitted by MyThrowAwayAcct777 t3_1066dhw in personalfinance
Throwaway account because I am not financially savvy and am, honestly, pretty ashamed about that. So here's the situation:
I am 55, lost my life savings to medical debt in my 40s. Have always worked, love my trade, but around the time when I was rebuilding, the pandemic hit. I put my career on hold to care for my mother who became critically ill. I don't regret that decision one bit, she was a helluva woman that sacrificed for everyone her entire life, but caregiving wipes you out in every way possible, mentally, financially, emotionally. She died last summer and left me the house (a 50 year old ranch house, 4 bedroom, appraised $440k) and $295k in a savings account.
Here is the dilemma:
I can stay in the house (needs about 4k on the plumbing work and eventually a roof which has been replaced once. Some renovations, kitchen and the bathrooms, would add another 10k). The house itself is old but great, new appliances, water heater, ac, etc. It's in a quiet, friendly and established neighborhood, close to everything. I have no debt, my truck is paid off so my expenses are now $1700 a month. It's insane, I have never had such low expenses, even as a kid.
But a lot of my friends tell me it would make more sense for me to move out into a smaller place and sell it before the Phoenix market crashes or the house otherwise starts sinking in value. Buddy last night said it always makes sense to take cash. "No brainer".
Rent is atrocious in Phoenix so I could buy somewhere smaller and, I assume make a profit but I will just turn around and have to buy again. I don't know if it's worth the trouble, even in this old house. (Oh, I forgot to mention the furniture in the house is worth around 15k which I also inherited). And I wouldn't mind having a roommate, if anything just for the company, but a bit of money from the rent would be nice, of course.
Listen, I don't have a lot, I am okay with that. I feel rich in life in other ways, I love my life, even now. I just want to make the most of what I have and, as I said, I am really overwhelmed. Sell, stay? Really appreciate any guidance you can give me, thank you.
Edit - Thank you, guys, so much! Just two things I have to say because I am having some trouble responding to everyone. First apologies for sounding like a jerk on the "cash poor, I only have $295k". That's a lesson in humility so thanks for setting me straight on that. For someone who lost much more in my life savings, you would think I would know better.
And then, not to get too weepy or deep here, but your responses really have blown me away. You are a great group and I want to encourage anyone who needs to hear this to live from your own personal values and not worry what others think. I am staying in this great house, can't wait to get back to work, have a BBQ and introduce myself to that cute neighbor two doors down. Feels right for me. Appreciate y'all!