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Old 11-13-2007, 10:37 PM
 
7 posts, read 17,448 times
Reputation: 11

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My husband is receiving 65k (gross) a year pension w/ full medical. (He is 56 just retired). We only have 100k saved and not in stocks as I'm afraid of stocks. I'm presently working and earning about 75k a year and I want to retire - I'm 56 as well. (Will receive no pension) We presently live in Bucks County and have a home worth 425k and owe 215k on it yet. We have no bills (not even auto payments) except our mortgage. My husband wants to move to NC in a few years. Do we have enough if I want to stop working and we'd like to take 2 trips a year?

I don't trust financial planners as one says pay off your home and the other says never pay off your home and take out 100k of the 200k equity and invest the 100k instead of letting the bank make $ on you.

WHO DO YOU LISTEN TO ????????????????????????
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Old 11-13-2007, 11:16 PM
 
Location: Happy wherever I am - Florida now
3,359 posts, read 10,914,853 times
Reputation: 3843
You need to check to see if his pension would be taxed in NC as well as PA. If his medical coverage is not based on a disability (which could restrict benefits to your present state) he (and your coverage? - an important consideration) should be fine in another state.

Why wait to move? It's best to have a paid off house when you go into retirement for peace of mind. It can be a good move to have little equity in a home but not in your case. Those who say to take money out of your home to invest are speculators and you don't sound like one. Too much risk at this stage of life, what you want is security.

Go to NC and look at communities and for houses you can buy for cash. Then figure out a budget based on his pension including your travel requirements. Keep the 100k invested in some way for emergencies.
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Old 11-14-2007, 12:09 AM
 
Location: WA
5,396 posts, read 21,404,537 times
Reputation: 5903
I would think you need to pull together a little more data, do a budget, and make some projections.

On the income side... Will his pension increase with inflation and is it secure? Will either of you be eligible for social security, and how much. Your savings are relatively small and if you don't want to be in stocks the return will be limited so look at what return you are getting.

On the expense side you will need to have an idea of what you will need for annual expenses. It will change over time as most people spend less as they age, but inflation will increase expenses about 3% every year.

Once you get a handle on your income over the years and an estimate of expenses you can see if your retirement plan looks workable.
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Old 11-14-2007, 05:51 AM
 
Location: Home is where the heart is
15,400 posts, read 25,830,715 times
Reputation: 18992
So far this seems like pretty good general advice. But something in your tone worries me... I hope you know it is better to find a person you trust, instead of relying on the internet.

Please, do yourself a favor-- DO NOT TRUST ADVICE YOU READ OVER THE INTERNET, for example in a forum like this. You don't know who we are. You don't know what sort of education or experience we have. You don't know if we're full of cr*p. For all you know I could be a 12 year old kid, or an ex con, or a person who likes to talk big (but in reality blew my savings in a casino).
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Old 11-14-2007, 01:22 PM
 
Location: Forests of Maine
30,687 posts, read 49,469,539 times
Reputation: 19134
GailIrene -

1- 65k annual pension w/ full medical;
2- $100k in savings;
3- a home with $210k equity;
4- no bills;
5- hubby wants to move to NC.

I say: sell the house, take your $310k [210 + 100], get a 5 year old motorhome and put $250k in tax-free municipal bonds.

Tour the nation 'blow the stink out of your hair' and enjoy a much needed vacation.

Tour NC, and stay in each of that area's state parks, without the need to buy. See if that is truly where you wish to reside.

Whenever you are ready and have found the right place, you can always sell the motorhome and get your money back out from it [which is why I said a 5 year old motorhome].

Many people live very comfortably on pensions less than your hubby's.
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Old 11-14-2007, 02:10 PM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,585,961 times
Reputation: 5692
Quote:
Originally Posted by normie View Post
So far this seems like pretty good general advice. But something in your tone worries me... I hope you know it is better to find a person you trust, instead of relying on the internet.

Please, do yourself a favor-- DO NOT TRUST ADVICE YOU READ OVER THE INTERNET, for example in a forum like this. You don't know who we are. You don't know what sort of education or experience we have. You don't know if we're full of cr*p. For all you know I could be a 12 year old kid, or an ex con, or a person who likes to talk big (but in reality blew my savings in a casino).

Amen!!!
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Old 11-14-2007, 02:17 PM
 
Location: Oxygen Ln. AZ
9,321 posts, read 16,585,961 times
Reputation: 5692
THere is a web site that we go to for retirment income information. I think Normie is right about we may be full of c///p. If I knew all the answers, I would not be poking my head in this forum. Anyway, go to Financial Calculators from Dinkytown.net or just google dinkytown financials. It will give you an idea of what your $100K savings will do over 10 years or if you put house profits with it etc. Good luck in your retirement.

Last edited by MotleyCrew; 11-14-2007 at 02:18 PM.. Reason: wrong net address.
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Old 11-14-2007, 03:08 PM
 
943 posts, read 3,821,527 times
Reputation: 425
Quote:
Originally Posted by normie View Post
So far this seems like pretty good general advice. But something in your tone worries me... I hope you know it is better to find a person you trust, instead of relying on the internet.

Please, do yourself a favor-- DO NOT TRUST ADVICE YOU READ OVER THE INTERNET, for example in a forum like this. You don't know who we are. You don't know what sort of education or experience we have. You don't know if we're full of cr*p. For all you know I could be a 12 year old kid, or an ex con, or a person who likes to talk big (but in reality blew my savings in a casino).
Are ex cons dangerous on retirement forums too? That was an extremely shallow statement.
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Old 11-14-2007, 03:17 PM
 
Location: Home is where the heart is
15,400 posts, read 25,830,715 times
Reputation: 18992
Well, maybe I am shallow--it wouldn't be the first time. Or maybe I misread the tone--that happens plenty of time when people are typing comments and you can't actually hear the tone.

But yes--ex cons and all sorts of dubious people read message boards. Especially boards that cater to seniors and children, both of whom are groups that can be considered vulnerable targets. That doesn't mean they necessarily participate in them--but they might. You can also get a PM from someone who reads a message and thinks he has found a victim. I haven't any reason to suspect any of the posters I've come across so far... but that doesn't mean your guard should be down.
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Old 11-14-2007, 03:18 PM
 
Location: Forests of Maine
30,687 posts, read 49,469,539 times
Reputation: 19134
I can see the legitimacy of asking questions of WWW forums.

You have to expect to get trolls, as well as opinions from folks with no background in whatever you ask. Cast a wide net and expect to draw in a lot of fish, not all of them are going to be the species of fish you desire, but at least you can draw in a lot of them.

From a host of counsels is wisdom gained, not from a single counselor.

If a hundred people respond, and if only half of them have a glimmer of sensibility to their words. A bit of sound advise from here, a bit from there, from all of this a person can form their own solution.

Not anyone's solution will fit for everyone else, each of us needs to resolve our own solution. But that needs to be formed from the advise of others. For without the advise from multiple counsels, you end up trusting in a single advisor, and hoping that he knows something that you did not. Trusting your finances to a single advisor will often lead to ruin.

May God bless you.
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