U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-14-2015, 02:17 PM
 
Location: Loudon, TN
5,768 posts, read 4,822,990 times
Reputation: 19387

Advertisements

If you are paying any interest on the car loan, I'd just pay that off to simplify things.
Reply With Quote Quick reply to this message

 
Old 04-14-2015, 02:25 PM
 
378 posts, read 226,419 times
Reputation: 991
Become debt free...the stock market and money markets are gambling.
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 02:32 PM
 
Location: Sunny Florida
7,136 posts, read 11,007,553 times
Reputation: 9460
Financial advisors give great advice as far as finances go, but they don't have to live with the consequences. Only you know your risk tolerance and comfort level. You have to do what allows you to sleep at night worry free. It's my opinion that retirement should be as stress free as possible, which is why we worked so hard and planned for decades to get here, so anything that eliminates stress is a good thing. If living mortgage free and debt free makes you happy then go for it. If investing and monitoring the ups and downs of the market is your thing then go that direction. No one can tell you what to do, but if you listen to your gut you will know what is right for you. Retirement is great! Best wishes.
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 02:35 PM
 
6,212 posts, read 4,715,040 times
Reputation: 12705
Quote:
Originally Posted by TheShadow View Post
If you are paying any interest on the car loan, I'd just pay that off to simplify things.
What is complicated about paying a car loan? You can even set the payment automatically from your bank account.
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 02:36 PM
 
527 posts, read 1,089,010 times
Reputation: 679
Suggest you keep the mortgage
But if you have the cash to pay it off, put the amount you would use to pay the mortgage off in a safe bank acct. Money mutual fund.

Pay the mortgage every month from there, even have it auto-withdrawn, maybe you could be a lower rate.

Leave that acct and payments on auto-pilot
On your taxes, take the interest deduction

This way, you will also have that cash available for emergencies.
keep options open, don't become house rich and cash poor.
As time goes by, you are paying down the mortgage and anytime you wish, just write a check and pay it off.
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 02:37 PM
 
6,212 posts, read 4,715,040 times
Reputation: 12705
Quote:
Originally Posted by Sunnydee View Post
..... If investing and monitoring the ups and downs of the market is your thing then go that direction. ......
There is little or no reason to watch the ups and downs of the market just because you have investments. In fact knee jerk reactions from watching the market have cost people a lot of money.
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 02:46 PM
 
29,764 posts, read 34,848,700 times
Reputation: 11675
Quote:
Originally Posted by jrkliny View Post
What is complicated about paying a car loan? You can even set the payment automatically from your bank account.
Bada Bing! I do it
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 02:47 PM
 
29,764 posts, read 34,848,700 times
Reputation: 11675
Quote:
Originally Posted by boater1 View Post
Suggest you keep the mortgage
But if you have the cash to pay it off, put the amount you would use to pay the mortgage off in a safe bank acct. Money mutual fund.

Pay the mortgage every month from there, even have it auto-withdrawn, maybe you could be a lower rate.

Leave that acct and payments on auto-pilot
On your taxes, take the interest deduction

This way, you will also have that cash available for emergencies.
keep options open, don't become house rich and cash poor.
As time goes by, you are paying down the mortgage and anytime you wish, just write a check and pay it off.
A super major Bada Bing and that last line is what makes it all so sweet!
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 02:53 PM
 
Location: Idaho
1,451 posts, read 1,152,796 times
Reputation: 5472
Quote:
Originally Posted by whocares811 View Post
With my pension and our combined social security, we would have enough to live on, even with our current mortgage payment.)

Now with the inheritance, we are able to pay off the mortgage in full and start retirement entirely debt free (paying "cash" for the new home after our current home sells)
Will you need to sell the current home to have enough cash (in addition to the inherited money) to buy a new home? If so, I'd suggest to keep the current mortgage to have a large cash cushion to buy a new home. There may be a situation where you find a house that you really like and don't want to wait until the current home is sold to buy a new one.

Since you have enough to live on with your pension and combined social security even with the current mortgage payment, the inherited cash is just gravy. We are quite conservative and like the idea of not having any debt but with the mortgage interest being very low, we are planning get a mortgage on our next home instead of paying cash. Even if you are not financial savvy and just follow the standard investment advice of asset allocation investing in low fee index fund, you will come out ahead in the long run vs not having a mortgage.

If this is the very first time that you invest in funds (stocks/bonds) instead of CDs, money market, saving account, you probably will feel nervous and anxious about the market ups and downs. You may want to choose a compromise approach of having a large down payment on the new home and invest the remaining fund in a very conservative way such as 20% cash, 50% mutual index bond fund and 30% in mutual index stock fund. Just make sure to stay with low cost funds like Vanguard.
Reply With Quote Quick reply to this message
 
Old 04-14-2015, 03:19 PM
 
1,380 posts, read 1,885,376 times
Reputation: 2384
"Stocks and bonds" is a very vague term. Should you invest in junk bonds and dot com startups? Of course not! But you can pretty easily put at least part of your money in a conservative index fund that is tied to the S&P or another broad index. It can go down over a period of a few years, but it always comes right back and then some. Mathematically, it's the opposite of Vegas. In Vegas, you may win for a little while, but, if you don't quit while you're ahead, eventually your result is going to look like the odds of whatever you are playing, which is to say you will lose. Similarly but with the opposite result, with a reasonable and diverse portfolio, while it is possible to be down at first, the odds are going to leave you in positive territory as long as you don't quit while you are behind.
Whatever you do, leave some money that is easily accessible in case life throws something ugly and expensive at you! If you put all your money in house, you can't get that money without selling your house, which is expensive, difficult, and unpleasant.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top