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Old 04-23-2015, 12:14 PM
 
12,708 posts, read 9,987,127 times
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Quote:
Originally Posted by otterhere View Post
Yes, and that was my plan; maybe I should continue looking. Especially if there's no other viable option other than letting the money stagnate in the bank.
It really depends on how certain you are that you won't need it in the next 2 years. If you are really sure, then go with a 2-year CD, as you can get FDIC insurance on up to $250k (more if married).
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Old 04-23-2015, 12:15 PM
 
7,803 posts, read 4,399,284 times
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That's not much more interest than straight savings these days, only you can't access it.
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Old 04-23-2015, 12:47 PM
 
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Quote:
Originally Posted by otterhere View Post
That's not much more interest than straight savings these days, only you can't access it.
Blame the Federal Reserve.
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Old 04-23-2015, 12:49 PM
 
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Quote:
Originally Posted by Ariadne22 View Post
Moonlady is talking about paying off a mortgage - which would be a 'large' cash withdrawal
You can pay it down without paying it off in full, so the withdrawal could be broken up into small pieces and spread out across a few years. At any rate Moonlady can pay it off with her cash from selling the previous house with no withdrawal needed.

As to the SS taxability thing, this is highly variable because it depends on how much income is from other sources.
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Old 04-23-2015, 01:41 PM
 
Location: Wisconsin
21,542 posts, read 44,060,337 times
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Quote:
Originally Posted by ncole1 View Post
You can pay it down without paying it off in full, so the withdrawal could be broken up into small pieces and spread out across a few years. At any rate Moonlady can pay it off with her cash from selling the previous house with no withdrawal needed.

As to the SS taxability thing, this is highly variable because it depends on how much income is from other sources.
And. now we've come full circle:

Quote:
Originally Posted by Ariadne22 View Post
In short, there is value to having both taxable and nontaxable accounts. If I were you, without knowing your complete financial picture or income, I'd put that money into a Roth to grow tax-free (and provide tax-free withdrawals) and leave the tax-deferred deposits unchanged.
But, we can keep beating this dead horse, if you wish. I'll let you have the last word, since it appears nothing less will do.
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Old 04-23-2015, 03:37 PM
 
12,708 posts, read 9,987,127 times
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Quote:
Originally Posted by Ariadne22 View Post
And. now we've come full circle:


But, we can keep beating this dead horse, if you wish. I'll let you have the last word, since it appears nothing less will do.
I have nothing new to add.
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Old 04-23-2015, 03:38 PM
 
Location: Great State of Texas
86,093 posts, read 72,556,082 times
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Now if you go back and read Moonlady's post she is going to UP her contribution rate to her retirement accounts and use part of the $200K to replace her INCOME which is now going into retirement accounts.

She can max out her pre tax, post tax accounts with her paycheck and use money from the $200K to replace that income. So she would need to keep enough liquid to do that.
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Old 04-23-2015, 04:03 PM
 
Location: NNV
1,526 posts, read 981,007 times
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Quote:
Originally Posted by otterhere View Post
I've spent two years trying to decide on a location and haven't been able to. Everyone tells me it would be NUTS to purchase long-distance, without visiting and preferably spending time there first, but I cannot travel until I retire in a couple of years. Hence, my plan is to spend a year or two RVing along the coast looking for just the right property. I've also heard that vacation homes - strictly as an investment - aren't all that (too many expenses involved), but of course it would also at that time become my primary residence. I would continue to rent it out during peak season, traveling to other locations during that time, to supplement my retirement income.
What about buying a rental property locally? Of course, you would have to do research first to determine how the market is in your area. But as far as long-distance, should you decide on an area you could hire a management company to take care of renting the place out and maintaining it. That's what I'm doing and a good company is worth their fees.
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Old 04-23-2015, 09:35 PM
 
Location: Myrtle Creek, Oregon
12,287 posts, read 12,525,000 times
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Quote:
Originally Posted by otterhere View Post
I've spent two years trying to decide on a location and haven't been able to. Everyone tells me it would be NUTS to purchase long-distance, without visiting and preferably spending time there first, but I cannot travel until I retire in a couple of years. Hence, my plan is to spend a year or two RVing along the coast looking for just the right property. I've also heard that vacation homes - strictly as an investment - aren't all that (too many expenses involved), but of course it would also at that time become my primary residence. I would continue to rent it out during peak season, traveling to other locations during that time, to supplement my retirement income.
That's actually an excellent plan. My wife and I spent every weekend for three months shopping for a home before we bought this place. We really put a realtor through the wringer looking at dozens of places, but when we finally bought we found a gem. If you find a low risk, high return, short term investment, be sure to keep it a secret and charge big bucks for telling people what it is. I have looked hard, and as far as I can tell there aren't any. There are a couple of online banks that offer .99% to 1.05% FDIC insured interest, so you should be able to get 1%.

Savings Account Rates | High Yield Savings | NerdWallet
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Old 04-24-2015, 07:45 AM
 
7,803 posts, read 4,399,284 times
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A friend tipped me off to "distance" banking. A two-year $250k CD at 1.35% interest rate (whoo-hooo!) would yield a $7k gain by the time I retire and with a lot less work and stress than landlording (even at a distance). Can also withdraw it, if absolutely necessary...

Either Synchony or CIT. Have never heard of either or banked anywhere but locally, but FDIC insured.

Recommended?

Last edited by otterhere; 04-24-2015 at 08:39 AM..
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