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.
My goal is to have my retirement housing needs resolved before retirement. I have no desire to play the spread between mortgage rates and investment return rates for the entirety of my life.
It is not about playing the spread as much as it is about doing what you need to do to get the safe draw rate you need ..that is true whether you own , rent , have a mortgage or don’t ....very few of us are wealthy enough to safely generate even 4% of what we have without equities..
Those who try to do it don’t usually have a clue as to what it takes to sustain an income that is consistent in good and bad times regardless of where inflation goes .
The failed retirement graveyard is filled with seniors who had to return to work in their older years because they failed to understand how important it is to match you savings and portfolio to your needs , not what they wanted to do and just use fixed income , or just not grow their income enough to keep up.
What we do has to be based on what works to meet our income needs , not what mentally is comforting
How about having no mortgage and that much saved? I still stand by the method of making sure I owe nobody anything in retirement, and my structure is secure. I didn’t realize it was considered old school.
So $350K in savings with no mortgage? I would rather have a low cost mortgage for $350K with a total of $700K invested.
So if in retirement you have a mortgage do you pay the stated amount or do you pay extra to pay it off earlier?
What about the timing of your retirement?
We retired Jan 1, 2008 and Payed cash for our new house. Had we gotten a mortgage and invested the money instead my wife would have probably shot me when the market crashed. 2 1/2 years later we bought a second home and got a mortgage on that. Could easily have paid cash but markets were recovering and looking good. Pay more each month and the beach place has taken off in appreciation the last 5 years. The main home remained stable before and after the crash until the last year or two and is now taking off.
So my opinion there are so many variables and we were LUCKY how it worked out. Bada Bing lucky!
I paid enough to have a low monthly mortgage -- considerably less than rent would be for a 2-bedroom apartment -- and then let the rest stay in my investment accounts. It's working. No problema.
This sounds like a plan I could live with! Right now, we have a paid off mortgage, but if we move, I might consider taking on a small mortgage. It would depend on interest rates at the time.
I'm always big on a smaller home no matter what. Smaller heating and cooling bills, smaller tax and insurance bills, smaller repair bills. If the kids come to visit, get them a motel. A week in a motel is cheaper than two more bedrooms all year long.
It is not about playing the spread as much as it is about doing what you need to do to get the safe draw rate you need ..that is true whether you own , rent , have a mortgage or don’t ....very few of us are wealthy enough to safely generate even 4% of what we have without equities..
Those who try to do it don’t usually have a clue as to what it takes to sustain an income that is consistent in good and bad times regardless of where inflation goes .
The failed retirement graveyard is filled with seniors who had to return to work in their older years because they failed to understand how important it is to match you savings and portfolio to your needs , not what they wanted to do and just use fixed income , or just not grow their income enough to keep up.
What we do has to be based on what works to meet our income needs , not what mentally is comforting
My income needs will be met. Anyone who looks at the entire picture can see what will work be for them. I personally see no reason to burden myself with monthly outlays in retirement.
You always advocate for rent or a mortgage in retirement but you use flawed logic. I'll take my "mental comfort " any day.
Crazy thought but there are all types of valid ways to handle retirement planning than what youthink is best.
I'm always big on a smaller home no matter what. Smaller heating and cooling bills, smaller tax and insurance bills, smaller repair bills. If the kids come to visit, get them a motel. A week in a motel is cheaper than two more bedrooms all year long.
So true! That is what we have done -- and we have spent less than $1,000 total in seven years!
My income needs will be met. Anyone who looks at the entire picture can see what will work be for them. I personally see no reason to burden myself with monthly outlays in retirement.
You always advocate for rent or a mortgage in retirement but you use flawed logic. I'll take my "mental comfort " any day.
Crazy thought but there are all types of valid ways to handle retirement planning than what youthink is best.
I don’t advocate for renting at all ...what I do is take to task these ridiculous comments about all renters are losers and are dumb for renting ...that is false and I dispute it when I see it ...that does not mean I am advocating renting and not owning ..I have owned more homes and real estate then most in my life.
But renting when you have the resources to deploy in a business or more profitable investments can easily surpass owning and tying up multiple 7 figures in a house ...so renters can be winners ...you just have a lot of poor renters with no options .... so as a general statement ,renters are throwing away money can be quite false
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.
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.
