Should You Delay Retirement Until Your Home is Paid Off? (relative, vacation)

[BigfishTim]

Originally Posted by StealthRabbit

Retirement finances requires cash flows. Figure out where your's will come from.

That is the key right there. Too many people miss the boat.

It's not about how much you accumulated BEFORE retirement, or what your expenses are AFTER you retire. It's about figuring out your income minus expenses in your retirement.

[mathjak107]

i always try to explain to people all tge time that what your income was when you had a pay check or two coming in while working is irrelevant when the checks stop .

most of use what we have to work with when the time gets close and back into the expenses .

sometimes things have to go or be cut ..sometimes it even means relocating

[BigfishTim]

Originally Posted by mathjak107

i always try to explain to people all tge time that what your income was when you had a pay check or two coming in while working is irrelevant when the checks stop .

most of use what we have to work with when the time gets close and back into the expenses .

sometimes things have to go or be cut ..sometimes it even means relocating

But thanks to NYC "rent stabilization" policy, you don't have to move

[mathjak107]

Originally Posted by BigfishTim

But thanks to NYC "rent stabilization" policy, you don't have to move

that is a big deal here …the right of renewal is very powerful .

however we just had friends here who had to relocate . we went over their savings and income and the 45-50k in income was an awful lifestyle here so they moved down south . so being stabilized and Almost 3k a month in rent left them cash poor

they are not happy but had no choice .

being stabilized doesn’t mean cheap .stabilized rents can be 6-8k a month in manhattan .

stabilized rents for most in our area are just a tad under rents in single family and two family homes because they can get more then apartment buildings do but any building that is decent is close to market rent

[BigfishTim]

Originally Posted by mathjak107

that is a big deal here …the right of renewal is very powerful .

however we just had friends here who had to relocate . we went over their savings and income and the 45-50k in income was a awful lifestyle here so try moved down south . so being stabilized and Almost 33k a month in rent left them cash poor

they are not happy but had no choice .

being stabilized doesn’t mean cheap .stabilized rents can be 6-8k a month in manhattan .

stabilized rents for most in our area are just a tad under rents in single family and two family homes because they can get more then apartment buildings do but any building that is decent is close to market rent

My solution to combat the rising cost while living in a HCOL area like Southern California is getting a 30 yr fixed rate mortgage at 2.5%. I still have rising property tax to deal with but they're capped at 2% a year increase, thanks to Proposition 13.

[elchevere]

Fidelity and others have great "planning" sections of their websites that match up your current assets with expenses that project how much you will need and/or have at various ages under 3 scenarios--average returns, below average returns, and significantly below average returns.

I’m currently cash rich, house poor (renting) but have a monthly pension for the rest of my life, about a 10-12 year supply of liquid investments (treasuries, CD’s, MM), with Social Security kicking in at age 67 (little less than 3 years), have been retired 4 years and still have about $150K higher net worth vs when I received my last paycheck, and am projected to die with several hundred thousand dollars at 95 given current assets and slightly overestimating my current expenses with below market returns. Of course it helps that I’m single with no kids or others to leave my money to.

[StealthRabbit]

Originally Posted by mathjak107

i always try to explain to people all tge time that what your income was when you had a pay check or two coming in while working is irrelevant when the checks stop .

...

I was thinking (hoping) ... Maybe the company will just keep the direct deposit of the past 32 yrs coming.... would they even notice my piddly check? Guess so...

The transition from Accumulating to EVERYTHING going OUT still hasn't clearly registered. (now getting SS)

It became a pretty big deal between age 49 and 66.7, especially when the A(?)CA dropped all my 'affordable' health care options. Eventually 'affordable', became 10x what I had considered affordable in creating my retirement budget. It's good to have a Plan B. (and C, D, XYZ)

Expect changes to be coming. They may be more significant than you ever could have imagined.

Don't sweat it, just expect it and you won't be disappointed or surprised.

I do miss Direct Deposit, and... Paid Vacation. Company 'discount' stock purchase was good too (while it lasted). 7-13% annual profit sharing, Paid HC, Free Recreation sites WW, Paid travel (including family for international relocations), free lunches and annual family steak frys and monthly Beer busts... Not a bad gig (good while it lasted).

Company Credit Union was very generous, and will hold my mortgage(s) for many more yrs.
They even financed several commercial and income props for me, very nice perk.

[lottamoxie]

Originally Posted by pll

Is it still possible to retire with a mortgage? How?

Of course it's possible.

You treat the monthly mortgage payment just like if it was rent. It's a regularly occurring expense that needs to be paid, just like any other monthly expense. You need to have enough $$$$ every month to pay for all expenses, and hopefully extra for optional spending.

[KaraG]

Well, we don't get any pension and our SS checks won't be that much so we hope to have the house paid off by retirement. We don't have any plans of downsizing, this is our home we want to retire in.

[Parnassia]

Answered your question in the other thread OP. Of course it's possible to get or retain a mortgage in retirement. Whether it's the right decision for you or anyone else depends on the circumstances.