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Old 12-21-2009, 09:03 AM
 
20 posts, read 76,224 times
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Quote:
Originally Posted by Gandalara View Post
"able to drive that Porsche to your big guard gated home" - are you feeling deprived? Wanting to Keep Up With the Joneses? (I'm not being snarky or disparaging here! Honest!) Take another look at your Cash in Hand - you're in FINE shape!
Thanks, it's not so much about keeping up with the Joneses, just to keep up, but I like nice things, especially cars and houses. I don't really care about what people think if I had a nice car or house, I would be fine with them not every knowing about them, i just personally like them.

I'm just thankful I don't have expensive hobbies, ie. Golf, Pilot, sailing, world traveler.
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Old 12-21-2009, 09:12 AM
 
71,549 posts, read 71,712,424 times
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we want to live better in retirement then we did during our working years saving and raising a family...

we want to finally enjoy the fruits of that labor....

we have a nice house we bought although not large, i do love my new cars and we both love our hobbies especially photography...
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Old 12-22-2009, 02:17 PM
 
29,779 posts, read 34,863,854 times
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Quote:
Originally Posted by mathjak107 View Post
we want to live better in retirement then we did during our working years saving and raising a family...

we want to finally enjoy the fruits of that labor....

we have a nice house we bought although not large, i do love my new cars and we both love our hobbies especially photography...
It is all relative to the individual. One thing we don't always factor in our discussions is retiring in place (not relocating) vs becoming a transplant. Being a transplant often means taking a percentage of a larger income to a less expensive place thus increasing the relative worth of your finances. Would be interesting to have discussions about the thoughts of transplanting to popular retirement locations and the the reactions of the receiving populations. Especially if transplants are driving costs up.
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Old 12-22-2009, 02:28 PM
 
Location: Alaska
5,356 posts, read 16,345,810 times
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Quote:
Originally Posted by TuborgP View Post
Would be interesting to have discussions about the thoughts of transplanting to popular retirement locations and the the reactions of the receiving populations. Especially if transplants are driving costs up.
Just go to the Oregon board and do a search. You'll find a lot of posts about Californians moving in and driving up prices.
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Old 12-22-2009, 03:44 PM
 
Location: SoCal desert
8,093 posts, read 13,231,206 times
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Quote:
Originally Posted by kelly237 View Post
I would love thoughts on paying cash for our retirement home and having no mortgage or using that money for adding to investments.
To answer on topic (I've been having trouble with that lately ) ... I plan on paying cash for where ever I finally settle (somewhere in the Southwest, but not California).

I've been paying rent or paying a mortgage since 1 month after university graduation. I never want to have to again - if I only have to pay insurance and property taxes, I'll feel like I'm on Easy Street.
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Old 12-22-2009, 10:01 PM
GLS
 
1,985 posts, read 4,846,869 times
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Quote:
Originally Posted by akck View Post
Just go to the Oregon board and do a search. You'll find a lot of posts about Californians moving in and driving up prices.
Similarly, read the Montana board. They are very clear on their attitude about Californication.
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Old 12-23-2009, 12:59 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,563 posts, read 39,944,045 times
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Quote:
Originally Posted by GLS View Post
Similarly, read the Montana board. They are very clear on their attitude about Californication.
As were those of us who got pushed from Colorado, WY, ID, NV in the 1970's and 80's.

Due to the previous Federal tax rules of having to buy a home of greater value than the one you sold, CA were coming into town with open and willing checkbooks. Property prices in the receiving states increased 30-100% just to spend off the CA plenty. (Really foolish move by CA was to have not required capital in excess of USA national average home value to remain in CA. That would have saved many states from 'out-of-sight' home values.) I ended up allocating 1 wk pay per month on property taxes due to the 'Californication' of property values. In my case it was compounded by CA transplants to our company getting to retain their CA pay levels. Thus the locals all got 're-ranked' to let the CA transplants to occupy the top of salary scale. We went for 7-10 yrs without raises, while the CA folks lived the 'life of Reilly'. (they would come up to you and say "quit working so hard, you are making us look bad". sorry situation as the company eroded quickly and a 65 yr old company gutted in 5 yrs.

The realtors were making out like ''bandits", contractors too, as the CA folks would buy whatever it took to get spending = to sales price of their CA home. (pools, basements, barns, tile roofs, landscaping...all added to bring up the 'spending')
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Old 12-23-2009, 07:04 AM
 
51,927 posts, read 41,791,093 times
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Quote:
Originally Posted by Gandalara View Post
"Goal: Biggest bang for my buck."
  • Pay off home mortgage.
  • Fund this year's and/or next year's Roth.
  • Leave 50K as cash in hand as emergency fund.
  • Ladder 50K in long-term CD's
  • Take the remaining as a down payment on a rental property. With no primary house payment, it should be easy to get financing. And also with no primary house payment, you'll have enough discretionary monthly income to make payments on the rental when it's not occupied.


:::shrug::: I'm sure others will chime in. But in the end, do what makes you feel comfortable and safe.
Got to agree...and this is actually mostly what I've been doing.

1. Maximize 401k, Roth
2. Pay down house
3. Keep enough to be liquid
4. I'm a single dad with gradeschoolers and a lot of demands on me right now, I'm not getting involved in a rental property at this time but don't really have the spare cash to make that move anyway.

My mortgage is 5.5% right now, where oh where else can I get 5.5% risk free on my investment? I will be done with my mortgage in a couple more years, before my kids hit college.
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Old 12-23-2009, 08:45 AM
 
8,197 posts, read 11,911,100 times
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Quote:
Originally Posted by Mathguy View Post
My mortgage is 5.5% right now, where oh where else can I get 5.5% risk free on my investment? I will be done with my mortgage in a couple more years, before my kids hit college.
Why in God's name are you paying such a high rate on your mortgage?! I haven't had a mortgage that high in a decade!

I originally paid 5.25% on a 7/1 ARM, then refinanced that to a 4.25% on a 5/1 ARM in 2004, which subsequently adjusted last January to 4.0% and would have adjusted to under 3.0% next month if I hadn't sold my house. The mortgage on our new house in Vegas will be 4.25% for a 15 yr fixed-rate mortgage.

I suppose that it would be more trouble than it is worth at this point in time to refinance since you only have a couple of years left, but why didn't you refinance it years ago? At the very least, you could have accessed a HELOC and used the proceeds to pay off the mortgage, thus reducing the amount of interest you would be paying. You then could have paid down the HELOC balance on the same timeframe as your mortgage (assuming you didn't want to refinance into another 15 or 30 year term.)

My HELOC was only 2.75% (prime minus 1/2%) for quite some time. If you had done that, you would have cut your interest charges by 50%!
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Old 12-23-2009, 09:43 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,563 posts, read 39,944,045 times
Reputation: 23699
Quote:
Originally Posted by MadManofBethesda View Post
... I haven't had a mortgage that high in a decade!

I originally paid 5.25% on a 7/1 ARM, then refinanced that to a 4.25% on a 5/1 ARM in 2004, which subsequently adjusted last January to 4.0% and would have adjusted to under 3.0% next month ... ...

My HELOC was only 2.75% (prime minus 1/2%) for quite some time. If you had done that, you would have cut your interest charges by 50%!
well MadMan, You and I are living on borrowed time (at least you have sold your home with the ARM, one step ahead of me.)
I got a 7/1 for 4.25% feeling for sure I was gonna move, BUT it rolled last yr and indexed to 4.02. This month it locked for the next yr at 2.9% (About the same as my Heloc that I have used to pay off income property. BUT I know it is all temporary (as is life... ). The lender didn't charge for closing costs or appraisals and didn't roll additional fees in to refi's/ (that guy is probably 'replaced' by now) But I know they soaked me for more 'deferred' payments. I only have 10-20% LTV rates so not getting the full advantage of the 'bargain' rates. Just trying to decide how to arrange to be 'deceased' in 2010 to take advantage of the estate tax sunset. It wouldn't hurt my feelings to not 'participate' in the tax rates of 2011 and beyond.

Even tho I'm stuck in my home, it is not so bad to be stuck in 'paradise', just is spending my assets a bit too fast, but not if 2010 is 'check-out- time
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