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Old 01-30-2007, 01:55 PM
 
Location: Steilacoom, WA by way of East Tennessee
1,049 posts, read 3,992,828 times
Reputation: 703

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Hello,

Got a question to any Dave Ramsey followers (TN native), this question has a direct bearing on my move to TN.

As you know Dave Ramsey is a big proponent of living a debt free life.

I recently retired from the military and sold my home(s), paid off my car, all of my credit cards and have a good chunk of change in the bank.

I can move anywhere in the country, I can stay in WA and perhaps find a good job (no guarantee) and buy a home for $300,000.

Or, I can move to TN, (no job lined up, but retired pay is $20k per year), pay cash for a home up to $150,000 and be totally debt free.

What would you do, chance of a better job, but with an extra $150,000 of debt or move to TN with potentially less paying job, but with no debt at all?

Any recommendations from the debt free crowd??

Tony
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Old 01-30-2007, 02:19 PM
 
13,336 posts, read 39,695,150 times
Reputation: 10760
Quote:
Originally Posted by Tony1790 View Post
Hello,

Got a question to any Dave Ramsey followers (TN native), this question has a direct bearing on my move to TN.

As you know Dave Ramsey is a big proponent of living a debt free life.

I recently retired from the military and sold my home(s), paid off my car, all of my credit cards and have a good chunk of change in the bank.

I can move anywhere in the country, I can stay in WA and perhaps find a good job (no guarantee) and buy a home for $300,000.

Or, I can move to TN, (no job lined up, but retired pay is $20k per year), pay cash for a home up to $150,000 and be totally debt free.

What would you do, chance of a better job, but with an extra $150,000 of debt or move to TN with potentially less paying job, but with no debt at all?

Any recommendations from the debt free crowd??

Tony
No question. I'd stay debt free. And couldn't you also find a job once you're in TN if you really want to?
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Old 01-30-2007, 02:57 PM
 
141 posts, read 978,926 times
Reputation: 70
Debt free, absolutely. Then you could call in to the show and get him to do the silly shtick that he does when people do this.

Or, you could just enjoy your debt-free lifestyle.

Do it.
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Old 01-30-2007, 03:12 PM
 
Location: Chattanooga TN
2,349 posts, read 10,618,049 times
Reputation: 1250
Yup I agree. Debt free. You will be in a position many of us envy! Our taxes are relatively cheap so your 20k should do alright too. Post us when you call our ol buddy Dave so we can hear you do a shout out to your new buddies in TN lol
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Old 01-30-2007, 03:49 PM
 
Location: Northern CA but can't wait to get out!
203 posts, read 763,751 times
Reputation: 87
Seems like a no-brainer to me - DEBT FREE! I'm trying to work towards that for my family. Getting closer, but it's going to take a while.
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Old 01-30-2007, 03:56 PM
 
110 posts, read 472,497 times
Reputation: 48
Definitely go debt free and with a house paid for and a 20k income with no other debt I would life the simple life style and forget the work part....except perhaps to work part time in the summer at a golf course so I could golf for free.
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Old 01-30-2007, 05:11 PM
 
176 posts, read 797,304 times
Reputation: 121
Default It's a complex question involving many issues

Debt free is, of course, best but is not a single-issue decision. If being debt free depletes your savings and you're not working and/or provided with other income it may not be the wiser decision. Other factors come in, for example, how old are you, the amount, nature (stocks, real estate,etc.) and projected return of your investible assets, your other obligations (married, single, children to raise/put through school, etc.), do you have adequate health insurance, spouse working, emergency funds for repairs/health/occasional new car, alimony payments, etc.

You have to look not only at your income now (if you were to stop working) but your income in the future taking into account your age and estimated longevity versus inflation. If you're 65 it's best to plan on at least 25 to 30 years more. While it may be unpleasant to face work now, it's even more unpleasant to be 75 or 80 with no money and unable to work.

Are you close to Social Security age? Do you have any savings such as an IRA? In general it's a good idea to keep working for that not only produces current income and keeps your skills sharp but it also reduces the need to draw on your investments/savings enabling them to work longer without being drawn down thereby compounding their total return.

It truly is a complex and intensely individual issue so you might want to investigate this matter online at various informational sites such as Morningstar and Vanguard which have retirement "calculators" (which are, at best rough guesses-kind of like a doctor's rough guess-you certainly wouldn't consent to surgery on such a judgement!) but equally valuable and thoughtful discussion groups inhabited by some pretty knowledgeable people.

Take your time and consider all alternatives as best you can. As are most major decisions in life, it is a multi-faceted question requiring thorough analysis. After examining everything you'll make a decision which may or may not prove to be the "best" decision but after a lifetime of work (or a major part thereof) you owe it to yourself to be the best informed that you can be thereby increasing your chances of a wise choice.

Last edited by mrradio; 01-30-2007 at 05:26 PM..
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Old 01-30-2007, 05:45 PM
 
Location: Steilacoom, WA by way of East Tennessee
1,049 posts, read 3,992,828 times
Reputation: 703
Thanks all for the replies,

I think living debt free in E. TN or even WNC/SC, (family in Asheville, NC area) would be great, and worst case scenario is if I can't find work then as long as I don't have debt, I could still live on my $20,000 per year retirement.

The only other thing that I needlessly worry about.....I'm a big time worry wart.....is fitting in, in the south.

I've lived on the West Coast (CA/WA/AK) for 20 years now and have acquired some preconceived notions of not being able to be accepted in the south. Life on the west coast seems to be a little more faced paced and people tend to keep to themselves a little more. I know, I know slowing down and learning to be friendly should be easy......I hope that it is, we'll see.

As to preconceived notions, before I moved to CA I dreaded it, but it turned out not too bad, they drive really fast and so do I.....see told you I'd need to slow the heck down

Sorry to be so wishy, washy, timid, whiny and uncommitted in my approach to questions here, I'm just a little embarrased as I'm currently retired/unemployed attending college online and should graduate with a BA in History (June 07). Between not having a job and a persona to go with it......ask somebody what they do and he'll say, I'm a fireman, I'm a police man, I'm a railroad man, etc. What do I say, I'm unemployed loser. Add to that the stress of needing to make the PERFECT decision of where to live, where to work, where my family will be happy, where my kids should go to school, I'm about ready to pop.

Anyway, I do Appreciate all of the input here, you guys/gals are so helpful, I get one last move from the military and it's for all the marbles, just don't want to blow it by making everyone as unhappy as I am currently.

Tony in WA

p.s. Sorry again for complaining.
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Old 01-30-2007, 05:58 PM
 
Location: Steilacoom, WA by way of East Tennessee
1,049 posts, read 3,992,828 times
Reputation: 703
Quote:
Originally Posted by mrradio View Post
Debt free is, of course, best but is not a single-issue decision. If being debt free depletes your savings and you're not working and/or provided with other income it may not be the wiser decision. Other factors come in, for example, how old are you, the amount, nature (stocks, real estate,etc.) and projected return of your investible assets, your other obligations (married, single, children to raise/put through school, etc.), do you have adequate health insurance, spouse working, emergency funds for repairs/health/occasional new car, alimony payments, etc.

You have to look not only at your income now (if you were to stop working) but your income in the future taking into account your age and estimated longevity versus inflation. If you're 65 it's best to plan on at least 25 to 30 years more. While it may be unpleasant to face work now, it's even more unpleasant to be 75 or 80 with no money and unable to work.

Are you close to Social Security age? Do you have any savings such as an IRA? In general it's a good idea to keep working for that not only produces current income and keeps your skills sharp but it also reduces the need to draw on your investments/savings enabling them to work longer without being drawn down thereby compounding their total return.

It truly is a complex and intensely individual issue so you might want to investigate this matter online at various informational sites such as Morningstar and Vanguard which have retirement "calculators" (which are, at best rough guesses-kind of like a doctor's rough guess-you certainly wouldn't consent to surgery on such a judgement!) but equally valuable and thoughtful discussion groups inhabited by some pretty knowledgeable people.

Take your time and consider all alternatives as best you can. As are most major decisions in life, it is a multi-faceted question requiring thorough analysis. After examining everything you'll make a decision which may or may not prove to be the "best" decision but after a lifetime of work (or a major part thereof) you owe it to yourself to be the best informed that you can be thereby increasing your chances of a wise choice.
Thanks for your input, I'm realitively young, 40, my retirement is $20k per year, I plan on working or going back to college and acquiring more skills and then working.....too young to fully retire. Making assumptions here, but if I can pay $150k for a home that is long term livable (not rundown crap in middle of town), then I can afford to pay cash for it, and have 2 years of living expenses in the bank as an emergency fund. Don't have any car payments, no credit card payments, etc (as long as I can keep myself out of the store ) Assuming these things I can afford to live debt free and comfortable until I can get a better paying job.

Now assuming I stay here in WA, I'd not likely be able to pay cash for a place, looking at $300,000 give or take to buy at 1500 to 2200 sqft place, maybe a little less, little more depending on location, condition, etc. I could put down a big down payment on a home (50%) but I'd still have a mortgage and if I don't get a good job or if I get laid off from a good job, I still have the mortgage and not nearly as much in an emergency fund.

So financially I should be better off in TN, Assuming that I can find a decent place for $150,000 (no guarantees there). If I have to spend $250k in TN then I'd be better off staying here, with higher pay (again no guarantee of that).

So far the 2 jobs I've been offered here are federal security guard at $14 per hour or bus driver on base (assuming I get my CDL class B in the next 8 weeks) at $21 per hour. If I get my CDL for here, I could drive a local route there in TN for what? I'll assume $8 - 10 per hour, so that works about the same if I have a mortgage here, but no mortgage there.....again making HUGE assumptions.

Anyway, I'm starting to ramble on here, I'll let you good people alone for now.

Thanks again.

Tony
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Old 01-30-2007, 06:32 PM
 
Location: Nashville (soon)
29 posts, read 83,740 times
Reputation: 38
Quote:
Originally Posted by Tony1790 View Post
Thanks all for the replies,

I

Sorry to be so wishy, washy, timid, whiny and uncommitted in my approach to questions here, I'm just a little embarrased as I'm currently retired/unemployed attending college online and should graduate with a BA in History (June 07). Between not having a job and a persona to go with it......ask somebody what they do and he'll say, I'm a fireman, I'm a police man, I'm a railroad man, etc. What do I say, I'm unemployed loser. Add to that the stress of needing to make the PERFECT decision of where to live, where to work, where my family will be happy, where my kids should go to school, I'm about ready to pop.

I would say to someone who spent 20 years in the military and is retired - thank you, God Bless you and I am glad to know you. When asked what you do - you say" I am retired military and you say it LOUD and PROUD! and my vote is definitely debt free! go for it and enjoy it.

Last edited by Progradi; 01-30-2007 at 06:33 PM.. Reason: typo
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