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How many are considering a move simply for the fact where you live now is a struggle and have you been shopping for cheaper places to live? As retirement approaches many are seeing the average $1600 per month in SS retirement benefits insufficent for where they live now, and it's not a small number as a reported 40% of Americans have zero returement savings. As Boomers retire is it possible we see a population shift away from the more expensive Sunbelt options toward less likely places with lower costs of living, especially rent? Bear in mind 36% of Americans rent, with more likely to be added as others reach retirement age.
Last edited by kyle19125; 10-10-2022 at 03:20 PM..
Yes, for a simple answer. Most won’t do well with just social security. However owning your own home outright is a major plus. Good advice for those in their 20’s and 30’s to get rid of that mortgage as soon as possible. If you can, put money in a savings account right now. Current interest rates are 2.25 and expected to go higher. Just make some good financial moves now as interest rates are expected to increase. If you own a home, hold on to it. The value will only increase, short of a depression, which I don’t see.
Yes, for a simple answer. Most won’t do well with just social security. However owning your own home outright is a major plus. Good advice for those in their 20’s and 30’s to get rid of that mortgage as soon as possible. If you can, put money in a savings account right now. Current interest rates are 2.25 and expected to go higher. Just make some good financial moves now as interest rates are expected to increase. If you own a home, hold on to it. The value will only increase, short of a depression, which I don’t see.
I know you’re trying to help, but this is pretty bad financial advice.
Problem is, when people locate for less expensive living, salaries are usually less. If they’re not, we live in such a vain society that they spend the extra dough on material items instead of savings, so they’re right back where they started. Everywhere you go, there you are.
I relocated from Connecticut to south Florida when Florida was generally cheaper. Today, the cost of living in my area of FL is almost 30-50% higher than the most expensive parts of Connecticut. Absolutely insane.
Interesting to note: The bottom 90% just saw their annual debt increase by the largest amount in history. Things are going to get quite bad, and moving somewhere less expensive won’t help (considering moving itself can be very expensive).
I know you’re trying to help, but this is pretty bad financial advice.
Besides putting money in ETFs and index funds, what would you recommend right now for someone in their 20s-30s? I think it's unlikely but not impossible that I will want to own a home in the future, and I have no debts.
Please explain why paying off your mortgage is bad financial advice. Being free of mortgage debt is bad?! I really don’t understand your post. Perhaps you are a mortgage broker who just wants the percentage? Since when did mortgage payments become better than cash? Total nonsense, I call BS.
Besides putting money in ETFs and index funds, what would you recommend right now for someone in their 20s-30s? I think it's unlikely but not impossible that I will want to own a home in the future, and I have no debts.
Exactly, investing in stocks or real estate.
Quote:
Originally Posted by pnwguy2
Please explain why this is poor financial advice.
Getting rid of a mortgage isn’t necessarily a good thing. You pay interest, but if the interest rate is low most people would be better off investing the extra instead of paying down their mortgage.
A savings account is a very bad idea too unless it’s money you’ll use soon. 2.25% and inflation is 8% so you’re losing purchasing power. There are much better options than this.
Getting rid of a mortgage isn’t necessarily a good thing. You pay interest, but if the interest rate is low most people would be better off investing the extra instead of paying down their mortgage.
A savings account is a very bad idea too unless it’s money you’ll use soon. 2.25% and inflation is 8% so you’re losing purchasing power. There are much better options than this.
But debt is debt. I can understand some debt is more expensive. I just prefer to have no debt, and in the end will allow to keep all my money. You can give excuses all day, but cash is still king. And those in a cash position will always win.
Last edited by pnwguy2; 10-10-2022 at 08:58 PM..
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