Quote:
Originally Posted by CoachKandSportsguy
The published number is meaningless to any individual, as its a survey of average peoples' feelings with no published background on annual spending rate. Hard financial data is not present or known to be present.
Example
our house costs $30K annually and add in food and vacations. .
Say $60-70K max annually at the moment.
current social security for both of us is $72K at FRA, so at the moment no savings is needed.
I saw one CFP touting planning services say $3M is not enough in savings. (Scare tactic)
He was using $200K in annual costs and saying money runs out in less than 7 years. (That's like living in NYC!)
The determining factor is "sufficing expenses" and how you structure your spending.
Renting money with a mortgage sucks money away. .
best to pay it off to free up cash flow and reduce cost of living and dependence on any investment offset.
(maintaining a mortgage and keeping investments earning as much or more will work until it doesn't, ie you have to use the money for a huge unplanned black swan event, or the returns stop returning.)
So there's a lot of numbers in the world, a lot are not relevant or useful to any individual's circumstance. This is one of them
|
Agree with most of what you said. However, when interest rates are high, paying cash for a home is not always the best solution. You are throwing away the possibility of earning good interest. Interest rates go back down? Then you pay cash for your home. Hopefully, the period of time you were able to make a good return on your investment will pay for the bulk of your home purchase. In the interim, you enjoy maintenance free living while renting.