Quote:
Originally Posted by Villager1234
Yesterday I read about the lady who is having problems with house closing
There are alternatives to purchasing. I moved here 2 years ago, finally found a yearly rental
I closed on my house up north last month. Instead of buying a house I am seriously considering renting permanently. A 5% cd pays all of my bills and don’t have to worry about any maintenance,water bills,sprinklers Many of my friends miss activities to meet repairmen. I am a retired tradesman and don’t care if I ever pick up a tool again
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The issue with a CD paying all of your expenses is good for the moment, I agree. However, its also like a pension, a fixed amount every month. At some point, the inflation of every day expenses will overcome the fixed income amount, and you will need to eat into your principal to pay the increased rent and other living expenses. A few hospital bills which isn't covered can dent the CD and not cover the rent and other living expenses. .
The future is ALWAYS uncertain. What works today will continue to work until it doesn't. so always have a plan B even if today looks like it will continue indefinitely.