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Originally Posted by Bill14564
That may be true if you have that money under your mattress but it isn't as clear if you have to pay to access the money and/or if the money is working for you where it is.
Depending on what the market decides to do, borrowing money today could result in a net *gain* of over $25K in 15 years.
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you are basing the decision on future events repeating, which may or may not occur.
Without basing the events on future events occurring, but today's cost of money only, which would you pick? The financing decision reduces discretionary income on a fixed income, versus maintaining the current cost of lifestyle. This type of reasoning increases the cost of retirement lifestyle unnecessarily.
One can always borrow based upon pledging assets, which is called leveraging up and getting more aggressive about borrowing money. Retirement should be about deleveraging and more conservative to guarantee longevity of assets.
increasing personal risk of mandatory future payments against a personal property improvement doesn't make alot of risk management sense for a retired couple with a fixed income, who are currently enjoying their cost of lifestyle.