Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#31
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No debt....retire with no debt that is the key. No house payment No car payment
Whatever you charge on credit card ...pay it off every two weeks. Get Airline Credit cards use the points earned for your flights....example round trip to Cincinnati for two. $22 with our points. Savings great...stocks great...other investments great...however no debt is the key. Quote:
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#32
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Thank you. Not much more need to be said!
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#33
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#34
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#35
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During the past 20-30 years, I had home loans at 2-3% and got a loan for the max amount possible (80%), and was making triple times on an annual basis during this same time. As for cash to buy a home, cash is king. I’ve had 2 custom homes built during the past 11 years and I was the bank, I didn’t get a builders loan nor an end loan which saved me over 4% just in loan fees. In normal years and in most places, when a recession hits, house values go down and interest rates go up. Prime time for somebody with cash to go in and get a great deal, 2008 and the last 2 years are an example of this. I also think $1.5M is low to have financial independence, this doesn’t take in account if you have a nice pension or 2. My reasoning is the golden rule of taking 4% of your money out of your portfolio to live on so you don’t live past your mooney. $1.5M x 4% is $60k a year which isn’t that much. Somebody mentioned that their expenses are $70k a year and they make $72k. What happens if you want to go on a $10k vacation a couple times a year? Say you need a new car? A new golf cart? Do some renovation? Have a medical issue or you want to help you kids with a big expense? $2k extra isn’t going to cut it. Then what happens when the market goes down for 18-24 months while you are still taking 4% out each year? Next year you might be taking 4%out of $1.2M. Having $2M-$3M gives you breathing room to pay for expenses or luxury items that you want. No reason to cut back on doing things in retirement. |
#36
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A lot of figures have been tossed out and also different lifestyles.
If you have a pension, social security, investments and debt free all these factors must be included into this calculation. The question should be after you tally your position what type of income will permit you to have the lifestyle you want. After you considered all normal annual expenses, taxes, food, HOA fees, cable, insurance, what is a decent income to cover that and still let you have a comfortable life here in The Villages? Is it $100K, $200K, more or somewhere in between, that is the real question. |
#37
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#38
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#40
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I retired early up north and had just enough pension income to get by. When I moved to FL and got additional income from Social Security, my income exceeded my expenses by a lot. I am comfortable with much less than other people who like to travel the world. I will soon be forced to draw from my retirement account which I have not needed. Recently I have been going to a Naturopath doctor to get as healthy as possible. Staying healthy with a modest lifestyle is the easy way to not need a huge nest egg.
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#41
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Great answer
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#42
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Your grandparents house appreciated at a bit over 6% a year, assuming 1955 purchase. Your siblings house appreciated at a bit under 5% a year, assuming 1982 purchase. over 40-50 years, houses in developed areas appreciate at about 5-6 percent a year. There in eastern MA, there is no more land to develop, the rate of appreciation actually increases as new land dwindles. The issue is that the workforce configuration has changed. There is much less middle class due to automation, and then the experience and education of the past is being lost as the boomer generation retires. We had parents who lived in the depression, and taught us the manual skills which many now don't have. So the upward mobility is harder / slower and education and work ethic will always win out. But not as many have that today. best of luck in our retirements. |
#43
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Which would you prefer? $800,000 proceeds from sale of prior home collecting an easy 5% or more? Or, paying cash for a home with no guaranteed return on investment? There is no sign of home prices moving upward anytime soon. Most likely it will continue to move downward. In the meantime, I think it is clever that some are choosing to rent and relying on social security and pensions to foot the bill. They are not losing a dime of their savings. Instead, it is earning income. Last edited by margaretmattson; 04-14-2024 at 10:53 PM. |
#44
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IMO, if you sold your primary home to buy and move to TV, i.e. mortgage free., it's pretty affordable here. The estimated monthly expenses the TV puts out are comfortably lower than SSI. Beyond that, unless you eat out and party out a lot, there's not much in expenses unless the great unknown (healthcare) hits hard and exceeds the lifetime cap, so long-term care needs to be factored in. From my very first job I was advised to always max out my 401k, 403b, Keogh, SEP IRA, etc. and that advice served us well, and I passed that advice to our kids. The advice is the same I'd give any young person, "live within your means, buy what you need, and think carefully about things you just want."
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#45
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