What would u do?

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  #31  
Old 03-17-2019, 08:17 AM
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Life is short. I would do what makes us the MOST happy. You can't take it with you.
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Old 03-17-2019, 09:00 AM
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Originally Posted by Chuck1674 View Post
Yes value. Lots more to the story. My pension would be almost 9k a month but divorced wife gets her share. Pension is subject to equitable distribution in NJ. Yes will work but don't know at what yet. Plus there is the live in gf (that I pretty much support)that doesn't want to leave her adult kids quite just yet. I actually can't retire until Feb but I can dream. But again thanks
Chuck, if you work at the current job you will accrue years toward your pension and since divorce is over you would not have to give you X any share of that amount, plus being at the top years of earning the math adds up quickly. Your thoughts??
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Old 03-17-2019, 09:29 AM
Villageswimmer Villageswimmer is offline
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Originally Posted by retiredguy123 View Post
I would buy the patio or courtyard villa for about $200K. I have never believed in going into debt, and have done extremely well with that plan.

+1. You’ll sleep better at night without debt. Good luck in making your choice.
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Old 03-17-2019, 10:31 AM
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Yes, I did misstate the mortgage deduction, should have said I cannot deduct it any longer (interest rate is too low, a very good thing!!), but I still stand by my initial advice, talk to your financial advisor. There have been several good points and suggestions made here. Now go to to your advisor with these, and discuss what would be best for your. Be sure to consider future medical costs, taxes, etc.
Good luck with your quest.
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Old 03-17-2019, 01:36 PM
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I'd buy a three bedroom cottage home for around $200,000.
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Old 03-17-2019, 01:43 PM
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Get ready to protect your nest egg cause if you ever revealed your situation in person your Dance card would be full! Your gonna be great either way you go. Get ready to have a nice life again after the pain you've been thru or caused. A new fresh start. A new chapter, a fresh canvas. Don't screw it up trying to flash $$$ cause nobody down here cares. Good Luck.

Go with Modest, it's so much easier. We are gonna bump it up a notch in a couple of years but only a little bit. No Stressing over $$ Monies $$
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Old 03-17-2019, 05:04 PM
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Here's an interesting perspective on mortgages:

Why you shouldn’t pay off your mortgage sooner: a loan officer’s perspective.
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Old 03-17-2019, 05:27 PM
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With all due respect, this perspective is total hogwash. I have been debt free my entire life, and I have saved more money than I could spend in 100 years. In my opinion, you don't become rich by going into debt.
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Old 03-17-2019, 05:31 PM
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With all due respect, this perspective is total hogwash. I have been debt free my entire life, and I have saved more money than I could spend in 100 years. In my opinion, you don't become rich by going into debt.

I too agree with a "debt-free" lifestyle, and, to a large extent, is how I've lived my life as well. But just another point of view to consider.
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Old 03-17-2019, 07:39 PM
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Originally Posted by BK001 View Post
Good article.


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Originally Posted by BK001 View Post
I too agree with a "debt-free" lifestyle, and, to a large extent, is how I've lived my life as well. But just another point of view to consider.
While minimizing revolving credit (ie: high interest credit cards) is almost always a good idea, someone would have to be pretty dumb to avoid all debt....while ignoring (or not understanding) 'opportunity costs.'

If I can use someone else's money at a low interest rate (1% auto loans/3% home loans/etc.), while my own investments are compounding at three to five times the amount of the loan interest...it would be dumb not to do so.

Given that most large corporations often borrow money, even when they have the cash on hand...should be a clue.

Opportunity Costs(poke here)

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The cost of paying cash is the cash itself. The opportunity cost of paying cash is the interest the cash could have earned, had you kept it, that you no longer get to earn because you don’t have the cash.

We humans have a funny way of looking at loss. If you had something and then lost it, we consider that a loss. But if you had the potential to get something, and then lost that potential, that type of loss is a bit harder to wrap our brain around.

The interest you pay when you finance is money you had that’s being taken away. That’s why it’s an apparent loss.

What’s harder to see is what your cash could have done for you, had you kept it.
Then again, there are those who like to keep their cash under their mattresses...and believe they are financial genius' also.
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Old 03-18-2019, 04:38 AM
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Default Similar situation

I was in a similar situatuion 6 years ago when I retired. I have a frederal pension, will not get Social security, Have some IRA money socked away but had cash available from the sale of my house. I chose a designer home with a 2 and 1/2 car garage and a small mortgage. I can afford the small mortgage on my pension with ease and did not make the mistake of downsizing too much. Biggest issue here is storage because of no basements. Too many folks choose a small garage and the move again to a larger house in 3 years. Area is key here as well. Make sure you know where you want to live first. Try renting for 3 to 6 months. Get the lay of the land and see what your expenses will be in retirement so you can make the right house decision for you
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Old 03-18-2019, 05:37 AM
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Go back to work and save some more.
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Old 03-18-2019, 06:37 AM
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Originally Posted by ColdNoMore View Post
Good article.




While minimizing revolving credit (ie: high interest credit cards) is almost always a good idea, someone would have to be pretty dumb to avoid all debt....while ignoring (or not understanding) 'opportunity costs.'

If I can use someone else's money at a low interest rate (1% auto loans/3% home loans/etc.), while my own investments are compounding at three to five times the amount of the loan interest...it would be dumb not to do so.

Given that most large corporations often borrow money, even when they have the cash on hand...should be a clue.

Opportunity Costs(poke here)



Then again, there are those who like to keep their cash under their mattresses...and believe they are financial genius' also.

Yes. There is debt and there is debt. That's why I have always taken advantage of "zero" finance deals on large appliances even though I always had the money to pay off in full. For us there was never the danger that we would blow the money. But not so for everyone. I don't think we've paid any interest (other than mortgage) in 30 or 40 years.
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Old 03-18-2019, 06:52 AM
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Keep all the money and just rent. Landlord will have to make all repairs and with a one year lease you can change residences annually if you like. Rent shouldn't be more than $1000-1500 a month, but no amenity fee or property taxes
  #45  
Old 03-18-2019, 07:10 AM
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Originally Posted by BK001 View Post
Yes. There is debt and there is debt. That's why I have always taken advantage of "zero" finance deals on large appliances even though I always had the money to pay off in full. For us there was never the danger that we would blow the money. But not so for everyone. I don't think we've paid any interest (other than mortgage) in 30 or 40 years.
You make an excellent point, that if you are using someone else's low/no interest loans, you need to ensure that you're making the money you didn't spend...work for you in other opportunities.

It makes no sense to use the cash saved, to purchase additional items that are often not a 'need,' just a 'want'...instead of investing it.

It's analogous to using excessive tax withholding as a 'forced' savings account...for those that don't trust themselves not to spend it during the year.

Sure, it's nice to get that refund from last years taxes, but a person has to realize that you're basically giving the government a tax free loan...for the entire year.

Whereas, people could have been using that additional money from each paycheck, investing it and they would have more money for the entire year...than your tax refund alone amounts to.

"Compounding interest"...is a wonderful thing.
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