[Chuck1674]

Deferred comp. Can access at retirement. No ssn. Not against working. Will get a job but it will be nice to not rely on it. Medical incomes out leaving me with approx 5k pension. Taxable income. Leaving Jersey to avoid state taxes.

[Chuck1674]

Thanks. I have done tons of research and been to the villages 4 times already. Coming from high taxed NJ. I know there have been people in TV that started in Pv and moved up. I kind of like the idea of a paid off house. I also want a nice place for friends and relatives to visit. I also will work, but the money is much less in Florida.

[Chuck1674]

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

[Boomer]

I have assumed you are married.

I also assume your pension has a survivor benefit. If the survivor benefit involves making some choices, I assume both of you understand how it needs to work and have planned accordingly.

Or maybe you are not married. If so, never mind.

[Nucky]

Chuck, Just remember a Million isn't what it used to be. Adjust this statement to fit the things you have revealed and the things you have not. Don't worry about the Grandchildren now, live your life for you and all the satellite things going on with Family & Friends will work themselves out and worrying or planning for visits by buying a bigger house or going into debt doesn't sound good to me. Cash is King. Live Small.

The thing about The Villages is if you're healthy you won't be home that much anyway. I love our home and it is Modest and I've never been happier. We really went in a direction I never saw coming. From a new home around Lake Deaton to a manufactured home, go figure. We're from NJ also. PM me if you need any other help.

[Boomer]

Addendum:

Just read your post that was above my last one. Read it after I hit submit.

So now I know my assumption was wrong about your being married.

OK, then. I guess my work here is done.

[Boomer]

On a slow Saturday night, we mature, experienced types sure love to give advice to people, especially to someone who actually asked for it. So, hey, thank you. And good luck.

[manaboutown]

At age 56 you could have 40 years of life ahead of you. Even 20 years from now that $5K/mo might look like $2.5K, the $400K like $200K. Go for a patio villa and more income.

[OrangeBlossomBaby]

Originally Posted by Nucky

Chuck, Just remember a Million isn't what it used to be. Adjust this statement to fit the things you have revealed and the things you have not. Don't worry about the Grandchildren now, live your life for you and all the satellite things going on with Family & Friends will work themselves out and worrying or planning for visits by buying a bigger house or going into debt doesn't sound good to me. Cash is King. Live Small.

The thing about The Villages is if you're healthy you won't be home that much anyway. I love our home and it is Modest and I've never been happier. We really went in a direction I never saw coming. From a new home around Lake Deaton to a manufactured home, go figure. We're from NJ also. PM me if you need any other help.

Yup. Before our circumstances changed, we were planning on moving into something near Sumter Landing, maybe off O'Dell, which we found to be pretty nice, even if was newer, without the mature landscaping we liked closer to Spanish Springs. The price point, then, was around $240-260k for us.

Circumstances changed, and so did our "expectations." We ended up with a manufactured home like you Nucky - and we're REALLY looking forward to finally moving in (some time late this summer). The home has what we need, in a beautiful area. We'll be moving in before either of us is old enough for Social Security.

Circumstances are likely to change again in the next 10-20 years, and at that point we'll consider "upgrading." And who knows - we might love our neighborhood so much that our upgrade will be to tear down the manufactured home and build a solid construction home, in the exact same spot.

[Madelaine Amee]

Originally Posted by Chuck1674

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

This could be your biggest problem, she could eat into your income going back and forth to visit the kids.

[Aloha1]

Originally Posted by villagetinker

OK, 6 years ago this was a no brainer, interest rates (for mortgages) was at 3% (15 years fixed), rate of return on investments well over 5%, and there was still a way to deduct home mortgage interest. ALL of this has changed, we took the mortgage, and have come out ahead but I doubt that same scenario would work today, too many things have changed, we can no longer write of home mortgage interest, home mortgage rates are higher, and investment yields seem to be lower. As I stated in the chit chat lounger, talk to your financial advisor, there are lots of things to consider.

Actually, you can still deduct mortgage interest on mortgages totaling up to $750,000. It's the taxes that were capped at $10,000. Of course this assumes you have enough deductions to make itemization a better deal than taking the new Standard Deduction.

Originally Posted by vintageogauge

rent for a year and see how it feels and if the kids come down to visit.

Then a year from now you won't need to be asking this question.

[Toymeister]

Chuck, another detail needed:

Is this 5k pension indexed or partially indexed for inflation?

[petsetc]

I see this as a two part question, part 1 is house size, part 2 is mortgage (and Bond).

Part 1 - is a personal choice that you need to make, BUT it is not irreversible. Many here have moved several times as they re-evaluate their housing needs. It's easy enough to do here. So on part 1 - no opinion or advice.

Part 2 - mortgage and bond - this is an emotional and risk tolerance question. You indicate you have sufficient income to get by so why would you consider tying up your nest egg in an illiquid investment (house)? Over the course of our lifetimes, mortgages are still at historically lows (I remember feeling lucky to get a VA mortgage at only 11.75% in the early 80's). Think of mortgage interest as the opportunity cost you pay to have full access to your nest egg knowing that your expected return on the money exceeds the interest you are paying.

And I would never recommend paying off the 30 year bond during the first ~20 years, even though the all in interest(interest+fee) is in the high single digits. Referring back to Part 1 - if you decide to sell and move, adding the paid off bond to the list price makes you look expensive. Just another opportunity cost.

JMHO

[Chi-Town]

If the ex remarries will her maintenance payments end? That would make a sizable difference in your equation.

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