What would u do?

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  #61  
Old 03-18-2019, 11:41 AM
pqrstar pqrstar is offline
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Originally Posted by richs631 View Post
. . . As long as your comfortable making the mortgage payment, it’s a no brained. My mortgage interest is approximately $450 a month and interest on a 401K with $400,000 is about $6,000 per month
That return on your 401K is 18% or $72,000 a year???????
  #62  
Old 03-18-2019, 11:42 AM
Villageswimmer Villageswimmer is offline
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That return on your 401K is 18% or $72,000 a year???????

Hey, where do I signup?
  #63  
Old 03-18-2019, 12:48 PM
jfkilduff jfkilduff is offline
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This is good advice !!! Give me the $400K or by a nice RV. Move in with the kids and TRAVEL between FL and the North or wherever your heart desires. Enjoy, jfk
  #64  
Old 03-18-2019, 12:57 PM
va11055 va11055 is offline
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Number one priority is your health not necessarily your age. My 93 yr old neighbor is out repairing his riding mower on his knees as I am writing this. That said, also everyone is unique in their selections. If your health is good!!, then go with the 2nd choice as you will have to downsize eventually. The 3rd choice (the villa) is an excellent choice if you want to just be upkeep free. This is my 2 cents worth!! Namaste
  #65  
Old 03-18-2019, 02:32 PM
ts12755 ts12755 is offline
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Id take smaller house cash... Dont waste money on interest making bankers wealthy. Kids and grandkids came a couple times the first year and have not been back the last two years.
  #66  
Old 03-19-2019, 05:24 AM
rjgnj321 rjgnj321 is offline
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Smaller house with cash in the bank is the way to go
  #67  
Old 03-19-2019, 01:33 PM
valuemkt valuemkt is offline
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Chuck, with all due respect.. you can substitute my earlier post with a reasonable contribution from GF.. You already sacrificed half your pension to your ex. At this stage of life, while love is a many splendored thing, I wouldn;t take a rent free move in for any reason - and I would make sure your new house is in some kind of trust that your designated heirs totally control ... Just sayin
  #68  
Old 03-19-2019, 01:48 PM
retiredguy123 retiredguy123 is online now
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Quote:
Originally Posted by valuemkt View Post
Chuck, with all due respect.. you can substitute my earlier post with a reasonable contribution from GF.. You already sacrificed half your pension to your ex. At this stage of life, while love is a many splendored thing, I wouldn;t take a rent free move in for any reason - and I would make sure your new house is in some kind of trust that your designated heirs totally control ... Just sayin
I remember a comedian, who just got his fourth divorce being asked, are you going to get married again? He replied, "No, I think I'll just find a woman that I don't like and buy her a house".

Last edited by retiredguy123; 03-19-2019 at 01:53 PM.
  #69  
Old 03-19-2019, 02:52 PM
DPayton DPayton is offline
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Don't count on you kids. We are here almost a year and still waiting.
Do what is best for you!!
  #70  
Old 03-19-2019, 02:58 PM
thetruth thetruth is offline
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Default My view to all these retirement questions

Quote:
Originally Posted by Chuck1674 View Post
You have 400k cash and 5k a month pension
Get a huge house with a mortgage.
Medium house with smaller mortgage.
Patio villa cash and 200 k in the bank.
What are your ideas? Do the kids and grandkids visit as much as u thought. That factors into it.
The same thought comes up with all the do you have enough to retire guides.

All you need to know is when you will die. The rate of inflation till you die. The exact return on your investments till you die. The cost of your death. AND SO MANY MORE UNKNOWNS. Realize our government-how many trust the government-says they desire a 2% rate of inflation. At 2% rate of inflation in 36 years you will need two dollars to buy what a dollar buys today. History, the government has never held a 2% rate of inflation. Chance of them doing it this time?

Since, Nixon our currency is not backed by GOLD or SILVER, it is backed by the full faith and credit of the United States.

It can't happen here. It won't happen here. People in Germany in the 1930s said the same. More recently, people in Greece, Venezuela, Brazil are, have said it can't happen here.

MY VIEW, you are always better off having more than you need to pay your cost of living. A mortgage. Should our dollar get trashed, you can and will pay your mortgage with far less valuable money. INSANITY-they cannot hold age against your for a mortgage. A person 90 years old can get a 30 year mortgage.
He/she will be only 120 when they pay off the mortgage.

In the end. What YOU should do it is not an easy question but it is a question that YOU should make with some professional advice.

From US, perhaps like the old Ann Landers column. If we direct you to make the wrong choice for YOU, we will say OOPS sorry about that-NO SKIN IN YOUR GAME.
  #71  
Old 03-19-2019, 03:27 PM
Chuck1674 Chuck1674 is offline
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Of course, I will do my due diligence with professionals. But who better to ask then people who are already doing it. The longer I work the more I will have, my health is decent at the moment but will get much better down there, I am leaning towards pulling the plug in a few years and continuing to work down there. Can't wait.
  #72  
Old 03-19-2019, 03:28 PM
Chuck1674 Chuck1674 is offline
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I enjoy hearing what others have done, and what would u do again or what did u learn from your mistakes. Cheers
  #73  
Old 03-19-2019, 04:13 PM
pete525 pete525 is offline
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I would agree with others; a courtyard villa with 3 bedrooms, 2 baths.
Good luck with your decision.
  #74  
Old 03-19-2019, 08:45 PM
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Toymeister Toymeister is offline
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Well Chuck,
Deferred comp is typically taxable. Let's just say that you have presented the after tax amount and this includes any home equity that you have. In other words 400k is it. With no SS, you are solely reliant on your non inflation indexed pension of 60k. Let's further assume your ex will outlive you. So you do not plan on "getting back" her portion of your pension.

This 60k is a declining payment due to inflation. With this information as a baseline I would under spend on the home and set aside 6-12k annually from your pension until your mid sixties. This can then be spent down in the next 10-15 years. This will provide a reasonably even income until your later 70s when, several studies have proven, your spending will decline naturally.
  #75  
Old 03-20-2019, 09:43 AM
Slmtraveler Slmtraveler is offline
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Chuck, My husband and I are in the same scenario. We paid off our home and it's the best feeling in the world to be debt free. I would recommend paying cash for the house and stop being a slave to the bank. We are retiring early because we've been very careful with money. We will eventually move to The Villages after traveling around this great country and will only do it if we pay cash. Good luck and just remember there will always be houses for sale in The Villages, so don't settle on something you don't like. The prices are under 200k even for a new home and they seem big enough for us with a 2 car garage. Really think about how much room you will really need. We are planning to play when we move there, not clean a big house! If you have lots of guests, a pull out couch or Murphy bed should work. If not, they also have hotels. Good luck and great job on the finances!
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