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Old 10-21-2015, 10:30 AM   #41
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Did you decide where to live, or is moving just plan B down the line if needed?
We checked out Roseville and other areas near Sacramento. DW likes Grass Valley. We can buy a house there and reduce our mortgage to $0. This will reduce our yearly budget below $70k. We can also rent for a while to see if it is the right place. Nice to have options.

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For the $550K equity that you have, in my town you can get a nice home of 3,800-sq.ft., with 5 BR, 3-1/2 bath, 3-car garage, swimming pool, ready to move in, and in a nice secluded low crime rate area, with hilly terrain and near a mountain preserve. And in this suburb of a metropolitan area, all shopping one needs is within 5 miles.

It only requires you to stand 2 months of summer with temperature of 110F+. But as ER, you can just stay indoors in cool AC surfing the Web, and go out only after sundown, or shortly after sunrise.
I am pretty sure I am allergic to 110F+ temperature, with or without AC. But to your point, there are a lot of places we can move where we can buy a decent, downsized house for $200k. For now, we will keep it as an option. Then there are places like Cambodia, Nicaragua. I think maids and servants come with the house ....
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Old 10-21-2015, 11:24 AM   #42
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We checked out Roseville and other areas near Sacramento. DW likes Grass Valley. We can buy a house there and reduce our mortgage to $0. This will reduce our yearly budget below $70k. We can also rent for a while to see if it is the right place. Nice to have options.
Yes, you have a lot of options, even international.
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Old 10-21-2015, 12:04 PM   #43
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Just got a copy of house appraisal for refinancing my mortgage. Geesh! The house value went up quite a bit. House equity has increased from $350k to $550k. I had to do a double take on the report b/c it was such a large increase. It certainly gives me more confidence in making the jump.
Home values in the SF Bay area (I assume that's the Bay Area you're in) have gone up a lot in the last year or so. When DH & I started interviewing RE agents earlier this year, one of them asked how much we thought our home in the East Bay (with a very e-z commute to the peninsula) would go for. I told her what I thought was a very optimistic (ok, borderline exorbitant) amount, and she chuckled and said "add $150K to that". Our home ultimately sold for a bit more than that. Ye gods.

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We checked out Roseville and other areas near Sacramento. We can buy a house there and reduce our mortgage to $0.

Early this summer we moved to a community very near Roseville, and we love it here. We found a beautiful home with all the features on our wish list, at a price far less than what we received from the sale of our East Bay home.


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I am pretty sure I am allergic to 110F+ temperature, with or without AC.
Yeah, the heat does take some getting used to here! Particularly after living a right along the bay where the breezes made it generally 10-20 degrees cooler than even just 10 miles inland. Our new home is the very first one I ever lived in with AC, and I'm sure glad we had it this summer. That said, this summer it was pretty darn hot even where we moved from, way hotter than normal, and our old house didn't have AC, so we lucked out on the timing of our move.
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Old 10-21-2015, 01:01 PM   #44
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Early this summer we moved to a community very near Roseville, and we love it here. We found a beautiful home with all the features on our wish list, at a price far less than what we received for the sale of our East Bay home.
I found out last month that the area has a number of major Indian casinos nearby. I winced when I found out b/c of number of my relatives who had gambling problem. I ended up taking my dad to one of them (he wanted to go) and I promptly won a jackpot from a slot machine. I now have mixed feelings about the area & casinos ...


On a side note, I am now thinking to retire before this year is out.
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Old 10-21-2015, 02:05 PM   #45
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I found out last month that the area has a number of major Indian casinos nearby. I winced when I found out b/c of number of my relatives who had gambling problem. I ended up taking my dad to one of them (he wanted to go) and I promptly won a jackpot from a slot machine. I now have mixed feelings about the area & casinos ...

I was surprised by that too, I had no idea there were so many until we moved up here. DH & I aren't all that into casinos, we'll probably go once every couple of months and gamble away a $20 bill apiece. Heh, unless one of us hits a jackpot ...


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On a side note, I am now thinking to retire before this year is out.
woo-woo!
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Old 10-21-2015, 05:39 PM   #46
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...Then there are places like Cambodia, Nicaragua. I think maids and servants come with the house ....
I prefer to live in the US or other developed countries. Why do I have this fear that the maid's boyfriend may just sneak into the house at night and wake me up with a knife to my throat?
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Old 10-21-2015, 05:46 PM   #47
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Mortgage won't come off any time soon. But monthly cash to my parents will come off at some point. So will the golf budget. As you said, SS & Medicare will kick in too.

Downsizing, or moving to a less costly location always has been my back up plan.

Anyway I look at it, I think I am ready to pull the trigger, sooner than later.
It is important to input the mortgage separately rather than include your mortgage payments as part of your spending. If it is in spending it get increased for inflation each year and continues in perpetuity. If it is separate then it is a fixed amount per year for the remaining term. The different approaches can make a big difference in your success rate.
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Old 10-21-2015, 05:47 PM   #48
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I prefer to live in the US or other developed countries. Why do I have this fear that the maid's boyfriend may just sneak into the house at night and wake me up with a knife to my throat?
That's why you have body guards ...
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Old 10-22-2015, 06:51 AM   #49
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I thought about 50, and 55 but didn't retire. Now at 57, I am in much better shape and finally out of the claws of the psycho boss. In two years, I'll have 30 years with this company. I made that my new goal for ER, but with the dramatic real estate appreciation in Dallas (I have a dozen paid off SF rentals), I find that will not be necessary. Just saying, 53 is not as old as you think and sometimes OMY works out better than you think.


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Old 10-22-2015, 01:41 PM   #50
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Just saying, 53 is not as old as you think and sometimes OMY works out better than you think.
It's not the age thing for me. The work env. is toxic, and I want to enjoy my life to the fullest. Those are the two driving force for my ER. If the work env. is ideal (heck, just a bit normal will do), I don't mind working until my retirement fund overflows into my kid's retirement fund. But that's not the case and I am too old & burned out to look for another job.

The way I see it is that at age 53, I am terminally ill and will only have 35 years left to live .
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Old 10-22-2015, 01:59 PM   #51
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The way I see it is that at age 53, I am terminally ill and will only have 35 years left to live .
Yep, Our friend Jim from the 27-club said it best: "No one here gets out alive".

I'm sure any one of us could use an extra million bucks (or pick whatever amount equates to a few more punishing years), but as I get ever closer to blast-off I become ever more convinced that the time to live your life is now, whether you have those last few toys or not.
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Old 10-22-2015, 02:30 PM   #52
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Just sat next to a lady on a flight to Atlanta who was widowed last year. Husband died suddenly of a heart attack while she was away. She found him when she got home. He was 59. He retired 2 years earlier. She was very glad he got two years of retirement.

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Old 10-22-2015, 05:00 PM   #53
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It is important to input the mortgage separately rather than include your mortgage payments as part of your spending. If it is in spending it get increased for inflation each year and continues in perpetuity. If it is separate then it is a fixed amount per year for the remaining term. The different approaches can make a big difference in your success rate.
This reminds me. Every time I make a mortgage payment, I am adding to the existing equity value (about $10k and increasing). If I account for that, my yearly expense will go down further to $82k.
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Old 10-22-2015, 05:53 PM   #54
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This reminds me. Every time I make a mortgage payment, I am adding to the existing equity value (about $10k and increasing). If I account for that, my yearly expense will go down further to $82k.
Have you looked at renting your house out instead of moving? I've run the numbers and we would come out ahead if we did that at current rental rates instead of selling.

We also realized that by moving we would only really save on the mortgage interest. Principal payments wouldn't change our net worth and property taxes would not go down much, if they went down at all, and might go up depending on the county we moved to because of Prop 13.
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Old 10-22-2015, 06:07 PM   #55
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Have you looked at renting your house out instead of moving? I've run the numbers and we would come out ahead if we did that at current rental rates instead of selling.
I did and I'd come out ahead. But, I am too lazy to make this option work. I don't want to deal with renters, and what comes with renting a house out. I do not want unnecessary worries in my retirement.

Here's my updated numbers.
  • 1.86M in investment asset (mutual funds, cash) that averaged 6% yearly return in the last 10 years.
  • $600k in house equity.
  • 2 year old car with 8 year full warranty remaining. I.e, no need to buy a new car for another 8+ years.
  • $90k yearly budget with $14k in "misc" category. Can be used for traveling, and other fun stuff.
  • $10k being added to house equity per year.
I know this may be still viewed as risky by some in this forum but I can make it work. If not, I know how to LBYM well.


I realize that this thread has turned from asking for input to assuring myself that I can retire. Please keep the input, advice coming. I am so very close (and happy) to turn in my resignation that I may not be in a state of mind to think objectively to understand all the risks.
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Old 10-22-2015, 08:05 PM   #56
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I think it would only be risky, if elected to stay in the Bay Area. I loved the Bay Area, but one of the advantages of the place is that even when moving to a place that most people consider crazy expensive i.e. Hawaii everybody place (except for NYC) seems cheaper.

It's not just housing, it is the extra couple of bucks on even coffee shop type restaurants, or the additional $10-40/hour you pay for plumbers, electricians, dentists, $5/day you pay more for parking at the Airport etc. etc. etc.

If you can move to $300K house you'd be good to go, I think.
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