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Old 02-06-2013, 08:37 PM   #21
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. That said, being married is definitely worth it IMO even if you have to work longer, spend less (now & in retirement), etc. )
Sometimes being married means you don't have to work longer, coz the other half drives you to your grave sooner !
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Old 02-06-2013, 09:21 PM   #22
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Originally Posted by Candy83 View Post
There are people who retired while still not having their house paid off. But when one retires, there is less income coming in, of course, and to still have mortgage payments no matter how appealing the rate [3.25%, 2.25%, 1.25%] is not advisable. It would be better to not have any mortgage payments.
Best advice anyone could give on this post.
Have no debt before you make the move. It takes knowledge, skill and LUCK to be able to retire.
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Old 02-07-2013, 01:30 PM   #23
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Originally Posted by Candy83
There are people who retired while still not having their house paid off. But when one retires, there is less income coming in, of course, and to still have mortgage payments no matter how appealing the rate [3.25%, 2.25%, 1.25%] is not advisable. It would be better to not have any mortgage payments.
Best advice anyone could give on this post.
Have no debt before you make the move. ...
This is getting tiring, even for me

There is just no evidence I've seen that shows that a low interest rate mortgage is a hindrance to retirement. If you don't care to have a mortgage, fine. But to call it good/bad advice is simply not borne out by the facts. To consider it to be 'important' to retirement, well, it just ain't so - either way.

Someone with $750,000 portfolio and a low interest $100,000 mortgage is NOT going to be at any huge disadvantage (or huge advantage) to the same person who paid off the mortgage, and now has a $650,000 portfolio.

But they are very likely to come out somewhat ahead over 30 years, by holding a low interest rate mortgage.

I did a FIRECALC run using $35,000 spend on $1,000,000 (3.5% WR) for easy math - this just gets you to 100% success for 30 years, with all other defaults. You can see the very bottom line, and FIRECALC reports you end with $87,138 remaining. This worked out to a cumulative 0.8% real return for the single very worst period out of the 111 tested (the second worst appears to have ~ double the remaining balance, taking the real return to ~ 1.1%).

Another source, only goes from 1946 to 2005, but it shows inflation over any of those 30 year periods to range from 3.43% to 5.44%. So a 3.5% mortgage sounds like it would have been a winner at practically any time in the past, even if low nominal portfolio returns coincided with a period of low inflation. Surely, it can't be that risky as to derail a retirement? I fail to see how. Can you explain?

Again, someone may choose not to have a mortgage, but to 'advise' others that it is important to FIRE? I don't get it.

-ERD50
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Old 10-06-2017, 11:53 AM   #24
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Hey everyone, here is a quick update on how things are going. Currently, I'm 41 years old now and still not married....and no kids! In reviewing my assets, I found that when I included my equity (I'm know I shouldn't, but I couldn't resist) I was over 500K!


I'm still investing heavily into the 401K and Roth, but I have begun to put away some cash for a taxable account. Essentially, any new raises (plus bonuses) I get will be put into this account to help bridge the gap to 59 1/2 or if I decide to do a Roth conversion.


My goal is still to retire by 52, but I'm hoping to be closer to 2 million by that time. If not, I'll probably need to work a little longer.


Anyways, I just wanted to give an update on my progress. Have a good weekend everyone!
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Old 10-06-2017, 12:19 PM   #25
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Originally Posted by Youngblood View Post
Hey everyone, here is a quick update on how things are going. Currently, I'm 41 years old now and still not married....and no kids! In reviewing my assets, I found that when I included my equity (I'm know I shouldn't, but I couldn't resist) I was over 500K!


I'm still investing heavily into the 401K and Roth, but I have begun to put away some cash for a taxable account. Essentially, any new raises (plus bonuses) I get will be put into this account to help bridge the gap to 59 1/2 or if I decide to do a Roth conversion.


My goal is still to retire by 52, but I'm hoping to be closer to 2 million by that time. If not, I'll probably need to work a little longer.


Anyways, I just wanted to give an update on my progress. Have a good weekend everyone!
Wonderful news! Keep up the good work and check in occasionally!
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Old 10-06-2017, 01:34 PM   #26
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Thanks for the update. It's a great idea to adequately fund a taxable account. Looking back that's the one thing I would change a tad. However save enough and it will cover a multitude of minor mistakes. Best wishes.
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Old 10-09-2017, 11:31 AM   #27
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Thanks for the update. It's a great idea to adequately fund a taxable account. Looking back that's the one thing I would change a tad. However save enough and it will cover a multitude of minor mistakes. Best wishes.

Foxfirev5, this is something I learned on this great site and I'm so thankful for all the knowledge everyone shares. I'm still worried I won't have enough in the taxable account by 52, but once the home is paid off (in about 5 years), I will be putting what I was paying for the mortgage payment into the taxable along with bonuses and raises.
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Old 10-09-2017, 03:15 PM   #28
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Foxfirev5, this is something I learned on this great site and I'm so thankful for all the knowledge everyone shares. I'm still worried I won't have enough in the taxable account by 52, but once the home is paid off (in about 5 years), I will be putting what I was paying for the mortgage payment into the taxable along with bonuses and raises.
Your plan sounds like ours. Although many here would recommend not paying off a low interest mortgage, paying it off worked for us. One less thing to worry about.
Just build up that reserve account and all will be good. The one thing I've learned is that the group on this forum is very dependable to provide useful info. Maybe a tad too conservative, to the point I wish I would have pulled the trigger a little earlier. However its hard to find fault with a safe approach.
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Old 10-09-2017, 03:20 PM   #29
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Welcome. I just fled Michigan.
Best wishes. DW and I moved to Michigan years ago and wouldn't consider leaving. Great central location for our travels and great weather most of the time. Water sports and outdoor activities add to our fun time between trips to South Florida. (But I wouldn't want to live there)
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Old 10-09-2017, 03:52 PM   #30
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......... great weather most of the time.........
I guess you live in another Michigan. Mine had bitter cold winters with snow that didn't melt until spring. But I'm glad you like it.
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Old 10-09-2017, 04:27 PM   #31
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I guess you live in another Michigan. Mine had bitter cold winters with snow that didn't melt until spring. But I'm glad you like it.
Like most things I guess the truth lies somewhere between. October is like summer. I haven't seen a long hard winter in years although I do admit travelling south for few weeks in January and February.
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Old 10-09-2017, 05:40 PM   #32
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Originally Posted by Youngblood View Post
Hey everyone, here is a quick update on how things are going. Currently, I'm 41 years old now and still not married....and no kids! In reviewing my assets, I found that when I included my equity (I'm know I shouldn't, but I couldn't resist) I was over 500K!

My goal is still to retire by 52, but I'm hoping to be closer to 2 million by that time. If not, I'll probably need to work a little longer.
Look, you need to get this part of life behind you. Find someone you don't like, marry and then give them half your stash.

Seriously though, don't focus on RE to the point of missing out on finding someone to share your life with. Heck, kids aren't that bad all of the time.

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Old 10-09-2017, 06:14 PM   #33
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Look, you need to get this part of life behind you. Find someone you don't like, marry and then give them half your stash.

Seriously though, don't focus on RE to the point of missing out on finding someone to share your life with. Heck, kids aren't that bad all of the time.

Atom
That is something I also need to work on. My long term relationship ended with my girlfriend because she wanted to get married and at the time I wasn't open to it. We didn't see eye to eye on finances, along with some other things, but no need to get into that here. She's a spender and wanted no part of tracking expenses. I know you were probably half joking in your first paragraph, but that really scares the hell out of me. I would love to be in a committed relationship, but it will need to be with someone that shares my respect for being fiscally responsible.

Kids are not in my plans. Some people have that calling to be a parent, but that isn't me. Kudos to the parents out there and put up with all the craziness. I really enjoy coming home and being able to relax.

I still date and enjoy myself, so life is still good!
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