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how to determine where to take money from for renovation project
Old 02-24-2019, 04:25 PM   #1
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how to determine where to take money from for renovation project

Planning on doing a renovation to our home in preparation for aging in place, and the cost is such that I have done a TSP loan application for 50 thousand (did go through the process of doing a home equity application with Quicken, but it got to be a nightmare because we are in a high risk flood zone per FEMA, which would require flood insurance purchase and which is ridiculously priced). I really don't want to have to work 14 more months (to pay off TSP loan). I seek guidance in regards to what else I could do instead. I am 65 years old with 33 years of federal service, husband has been retired for 13 years and is on social security($1500/mth). When I do retire estimated SS and pension would be $5500 mth. Presently monthly expenses are about 4300/mth. Savings include TSP account $590, 000.00, husband's 401 K 233,000.00, have a Roth IRA with 20.000.00, a taxed stock portfolio of $22,000.00 and savings of $50,000.00. Plan to use the cash toward cost of renovation which will cost $113000.00. Any advice would be greatly appreciated in regards to which account I might tap into to offset the 50000.00 TSP loan so it could be paid off earlier? No mortgage, cars are paid off, son is grown and raising his own 3 boys, husband is service connected 30%, my current salary is 112.000 per year, and we currently live on 4000.00 per month. So per our taxes the net is about 90 thousand a year (know that we have to be careful to avoid higher cost medicare or tax bracket).
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Old 02-24-2019, 04:29 PM   #2
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If you are in a high risk flood area why would you go without flood insurance?


I live in Houston and there are a lot of people who got flooded with Harvey that were not in high risk areas.... all it takes is one flood to destroy everything in a house...


I have heard of some people who sold their house for almost nothing as they did not have funds to rebuild... and there are still people rebuilding more than a year later...


Penny wise, pound foolish...
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Old 02-24-2019, 04:48 PM   #3
Confused about dryer sheets
 
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We live on the Erie Barge Canal since 1981, never flooded or even got close to it, insurance agent I spoke to specializes in flood insurance for WNY and essentially agreed that the decisions made for our area are paying for all those high risk areas that experience flooding frequently eg every year. He talked about the "100 year" rule, which also is past tense for this area. The flood insurance is triple to four times the cost of when we did have a mortgage and had to have it, it also covered very little. Just saying that if we were to flood it would indicate something catastrophic for much of the area,.fingers crossed that that never happens.
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Old 02-24-2019, 06:41 PM   #4
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My 401K only allows a $50,000 total loan, and is $227 a week. I am currently paying this from my paycheck for 5 years.
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Old 02-25-2019, 05:00 PM   #5
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Isn't your time more valuable than higher taxes at this point?

Sell the 22k in stocks. Deplete your 20k Roth and take the remainder from your spouses retirement fund. Then retire as planned. No loan no more work.

Just my .02$
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