Hi all. Bit of background -
DH & I plan to retire this year. Also sell our current home and move to GA. Our retire date was 4/1/18 but now I think we should give notice when we get an offer on our home.
We need to do some work on our home to get it ready for sale. Paint, replace some dated items, purge closets, etc. Goal is to have home on market mid March. There are a lot of homes on the market, my neighbor has had his house on the market + 6mos.
My question is how to finance new home. Assume net of $200k from sale of current home. Budget for new home $450k. We have 2.6mil in retirement funds and 250k cash. So options are:
1.Withdraw from retirement funds but that would incur a big tax hit.
2. Use cash. We do have about 40% bonds in retirement funds that we can use if the market tanks soon after retirement.
3. Mortgage. We have really enjoyed not having a mortgage the last 5 years.
3. Split the difference and withdraw needed funds from cash/retirement funds.
Any advice would be appreciated. Thanks!
Additional info. I am 56 and DH (60) will have a pension of $45k. We will have subsidized retiree health insurance. He has been with Mega Corp for 37 years. DH will take SS @ 62 $20k, my SS @ 67 $30k.
DH & I plan to retire this year. Also sell our current home and move to GA. Our retire date was 4/1/18 but now I think we should give notice when we get an offer on our home.
We need to do some work on our home to get it ready for sale. Paint, replace some dated items, purge closets, etc. Goal is to have home on market mid March. There are a lot of homes on the market, my neighbor has had his house on the market + 6mos.
My question is how to finance new home. Assume net of $200k from sale of current home. Budget for new home $450k. We have 2.6mil in retirement funds and 250k cash. So options are:
1.Withdraw from retirement funds but that would incur a big tax hit.
2. Use cash. We do have about 40% bonds in retirement funds that we can use if the market tanks soon after retirement.
3. Mortgage. We have really enjoyed not having a mortgage the last 5 years.
3. Split the difference and withdraw needed funds from cash/retirement funds.
Any advice would be appreciated. Thanks!
Additional info. I am 56 and DH (60) will have a pension of $45k. We will have subsidized retiree health insurance. He has been with Mega Corp for 37 years. DH will take SS @ 62 $20k, my SS @ 67 $30k.
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