Suppose one has (1) Social Security income, (2) withdrawals from retirement accounts. What does the government want to see from item #2 to get the best rates? The retirement withdrawals for us are completely discretionary.
2 years ago the retirement withdrawals were considered income. You have to show them the Fed 1040 where it was taxed. But maybe things have changed?
We had been doing Roth conversions before taking SS. Our conversions were high enough to make it look like highish AGI on the 1040. So this luckily allowed us to qualify for a refi in 2010.
They were stupid in 2010. Human nature to get excessively dumb in the other direction after the errors of previous years.
SWR, if I recall correctly you are uncomfortable with any investment other than CD's, etc. So I would have to assume you'd be investing whatever funds you receive from taking out a mortgage at 1-2%, losing the difference between the interest earned and what you are paying in interest on the mortgage - plus inflation losses. And if interest rates don't increase significantly for the next several years...?
Sounds like a sure fire way to speed up depleting a portfolio to me, but then check my sig line.
SWR, if I recall correctly you are uncomfortable with any investment other than CD's, etc. So I would have to assume you'd be investing whatever funds you receive from taking out a mortgage at 1-2%, losing the difference between the interest earned and what you are paying in interest on the mortgage - plus inflation losses. And if interest rates don't increase significantly for the next several years...?
Sounds like a sure fire way to speed up depleting a portfolio to me, but then check my sig line.
SWR.
Whatever you decide to do I recommend you do it gradually - and that's what I think I'm seeing from your responses. You won't do yourself any favors by buying into the market then selling once we hit the first bump in the road - and there will be bumps. If you buy Wellesley (or any other fund) and the value dips, look at it like many of us do - as a sale and a buying opportunity.
They ae not stupid. They just don't care. If that loan should ever get into trouble, the guys who sold it to you will have taken the money and run. They just need to fill in the blanks on the Fannie/Freddie paperwork.
Whatever you decide to do I recommend you do it gradually - and that's what I think I'm seeing from your responses. You won't do yourself any favors by buying into the market then selling once we hit the first bump in the road - and there will be bumps. If you buy Wellesley (or any other fund) and the value dips, look at it like many of us do - as a sale and a buying opportunity.
Also, I know nothing about buying international CD's but I suspect we'd be hearing from a lot of people lauding the merits of that strategy if there weren't tax or other issues associated with owning those accounts.
"Throwing a little" at Wellesley or anything else is on form a bad idea. Having a mental image of throwing money will eventually land you in the ditch.
Yup, which is why I pay myself 3.5% by not having a mortgage (or any other kind of debt for that matter). But thought I would try to solicit opinions anyway.
If it makes you feel better, I have been looking at Wellesley and mulling. Perhaps throwing a little at it may not be a bad idea. Also I am not limited to US and Canada. Australia is paying ~3.5% + on CD equivalents. The UK is paying ~3.2%. I have access to both markets.
See I do listen.
