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Old 01-10-2013, 05:17 AM   #21
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<SNIP>

The other day, my brother bought a Honda Civic for his daughter, and got a 0-interest loan. I thought about that, and figured I would not be able to get such a loan if I were to buy a car, even with all the cash I have. Hah! I guess it is all cash deal for me from now on.
Things are so screwed up in the banking industry, it reminds one of the old joke:

"There must be something wrong with his credit. He always pays cash!" YMMV
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Old 01-10-2013, 06:34 AM   #22
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I refinanced my mortgage just before I retired in 2011. They asked for permission to get income tax filing summary from the IRS for 2 years plus 12 months of checking account statements plus proof that I had paid the mortgage for 12 months. Since I had bank draft mortgage payment, I had to point out (highlight) the mortgage payments on the bank statements.
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Old 01-10-2013, 07:12 AM   #23
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I attempted to refi a couple of years after I retired in 2008 and it was a disaster. This was right in the middle of the financial collapse and the banks were just not interested at all. Tried it again a couple of years later when I had a years worth of verifiable income from a car lot I started, but it was still a no go. Banks wanted two years of tax returns showing good income. They had no interest in the size of my retirement accounts showing I could pay it off at any time. I finally got the refi done through Schwab Bank. Since the bulk of my assets are held at Schwab that helped convince them I could afford the loan. It was a very frustrating experience not being able to get a loan after years of banks clamoring to get my business when I had the big car lot.

So, these days having some kind of verifiable income stream is important in retirement if you want to get a loan.
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Old 01-10-2013, 07:37 AM   #24
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So, these days having some kind of verifiable income stream is important in retirement if you want to get a loan.
For people who are 62, could be a factor in the when to take SS decision, just to have that verifiable income.

Like W2R, we hope to never borrow money again so have not thought about this, but we could double the regular income of DH's pension by claiming SS now if we really needed to show we are not surviving on air and wild hickory nuts.
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Old 01-10-2013, 08:33 AM   #25
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I have a HELOC on my home, which I purchased in 2010. When I sold my previous home in 2011, I paid the balance. My financial advisor discouraged me from closing the HELOC in case I needed to borrow money in the future. I plan to use it once in a while for major unexpected expenses, just to make sure that I still can. I think establishing such a credit line should be on the preretirement checklist. Just in case!
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Old 01-10-2013, 09:10 AM   #26
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Just starting my first full year of ER, and wondering about my lack of "verifiable income stream". I have my old employers 401K which I am going to pull a one-time-per-year lump out of to live on.( they don't allow any other kind of distribution scheme ) Doing such will last me well into time my SS starts. My separate IRA will then be untouched and doing it's thing until SS starts. BUT...I can start distributions from the IRA just to show an income stream, however the max I can pull is 19k a year. I wonder if that is really enough to satisfy any lending institution for a Mortgage refi or a car loan....and if not, then should I even bother. ( Wondering if that relatively small but steady income stream plus the IRA assets might satisfy a lender.) Whatcha think ....?
Whether or not the $19k from your IRA and your yearly 401k distribution will satisy a lender depends entirely on how much money you are looking to borrow. If it meets the income qualification for the loan you could take the distribution from your IRA and then stick it in a Roth IRA.
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Old 01-10-2013, 09:20 AM   #27
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...we could double the regular income of DH's pension by claiming SS now if we really needed to show we are not surviving on air and wild hickory nuts...
... and squirrels, who would compete for your hickory nuts.

Now, this makes me curious what hickory nuts taste like. Ah, another delicacy to add to my quest. And shall I add squirrels too?
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Old 01-10-2013, 09:30 AM   #28
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Ask Euell.

Euell Gibbons - Wikipedia, the free encyclopedia
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Old 01-10-2013, 10:15 AM   #29
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I never heard of Gibbons, so just read that link.

I have a book called Feasting Free on Wild Edibles by Bradford Angier. The problem with using this book is that the illustrations are line drawings, and not color photos. I am afraid to misidentify a plant, eat a poisonous one, and cut short my ER, you know?

I mentioned that book in a thread that predates your joining this forum. This thread was a lot of fun. It was back during the market meltdown, and we thought we would be eating purslane exclusively from then on as salad. Yes, when you do not have an income stream, you will get to be more resourceful.

Really Good Foods You Probably Haven't Tried

And I still have not had a chance to taste purslane after those discussions.
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Old 01-10-2013, 11:47 AM   #30
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My first semester of Botany I had 3 instructors the first one was arrest for growing pot, the second one died eating a poisonous mushroom. The third was the charm.
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Old 01-10-2013, 09:58 PM   #31
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This thread has way improved with the hickory nuts, but it just hit me i have a story.

We re-financed after DH retired and i was still working. Although our mortgage payment was 1/6 of our take home income, BOA required a fax from his 403b that he COULD withdraw that money at any time. That 403b account was less than $30,000!

We found this so very strange. MetLife faxed the info and the re-fi went through. I never quite figured out BOA's rationale.

Speaking of the hickory nuts, all the squirrels in our DD's neighborhood are black, totally black.
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Old 01-10-2013, 10:19 PM   #32
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As kids, we actually used to eat hickory nuts, from our neighbor's backyard wild trees in Maryland, in one of those send-the-kids-outside-for-eight hours-and-just-let-them-play activities. Sweeter and more pecan-ish in flavor than black walnuts, just as difficult to pry the nutmeat out--we cracked them with rocks on a picnic table, like in this picture. Maybe we could open a wild hickory nut store to get that income stream started.
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File Type: jpg image-hickory-nuts-hammerstone.jpg (262.4 KB, 1 views)
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Old 01-10-2013, 10:49 PM   #33
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A quick price check on eBay shows:

* Hickory nuts in shell: $2/lb, including shipping.
* Hickory nut meats, hand shelled: $16 for 9 oz, or $28/lb, including shipping.

There's value added in hand shelling the nuts. Sounds like a lot of work to get that income stream. Might be worthwhile for someone to design a nut shelling machine, if such thing does not exist already.

Wonder if trapping black squirrels for income stream would be easier.
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Old 01-10-2013, 10:53 PM   #34
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I just bought a car and they were offering 0% financing so I took them up on that. I told the finance guy upfront that I had little "verifiable" income but my credit was excellent. (Fico over 800) They ran my credit and gave me tier 1 and the 0% no problem. I am sure that with a mortgage or refi it would have been a lot more in depth but for a car loan I had no problem.
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Old 01-10-2013, 11:00 PM   #35
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Oh yeah! About car financing, I remember the last time we bought a car at a dealer, it was to cosign a loan for my daughter to help her establish credit. The guy at the dealer checked our credit rating on his computer, and saw that it was excellent, and that was that. I was working and had an "income stream", but it was not asked.

I guess a car is easier to repossess compared to a house, plus its value is lower, hence the simpler the procedure.

Good! If and when I want to get one of those interest-free loans, I do not have to become a hickory nut cracker or anything.
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