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Old 07-27-2014, 10:00 PM   #1
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Secrets of Early Retirement

USAToday: Wes Moss reveals the secrets of happy retirement

Having a paid off house and income streams seem like the way to go. Now I have to figure where to settle down.
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Old 07-27-2014, 10:04 PM   #2
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USAToday: Wes Moss reveals the secrets of happy retirement

Having a paid off house and income streams seem like the way to go. Now I have to figure where to settle down.
It's generally where you have the paid off house for starters.
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Old 07-27-2014, 10:27 PM   #3
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From the article:
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Q: In the book there are 18 habits of happy retirees. Can you narrow your book down to three pieces of advice?


A: No. 1 is financial. Tackle your mortgage. It's such a critical component to all this. Happiness rises as years to pay off mortgage go down. Thus, tackling of the mortgage is really critical.
That's his top advice? Dumb. This is another book I won't need to read.
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Old 07-27-2014, 10:29 PM   #4
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Originally Posted by Neecy View Post
Having a paid off house and income streams seem like the way to go. Now I have to figure where to settle down.
Having an income stream that is sufficient to support your intended way of life is generally the way to go. That way of life may or may not include a paid-off house - it depends what you want in retirement.
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Old 07-27-2014, 10:43 PM   #5
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yep own vs. rent has far too many variables for an edict like that
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Old 07-27-2014, 10:52 PM   #6
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Actually, my take away is this :

"Q: So, who are the happy retirees?

A: Those are the people who retire earlier, at an earlier age and an earlier date than most people in America."

Ha! I knew it!
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Old 07-28-2014, 12:07 AM   #7
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It is too simplistic to just say pay off the mortgage, especially if you have a low interest, fixed rate mortgage rate and can make a higher after tax return elsewhere. Or a paid off house may not be the optimal use of your money if you live in a market where renting and investing has a higher ROI.

If houses cost $1M where you live but you could rent a nice house for $500 a month most people would go with renting.

In the last ten years many of our neighbors who bought at the peak have not even seen their houses keep up with inflation, especially after factoring in taxes, insurance and repairs.
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Old 07-28-2014, 01:43 AM   #8
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The author said some things of value and some things where your milage may (and probably does) vary.

For me, paying off the mortgage was much like own v rent. Given how low interest rates are out here, we decided not to pay off our home mortgage (costing around 1% pa) and keep the money invested elswehere.
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Old 07-28-2014, 08:31 AM   #9
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I paid off my mortgage and got a large Home Equity line. I can use it when I want or need it. I the past, I have used a smaller one for purchasing properties for cash.

The mortgage payoff saves ~$1400. That is quite of a savings, it can basically fund my 401K - even though I already find my to the max.

Most families spend ~30% of their income on housing. Paying off the mortgage is a large 'raise', and give a huge piece of mind.
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Old 07-28-2014, 09:00 AM   #10
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Our retirement happiness came from understanding that it comes from maximizing the life we can afford, and not what others think.

Fifty six years of marriage and twenty five years of retirement, and money has never been a source of contention or unhappiness.
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Old 07-28-2014, 09:15 AM   #11
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I'm dumb and happy. My goal was to pay off my mortgage early first -- before I even thought of ER. Did so, and that's when my retirement savings went into hyperdrive.

It wasn't all numbers. It was also peace of mind.

When it comes to the primary residence, another factor is "frequency of moving." Moving is not only costly, it tends to reset everything, including the mortgage treadmill. But I digress.

Mort - gage
Death - measure


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Old 07-28-2014, 09:30 AM   #12
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I have no problem with numbers 1 or 2. But with number 3....

Quote:
No. 3 is very important. Busier retirees are happier
I do kinda take issue with that as I'm happy just putzing around in retirement
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Old 07-28-2014, 09:37 AM   #13
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Those income streams sound appealing, where do I sign up?
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Old 07-28-2014, 09:46 AM   #14
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I do kinda take issue with that as I'm happy just putzing around in retirement
I think people, especially youngsters writing about retirement, seriously underestimate all that is needed to "just putz around". This is a serious and meaningful endeavor and deserves much more respect.
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Old 07-28-2014, 09:53 AM   #15
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Having an income stream that is sufficient to support your intended way of life is generally the way to go. That way of life may or may not include a paid-off house - it depends what you want in retirement.

That is the sole reason I am retired....and yes the monthly mortgage payment will be occurring for 20 more years.


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Old 07-28-2014, 09:56 AM   #16
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I have no problem with numbers 1 or 2. But with number 3....



I do kinda take issue with that as I'm happy just putzing around in retirement

I will tell my GF when she returns from work what all I have completed during the day and her usual remark is... "So basically you did nothing".


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Old 07-28-2014, 10:10 AM   #17
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I will tell my GF when she returns from work what all I have completed during the day and her usual remark is... "So basically you did nothing".
Funny, when i was w*rking, at the end of the day I generally came to the same conclusion.
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Old 07-28-2014, 10:24 AM   #18
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I will tell my GF when she returns from work what all I have completed during the day and her usual remark is... "So basically you did nothing".


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You could always say as a comeback "at least I didn't do anything wrong or manage to break anything".

On the paid off house comments. Yes it's cheaper to rent, and renting comes with risks and possible opportunity loss, but a paid off house has, in my opinion, some peace of mind and stability. Those are characteristics that can't easily be quantified.
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Old 07-28-2014, 10:49 AM   #19
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I think people, especially youngsters writing about retirement, seriously underestimate all that is needed to "just putz around". This is a serious and meaningful endeavor and deserves much more respect.
I've got a brother who's also retired and on his social media, he's always posting about where he went out the eat, his fishing adventures, or hiking on a trail and looking and fancy fast cars. He's truly trying to enjoy the moment.

But when I see all the posts I think "that poor soul" ... I'm happy with my putzing.
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Old 07-28-2014, 10:56 AM   #20
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You could always say as a comeback "at least I didn't do anything wrong or manage to break anything".

On the paid off house comments. Yes it's cheaper to rent, and renting comes with risks and possible opportunity loss, but a paid off house has, in my opinion, some peace of mind and stability. Those are characteristics that can't easily be quantified.
The paid off peace of mind works for me. However, I can see the other side of the coin too. At these historically low rates, there is opportunity. I can see why some people will carry a mortgage. Perhaps the positive calculations of opportunity cost of money give people a certain peace of mind too. That's fine. Just doesn't work for me.
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