Hi,
Does my heart good to see some are managing through this economy and actually able to break away from the grind. My wife and I aim to do the same and look forward to contributing to this excellent forum as we progress. Part of our remaining grind is the mortgage on our primary residence. We have way more house (pool, yard, etc) than we need but do not want to sell into this market if such an act can be avoided. Here's our situation and we welcome any and all constructive input!
Myself 52 owner of a (now failing) business
Wife 28 Assistant to the owner of (a now failing) business
Cash on hand $300k
Monthly dividends $1,500 (from silent partnership in non-failing business)
Debt $0 (other than mortgage)
Mortgage $100k @6.25% (25 years remaining on note)
House value $900k (realistic)
We would like to retire to Thailand asap. We know the country inside / out and believe we will be comfortable there on $4K per month. I should say here that I believe my health is at risk if we continue to stay here (Hawaii). The stress has become intolerable. A recent 2 month trip to Thailand got me back to 100% but I feel myself slipping again. I must add that if we can get out of here, I sincerely believe my health will not be an issue (anytime soon).
My plan will probably rub some, if not all, the wrong way as it involves us dipping into our capital.
1) I believe the $1500 pm will be a long and steady income (has been for 20 years).
2) We will rent our house (and guesthouse) out for $3500 pm. After mortgage, T&I, pool service and yardcare we should net around $1500 pm
3) We will dip into our $300k at a rate of $1000 pm until my SS kicks in. If my calculations are correct, and adjusting for COL, we should have about $100k left at that time.
4) At that time (10-13 yrs) we will either move back to Hawaii and live in our very comfortable GH, while renting out the main, or we will sell the property. This should net us no less than $1,000,000 or we will be living on about $5,000 pm (+) and rent free, should we keep it.
Here's the mortgage question: We currently pay about $900 pm on the $100k. $600 to the mort and $300 to tax. I would rather not pay it off at this time (but could). OTOH, I don't want to pay 6.25% interest on $100k for the next 25 years!
I know nothing of such things and wonder if anyone can tell me how much we should add to our monthly principle in order to have this 100k paid off in 10 years? Our credit score is close to 800 so we could probably refi if that would make sense on this amount.
As stated above, we welcome all critique. I am sure our approach would be considered unorthadox if not irresponsible. I sincerely believe that my business here (30 years) is done. I just want to move on and if sacrifices need be made, sacrifices will be made. We are (now) very humble.
Thanks in anticipation,
Chuck
Does my heart good to see some are managing through this economy and actually able to break away from the grind. My wife and I aim to do the same and look forward to contributing to this excellent forum as we progress. Part of our remaining grind is the mortgage on our primary residence. We have way more house (pool, yard, etc) than we need but do not want to sell into this market if such an act can be avoided. Here's our situation and we welcome any and all constructive input!
Myself 52 owner of a (now failing) business
Wife 28 Assistant to the owner of (a now failing) business
Cash on hand $300k
Monthly dividends $1,500 (from silent partnership in non-failing business)
Debt $0 (other than mortgage)
Mortgage $100k @6.25% (25 years remaining on note)
House value $900k (realistic)
We would like to retire to Thailand asap. We know the country inside / out and believe we will be comfortable there on $4K per month. I should say here that I believe my health is at risk if we continue to stay here (Hawaii). The stress has become intolerable. A recent 2 month trip to Thailand got me back to 100% but I feel myself slipping again. I must add that if we can get out of here, I sincerely believe my health will not be an issue (anytime soon).
My plan will probably rub some, if not all, the wrong way as it involves us dipping into our capital.
1) I believe the $1500 pm will be a long and steady income (has been for 20 years).
2) We will rent our house (and guesthouse) out for $3500 pm. After mortgage, T&I, pool service and yardcare we should net around $1500 pm
3) We will dip into our $300k at a rate of $1000 pm until my SS kicks in. If my calculations are correct, and adjusting for COL, we should have about $100k left at that time.
4) At that time (10-13 yrs) we will either move back to Hawaii and live in our very comfortable GH, while renting out the main, or we will sell the property. This should net us no less than $1,000,000 or we will be living on about $5,000 pm (+) and rent free, should we keep it.
Here's the mortgage question: We currently pay about $900 pm on the $100k. $600 to the mort and $300 to tax. I would rather not pay it off at this time (but could). OTOH, I don't want to pay 6.25% interest on $100k for the next 25 years!
I know nothing of such things and wonder if anyone can tell me how much we should add to our monthly principle in order to have this 100k paid off in 10 years? Our credit score is close to 800 so we could probably refi if that would make sense on this amount.
As stated above, we welcome all critique. I am sure our approach would be considered unorthadox if not irresponsible. I sincerely believe that my business here (30 years) is done. I just want to move on and if sacrifices need be made, sacrifices will be made. We are (now) very humble.
Thanks in anticipation,
Chuck