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stevelb · 06-30-2002, 08:20 PM

I am thinking of purchasing a new residence which would probably be my long term retirement home. I will need about $200,000 plus the net proceeds from my current house. I can either take the $200,000 from my nest egg or get a mortgage. My thoughts were that $200,000 equals $8,000 per year using a 4% withdrawal rate. That $8,000 would not be enough to service a $200,000 mortgage at any rate greater than 4%. Thus it seems to me that I am better off taking the $200,000 from my nest egg rather than obtaining a mortgage.

What do you think? Am I missing something here?

Thanks, Steve

06-30-2002, 08:20 PM	#1
stevelb Dryer sheet wannabe Join Date: Jun 2002 Posts: 11	I am thinking of purchasing a new residence which would probably be my long term retirement home. I will need about $200,000 plus the net proceeds from my current house. I can either take the $200,000 from my nest egg or get a mortgage. My thoughts were that $200,000 equals $8,000 per year using a 4% withdrawal rate. That $8,000 would not be enough to service a $200,000 mortgage at any rate greater than 4%. Thus it seems to me that I am better off taking the $200,000 from my nest egg rather than obtaining a mortgage. What do you think? Am I missing something here? Thanks, Steve