Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 04-29-2019, 12:27 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 21,200
Quote:
Originally Posted by W2R View Post
Another factor is that what I thought I would want out of life during retirement, and what I actually wanted once I was retired, were different. Before retirement we were absolutely sure that we wanted to move to Springfield. After retirement we changed our minds and decided to stay here.
Probably worthy of another thread, I suspect we've all experienced this to some degree.

Life is what happens to you while you’re busy making other plans. - attributed to several people
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-29-2019, 12:29 PM   #22
gone traveling
 
Join Date: Dec 2018
Posts: 1,196
" when you had much money and lost it, it's much worse than having any money at all" - quote from the Charlie Sheen and Michael Douglas movie Wall Street. Not saying that losing money is in the cards in this matter but I'd be downsizing and enjoying life that way. I would not consider carrying a mortgage in retirement.
Nick12 is offline   Reply With Quote
Old 04-29-2019, 05:10 PM   #23
Recycles dryer sheets
jimandthom's Avatar
 
Join Date: Nov 2014
Location: Beautiful UP
Posts: 243
Quote:
Originally Posted by RunningBum View Post
"losing some sleep" is not the same as "sleepless nights".
"to handle it" is not the same as "no worries".

It's best not to overstate a poster's situation.
Yep--did overstate the sleep part.

The other part, I don't know. In my mind, "handling it" as the OP mentioned implies in my mind that it will be bit of a struggle.

It just seemed that if 6-12 months of extra work is all that is needed, the sum must not be huge-- 50K or less, Admittedly don't know the income etc.

Since wife still works, they could take if from retirement and greatly increase wifes 401k assuming its available to replenish. Might take longer due to limits.
jimandthom is offline   Reply With Quote
Old 04-29-2019, 05:17 PM   #24
Thinks s/he gets paid by the post
HI Bill's Avatar
 
Join Date: Dec 2017
Posts: 2,533
What are your priorities? If you were to buy the house and pay cash, or just raise your annual expenditures to cover the new annual budget, what does Firecalc say? After the purchase, would you still have adequate cash flow to cover your remaining expenses and desires? Some folks would rather buy a better house than travel, and others vice versa.

My plan it to sell our inexpensive (for HNL) condo, rent while we travel, then come back and quite possibly buy a house that costs twice what our condo will sell for, paying cash. Then, our retirement nest egg will be quite a bit smaller, and we'll have to drop our travel budget by $20K. I've let my wife know that we can't do both (maintain a 60% travel budget AND buy an expensive house).

This decision as to whether one wants a mortgage in retirement is personal, but I would never want a mortgage in retirement. Have you calculated the difference between paying cash and lowering your annual budget vs. including the mortgage?
__________________
Balance in everything.
HI Bill is offline   Reply With Quote
Old 04-29-2019, 05:21 PM   #25
Full time employment: Posting here.
 
Join Date: Sep 2017
Posts: 816
Well, it is $45K above our target max so, into the uneasy territory.
I'll run numbers and see what comes out. Just got home from work.


If I work another year, focused on saving, I could make most of that up.
__________________
“Earth is the insane asylum of the universe.”
― Albert Einstein
albireo13 is offline   Reply With Quote
Old 04-29-2019, 05:44 PM   #26
Moderator Emeritus
Ronstar's Avatar
 
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,543
I'm running into a similar problem. We're selling a condo and a house and buying a new house. I'd like to buy a house equal to the combined proceeds from the sale of the house and condo. But if we go berserk, we could buy a new house that will cost $200k more than the combined proceeds.

I'd say run the numbers and see what you can cut to get to where you need to be. Can you start taking SS to put toward the house?
And it may make sense to take out a mortgage rather than taking $ from an IRA that could push you into a higher tax bracket.
Ronstar is offline   Reply With Quote
Old 04-29-2019, 05:53 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 11,226
We just recently bought a 2,866 sq ft house for 4 people. However we paid cash and plan to stay in it for 20+ years. We love the house.
Go for it if the retirement calculators spit out the high success rates. Life is short.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 04-29-2019, 06:02 PM   #28
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
Quote:
Originally Posted by albireo13 View Post
I will be running Firecalc, etc over the next 2 days, at night. Working full time so no time to run numbers during the day.


We are selling now, before retirement because we would like to have that big move behind us before we enter full retirement. I plan to retire next year but, my wife plans to work another 3 yrs beyond me. We have the option of just renting for awhile and take our time for a house.
Why sell now?? We had some impending expenses that we can avoid (replacing front and back decks). Also, we will be in a strong position to buy. We will not have contingencies on selling a house to get in the way of a P&S.


BTW ... berm was a typo .. should be bdrm.
All good info

I would want to know the following
1) what % of networth will be tied into house equity
2) how long will you stay in new house?
2a) over under is usually 7 years- if less than 7, buying will likely lose money.

3) is there a prospect of house being paid off, or will mortgage be carried for 7-15 years before another move?
4) what is asset allocation before buying? Would the purchase change the asset allocation?
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 04-29-2019, 07:36 PM   #29
Recycles dryer sheets
jimandthom's Avatar
 
Join Date: Nov 2014
Location: Beautiful UP
Posts: 243
wouldn't you rather be kayaking--than working another year?
jimandthom is offline   Reply With Quote
Old 04-29-2019, 07:55 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 7,001
I really don’t understand buying big houses when older. Who wants to do all that work. Some friends of ours are still working at 73 because they bought a 3k sq ft house 6 years ago.
Teacher Terry is offline   Reply With Quote
Old 04-29-2019, 08:58 PM   #31
Recycles dryer sheets
jimandthom's Avatar
 
Join Date: Nov 2014
Location: Beautiful UP
Posts: 243
Quote:
Originally Posted by Teacher Terry View Post
I really don’t understand buying big houses when older. Who wants to do all that work. Some friends of ours are still working at 73 because they bought a 3k sq ft house 6 years ago.

Our new-old house when we retired and moved to the land of the Anishinaabe is larger than we need at about 2500sq ft.

It was also only 100K and allows us to walk to bars, eats, grocery, post office, parks, hardware, hospital, university, river front and listen to the soundings of lake freighters as they make their way. The lifestyle aspect of the location is far more important than all those custom built things that are so highly regarded on the HGTV porn shows.

The only needs and wants we have is to have as much time together as possible. Everything over and above that is fluff and fleeting.
jimandthom is offline   Reply With Quote
Old 04-29-2019, 09:29 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 7,001
That sounds nice but I would probably close off half the house and never clean it)
Teacher Terry is offline   Reply With Quote
Old 04-30-2019, 04:59 AM   #33
Full time employment: Posting here.
 
Join Date: Sep 2017
Posts: 816
Quote:
Originally Posted by jimandthom View Post
wouldn't you rather be kayaking--than working another year?
That's for sure.

Actually looking to downsize, not larger house. The location is great though. Close to downtown in a great town. 15 minutes to the ocean. Lots of biking, kayaking, etc.
__________________
“Earth is the insane asylum of the universe.”
― Albert Einstein
albireo13 is offline   Reply With Quote
Old 04-30-2019, 07:48 AM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
And to think my wife had the nerve to complain about spending yesterday cleaning two bathrooms.

I asked her when she was going to get around to cleaning the other three bathrooms.

(I had spent the day cleaning beds and re-mulching landscaping in the hot sun.)
Bamaman is offline   Reply With Quote
Old 04-30-2019, 05:47 PM   #35
Full time employment: Posting here.
 
Join Date: Sep 2017
Posts: 816
Well, ran some numbers ..
Firecalc gives my 95.6% success rate and FRP gives me 100% success rate.
This seems optimistic ... not sure I trust it all.

Currently, house equity is < 5% of net worth.

This assumes I retire next year, and wife in 2023.
We both pull SS at our FRA.
we yank out $150K (pre-tax) from 401K this year to put towards house.
35yr simulation run

The goal in the new construction is not to upgrade or get bigger but, to get into a house that will be low maintenance and easy to age in as we get older. I consider it an investment for the future. We plan to be here for the next 20yrs, the last stop before a CCRC.
__________________
“Earth is the insane asylum of the universe.”
― Albert Einstein
albireo13 is offline   Reply With Quote
Old 04-30-2019, 06:46 PM   #36
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 5,307
Quote:
Originally Posted by albireo13 View Post
We both pull SS at our FRA.
we yank out $150K (pre-tax) from 401K this year to put towards house.
35yr simulation run
To avoid taxes you may want to do a more minimal down payment and draw out the down payment money over a few years (if you decide to do it) and then possibly recast the loan.
Katsmeow is offline   Reply With Quote
Old 04-30-2019, 07:38 PM   #37
Full time employment: Posting here.
 
Join Date: Sep 2017
Posts: 816
Yes, the challenge isn't so much the amount but, how to negotiate the tax hit.
Taking out a lump sum now, right before retirement, is a big tax mushroom cloud. A disbursement at our max income level!

Need to do more research. Maybe a 401K loan?
__________________
“Earth is the insane asylum of the universe.”
― Albert Einstein
albireo13 is offline   Reply With Quote
Old 05-01-2019, 05:14 AM   #38
Full time employment: Posting here.
 
Join Date: Sep 2017
Posts: 816
Thinking now of renting while we look. Renting for a year and waiting until I retire before buying. That way our income will be much lower and the tax hit on a 401K withdrawal will be less.
__________________
“Earth is the insane asylum of the universe.”
― Albert Einstein
albireo13 is offline   Reply With Quote
Old 05-01-2019, 05:30 AM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 13,202
As someone said earlier, your needs and wants may change once you retire. You may not even want to stay in the area. I'd probably hold off unless you are certain this is where you want to be.
RunningBum is offline   Reply With Quote
Old 05-01-2019, 06:06 AM   #40
Full time employment: Posting here.
 
Join Date: Sep 2017
Posts: 816
Well, all family are in the area, we enjoy the area, and my wife will still be working for the next 4 years. We already committed on the sale of our house.
Perhaps we should have waited until I retired to sell but, it's all ok.
__________________
“Earth is the insane asylum of the universe.”
― Albert Einstein
albireo13 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Is it a bad idea to take on a 2nd mortgage when nearing retirement? Barry Darsow FIRE and Money 20 05-24-2017 09:04 AM
Planning for a More Expensive Retirement dixonge FIRE and Money 38 03-12-2017 02:57 PM
Des Moines Most Expensive House In Foreclosure Gpond FIRE and Money 17 02-23-2009 09:16 AM
How expensive of a house spike Young Dreamers 12 04-27-2007 07:50 PM

» Quick Links

 
All times are GMT -6. The time now is 02:00 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.