worldexplorer
Confused about dryer sheets
- Joined
- Feb 1, 2008
- Messages
- 2
Hi! Glad to have found this board and all the amazing advise you offer.
Background:
43, with 56 YO hubby who is planning to retire in 4 years. I plan to retire in 9. Good start on retirement savings, about 350K and currently saving 30K/year for retirement. Assets - Home has 75% equity, low mortgage, paid in 9 years, now valued at 375K, also, hubby's business valued at 200K will be sold and money invested in 4 years. Also PLAN to increase savings to 39K/year within 2 years, which I'd continue for 7 years until retiring. We want to move to a warmer climate with a reduced COL in 9 years, will sell our home, buy one for much less and invest the difference. I will have pension at 65, hubby won't, both eligible for SS, will need to self-pay health care in retirement. We live modestly, love to travel, but do so on the cheap, and feel like our savings plan will get us to where we want to be, but any comments welcome.
QUESTION:
The one thing we had hoped to do by this point was buy a second home and have it paid for by retirement, so we could invest the total sale price of our current home to help fund our retirement. I recently got 50K inheritance (not included in savings above) and am contemplating buying a home in TX, not to exceed 150K, using the 50K inheritance as a down payment and taking out a 100K/10yr. mortgage. Our hope would be to rent it out for the next 9 years to cover mortgage costs, so it would be paid by the time we retire, then sell our home in MA and move there.
If I invest the 50K, in 10 years it'll hopefully be worth at least 125K. At this point, with the state of the RE market, I'm not sure what the house would be worth in 10 yrs, but it would give peace of mind knowing we had a place to move to that wouldn't cost anything and be able to cash out our current home. The RE markets we're looking in, San Antonio and Austin, have held their value and enjoyed modest increases unlike MA, but I realize that could change. The reason we originally hatched this idea was because of the huge increase in RE values in our area - we thought when it came time to retire another home would be out of reach or wouldn't enable us to cash out any equity to put toward our retirement, but with the current RE market, the situation is less clear. Can anyone offer advise as to the pros/cons of this strategy? I feel like there are things I'm not considering and want to make an informed decision.
Background:
43, with 56 YO hubby who is planning to retire in 4 years. I plan to retire in 9. Good start on retirement savings, about 350K and currently saving 30K/year for retirement. Assets - Home has 75% equity, low mortgage, paid in 9 years, now valued at 375K, also, hubby's business valued at 200K will be sold and money invested in 4 years. Also PLAN to increase savings to 39K/year within 2 years, which I'd continue for 7 years until retiring. We want to move to a warmer climate with a reduced COL in 9 years, will sell our home, buy one for much less and invest the difference. I will have pension at 65, hubby won't, both eligible for SS, will need to self-pay health care in retirement. We live modestly, love to travel, but do so on the cheap, and feel like our savings plan will get us to where we want to be, but any comments welcome.
QUESTION:
The one thing we had hoped to do by this point was buy a second home and have it paid for by retirement, so we could invest the total sale price of our current home to help fund our retirement. I recently got 50K inheritance (not included in savings above) and am contemplating buying a home in TX, not to exceed 150K, using the 50K inheritance as a down payment and taking out a 100K/10yr. mortgage. Our hope would be to rent it out for the next 9 years to cover mortgage costs, so it would be paid by the time we retire, then sell our home in MA and move there.
If I invest the 50K, in 10 years it'll hopefully be worth at least 125K. At this point, with the state of the RE market, I'm not sure what the house would be worth in 10 yrs, but it would give peace of mind knowing we had a place to move to that wouldn't cost anything and be able to cash out our current home. The RE markets we're looking in, San Antonio and Austin, have held their value and enjoyed modest increases unlike MA, but I realize that could change. The reason we originally hatched this idea was because of the huge increase in RE values in our area - we thought when it came time to retire another home would be out of reach or wouldn't enable us to cash out any equity to put toward our retirement, but with the current RE market, the situation is less clear. Can anyone offer advise as to the pros/cons of this strategy? I feel like there are things I'm not considering and want to make an informed decision.