Greetings everyone. Some folks may find some useful advice in the posts above. All that I said in the previous post still applies. The guy whose system I spoke of, whose Canadian system, using solid stocks, takes about 2 hours per year to operate, as one can choose a basket of 10, or 5, or 4 stocks and several of the chosen stocks, usually about 6 to 10 of the list of 10, continue unchanged, year to year. The system has a growth rate averaged over 20 years of about 14% ... at low (for Canadian residents) tax rate on current income, plus much of the gain stored up over a number of years till one sells, then there's a tax advantage on the gain, in Canada. But if one puts one's asset into the bank, where it produces interest ... one must pay part of the interest to the income tax people ... and interest is taxed at top rate. The borrowing agency guarantees that the number of dollars that you lent them won't shrink: the parallel guarantee that they never mention is the number of those invested dollars won't grow, either. So folks who put those grow-proof dollars into the bank must put some of the interest with the principal to maintain purchasing power, to counteract inflation. I expect my stocks to increase in value, at least partially offsetting the inflationary costs. I'd rather buy (part of) the bank! Not only have my bank shares' values grown, directly, over those years ... ... the dividend rate grew from a nickel or a dime, 41 years ago, to $3.48 annual rate, last year. Taxed at a low rate in earlier years, but the tax rate on that kind of income dropped again, last year. As that mutual fund manager said, "I like to buy a Dollar ... for 60 cents". I agree - but I'll buy it myself, saving the management fees that he charges. I'm sad that so many investors, when stock prices fall ... rush to the exits, instead of getting ready to buy more, and buying them. Further ... had some of you U.S. guys chosen to buy some Canadian money to have bought those stocks 5 - 6 - 7 years ago, 65 - 69 - 75 cents U.S. would have bought you CAD$1.00. If you were to choose to sell those stocks now (and I don't know why you would) every CAD$1.00 now does not buy only 69 cents U.S. ... but within a couple of cents either way of $1.00. Which would have meant an additional 1/3 - 1/2 growth of your invested asset. In addition to the growth over those years. I've written recently of a guy's mixed Canadian and U.S. system that, running for 16 years, has produced 5 year growth rates averaging 16 - 36% (a difference of 20) ... and 10-year growth rates averaging 19.6 - 29.3% (a difference of 10): note the lower rate of volatiity over the ten-year periods, please. The longer you leave quality stocks ... the better they do. Remember how the skilled advisors say to invest your dollars in good stocks, watch them a little in case the company gets crippled, but don't sweat blood if a $20.00 stock goes down $1.00 ...or $2.00 ... or $3.00 or more. If it's a quality stock, it'll likely recover. In fact, while the market is dropping, remember what a mutual fund manager told a group of us sales people almost 25 years ago ... "I like to buy a Dollar for 60 cents". During a substantial drop in the market, recruit some extra money in addition to the regular investment program that you follow. As you don't know when the bottom will appear, invest some funds from time to time, in a regular fashion. Would you rather buy coffee that's worth $1.00/lb. usually ... ... for $1.20 ... ... or, after a drop in the market - for 80 cents. As long as the quality is there, I like the last scenario the best. How unfortunate that so many investors buy a stock for a Dollar ... and when the market goes down, they get upset, angry and scared ... and sell for 60 cents! Good wishes for learning more about how the markets work, every month and every year. It's a hobby that pays well. Maybe use mutual funds for a while in the early years of your investing program, for diversity, but later learn how to buy various stocks from time to time, building your own diversity? The fees that you pay to regular mutual fund managers are substantial - comparable to the rate of income tax that you pay. And, if you put the money into the bank in "guaranteed" financial products, you must take some of current ernings to add to the principal to keep the purchasing power of your dollars even. When you put $20,000. into the bank 15 years ago, the bank would pay you (rather slim) interest every year, as agreed. If you need your $20,000. now and go to collect it, they'll pay you exactly $20,000. - which would have bought a nice car, 15 years ago ... but not now - cars are more expensive, as are most things. So, you must pay income tax on the current income, and at the top rate, by the way. You must put part of it with the principal to maintain purchasing power. I don't like earning interest! Good wishes to you and yours. And teach your kids about how money works, O.K? Please! They'll use that information every day of their lives! ole joyful

I feel for the poster. When I asked for opinions on my addition (very similar to this situation), I got a lot of people judging me too. I can't answer the loan question. If you really want to do something, you are responsible for your own life and know the risks. After thoughtful contemplation and reflection you still want it, just keep trying other banks and saving money till you can do it. Just don't do something too bad like taking money out of your retirement accts. Just make sure you sit down with a spreadsheet. Do you have emergency funds if your car blows up? Or Roof leaks? Do you have collage for the kids? Do you have enough for retirement or illness? What if you get laid off? If you are ok with all that, be happy and do whatever snaps your socks. Personally, I just had four contractors visit me. I am still very concerned about my decision to do an addition. Money is the concern and our age/lack of retirement funds. But after contemplation, I know we'll be in debt for 10 years and done. I know we can afford the payments. If my husband lost his job, I think we could still make the payments no problem. We are doing a HELOC and the payments can be interest only. I chose my decision based on a three things. 1) It is seemingly impossible to find the perfect house in the perfect neighborhood/location on the perfect lot. It doesn't exist. Exhaustive house hunting left me 50k MORE in debt than the addition and I'd STILL have to do some changes. Plus the houses that are new are cheaper builder grade. Looks good for 10 years then not good. I'd rather have my old well built house. 2) People slam you for "want" vs "need". Listen, we could live in a hut, pee in a hole in the ground and drink river water if we had to. But we are fortunate enough to not have to. If you have worked hard and would like a little luxury in your life, do it. Yes, do keep in mind those who cannot life in the lap of luxury, but there is so little joy anymore in life, I say just do it if that's what's gonna snap your sox. Picking a contractor was the worst. Good luck if you go through this. I've been agonizing over this stuff since August and I'm JUST deciding now after doing my own research (thinking and talking about it endlessly so I can live with my decision).

Hi everyone. Thanks again so much for all your comments. I really appreciate it. Today I met with my GC to review the numbers again in more detail. I definitely decided against doing the big remodel. (as others could have predicted, moving walls etc are not a good ROI--they are an expense). I may do some sort of kitchen or bath facelift or "botox" since there's no guarantee I'm moving right away. If my 2-3 years stretches to 5-7, it might be nice to have some updates. We'll see. FWIW, he told me two things I thought you might find interesting: 1) right now, the cost of materials is very high, and rising all the time, like month to month, due, in part, to all the natural disasters: hurricanes, the fires in Sonoma, CA and the mudslides south of Santa Barbara, etc. These people are without homes, (and rebuilding is largely being funded by insurance) so this demand is not going away until the houses are rebuilt. 2) he confirmed that even if the economy takes a downturn, labor rates are not likely to go down right away. My neighbor had guessed a year. My GC said after the 2008 recession, he still had plenty of work until 2011. He didn't feel it at all. This guy comes highly regarded, so my guess is that the good contractors will be the last to feel the pinch of a recession. For my project, if I do something small-ish, there doesn't seem to be any point in waiting a year or so to time the market. But as everyone here has said, if I may move in 2-3 years, the best option might be to do nothing or...try some decorating magic. Thanks again everyone! I feel so much better!

May I suggest that you keep things in perspective, folks? If you spent years in post-secondary education and had some interim jobs before getting on career track and really hot (I thought that I wrote "got") going at 30, and now at 60 are looking at retirement, whether voluntarily or forced ... you've had a 30 year career. Take it from this guy who was 90 last year ... you may be retired as long as you worked! Have you heard which segment of life has been the fastest growing, in our part of the world, in recent years? The folks over 100! (Granted ... the calculation started from a not-large base). The early years of retirement are expensive, what with all of that pent-up energy being released in kicking up your heels, running around and having fun ... then come the middle somewhat quieter, more relaxed (thus somewhat less expensive) years. Possibly somewhat enhanced, finance-wise, by downsizing from major house to more modest digs, thus freeing up some meaningful assets for investment. Usually there are substantial costs associated with the latter years of our lives, living in a retirement home, then assisted care, and then nursing homes ... and while one can sing while there, if one chooses - you don't get to stay there for a song! Many advisors suggest that a substantial portion of money which you don't expect to need for about ten years or more can well be invested in qualty eguities. Eating my own cooking, as I do - well over two thirds of my investments are equity-based. Most of the mutual funds, most held for a number of years, charge about 2% a year as management fees. ETF fees are substantially lower. Over half of my portfolio is in individual stocks owned directly. One that I bought over 50 years ago for $4,25 a share, paying 10 or 12 cents a year dividend, was (supposedly) "worth" $107. in 3007, paying $3.08 dividend. I don't know what "worth" is - what I mean is that that is the price for which I could have sold it at that time. The price available in 2008 dropped to $40., as that company was heavily involved in the financial fiasco operational at the time. Should have had the courage to buy more (at what precise time, pray tell?) ... but didn't. Some said they'd cut dividends: they didn't, but there was no increase for 4 years. Share prices grew to around $120. a few months ago, payng $5.76 annual dividend - recent offer is about $68. Estimate cost in a year just over $100. Over those 50+ years of ownership - haven't paid a nickel to any manager's fee. May invest some soon, some more later: no one knows where the bottom will be. In what I think to be a more valuable company for the price. Many advisors suggest to invest equal number of dollars on a regular interval, called "dollar cost averaging": one gets fewer shares when prices are high, more when prices are low. Good wishes for making wise use of your dollars in a long-term plan. Better to have dollars left at the end of the years ... than years left at the end of the dollars! Who'll then pay for the funeral/plot/headstone? ole joyful