Retiring to vs. Retiring from
cheerful1_gw
14 years ago
Featured Answer
Comments (35)
jakkom
14 years agolast modified: 9 years agoRelated Discussions
My Budget: Debt vs. Savings. vs. Retirement
Comments (5)Hi glavinsolo, When you buy your home, do you plan to cash in your MFs in order to achieve a down payment? You don't say what kind they are, but with expected rate of return of 8% I assume that they're equity-based. The expense rate of 0.5% makes me wonder about that, though, as few charge that low. If you plan to liquidate within a couple of years, if the markets go down, you may be an unhappy camper when it comes time to reclaim the investment. On the other hand, if you have the certificates issued, you can take them to a financial institution to use them as collateral for a loan ... ... which will work if your growth rate on the investment is greater than the rate you pay on your mortgage, after allowing for income tax cost and deductibility in each case. That way, you convert that investment from being a short-term one into a longer-term one, which reduces your short-term risk. Be aware, though, that a financial institution will be unwilling to loan you more than 50% (or at most 60%) of the value of the asset. But you carry some risk if you draw near the limit of what they'll allow, for if the value of the asset goes down and slips below double the value of the loan, the lender will want either some cash to reduce the amount of the loan, or some other assets to underwrite the support for the loan. And they'll want it today ... tomorrow at the latest. With regard to the cost of homes, I'm not familiar with the U.S. markets in general, let alone the ones in your area. But some calculate that the tough times in the housing markets are far from over. I think that it would be well for you to carry on some study of what house prices are doing in the area where you prefer to buy. If you buy early, and house prices continue to reduce, you'll be an unhappy camper, then, as well. Mortgage lenders get quite unhappy if the valuation of the house comes rather close to the amount of the mortgage still owing. If the value goes too low, they'll require that you sell it ... at a loss, of course ... ... or they may choose to foreclose, in which case there'd almost surely be more costs if they sell it than if you do. Which could well mean that they'd be notifying you that you owed them the difference between what you owed on the mortgage, plus costs of repossession and sale, less the amount that they sold it for. Not a pleasant scenario. But one that many who accepted those low-rate mortgages a few years ago will be facing. My feeling is that if I wanted to buy a home in the U.S. these days, I'd be keeping my money in my genes (sorry, "jeans") for a while. There are those who claim that I have some frugal chromosomes in my genes, as a matter of fact. As a matter of fact, my daughter is considering buying accomodation in Arizona, these days. Good wishes as you make your plans. ole joyful...See MoreRetiring from the work force - when?
Comments (35)tina...I do get what you are saying. We have volunteered a lot with the local food bank and our church. Many people need rides out of town and few can do it so DH and I are always called upon to give rides to those that have out of town appts for MD's and lengthy tests etc. We are gone a lot so it is a challenge to fit in volunteer work and travel, for sure ! I seem to never have much time to relax LOL! DH and I are on the go and this trip has been much the same..you have to be someplace every day by a set time...sigh... this will be my last bike tour with others...remember I said I hate too much structure...even if it is " fun" ! We have LOVED being on our own the past 2 1/2 weeks..no one to please but ourselves. You should have seen my face when the 1st B and B wanted to know when we wanted breakfast ...arrgghh ! I don't know !! It is SO fun tonight to be at our nephew's home near Den Haag..they are gone and we are borrowing their home...we can get up when we want :) Joanie...exactly..you said it perfectly ! Precisely what I was trying to convey..thank you ! If you are at all like DH and I you will have more trouble deciding "what to do next? ! " ..there are just too many great things and people and places out there and of course family comes first so that has made a big difference in our plans. We would move to Europe most of every Summer were it not for our children and now our lovely sweet grandson...so choices. May you have a lovely time deciding what joy to bring in to your life next . c...See MoreAny retired teachers out there??? Any from California???
Comments (8)Hi, qshopper and gadgets, Guess I forgot to say that I DO fund my Roth IRA faithfully, for the full amount, annually. Thankfully, someone wiser than I set me up with a TSA person years ago. Of course, after a while, that person's quote of "they don't put teachers in jail" made me wonder just what kinds of monkey business he was doing with my money, so I got a new TSA person. I'm always telling new teachers to pay themselves first by getting a TSA. I'm still trying to get my sister to set one up, but oh, she is soooo busy! Well, now she's 48 and maybe she thinks she's gonna win the lottery, but really, that's not likely! I was wondering about dollar cost averaging and investing in no-load funds--stuff I can do myself, and wondered if anyone else had some advice about things like that...I just learning and one of my cyberpals is talking me thru it...just wondered what everyone else may know... Thanks!...See MoreWithdrawing funds from retirement for closing costs ?
Comments (8)These opinions are regardin Tradition IRAs -- you did not indicate what type of retirement account you wish to use. 1. You will be paying a 10% early withdrawal fee PLUS paying income taxes on the amount withdrawn. The extra dollars withdrawn may even bump up your income tax bracket. 2. You have the option of taking out the withholding now or covering it at tax time. However, if you do not have enough withheld, you can be penalized at tax time. 3. The only way to take money out of retirement without incurring these tax hits is to return the money to the account with-in 60 days. You do not have to put back the full amount -- if you don't you are only taxed on the amount not put back in....See Moremaime
14 years agolast modified: 9 years agocheerful1_gw
14 years agolast modified: 9 years agomaime
14 years agolast modified: 9 years agosherwoodva
14 years agolast modified: 9 years agolinda_in_iowa
14 years agolast modified: 9 years agoretiredwendy
14 years agolast modified: 9 years agomaifleur01
14 years agolast modified: 9 years agocheerful1_gw
14 years agolast modified: 9 years agomaifleur01
14 years agolast modified: 9 years agomaifleur01
14 years agolast modified: 9 years agojoyfulguy
14 years agolast modified: 9 years agojakkom
14 years agolast modified: 9 years agocheerful1_gw
11 years agolast modified: 9 years agosushipup1
11 years agolast modified: 9 years agocheerful1_gw
11 years agolast modified: 9 years agocheerful1_gw
11 years agolast modified: 9 years agojoyfulguy
10 years agolast modified: 9 years agocheerful1_gw
10 years agolast modified: 9 years agosherwoodva
10 years agolast modified: 9 years agojim_1 (Zone 5B)
10 years agolast modified: 9 years agocheerful1_gw
10 years agolast modified: 9 years agosherwoodva
10 years agolast modified: 9 years agojakkom
10 years agolast modified: 9 years agoemma
10 years agolast modified: 9 years agocheerful1_gw
10 years agolast modified: 9 years agojoyfulguy
10 years agolast modified: 9 years agojoyfulguy
10 years agolast modified: 9 years agocheerful1_gw
9 years agolast modified: 9 years agojoyfulguy
9 years agolast modified: 9 years agoElmer J Fudd
9 years agolast modified: 9 years agocheerful1_gw
8 years agosherwoodva
8 years agocacocobird
8 years ago
Related Stories
HOUZZ TOURSHouzz Tour: Prairie Grain Bin Turned Bucolic Retirement Home
An agrarian structure and a big dream combine in this one-of-a-kind home that celebrates 250 acres of Montana grasslands
Full StoryREMODELING GUIDESWhen Retirement Came Early, a Couple Headed for the Hills
A Seattle pair turn their part-time home into a full-time one, remodeling it to gain views and help it stand up to snow, sun and wind
Full StoryHOUZZ TOURSMy Houzz: A Portland Couple Builds Their Dream Retirement Home
An Oregon couple emphasizes indoor-outdoor living and accessible design in their energy-efficient, visitor-friendly house
Full StoryLIFERetirement Reinvention: Boomers Plot Their Next Big Move
Choosing a place to settle in for the golden years? You're not alone. Where boomers are going and what it might look like
Full StoryHOUZZ TOURSWe Can Dream: Rural Retirement Home a Haven of Beauty and Tranquillity
A retired couple builds a spacious Japanese-inspired indoor-outdoor sanctuary to enjoy with extended family
Full StoryHOUZZ TOURSHouzz Tour: Retiring to a Midcentury Modern Gem
Vintage furniture fits the tone of this 1950s home, designed by modernist A. Quincy Jones, to a T
Full StoryHOMES AROUND THE WORLDHouzz Tour: Retired Soldier Creates Her Dream Home in Sweden
A Swedish family's fantasy of a rural retreat becomes a reality after years of renovations
Full StoryHOUZZ TOURSHouzz Tour: From Summer Cottage to Full-Time Home
A retired NHL player and his family expand their former vacation home with a big addition and an interesting side-by-side design
Full StoryARCHITECTUREHouzz Tour: A Salvaged Airplane Becomes a Soaring Hillside Home
Made from a retired 747, this modern house in Malibu shows how architecturally stunning reuse can be
Full StoryCOLORNo Need to Shrink From Violet
With shades from soft to rich and uses from a droplet to a wave, there’s a violet that will work for you
Full Story
maime