Retiring to vs. Retiring from
cheerful1_gw
14 years ago
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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 MoreIN Retirement calculator
Comments (1)bump......See MoreFrom what did you retire?
Comments (3)Well, pilgrim you have stumped me. I love to take forum names apart and give the members my own pet name for them, but I don't want to call you pil and I don't want to call you grim or ill or rim. Maybe I'll call you 555. It sounds full of mystery and intrigue, not unlike 007. Remember him? 555, sounds to me like it's time to make some short term fun goals. Work is definitely not what it is ALL about, but it is good. ful, We joked about my nickname for you, but honestly, it does describe you in many other ways too. How great it is that you are full of joy and can laugh at yourself and enjoy the other "old farts." It is wonderful that you have things you want to see, do and learn. Please keep posting lots and tell us about those things. Remember, you have a new audience now. You can even repeat for my benefit. Are you doing community/charity work to make your community a happier place in which to live? I used to do scads, but now pretty much limit it to the church. jan...See MoreAlong the lines of Nycefarm’s retirement thread
Comments (10)I work in an office and I'm presently looking for a new job. The agency was scheduled to be sold but the buyer couldn't get the financing so it's back on the selling block. My job search is for a work at home position, has been since I started looking and that was way before this virus. My husband was on the road 60% of the time and that is why I wanted to work from home. I have more to take care of and being home gave me more time to do things. I've given this a great deal of thought going forward though. I chose to stick this job out for a couple of reasons that as of now I am glad I did. I am not happy in the office, it's toxic to me and I know it. The neighbor on the other side of our shared wall is a crematorium and I hear that furnace running all the time. I've shared this in the past. I won't say anymore however given the nature of the original post I will say that if my boss expects me to return there will have to be some changes to keep me safe. I haven't completed my list and they are not expectations that cannot be addressed. The one caveat is the crematorium. We can't do anything about that but I do wonder if there are additional safeguards in place should he be caring for people that had the virus. That scares me and it scares me more because I don't know enough about it yet and I'm not comfortable with what I might be told. My husband is out of work for now, he was one of the first to see work end. He is in the travel business. Yes, I've worked from home since Illinois went to shelter at home and there's been no glitches however the corporation requires agents offices to be staffed and operating 5 days a week under normal circumstances. My boss lives 5 minutes from the office but he doesn't want to be there if he doesn't have to. He is retiring and has been in that mode for quite some time now. I do think that because of the work from home experience many employers may give it a chance. It may open a door for me going forward and that would be exciting....See Moremaime
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