Papa’s are rarely wrong. Sorry for your loss regardless of how long ago that was. When I’m asked if my plan looks I say “how well are you sleeping?” They often think it’s unrelated.
My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
At 6.5% it's a no brainer. No mortgage. You're showing an outcome with an artificial sense of precision. There's an entirely broad range of possibilities, and there would be fewer losing scenarios if he didn't carry the mortgage. At 58, I only carry a mortgage if i can get a superior after tax yield on treasuries. I'm fortunate to have a 2.75% mortgage, so I stopped paying it off aggressively when I could put the extra payments into 4-5%+ treasuries. As soon as I can't reinvest the maturing bonds at > 4.1%, it goes right back into the mortgage assuming I want to stay in this house.
We are planning on rent through retirement. Getting ready to make 5th move in 20 years of marriage. Stress of selling is no bueno, plus planning on slow travel in early retirement (5-7 years from now). YMMV
I’m 76, my perm residence is a nice condo in Cocoa Beach. Last fall After renting at $2500/mo for four years my landlord finally agreed to sell to me for $450000 cash. That cash had been earning $1,000/mo in a high yield savings acct. taxes are $6,000, I add $5000/yr maintenance. When I pass the house goes to my kids as an investment property. I think it was the right move. I spend the summers in the house.
Having a mortgage into retirement is a no-go at least for a planning perspective. Basically you need additional income to pay for that mortgage which will put your funds into a higher tax bracket as well as potentially give you penalties and potentially increase in your taxable SS. In combination with paying interest on the mortgage in a time when you should have a more conservative investment portfolio at the same time so lower returns and debt can effectively eat most of the gains of your portfolio if the mortgage is large enough. If your already going into retirement and have a mortgage you basically just have to run the numbers to see if doing extra payments will be better or worse, as the tax benefits might not out weigh the opportunity cost of your investment portfolio.
Additional option: Since they already have a very healthy brokerage account already… Why not invest some of the proceeds in few rental houses. He lives in one, and you have your tenants pay off all the mortgages. Write off the expenses. Outsource the boring landlord stuff.
In the hypothetical example, should we account for higher property taxes or maintenance with the 600k home as opposed to the 400k home? Should that cost increase the regular living expenses?
So for any large purchase that is not a home (new corvette, Harley, RV) do you recommend financing the purchase or buying outright from the retirement funds?
My dad always said before he passed away, old school, my financial advisor, pay off the mortgage and sleep good! ❤
Papa’s are rarely wrong. Sorry for your loss regardless of how long ago that was.
When I’m asked if my plan looks I say “how well are you sleeping?”
They often think it’s unrelated.
Lame
My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Deborah Lynn Dilling is the licensed advisor I use.Just research the name. You'd find necessary details to work with to set up an appointment
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
At 6.5% it's a no brainer. No mortgage. You're showing an outcome with an artificial sense of precision. There's an entirely broad range of possibilities, and there would be fewer losing scenarios if he didn't carry the mortgage. At 58, I only carry a mortgage if i can get a superior after tax yield on treasuries. I'm fortunate to have a 2.75% mortgage, so I stopped paying it off aggressively when I could put the extra payments into 4-5%+ treasuries. As soon as I can't reinvest the maturing bonds at > 4.1%, it goes right back into the mortgage assuming I want to stay in this house.
We are planning on rent through retirement. Getting ready to make 5th move in 20 years of marriage. Stress of selling is no bueno, plus planning on slow travel in early retirement (5-7 years from now). YMMV
Thanks Ari, it's always good to see the variables that you change in the software when you're doing your case studies.
Great analysis, thank you!
This was an awesome video. Thx.
I’m 76, my perm residence is a nice condo in Cocoa Beach. Last fall After renting at $2500/mo for four years my landlord finally agreed to sell to me for $450000 cash. That cash had been earning $1,000/mo in a high yield savings acct. taxes are $6,000, I add $5000/yr maintenance. When I pass the house goes to my kids as an investment property. I think it was the right move. I spend the summers in the house.
Love the hero account, Ari!
i sleep fine with a mortgage. i'm good with math that way.
What about property appreciation being part of the equation?
Having a mortgage into retirement is a no-go at least for a planning perspective.
Basically you need additional income to pay for that mortgage which will put your funds into a higher tax bracket as well as potentially give you penalties and potentially increase in your taxable SS.
In combination with paying interest on the mortgage in a time when you should have a more conservative investment portfolio at the same time so lower returns and debt can effectively eat most of the gains of your portfolio if the mortgage is large enough.
If your already going into retirement and have a mortgage you basically just have to run the numbers to see if doing extra payments will be better or worse, as the tax benefits might not out weigh the opportunity cost of your investment portfolio.
Great content Ari. More dollars working for you earlier in your retirement is a good thing unless it stresses you out. 😁
If you buy the early retirement academy, how long do you have access to the software for? Is it updated annually or complete as is .
Lifetime. Updated live time.
Do all CFPs have to wear Sage colored T-shirts when they present???? James Conole, does the same thing.
They work at the same firm. It's called branding, and you just proved the value by noticing.
The guy in this scenario could easily just pay off the difference in the new mortgage. Has a ton of money he will never spend at $7 k per month!!
Additional option: Since they already have a very healthy brokerage account already… Why not invest some of the proceeds in few rental houses. He lives in one, and you have your tenants pay off all the mortgages. Write off the expenses. Outsource the boring landlord stuff.
Think about what that $400-600k house will be worth after 32 years at age 90. Huge hedge against inflation!
I agree, purchase the mortgage and pay it all off. No need to finance it.
Nope. Next video.
Our plan is to downsize and pay cash for the retirement home. Caring for aging parents might delay that but ultimately zero mortgage long term 😎
Does your software work on iPhone & iPad or do I need to buy another device?
Yes
But: you have the $600,000 equity in the home, not counting growth in value (yes, taxes). Add the $600000 asset, plus, to the $1.9M
But: you have the $600,000 equity in the home, not counting growth in value (yes, taxes). Add the $600000 plus to the $1.9M
In the hypothetical example, should we account for higher property taxes or maintenance with the 600k home as opposed to the 400k home? Should that cost increase the regular living expenses?
So for any large purchase that is not a home (new corvette, Harley, RV) do you recommend financing the purchase or buying outright from the retirement funds?
I suppose it all depends on your income.
There is no feeling like being debt free in retirement, you then control your expenses .
I retired six years ago at 55 with a car payment, a mortgage, and sending my son to college. Shows what you know.