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Retiring early March 1 of 2019 .Pay off house or continue house payments?

  1. #31
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    Quote Originally Posted by fmdog44 View Post
    This is a very imortant issue because of your ages. I would seek the help if a certified financial planner. Enjoying your retirement is the most important issue. You don't want to add any burdens in your life now.
    i agree on letting a good planner review the whole situation and see what is the best way . like i said above doing what feels good vs what is best for you financially or makes the most financial sense usually do not coincide .

  2. #32
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    We kept our mortgage when strating retirement because it was a 2.75% interest rate. Still continue to pay extra each month and if we get "extra" cash I send it in as additonal principal. We would not withdraw from our retirement accounts unless the interest rate was at 5% or more. Were on target to pay off our mortgage sometime in 2021 which will be 5 years into retirement.

  3. #33
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    I'd lean more to the paying off the house rather than investments in todays unpredictable markets.
    I remember in 2008 my friend lost a big chunk of her 401 and her boyfriend lost $70,000 in one swipe. Wall Street can be tricky and precious metals pricey and also unpredictable.

  4. #34
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    Quote Originally Posted by MeAgain View Post
    I'd lean more to the paying off the house rather than investments in todays unpredictable markets.
    I remember in 2008 my friend lost a big chunk of her 401 and her boyfriend lost $70,000 in one swipe. Wall Street can be tricky and precious metals pricey and also unpredictable.
    markets never lost their money since the markets recovered and tripled . bad investor behavior lost their money ....

    i have been an investor for more than 30 years . i don't ever remember any moment it was a good time to invest .. we were always waiting for some disaster or black swan to strike ..

  5. #35
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    Quote Originally Posted by mathjak107 View Post
    markets never lost their money since the markets recovered and tripled . bad investor behavior lost their money ....

    i have been an investor for more than 30 years . i don't ever remember any moment it was a good time to invest .. we were always waiting for some disaster or black swan to strike ..
    When I was looking forward to retirement, I made the decision to just continue paying off the house in the normal course (it was an old mortgage with very low interest) and put the money I would have used to pay off the house into investments. I eventually paid the last payment on the house a few years before I retired and made more on the investments than I would have saved in interest by paying off the house.

    Putting all my eggs into the house just didn't feel right to me. And I didn't really lose any money in the 2008 mess because I just gritted my teeth and rode it out. I think most of the people who lost a lot of money were people who panicked and sold while the market was down.

  6. #36
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    Quote Originally Posted by Butterfly View Post
    When I was looking forward to retirement, I made the decision to just continue paying off the house in the normal course (it was an old mortgage with very low interest) and put the money I would have used to pay off the house into investments. I eventually paid the last payment on the house a few years before I retired and made more on the investments than I would have saved in interest by paying off the house.

    Putting all my eggs into the house just didn't feel right to me. And I didn't really lose any money in the 2008 mess because I just gritted my teeth and rode it out. I think most of the people who lost a lot of money were people who panicked and sold while the market was down.
    yep , channeling to much in to the house on an accelerated basis may feel good but usually it is not the best financial choice ...

  7. #37
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    I went to see two different financial planners when I was starting to think about retiring, didn't like the first one, but really liked the second one. He seemed very down-to-earth and more in tune with people at my income level. I think the first guy was accustomed to dealing with people who where wealthy so his outlook and goals didn't match mine.

    Anyway, I've met with the second adviser 3 times now and even though I always thought I would/should take a big chunk of 401(k) money to either pay off or pay down the mortgage, he has convinced me that this was probably NOT the best decision for me and my husband. Our mortgage interest rate is only 3% and the monthly payments aren't exorbitant, so he thinks it would be advisable to keep investing my money and paying my monthly mortgage. I have to admit, in my case, it DOES make sense.
    Sue

  8. #38
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    I have no idea but this is a very informative thread

  9. #39
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    Quote Originally Posted by Sue777 View Post
    I went to see two different financial planners when I was starting to think about retiring, didn't like the first one, but really liked the second one. He seemed very down-to-earth and more in tune with people at my income level. I think the first guy was accustomed to dealing with people who where wealthy so his outlook and goals didn't match mine.

    Anyway, I've met with the second adviser 3 times now and even though I always thought I would/should take a big chunk of 401(k) money to either pay off or pay down the mortgage, he has convinced me that this was probably NOT the best decision for me and my husband. Our mortgage interest rate is only 3% and the monthly payments aren't exorbitant, so he thinks it would be advisable to keep investing my money and paying my monthly mortgage. I have to admit, in my case, it DOES make sense.
    Sue
    My ex had a financial adviser. She allowed this person to strongly influence how she set up her finances: She went bankrupt, got her home foreclosed, and now lives in a trailer! That is the absolute truth. Living debt-free, as I do, is the way to go.

  10. #40
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    obviously she couldn't afford the house to pay it off in the first place ... that is not the same thing as the question here ..

    the person has the money to pay off the house . the question is should they tie up more money in the house or diversify the extra money in to other assets ...

    it is no where near the situation you are describing where there is no choice to make . you need money to have choices

  11. #41
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    I paid off my houses as soon as I could, many years ago. Living debt free is the way to go, as I posted, previously. Investments may go south, and see you lose a bundle. Once you pay off something, it's yours, yearly taxes notwithstanding. I only posted about my ex to show that financial planners can be full of it.

  12. #42
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    Quote Originally Posted by treeguy64 View Post
    I paid off my houses as soon as I could, many years ago. Living debt free is the way to go, as I posted, previously. Investments may go south, and see you lose a bundle. Once you pay off something, it's yours, yearly taxes notwithstanding. I only posted about my ex to show that financial planners can be full of it.
    I fully agree that living debt free is the ONLY way to go. Fortunately, I had parents who loathed debt, and their attitude rubbed off on me. We made our last house and car payments somewhere back in the mid-1980's, and used that money to start saving and investing for retirement...IRA, etc...Luckily, we realized that we, too, would some day grow old, and we had better plan for it. I talked to 3 or 4 "financial advisors", and came away with the feeling that I could get better advise by just reading a diverse selection of good articles in publications such as the Wall Street Journal, Investors Business Daily, etc.,etc. "Self Education" is far more valuable than ANY "advisors, IMO.

    I am constantly amazed at the number of retirees who are still deeply in debt, and have only a paltry sum set aside for emergencies, etc. I guess they figured they would never grow old. We're not rich, but if we get bored, and decide to go the the bank and pull out some cash, and head for the casino, it isn't going to impact us. We're sure glad that we "saw the light" decades ago.
    Things get better with age....I'm approaching Magnificent.

  13. #43
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    Quote Originally Posted by treeguy64 View Post
    I paid off my houses as soon as I could, many years ago. Living debt free is the way to go, as I posted, previously. Investments may go south, and see you lose a bundle. Once you pay off something, it's yours, yearly taxes notwithstanding. I only posted about my ex to show that financial planners can be full of it.

    ending up house rich and cash poor because you ACCELERATED dumping your extra money in to the house at the expense of growing other assets is not a good financial idea .. the longer you give market investments the `less pressure you put on time frame .

    having a nice amount of savings from investments can add a lot more safety and security to a plan then having to much dumped in to house where it is trapped .

    2008 saw helkocs and lines of credit closed and killed off at the worst possible time and now all the excess funds are trapped .

    you need a balance , pay off the house at the scheduled rate of pay off and don't keep feeding excess cash in to it in my opinion . there is no extra security having a load of money trapped in the house vs the normal rate in the house and those addiional funds working for you diversified in other areas that are liquid ... a nice diversified portfolio that includes bonds as well will not be selling stock in a down turn . a typical 50/50 mix can support many many years of draw if retired on bonds and cash ...

  14. #44
    What you said only works if you have a large portfolio, not a small one. It's all a personal thing.

  15. #45
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    not true at all ... you would be more secure paying off the house at the regular pace and holding on to more of your money if that was the case so you have more liquidity available to you if that was the case ..

    you are trying to pass off what might feel good mentally as something that makes smart financial sense and the two rarely go hand in hand

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