Retiring income will be about 12k monthly BEFORE TAXES

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

Yours is a good example of the unsophisticated approach to money management. You write interest off against rental income, thereby reducing taxable income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

Yours is a good example of the unsophisticated approach to money management. You write interest off against rental income, thereby reducing taxable income.

You are too sophisticated for us I guess…

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

I bc would never want to be a landlord/have renters. Everyone’s different.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

I thought good money management included a diverse portfolio or risky, and not so risky investments. If you have a paid off house, you can count it in the not so risky investments and use more of your other money in stocks and other more risky investments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

I bc would never want to be a landlord/have renters. Everyone’s different.

I see. So you'd prefer to have an empty and unused apartment under your feet? Ok.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

I thought good money management included a diverse portfolio or risky, and not so risky investments. If you have a paid off house, you can count it in the not so risky investments and use more of your other money in stocks and other more risky investments.

Not just diverse -- but balanced -- is key. In the DMV, if your house is paid off, chances are it's far and away your single biggest asset. That's not a balanced portfolio.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

If you want to live in overpriced housing in retirement when you are not anchored there for a job, it probably makes sense to keep a mortgage. But the better thing is just to give up the expensive house and live mortgage-free.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

I thought good money management included a diverse portfolio or risky, and not so risky investments. If you have a paid off house, you can count it in the not so risky investments and use more of your other money in stocks and other more risky investments.

Not just diverse -- but balanced -- is key. In the DMV, if your house is paid off, chances are it's far and away your single biggest asset. That's not a balanced portfolio.

Mine is paid off, worth $1.5M, and I have retirement assets worth 4x that. I have zero interest in being a landlord. Been there, done that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

If you want to live in overpriced housing in retirement when you are not anchored there for a job, it probably makes sense to keep a mortgage. But the better thing is just to give up the expensive house and live mortgage-free.

I don't know about you, but some of us aren't anchored for just a job. We have family and friends, etc. Plus, we're not so financially strapped that we have to "give up the expensive house" and move to Hicksville to retire comfortably.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

I thought good money management included a diverse portfolio or risky, and not so risky investments. If you have a paid off house, you can count it in the not so risky investments and use more of your other money in stocks and other more risky investments.

Not just diverse -- but balanced -- is key. In the DMV, if your house is paid off, chances are it's far and away your single biggest asset. That's not a balanced portfolio.

Mine is paid off, worth $1.5M, and I have retirement assets worth 4x that. I have zero interest in being a landlord. Been there, done that.

+1 another been there done that. No amount of money will make me do it again. I want to enjoy my retirement- peace and quiet

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

I thought good money management included a diverse portfolio or risky, and not so risky investments. If you have a paid off house, you can count it in the not so risky investments and use more of your other money in stocks and other more risky investments.

Not just diverse -- but balanced -- is key. In the DMV, if your house is paid off, chances are it's far and away your single biggest asset. That's not a balanced portfolio.

Mine is paid off, worth $1.5M, and I have retirement assets worth 4x that. I have zero interest in being a landlord. Been there, done that.

Yea, well, I have more than 4x that in retirement assets plus another house. I'm still not going to let a lucrative rental apartment sit there empty just to be cool.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

I thought good money management included a diverse portfolio or risky, and not so risky investments. If you have a paid off house, you can count it in the not so risky investments and use more of your other money in stocks and other more risky investments.

The equity in our paid of homes are 1.7mil, the paid off rentals are about 2.2mil and our iras/401k/brokerage is about 4mil. We usually call our handyman when there's a problem at the rentals, home depot and lowe's deliver & replaces broken appliances and haul away old ones...easy peasy...been a landlord for 25 years. The rental incomes pretty much cover all our basic expenses during retirement, dividends on top of that is just icing...we don't need to touch our stock portofios and feel secure in our diversification.

Not just diverse -- but balanced -- is key. In the DMV, if your house is paid off, chances are it's far and away your single biggest asset. That's not a balanced portfolio.

Mine is paid off, worth $1.5M, and I have retirement assets worth 4x that. I have zero interest in being a landlord. Been there, done that.

+1 another been there done that. No amount of money will make me do it again. I want to enjoy my retirement- peace and quiet

[Anonymous]

The equity in our paid of homes are 1.7mil, the paid off rentals are about 2.2mil and our iras/401k/brokerage is about 4mil. We usually call our handyman when there's a problem at the rentals, home depot and lowe's deliver & replaces broken appliances and haul away old ones...easy peasy...been a landlord for 25 years. The rental incomes pretty much cover all our basic expenses during retirement, dividends on top of that is just icing...we don't need to touch our stock portofios and feel secure in our diversification.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The whole "my house is paid off" thing is so overrated and not necessary to a comfortable retirement.

It is to us.

Right. If you’re not working during “retirement,” a paid mortgage is very nice. Not only does it decrease cash flow needs, but it’s savings for a future need, like a nursing home. For a lot of retirees, they aren’t trying to pile-up big stock market returns and leave an oversized sum to their kids. Rather, they’re just trying to live a peaceful life without burdening their kids. Peace of mind is where it’s at.

That's a very narrow minded an unsophisticated way of looking at things. We, for example, own a $1.8 million rowhouse with a basement apartment and are retired. We have a $700,000 mortgage on the house that we could pay off tomorrow. Instead, we rent out the English basement apartment for almost exactly what the mortgage is. Why would we want to be sitting on $1.8 million in home equity that we can't touch?

Why pay a bank interest when you could be investing your monthly rental income and living debt free?

I thought good money management included a diverse portfolio or risky, and not so risky investments. If you have a paid off house, you can count it in the not so risky investments and use more of your other money in stocks and other more risky investments.

Not just diverse -- but balanced -- is key. In the DMV, if your house is paid off, chances are it's far and away your single biggest asset. That's not a balanced portfolio.

Mine is paid off, worth $1.5M, and I have retirement assets worth 4x that. I have zero interest in being a landlord. Been there, done that.

+1 another been there done that. No amount of money will make me do it again. I want to enjoy my retirement- peace and quiet

We're not talking about owning an apartment building. We're talking about a basement apartment in your home. It's not exactly a lot of work, and the tax benefits are pretty lucrative. I already mentioned offsetting interest expense against the rent. Another is property taxes. The property tax for our place is about $13k a year. As you know, the federal limit is $10k for property tax deduction. But since 1/3 of my house is a rental, 1/3 of my property tax is a rental expense. So I can write 8700 off my taxable income as property taxes, which is under the limit, and write off the remaining 4300 against my rental income as an rental expense. In other words, I can claim deductions for the entire 13k.

Smart.

[Anonymous]

No renters for us either. I don’t want to be someone’s phone call when something breaks. I also don’t want to share my space with someone else.

Stop being so defensive - it’s like we hit a nerve or something.