Home value and retirement planning

[Anonymous]

There do happen to be people in this world who make enough while they're working to be able to carry a mortgage in retirement (even retiring early!), because their nest egg factors in the amount of their mortgage.

And in the meantime they invest the money that other folks plow into paying off a mortgage early.

And that way if they lose a job before they retire, they have all sorts of liquid funds at their disposal, rather than having worked so hard to pay off a mortgage early and then be faced with having to sell the house because they have no cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Isn't that the way it is supposed to work? You pay the mortgage while you are working so that when you retire, it is paid off. Mortgages are for 15-30 years, not 50-75. The only people I know who plan to carry a mortgage in retirement (beyond the first few years) have made poor financial choices along the way.

this makes me think you don't know a lot of people outside your tax bracket

Wrong, I know people who live within their means and buy smaller and when they refi they pay it so that it doesn't extend their years of mortgage. If you constantly refi and extend the length of your loan and never pay it back, it is really renting.

That is us. HHI $150k, mortgage will be paid off when we are 55. What a relief.

[Anonymous]

Anonymous wrote:There do happen to be people in this world who make enough while they're working to be able to carry a mortgage in retirement (even retiring early!), because their nest egg factors in the amount of their mortgage.

And in the meantime they invest the money that other folks plow into paying off a mortgage early.

And that way if they lose a job before they retire, they have all sorts of liquid funds at their disposal, rather than having worked so hard to pay off a mortgage early and then be faced with having to sell the house because they have no cash.

Well, gee, do you think I'm stupid enough to pay off my mortgage early and leave myself strapped for cash? We have over $2.5 million in invested assets, and a paid off house.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Isn't that the way it is supposed to work? You pay the mortgage while you are working so that when you retire, it is paid off. Mortgages are for 15-30 years, not 50-75. The only people I know who plan to carry a mortgage in retirement (beyond the first few years) have made poor financial choices along the way.

this makes me think you don't know a lot of people outside your tax bracket

Wrong, I know people who live within their means and buy smaller and when they refi they pay it so that it doesn't extend their years of mortgage. If you constantly refi and extend the length of your loan and never pay it back, it is really renting.

It's all fine and good that this is your belief WRT to mortgages, but that has zero to do with whether mortgages/home equity are factored into retirement for most people. Or, ditto the PP above - you don't seem to know a lot about people outside your bubble.

The question is ridiculous.. How can you eliminate housing choice from ones retirement planning? Tell me, how do people know someone outside of their "bubble", if they know them, wouldn't they be in their "bubble"?

[Anonymous]

Anonymous wrote:

Anonymous wrote:There do happen to be people in this world who make enough while they're working to be able to carry a mortgage in retirement (even retiring early!), because their nest egg factors in the amount of their mortgage.

And in the meantime they invest the money that other folks plow into paying off a mortgage early.

And that way if they lose a job before they retire, they have all sorts of liquid funds at their disposal, rather than having worked so hard to pay off a mortgage early and then be faced with having to sell the house because they have no cash.

Well, gee, do you think I'm stupid enough to pay off my mortgage early and leave myself strapped for cash? We have over $2.5 million in invested assets, and a paid off house.

You may not be stupid enough, but there are a lot of people of far meager means who think that paying off a mortgage early is the be-all end-all, and end up very strapped if something goes wrong before they get it completely paid off, leaving themselves with huge amounts of money tied up in a house that they can't get to easily. Money that would have been far better off invested somewhere else, especially in this era of low mortgage interest rates.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Isn't that the way it is supposed to work? You pay the mortgage while you are working so that when you retire, it is paid off. Mortgages are for 15-30 years, not 50-75. The only people I know who plan to carry a mortgage in retirement (beyond the first few years) have made poor financial choices along the way.

this makes me think you don't know a lot of people outside your tax bracket

Wrong, I know people who live within their means and buy smaller and when they refi they pay it so that it doesn't extend their years of mortgage. If you constantly refi and extend the length of your loan and never pay it back, it is really renting.

It's all fine and good that this is your belief WRT to mortgages, but that has zero to do with whether mortgages/home equity are factored into retirement for most people. Or, ditto the PP above - you don't seem to know a lot about people outside your bubble.

The question is ridiculous.. How can you eliminate housing choice from ones retirement planning? Tell me, how do people know someone outside of their "bubble", if they know them, wouldn't they be in their "bubble"?

I specifically said tax bracket, NOT bubble.

I can almost guarantee that the statistics on people with no mortgage when retirement age is much lower than financial gurus would like

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Isn't that the way it is supposed to work? You pay the mortgage while you are working so that when you retire, it is paid off. Mortgages are for 15-30 years, not 50-75. The only people I know who plan to carry a mortgage in retirement (beyond the first few years) have made poor financial choices along the way.

this makes me think you don't know a lot of people outside your tax bracket

Wrong, I know people who live within their means and buy smaller and when they refi they pay it so that it doesn't extend their years of mortgage. If you constantly refi and extend the length of your loan and never pay it back, it is really renting.

It's all fine and good that this is your belief WRT to mortgages, but that has zero to do with whether mortgages/home equity are factored into retirement for most people. Or, ditto the PP above - you don't seem to know a lot about people outside your bubble.

The question is ridiculous.. How can you eliminate housing choice from ones retirement planning? Tell me, how do people know someone outside of their "bubble", if they know them, wouldn't they be in their "bubble"?

I specifically said tax bracket, NOT bubble.

I can almost guarantee that the statistics on people with no mortgage when retirement age is much lower than financial gurus would like

I know many people in the under $30k income level, do you?

[Anonymous]

Anonymous wrote:

Anonymous wrote:[
I specifically said tax bracket, NOT bubble.

I can almost guarantee that the statistics on people with no mortgage when retirement age is much lower than financial gurus would like

I know many people in the under $30k income level, do you?

I actually do...and they don't own homes. So, that is a moot point.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There do happen to be people in this world who make enough while they're working to be able to carry a mortgage in retirement (even retiring early!), because their nest egg factors in the amount of their mortgage.

And in the meantime they invest the money that other folks plow into paying off a mortgage early.

And that way if they lose a job before they retire, they have all sorts of liquid funds at their disposal, rather than having worked so hard to pay off a mortgage early and then be faced with having to sell the house because they have no cash.

Well, gee, do you think I'm stupid enough to pay off my mortgage early and leave myself strapped for cash? We have over $2.5 million in invested assets, and a paid off house.

You may not be stupid enough, but there are a lot of people of far meager means who think that paying off a mortgage early is the be-all end-all, and end up very strapped if something goes wrong before they get it completely paid off, leaving themselves with huge amounts of money tied up in a house that they can't get to easily. Money that would have been far better off invested somewhere else, especially in this era of low mortgage interest rates.

At least they have a roof over their heads that's mortgage-free. Most people retire with only a pittance in savings and SS -- a mortgage would be deadly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There do happen to be people in this world who make enough while they're working to be able to carry a mortgage in retirement (even retiring early!), because their nest egg factors in the amount of their mortgage.

And in the meantime they invest the money that other folks plow into paying off a mortgage early.

And that way if they lose a job before they retire, they have all sorts of liquid funds at their disposal, rather than having worked so hard to pay off a mortgage early and then be faced with having to sell the house because they have no cash.

Well, gee, do you think I'm stupid enough to pay off my mortgage early and leave myself strapped for cash? We have over $2.5 million in invested assets, and a paid off house.

You may not be stupid enough, but there are a lot of people of far meager means who think that paying off a mortgage early is the be-all end-all, and end up very strapped if something goes wrong before they get it completely paid off, leaving themselves with huge amounts of money tied up in a house that they can't get to easily. Money that would have been far better off invested somewhere else, especially in this era of low mortgage interest rates.

But that's blatantly obvious.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:[
I specifically said tax bracket, NOT bubble.

I can almost guarantee that the statistics on people with no mortgage when retirement age is much lower than financial gurus would like

I know many people in the under $30k income level, do you?

I actually do...and they don't own homes. So, that is a moot point.

Don't own and aren't saving a penny for retirement or college. That's not the situation of most people on this forum.

[Anonymous]

I plan to have a mortgage when I retire. However it will be very small. I plan to sell this house (near DC) and take the proceeds to buy a house somewhere much cheaper. If I can't pay in full - I will have a small mortgage. I think it will be manageable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:[
I specifically said tax bracket, NOT bubble.

I can almost guarantee that the statistics on people with no mortgage when retirement age is much lower than financial gurus would like

I know many people in the under $30k income level, do you?

I actually do...and they don't own homes. So, that is a moot point.

Don't own and aren't saving a penny for retirement or college. That's not the situation of most people on this forum.

Yes, but I believe there was an earlier statement about only idiots entire retirement with a mortgage. Maybe the well off demographic of this board, but I still want to see the nationwide stats. Plenty of middle to upper middle folks caught in the ridiculous cost of living increase across the board. These folks probably have made the best decisions a available to them, yet still enter retirement without a paid off mortgage.

[Anonymous]

You mean they bought too much house. We were making $184K when we bought our $349K house. We're still in that house, although we make $380K. I can guarantee you we won't have a mortgage in retirement. No one holds a gun to a couple's head and makes them buy an expensive house.