Reply to Financing home purchase in retirement

Forum Index » Money and Finances

Reply to "Financing home purchase in retirement"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]I've stopped maxing my 401K in my 40s for exactly this issue. My money is going elsewhere.

That said, you should get a mortgage, and you will have no trouble getting one with your asset position, on top of other retirement benefits.[/quote]

OP here. What tax bracket are you in though?  We are in the 37% bracket usually plus high state income tax. We have been for probably 15 years. We also plan to start Roth conversations filling the 24% tax bracket as soon as we retire. We plan to wait to 70 for SS.

I think about stopping the 401k contributions above match now. At least I would be paying that taxes now. But honestly I don’t think it moves the needle much given that the returns in our 401ks have been far exceeding any annual contributions. [/quote]

I’m trying to get a picture of your retirement plans. 
Net Worth $7,500,000
401ks  $6,000,000
House Equity $800,000

That leaves $700,000 in non 401k investments.

Your current come puts you in the 37% tax bracket which means it is over $750k this year. You also say that you have been in this bracket for the last 15 years.  Where does your money go? Your non-401k savings are small and you can only put so much in your 401ks.  Are you supporting other family members? Do you make substantial donations?  Do you travel? Your house equity is small compared to your income and you plan to have  mortgage in retirement for a $1.5-$2m house.

Upon retirement, you plan on converting to ROTH at the 24% tax bracket level. This is about $400k, let’s say that is $275 post tax.  I feel like you won’t have much left to convert to ROTH, once your expenses are covered.  Or do you have another income source in retirement (that is not taxable).[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics