tag:blogger.com,1999:blog-5601819916630680133.post4404973044877999250..comments2024-01-23T23:07:00.959-08:00Comments on GRACEful Retirement: Retiring with DebtGrace.http://www.blogger.com/profile/03557395027685855901noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-5601819916630680133.post-78191038027681007452011-01-03T17:17:07.906-08:002011-01-03T17:17:07.906-08:00I have the 2 mortgages on the 2 homes and didn'...I have the 2 mortgages on the 2 homes and didn't intend to pay them off before retirement...Over the past 20 years I have invested the free cash flow instead of paying off the mortgages, and have set aside $1.7MM in retirement and non retirement accounts....That will easily provide for payments in the future,....Retire early with low interest debt! And don't care if I get the $30M per year that ss may pay.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-46531952723684174172011-01-01T11:15:24.750-08:002011-01-01T11:15:24.750-08:00A very expensive place- yet only 3K for Taxes and ...A very expensive place- yet only 3K for Taxes and Insurance? We live in the rural midwest. Our taxes and insurance run at 7K for the year. The only thing I could think is she was in California and had her taxes frozen. In that case- leaving the house was a major mistake.<br /><br /> Once my husband is done with his "farming phase" we will sell this place and buy something very small near a city center where we can walk or take public transportation. We won't rent - because the rents can change too easily.<br /><br />Grace- you are doing great! Hang in there. Debt free by retirement is definitely worth it!Janettehttps://www.blogger.com/profile/10054888725603183006noreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-16693972076427754382010-12-27T12:22:03.763-08:002010-12-27T12:22:03.763-08:00@Carol - I suppose it depends where you live.
Our...@Carol - I suppose it depends where you live.<br /><br />Our parents live in a VERY expensive area and have paid off homes. Their expenses run about $3k per year for insurance & property taxes. You can throw in a little more for maintenance.<br /><br />A studio apartment would cost no less than $15k per year, and Grandma's room/board in a modest retirement community is $30k per year. IT's a 1-bedroom, but you can't turn around in the place. All they provide is room and board - no other services. I've often thought she would have been better off keeping her house (it was small) and hiring a chef and a maid.Unknownhttps://www.blogger.com/profile/07344509570253594672noreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-19119102743623973362010-12-24T08:59:38.490-08:002010-12-24T08:59:38.490-08:00I guess one nice thing about retiring is having he...I guess one nice thing about retiring is having health insurance through medicare and you don't have to worry about that anymore. Although, I hear most have to buy supplemental. It does lead one to think about taking good care of oneself to not have to rely on doctors in retirement age.Jerryhttps://www.blogger.com/profile/02297947643006068426noreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-31610110329546575382010-12-23T14:44:04.446-08:002010-12-23T14:44:04.446-08:00My 77 year old stepfather wants to retire soon, bu...My 77 year old stepfather wants to retire soon, but is still working until the house is paid off sometime next year.<br /><br />Why my parents still had debt into their seventies is beyond me. (Now you know why I do into my 50s!)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-7342306867753556002010-12-21T19:31:13.097-08:002010-12-21T19:31:13.097-08:00Hey anon, with the 2 mortgages, is 2 years away fr...Hey anon, with the 2 mortgages, is 2 years away from retiring and is thinking that the free cash flow they're investing instead is going to fund the retirement.......I've got a bridge to sell you in Brooklyn. Real cheap. You'll be a gazillionaire just from collecting the tolls.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-19337731468930765122010-12-21T18:35:57.775-08:002010-12-21T18:35:57.775-08:00I have two mortgages, but with low interest rates ...I have two mortgages, but with low interest rates (4.375% and 5.75%) and do not intend to pay these off before retirement. Why? I'm investing the free cash flow so that when I retire in 2 years or so, my nestegg and retirement income will be about 2 times my current income, and making those payment will be easy. Invested money has higher returns then the loan interest.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-1938487686256278542010-12-21T17:34:50.049-08:002010-12-21T17:34:50.049-08:00Mom lives in an independent living apt. and has to...Mom lives in an independent living apt. and has too much savings to qualify for Medicaid. I am trying to play the odds - her mother lived to 100. Mom needs help in the a.m. and p.m. ($90 a day. If she's been ill, we need someone there 24/7 until she recovers to manage for herself. Talk about some big checks!) Plus she pays her rent and refuses to move to assisted living where she would spend less each mo. And these are really nice places, not crummy holes in the wall. Medicaid facilities don't rank so high on my list, and she would have to go where there's an opening, which may not be so close in location to me. The last nine years have been a real learning experience for me! It's given me all my gray hair. Mom said she'd pay for my colorist to keep me a "dyed-haired blonde"!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-47895177830864690312010-12-21T17:33:21.010-08:002010-12-21T17:33:21.010-08:00I'll have to read that article. I know that m...I'll have to read that article. I know that my MIL did not accumulate credit card debt until she and my FIL were retired, and he became quite ill. She used the cc's for medications that weren't covered under her insurance. She had to do a reverse mortgage to pay her bills. She had her house paid in full, and it was her only asset.<br /><br />I will not be able to retire with a house payment, although I'm planning on downsizing to a much smaller home in retirement. Even if our mortgage is paid off, there is still maintenance, taxes, and insurance. I don't have credit card debt now (thankfully) and I hope to not have car payments as well. It's hard for me to even think of retiring at this point, with college costs looming. I'm envious of you...only 3.5 years left on your mortgage? We switched to a 15 year mortgage, but I hope to have it paid off in 10.Sharonhttps://www.blogger.com/profile/13940623529019637336noreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-27997079772305332432010-12-21T16:51:54.607-08:002010-12-21T16:51:54.607-08:00Regarding your comment about retirees renting: al...Regarding your comment about retirees renting: although my house is paid off, it costs me about $700 a month in property taxes, homeowners insurance, and maintenance. This is for a relatively small house in the downtown area of a large city. Renting, I'd have none of these expenses, except (comparatively) inexpensive renters' insurance. And I expect my utility bills would be less if I were renting, also.Carolnoreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-63631355335876994612010-12-21T14:59:45.352-08:002010-12-21T14:59:45.352-08:00So, Anon--ifyour mother is eligble for Medicaid (I...So, Anon--ifyour mother is eligble for Medicaid (I assume she already gets Medicare?) why would you 'keep her off of it?' Though, clearly, if she is eligible for Medicaid, there's no estate to speak of.Grace.https://www.blogger.com/profile/03557395027685855901noreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-21623439631059832772010-12-21T14:03:58.503-08:002010-12-21T14:03:58.503-08:00Leaving an inheritance for their children - HAH! ...Leaving an inheritance for their children - HAH! I'm trying to stretch the money that my 89-year-old mother has to keep her out of Medicaid . . . and she goes behind my back and spends it. If we are lucky, the four of us kids can fight over the last nickel.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5601819916630680133.post-83518657516723202562010-12-21T13:43:17.078-08:002010-12-21T13:43:17.078-08:00I agree fully with your stance on leaving inherita...I agree fully with your stance on leaving inheritances to your children (and I'm 24!) The money my parents have worked so hard to save, is THEIR money. And, when they get to retirement (soon-ish), I hope they live long enough to enjoy every last penny of it! There's no way I'd live my life expecting to someday receive that windfall.Bethnoreply@blogger.com