HELP
Hi Terry,
My husband and I are 75 and 77. We have $415,000. We sold our home and bought a 1200 sq, ft. condo. We also own a condo in Florida. Our combined mortgages with taxes are $22,800. per year. Our SS combined is $36,190.
We owe $250,00 on both homes. We know we should sell our Fl. home, but we would lose over $100,00. Florida costs us $1,000. per month. My husband is very ill with cancer and also takes dialysis. He loves Florida and has a hard time in the winter and I love it too, but we would never live there as our children and grands are here in Il. We have a $100,000 CD. We had $200,000. with Vanguard, but got worried and now only have $50,000. in bonds and less than about 6,000 in an index fund. What advice would you give us? We obviously need to make some money, but can’t be risky. Any help would be appreciated. We trust your advise. Thanks, Mary
Terry Says
Take a deep breath. I understand your worry, but from my perspective (easy to say, I know), you’re worried about the wrong thing. You do have a savings cushion. So spend the next couple of years concentrating on your husband’s situation, helping him through his health challenges. Keep your Florida home, if only because it is his reward for working so hard throughout his life.
Then, when likely he passes away before you do, it will be time to make decisions about where to have your residence. It may be possible to sell your home in Illinois, and just come up for the summer to stay with your children during the winter months. OR, you might decide that you don’t want to be alone, and far away — and the decision to sell Florida will become obvious. You might even sell both homes and move into a senior community near your family. BUT — those decisions are far down the road!!
Don’t go searching to make “more money” as that will involve risk. Keep the money you have invested in CDs or a Money Market mutual fund, with just a bit of exposure to stocks. And concentrate on what’s important now — relieving your husband of this additional financial worry. Tell him I told you this, if it will give him more peace of mind.
Then write me back when you’re faced with different decisions. As my grandmother used to say: “Don’t build up horrors before they exist!” Or maybe Scarlet O’Hara said it better: “I’ll think about it tomorrow!”
