Retirement / Mortgage
I Retired after 42 years at UPS end of June 2025 (I Retired even before I heard anything about buyouts). My pension gave me 2 choices. Pension of 4500.00 per month or 3900.00 per month with a lump sum payment of 73,000.00. I’ll be 61 this September and my wife will turn 70. So we took the lump sum option. Our mortgage maturity date is September of 2026. Remaining balance approximately 19,000.00 and insurance and taxes are added into the payment of 2400.00 per month. Should I just finish and pay the 19,000.00 now and pay my own home insurance (2000.00 per year maybe more if State Farm gets their way) and my taxes are 8200.00 per year.
Terry Says
Congratulations on your retirement. Have you discussed the fact that you’ll owe taxes on the lump sum? Be sure to discuss with your accountant. You may have to make an estimated tax payment.
Then check with your mortgage lender to find out how you can prepay the balance. That will simplify your life.
It’s only another year. And yes, be sure to set money aside for taxes and insurance each year, and be sure to change the billing on those accounts from your lender to you.
Now is a good time to update your will, or maybe create a revocable living trust (check the video on my website) and put title to the house in your RLT.
And assuming you’ve covered your health insurance situation, as well.
PS Keep the balance of your money safe. Read this: https://www.terrysavage.com/t-bills-beat-cds-2/
