HELOC and Retirement
Hello Terry,
Our family loves seeing and hearing you on tv an radio.
My mother referred me to you over 10 years ago and I referred you to my daughters, I will be 59 in May 2022.
I was able to ask you a quick question when you were on wgn radio last Sept.
Re: Retirement
I have a HELOC owing $80,000.00, paying $500 per month.
My question would it be a good idea to pay off HELOC balance and allocate those funds to our Stifel investment account? (We do not have a mtg. its paid off)
We recently sold a summer home in MI and would like to purchase a new vacation home.
My wife is a public school teacher in Des Plaines and will retire in 2026 @ 62 years old, I will probably retire at same time.
Your advise would be appreciated.
(BTW – what is your opinion of Stifel?)
Thank you,
Bob
Terry Says
I think you’re making good progress toward retirement.
Definitely pay off the HELOC — no sense in paying interest that will likely reset at a higher rate.
And if you can buy a vacation home, with NO MORTGAGE, that’s great.
Just don’t plan on taking SS early –either of you. That would be a huge, and long-lasting mistake.
I think this would be a good time to work with a fee-only FIDUCIARY financial planner — someone who is not tryng to sell you something. Find one you can trust at www.Wealthramp.com.
Nothing wrong with Stiffel — but that’s not a broker’s job. They only make money when you “do something” — buy or sell. And if they are also charging you management fees, that’s too much for what you’re not getting — That is you’re not getting true retirement planning, advice on SS and Medicare and Long Term Care Insurance and estate planning.
For that you need an independent financial planner who does not charge commissions!
Also I’m going to suggest you read Larry Kotlikoff’s new book: Money Magic. I think there’s a lot in there that will rearrange your thinking! And this is the perfect time to read it.
