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Real estate or not

By Terry Savage on June 04, 2019 | Financial Planning / Retirement

I was recently laid off by my company with a severance package, I have a couple of hundred thousand saved in my 401k. I have about 30k to invest with, is moving into another house and renting the one I’m in currently make sense for long term?

Terry Says

Gosh, that’s a big question — and I don’t know your overall circumstances or your age.  But ask yourself why you want to be responsible for the current home you own, especially if you’re not living there.  As a single person, you can exclude $250,000 in capital gains on the sale of your residence. If you pay off your mortgage balance, you could put the cash literally in the bank (not in risk investments).  Then you can move forward in your life — deciding where to live, where a future job might take you, etc.

To get more detailed advice, try finding a FIDUCIARY financial planner, which you can easily do at Wealthramp.com.

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