Taking on a new mortgage
Terry – I’m hoping to retire in about 12 years. On our current mortgage, we would have roughly $50,000 remaining in 2030 (when I retire). We are considering a move to a newer, more expensive house. By my estimates, we would have roughly $291,620 remaining in 2030 on this new mortgage. While that scares me, I wonder if the fact that I will have a pension ($100,000 +) as well as a 403B of over $300,000 total….if we would still be okay. We would still have kids in the house until about 2040 so we would be staying in the house anyway. Any advice is truly appreciated!!!
Terry Says
Simple answer: If you have kids in your house until 2040, you can’t retire until 2040! Unless, of course, they are going to live there as adults and support you!
You need to do some financial planning. Your pension is taxable — so that leaves less to live on. And inflation will eat away at the spending power of your after-tax pension check.
You’ll have medical expenses, and Medicare supplements — and potentially other healthcare expenses in retirement.
You really need a financial planner. Consider finding a fiduciary planner at Wealthramp.com.
