Where to get the money for our major home renovations.
My husband and I wonder where we should take our money out from to do a major remodel on our home (at least costing $400k+) We purchased an older, small, outdated ranch on a wonderful property that we fell in love with4 years ago.
We are both retired and getting SS and he a military pension( +he has $600k+in TSP I’ve got $300k in IRAs plus $100k in stocks. Some other odds and ends: bank savings and money markets ($300k).
We’ve been saving and planning but Covid, supply chain, inflation etc really screwed up what we easily could have managed three years ago. Now, not so.
I’m 70 yo, he’s 64 yo.
Besides taking from the $300k money market bank investment, should we sell stock so we’re only taxed on capital gains or withdraw extra needed funds from our IRAs/TSP??? ( these are traditional IRAs.
Why a major remodel? We love our location and after moving place to place with his military and government jobs, Before I die, I want a home that’s one that I can permanently remodel and decorate. No resale while we’re alive to consider. Travel? We’ve been to and lived in most places during his military/govt tenure.
Just want a nice comfortable home where friends and family will enjoy visiting.
Thanks,
Terry Says
Eek! I don’t want to destroy your dream, but using all that money will devastate your retirement, especially if either of you needs long term care. Could he consider getting another job? That would qualify you for a home equity loan, and help with this plan. Without additional income, I can’t see this project making sense.
My most creative idea is to contact HGTV and see if they would consider doing this as a “renovation project” with one of their stars! (It all depends on where you live.)
My most practical idea is to only do HALF the planned renovation and see where you stand financially.
My most IMPORTANT idea is to have a meeting with a FIDUCIARY, fee-only financial planner you can trust to walk you through the implications of each choice. A stock sale now could impact your Medicare Part B costs (assuming you are on Medicare and he has TriCare). There are many moving parts to this. So go to this link and set up a meeting with someone who can walk you through the specifics and who is not trying to sell something to you!
