Good luck with the boat Dave! I highly recommend it!
Thanx, Scout. I've considered that as well Extra closing costs may make me look the other way. I used to work for the state before going Fed. I'm going back and will be eligible for a second pension in less than 2 years; so no, I won't be sitting on my hands.
I spoke to a financial adviser from Edleman again today. He really thinks he can comfortably beat the 3.5 on the home, and is pushing to roll over my TSP and the money from the home sale. I like what he said, but of course he is trying to get a client. They would charge me 1.34% a year, but maybe I would only need them in the beginning to get the ball rolling. He said that I can fire him later and keep the account with Schwab (that's who they use). Tempting
P.S. Maybe a small boat
Good luck with the boat Dave! I highly recommend it!
Thought I would drop an update; hoping some of you will revisit.
Just read over this thread again, and I'm getting close to crunch time.
SO, I have a contract on the old home for about 10k more than I owe on the new one, closing set for June 30th. This money will be eaten up by some upgrades I need to do. And, of course, it could fall through.
I'm still not sure what I want to do. Much has changed since my last post. I'm paying around $780.00 a month interest, and it hurts. I'm just not wired to pay fees and interest if there is any way to avoid it.
The virus has dramatically changed the market. I believe the long term outlook is still good, but...
Any updated advice? What would you do in today's market?
thanx
If you still want (or need) the new house, sell the old house ASAP and roll whatever isn't used on closing costs, down payment and minor improvements into a balanced portfolio.
Don't become a client of that money management firm. It will be a headache to leave and will likely involve various fees.
Be honest about buying a boat. Financing, gas, storage, maintenance fees will be a second mortgage in itself.
Dave,
Exciting to be that close to retirement!
I looked back at my Jan post, and I think I still recommend the same thing.
Keep the 3.5% mortgage. Is it 15 yr also? If not, you can still put in additional funds monthly to make it into a 15 yr.
1.35% is too much for a financial planner. But like you said, you could use it just to get started then take it over yourself.
You may want to keep some in your TSP. If nothing else, it would give you a good reason to keep in touch here. (That’s what I did.) Plus, if you take it ALL out, you can’t move any back later on. As long as you maintain SOME in TSP, you can move some back later if you want.
Don’t buy a boat unless that is a pastime that you intend to be a big part of your life. Find a friend with a boat first to see if you want to invest the time and $$ in a boat.
It’s not too early to start planning for your RMD’s at 72. Tax rates are probably as low as they will get. Consider rolling Traditional over to a Roth, a little at a time.
Good Luck! And let us know what you decided.
There are 10 types of people in the world. Those who know binary, and those that don't!!
Retired on December 31, 2018!!
PS. Did you look into a Federal job or part-time contractor? Only IF you think you want to work a little longer.
There are 10 types of people in the world. Those who know binary, and those that don't!!
Retired on December 31, 2018!!
Personal experience: I would never buy another boat unless it was brand spankin' new. Give me one that nobody has ever tinkered with or neglected, and I could probably keep it going and avoid it being a big hole in the water that I pitch money into. However, if you intend to keep one in the water most of the time (at your own dock, for example) it is going to be a money pit, regardless if it's new.
Thanx for replies @rangerray - the boat thing was always tongue in cheek, implying "enjoying a bit of the good life."
Update: inspections done, unfortunately my septic system failed and I had to come down because of that. I will still have enough to pay off the new home, and maybe a couple of extra thousand left over - so no boat for me
So, the last hurtle is the appraisal next week. Cross your fingers for me!
So I'm leaning very heavily towards paying off the home, and, at least for the time being letting the TSP ride.
Where there's a will, there's a way on that boat.
I am a recent Edelman client.
I got involved with them a little prior to selling a house for a nice profit, moving cross country, and starting life anew... Personally, the advice I received on budgeting, unexpected costs, emergency funding, investment strategy, and insurance needs has been spot on. And, yeah, the little investment account I have with them has that 1.7% fee - but I now can watch what they do and can make similar moves in my much larger TSP account. They know what I do with their advice and they are quite good with it. Also, I have never been pushed into investing more with them. All in all a great experience.
As far as that fee, to me it also seems a bit steep for a company that talks negatively about investment fees - but it is in the clear. You know what you are paying for. I will probably roll my TSP over at retirement and let them deal with the micro mess of allocation investing in 20 or 30 sectors. I might not have internet access in my Winnebago or yacht. All I need them to do is cover the salary of my driver/captain.
Lookin' up at the 'G Fund'!!!
Got an update, finally!
Home sold (for more than we were asking!). Finally closed yesterday. I have enough to pay it off, and then some.
I had the wire all set up, all I had to do was go to the bank and sign, but I got cold feet.
I'm 57 years old. Perhaps I should enjoy some of the money. The loan is at 3.5. I'm paying 780.00 a month interest, which I hate. My TSP is up 7% in the last 12 months (I got blessed with timing and was in G when the virus crash came). I'm back in S and G now. My etrade, however, is down. SO, the TSP guys are doing better than I've been able to do myself.
Are there stocks I could buy with dividends high enough to protect me if I put in, say 100,000?
Thanx for any input - I'm just not sure how I want to play this now with the economic uncertainty that the world is currently experiencing.
I'm open to one more round of advice.
Dave,
In your other thread you asked if you should pay off your new mortgage? You said you had enough to do it. I guess my perspective is 1) paying off your new mortgage how will that affect your retirement income short term and long term? and 2) how long is your mortgage and what will your interest/principle costs be vs. retirement income?
Example: $780 interest/month is $9,360/year and $140,400 for 15 years.
Obviously it will be you and your wife's decision on what to do. But I would say let the math give you your best option.
May the force be with us.
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