My situation: Forced retirement in 6/2020. I will get a job, but most likely low pay.
I believe I can live off the pension if I have no house payment.
Just bought my retirement home. The projected sale of my current home should net
a little more than what I paid for the retirement home. My current home is paid off, new home has
a 30 year VA at 3.5%.
Pondering if I should use the money from the sale of my home to pay for the new one
completely, partially, or carry a loan.
My TSP last year pulled in more than 3.5%. It's at 250k now.
I have a little money in the stock market, and I averaged well over 3.5% last year (before dividends).
So what would you recommend? I'm considering putting some in the market, but I know that's a crap shoot.
My 3.5% on the new home is low enough that I think I could probably find something (any ideas?) that would
get more than that, perhaps an annuity on the TSP?
Would you pay off the home, or maybe a balloon payment, and invest some of the money while carrying some
of the loan? Would you pay off the loan?
If the home loan had a higher interest rate, I would just pay it off, but I'm thinking I should probably be able to come out ahead with investments.
Thanx for any advice.
Dave
I believe I can live off the pension if I have no house payment.
Just bought my retirement home. The projected sale of my current home should net
a little more than what I paid for the retirement home. My current home is paid off, new home has
a 30 year VA at 3.5%.
Pondering if I should use the money from the sale of my home to pay for the new one
completely, partially, or carry a loan.
My TSP last year pulled in more than 3.5%. It's at 250k now.
I have a little money in the stock market, and I averaged well over 3.5% last year (before dividends).
So what would you recommend? I'm considering putting some in the market, but I know that's a crap shoot.
My 3.5% on the new home is low enough that I think I could probably find something (any ideas?) that would
get more than that, perhaps an annuity on the TSP?
Would you pay off the home, or maybe a balloon payment, and invest some of the money while carrying some
of the loan? Would you pay off the loan?
If the home loan had a higher interest rate, I would just pay it off, but I'm thinking I should probably be able to come out ahead with investments.
Thanx for any advice.
Dave