I'm close enough to retirement age to spend a lot time thinking about it. The goal is to maximize one's retirement income while minimizing your overhead. For many, the biggest monthly bill is their Mortgage. Its natural to want your home paid off before you retire. But for many, this is easier said than done.
A friend of mine was lamenting that she couldn't retire for a long time because she owed too much on her mortgage. I pointed out that when one retire's they still have to live somewhere. Having no mortgage is a great goal but dramatically reducing it can be just as useful. There is a way to do this.
For example, My friend's mortgage is over $2000 per month. Once she retires, she'd rather stay in her home. When the desired date comes, she'll owe less than half of her original loan. I pointed out that, at that future time, she could refinance for that lower amount. Her new mortgage would be half per month. With her overhead dramatically reduced, it might not matter if the mortgage is ever paid off. doesn't matter if the house is ever paid off. One day, years later when she decides to move, she'll get the equity from the home.
I have been pondering this trick but for a different purpose. But this is a topic for another post.
If you like this type of idea and haven't read my book, give it a try! The ebook is only 99 cents, free to Kindle Unlimited customers.
https://www.amazon.com/Ways-Dollar-without-Lowering-Lifestyle/dp/B0863RRYTK/ref=sr_1_3?dchild=1&keywords=100+ways+to+save+a+dollar+stilwell&qid=1594554913&sr=8-3
A friend of mine was lamenting that she couldn't retire for a long time because she owed too much on her mortgage. I pointed out that when one retire's they still have to live somewhere. Having no mortgage is a great goal but dramatically reducing it can be just as useful. There is a way to do this.
For example, My friend's mortgage is over $2000 per month. Once she retires, she'd rather stay in her home. When the desired date comes, she'll owe less than half of her original loan. I pointed out that, at that future time, she could refinance for that lower amount. Her new mortgage would be half per month. With her overhead dramatically reduced, it might not matter if the mortgage is ever paid off. doesn't matter if the house is ever paid off. One day, years later when she decides to move, she'll get the equity from the home.
I have been pondering this trick but for a different purpose. But this is a topic for another post.
If you like this type of idea and haven't read my book, give it a try! The ebook is only 99 cents, free to Kindle Unlimited customers.
https://www.amazon.com/Ways-Dollar-without-Lowering-Lifestyle/dp/B0863RRYTK/ref=sr_1_3?dchild=1&keywords=100+ways+to+save+a+dollar+stilwell&qid=1594554913&sr=8-3
