At 65: A House Paid for and low bills > 401k Retirement Fund
- Thread starter Stuntone
- Start date
Our house will be paid off when I am 60. We'll probably move into one of those senior communities and rent our house out to military officers. Once my wife retires at 62, she wants to do a few years as an administrator before fully retiring. Then we can do a lot of traveling, spoil the grandchildren (I am literally an Uncle/Grandpa through my youngest sister’s child), and just enjoy our winter years as much as possible, considering my health.
Many working class people have homes and no mortgages. Inherited or either paid off.
I paid my house of 4 years ago. It's amazing and freeing not having to worry about that mortgage on the 1st. I see so many people struggling and scrambling at the end of the month trying to scrap up money to pay that rent or mortgage. It's another day too me.
Dreamchaser
All Star
My parents are in this situation. The 401k is more important than the house. In retirement you need to have enough for expenses. My parents Social Security is enough to sustain, the 401k is on top of that to maintain whatever lifestyle they want.
You likely didn't acquire your home post COVID. The rules are different now. Regular working class people have to financially burden themselves to own a home.
Many working class people have homes and no mortgages. Inherited or either paid off.
I paid my house of 4 years ago. It's amazing and freeing not having to worry about that mortgage on the 1st. I see so many people struggling and scrambling at the end of the month trying to scrap up money to pay that rent or mortgage. It's another day too me.
If I went out and bought a home the $670 I pay a month for rent would easily increase to $1200 or more almost doubling my baseline monthly housing cost. Beyond that I would incur maintenance expenses I don't have now. The majority of the money I don't now have to spend on a higher mortgage is invested in the stock market or saved monthly. II could cut into those investments/savings and make mortgage payments with some of the money I'd rather not.
Renting over the long term has allowed me to minimize my living expenses. All my fixed monthly expenses combined don't add up to what I'd have to pay for just a mortgage putting 20% down on the average home where I live. I can save and invest upwards of 60% of my take home pay because I don't own a home.
This is a myth. Social Security won't fail it simply won't cover what it once did. You'll still get it just not at the same rate people get it today with cost of living raises. It'll be in the 80% range vs what it is now.I'm not even factoring in Social Security in my long term financial planning. Because the program is toast it's just a matter of time before it fails.
Will Social Security run out? Here's what could happen to your benefits
The 2024 report from the Social Security trustee board indicates that, at the current rate, full benefits will no longer be available in 2035.
www.cnbc.com
Believe a government that ran up 37 Trillion dollars in debt to safeguard your retirement plan if you want. The prudent plan would be to prepare for the Government to eventually default on some or all of its obligations.This is a myth. Social Security won't fail it simply won't cover what it once did. You'll still get it just not at the same rate people get it today with cost of living raises. It'll be in the 80% range vs what it is now.
Will Social Security run out? Here's what could happen to your benefits
The 2024 report from the Social Security trustee board indicates that, at the current rate, full benefits will no longer be available in 2035.
Social Security will still exist because workers and employers pay Social Security tax. Again they'll have to adjust what's paid out based on what's put in but since something is still put in it won't completely fail.Believe a government that ran up 37 Trillion dollars in debt to safeguard your retirement plan if you want. The prudent plan would be to prepare for the Government to eventually default on some or all of its obligations.
