Home > Someone died, insights and no retirement w house debt

Someone died, insights and no retirement w house debt

April 1st, 2014 at 06:32 pm

Hi all

I have been meeting people through this guy I am seeing who are RETIRING at 53 etc.. He worked at a company his whole life and has a pension too and big 401k. They are still laying off there and every so offten a friend gets laid off and gets a financial package. Everyone there is apparently cashing out the pension vs taking payments. Many also have huge 401ks..He does not feel he has enough to retire but wow if I had what he has and the rentals paid off I would be GOLDEN. He is 53 I am 43..

I WANT TO RETIRE EARLY (or be in a position to do where work is a choice not a necessity or work part time) I just want to have more time and freedom. CHOICES

I have come to the conclusion that to feel free I need to add to my goals to pay off the house ASAP. Big goal.. $300k...and involves some creativity and NEW thinking but I am going to figure something out. I can not pay off the house or reach my goals with saving $500-$1500 a month.. need to step back and get a whole new paradigm

I really do not feel comfortable relying on the real estate income I will (not now but later) have with the house debt still there and not working liek I do now. I know I will want the house paid off to relax.

Someone died today.. the realtor who sold me the 6 homes died before they closed and the attorney on both just died yesterday. Makes me think of how short life is.

Life is short. I want to seize the moment and use more of it. Spring is starting and I want to feel FREE.

I am ok working super hard for a few years, taking some risks if I can get what I want later.

I hesitated writing because it feels like I am setting a goal that I am not sure (yet) I can meet and in a public way but I have done 'hard things' before and I am sure I can think of a new paradign/way/idea to make this happen..

Prayers for creativity, opportunity and logic to avoid too much risk .

7 Responses to “Someone died, insights and no retirement w house debt”

  1. Another Reader Says:

    I don't understand why you would want to pay your house off. I have a house payment. I will always have a house payment. I have a 30 year loan at 3.125 percent for the maximum conventional loan amount. Why? Because I can almost ALWAYS invest and earn a much higher rate of return than what I pay on my house. Furthermore, I live in an area where there are earthquakes and wildfires. As my father used to say, you want the bank as your partner if you live in earthquake and fire territory.

    You stretched too far, lost everything, and got way behind in growing your wealth. You will never catch up by deleveraging. In your situation, you need leverage, used WISELY, to achieve your goals.

  2. Rachael777 Says:

    I agree with everything you are saying. Leverage. I am simply adding that I need in general more money to reach my goals and $500-1500 is not going to cut it. The thought of having a paid off house feels better now when thinking of retirement but I am not going to sacrifice investing ( I guess I want both and the only want to do that in the time frame I want is to just have more money to work with ) and right now I have no lump sums to pay it off with anyway.. Once that real estate fund is built I will start investing w my $500-1500 a month but want to be aggressively looking to find more money.. lump sums... to put towards investing and pay off hte house. I have come a long way already and making the right decisions is forefront. Been there done that with using up my 401k etc.. the homes did not really hurt me.. what hurt was cashing in the 401k and savings.. but all in all I am making it up pretty quick just wnat to be further along in these real estate deals.

  3. Miz Pat Says:

    Part of the purpose of this website is figuring out what we want to do by writing about it. Somehow, writing helps make things real and organizes our thoughts.

    Right now, I'm 58. I took a huge loss with a divorce, but I think I would have died younger if I'd stayed married.

    I live in earthquake country and I still want the damn house paid off.

  4. Rachael777 Says:

    Insightful comment Miz Pat.. and so right. it does help to write and clarify.. thanks for your comment.

  5. Another Reader Says:

    I think when you have taken huge losses, the security of a paid off house becomes more important. I'm old enough to be looking at Social Security in a few years, and the checks will cover my mortgage payments and some of the taxes and insurance.

    Leveraged assets or a business where you manufacture something, sell something, or leverage other people's time will get you where you want to go. As my father also used to say, you will never create significant wealth by selling your time alone, no matter what your hourly rate.

  6. TashaC. Says:

    Right now you are in "acquiring mode" where you are trying to increase your net worth and income. Then I imagine you will hit "pay down" mode where you have maximized income sources but need to pay down debt to "feel" that income. Slow down- you just bought your residence after a lot of work and effort. Or sell your home and downsize if you really want to be mortgage free sooner rather than later.

  7. Rachael777 Says:

    Appreciate the comments and the 'slow down'.. I do tend to jump ahead. but no issues with shooting for hte moon and settling for the stars. Once things stabilize.. job renewal .., 6 homes transition etc.. I will look to see if I can find some more income or lump sums to put towards investing etc and move my goals forward. Very happy to be plugging along towards the rental emergency fund now.

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