One Move Could Boost Your Retirement Security

Reader Comments
Back to article

I live in Watertown , WI and would like to find out what the median homes cost here before we decide to look for better prices.

dennis werth of WI 11:15PM December 15, 2012

TRY PUERTO RICO A GREAT APT ON THE BEACH WILL COST ABOUT 200 TO 300,000 MONTHLY CHARGES WILL BE ABOUT $160 AND NO REAL ESTATE TAXES ON YOUR FIRST HOME-TALK ABOUT RAISING YOUR SPENDING LIMITS YOU WILL HAVE A TON OF MONEY TO SPEND AND SAVE YOU THOUSANDS GOING AWAY FOR THE WINTER

MARTY of NY 12:17PM March 09, 2012

Nothing earth shattering from me, but people of every age should l look for "Money Pumps" as a way to augment your pensions and SS payments. And, with mortgage rates at all time lows, what not move into a newer, low maintenance home, finance all that you can with cheap mortgage money and use your cash to buy a money pump. For example, here in El Paso, TX, there is no income tax, the property tax rate is 2.5% + or - 0.3% school district dependent, and the rate is discounted if it is your primary residence (saves $280/year), over 64 (saves another $180) and the rate is frozen for life at 65. Disabled veterans enjoy a real estate tax reduction at the same percentage of your disability (yes, if 100% disabled the tax is $0) and the surviving spouse enjoys the same after the veteran dies.
After you do either VA $0 down, or, for nonveterans, USDA $0 down on say a new $120,000, 1400 sf EnergyStar house w/2-car garage on a view lot, your total housing payment is $820 VA or $850 USDA and that includes PITI and MIP (for USDA). If you have not owned a house for at least 3 years you may qualify for 1st time buyer programs which can reduce months payment by up to $166.
Then take another $125,000 in cash, if you have it, and buy an older quadplex with Section 8 tenants and enjoy $15,000 to $24,000 additional net income per year to augment your pension and SS income. This is a money pump that can run for decades with little worry and effort.
There are many other "money pump" possibilities depending on your interests (we're getting to be too old to do things we don't want to be doing, right?) and skills, and what you want to be doing as a retiree.
My only real advice here is to scope out your potential income from SS at various years of claiming the benefit (from ages 62.5 to 70) at the SS website. Also, call on your pension income
for the same information. Then do an "inventory" of your savings, equity and other key financial
features and form a baseline for other decisions. Then set your objectives and desires for retirement. You might be in better shape than you think, and if not, seek out those money pumps. I suppose I'll also advise everyone who can to be a volunteer or giver to others... nothing feels better, not even money.

Synthetic of TX 8:58PM February 08, 2012

I bought a smaller home and then couldn't get a buyer for my large home.
I lost $150,000 in equity when I eventually gave the home back to the bank.
Sell the big home first, people.

sue of OH 11:39AM February 08, 2012

We love living in the White Mountains of New Hampshire. We have all the hiking trails you could ever want, white water rafting, skiing, waterfalls, wildlife, that will take your breath away, the Kangamungus Highway, I could go on about no sales or income tax, low real estate taxes. It is a great place to ride your Harley (yes, most of us are retired) oh, and lets not forget the outlet stores. If you have a serious health problem, Maine Medical is less than an hour away.

Eleanor Pirello of NH 8:42AM February 08, 2012

What about Canada in the summer and fall months

Ted m Koch 1:38PM December 01, 2011

ah the rational approach is wonderful isn't it, but what about being close to family? the savings i make going down market is not worth the loneliness and expense of my family seeing me and i them. gee after all my toil this is what you are offering?!

Uncle Abe of AK 5:51AM August 30, 2011

Tough choices. I agree w/most comments.
We all have to live somewhere. In the "olden days" .... our grandparents could never make enough of a living to even purchase a home. Not sure how they raised countless kids. (talking in the generic sense)
"HedgeTX" is spot-on. Thinkin clearly. Our houses cost plenty. Toooo much. Seems completely wasteful at times. Improvements (necessary ones) never ends. As a homeowner, you must make mandatory decisions .... what to or not to do. In these past 20 years since we've had our (smallish) home, it's one thing after another. We continue to put big bucks into this place. Whatever is the most important. Most recently, privacy fences & updated laundry room. These "things" were completely shot. Paying for these necessities will mean at least 2 extra years of working. When you "borrow" into the savings .... it must be put back for the future.
Not sure how young people can afford property today. Two incomes are necessary. Do not have kids. It takes tons of dollars to have children. More so than ever.
Overall ..... to be able to decently live in a house ..... you must be prepared. Yes, possibly the greatest American Dream to be a homeowner .... at a huge price.

Marcee of IN 9:27AM August 25, 2011

Let's see: at about age 50 and unshackled (we rent), I could borrow money from the bank and buy a stick-built home that will leave me in debt for 30 years in a high-priced school district. Or wait and buy in a 55+ community after my child graduates high school and goes to a state college, probably buying a modular home with low cost and upkeep and put the difference into my pocket instead of the bank's. Wait, I'm thinking hard about this...

Duke Ganote of OH 6:20PM August 24, 2011

A house is a place to live. They have never been a very good investment, in my view. Consider that we have to pay the mortgage interest, property taxes, insurance, and a lot of money to keep the place up. Even selling them for 3 times the price that we originally agreed to pay the seller, I don't think that we really come out ahead when all the expense to finance, protect, and maintain them is totaled.

Hedge of TX 12:40AM August 21, 2011