Is a Fully Paid Off Home in Retirement REALLY Worth it??

[@deerhaven3350]

I'm 69 years old and not having a mortgage, car payment or any debt going into retirement was one of the smartest things I ever did. I never paid for financial advisors. I read books from the library and talked with many retired people. I'm not rich by any stretch of the imagination. I worked full-time for 45 years, sacrificed many things like not taking fancy vacations, and lived below my means for decades, but the peace of mind it has given me today is PRICELESS.

[@DrSchor]

never paid for financial advisors = not rich by any stretch

[@lizzyschmidt8429]

Congrats! 🎉

[@peterhumphrys]

@@DrSchor not sure what you are trying to imply but your = sign equation is pure bs, too many people have been completely fleeced by their financial advisors, I used to give an older fellow a ride every now and then who had been completely wiped out by his financial advisor ran off with his entire portfolio, actually spend it I think, and the cheat man lived out his old age in poverty doing odd jobs often for people who could afford to pay him more, thinking of my neighbour across the street who owned about 50 houses and was tighter than wall paper and would always try to convince me that I should work for cheap for her because I was a student, that's how some people get rich by the way,underpaying people doing the work them and charging outrageous rents to their tenants!

[@HK-yn1vl]

Congrats!

[@TheRMD2]

@@DrSchor the skim adds up over the years. Don't be fooled

[@chiaraperry472]

A fully paid for home gives incredible peace of mind. Paying cash for your next home is liberating!

[@imautubertoo]

agreed, and if you rent the landlord can raise that rent at their leisure every time the lease is up for renewal

[@billmulvihill8452]

Having all your money tied up with the bank is not liberating. If disaster strikes you might have to sell the house!

[@DjahAlanBinSueKu]

agree

[@richardjohnson8114]

Still have to cover taxes, insurance and maintenance. You're never truly free.

[@teresaalbin-davis4529]

With no mortgage you can skip insurance and just put money aside ​@richardjohnson8114

[@alexanderlyon]

My house has been paid off since I was about 50 (I'm 54 now). The psychological and emotional freedom we experience from having a home fully paid off is awesome. I'm not retired yet, but it is 100% worth it to have it paid off simply for peace of mind. You can't put a price on peace of mind.

[@phanttomracer]

and can take out a HELOC to use the value of the house for low cost loans. dont pay til you use it. alwaya good to have a good bucket of money for security in an emergency

[@carluvr9567]

Absolutely true. At 53, I’m in the same position. Debt-free and paid off house equals peace of mind and the ability to save money quicker and have an emergency fund so that there’s never a need to borrow money ever again. It takes discipline but it’s well worth it.

[@flipdiva0007]

​@phanttomracer as long as your income qualifies for the HELOC. Many don't. Reverse mortgage is another option.

[@paulconner4614]

Financial advisors always discount that peace of mind. As a person who had to move more than once as a kid because my Parents couldn't pay the rent, that Peace of mind is huge for me. (this is no knock on my Parents, they clawed and scratched their way up to middle class and were able to help pay for my college which allowed me the comfortable life I have lived).

[@OneAndDone5150]

Regardless taxes and insurance is there.

[@tonysilke]

Having a paid off home is one of the best moves going into retirement, imagine paying mortgage even in retirement coupled with the high inflation. The high inflation is a significant reason why most retirees have sleepless nights. The increase in prices of everyday items puts them at risk of running out of money. As prices rise, the amount of money retirees can withdraw from their retirement savings also increases.

[@PatrickLloyd-]

Rising prices have affected my intention of retiring at 62, working part-time, and building my savings. I'm worried about whether individuals who weathered the 2008 financial crisis found it less challenging than my current situation. The stock market's volatility, coupled with a reduced income, is making me anxious about having enough for retirement.

[@RobbieNixon-d1w]

When it comes to ‘’personal’’ finance/retirement planning, following the steps of a seasoned advisor did the trick for me in just 5 years. Helped turn my capital into a whooping 6 figure yearly returns.

[@PhilipDunk]

@@RobbieNixon-d1w Your investment adviser must be really good, I hope it's okay to inquire if you're still collaborating with the same investment adviser and how I can get in touch with them?

[@RobbieNixon-d1w]

I've stuck with SOPHIE LYNN CARRABUS since the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.

[@PhilipDunk]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@MW-greatteacher10]

I own my childhood home. We renovated it and call it Connor Cottage. Its mortgage free, small, low maintenance and confortable. We were hit hard by hurricaine Helene but we are slowly getting things back in order. We will never sell and we are grateful to have this home. It is home..

[@Medmann48]

We paid off our house 3 years ago & it's been great! No more mortgage payment & No rent! We also paid off both of our cars so now Zero debt going into retirement at the end of this year.

[@jml9550]

Same here, paid off our home at 50 and 3 paid off rentals years ago. Now at 52 and we are thinking retirement at 60 when my second child finish college. Can’t wait.

[@TheMoneyMakingMentor]

Great job

[@basspig]

There's just that $1,000 a month or more property tax bill.

[@danieldwyer5139]

@@basspigdepends on where you live, I live in the space coast Florida and we pay $400 a month for property taxes

[@basspig]

@@danieldwyer5139 I prefer Ishikawa, Japan. 3000 sq ft, just over an acre of rural land, surrounded by rice farms. $400 a year taxes.

[@SeanTalkoff]

My wife and I built our house in 1982 and paid off the mortgage in 2007. We don't really consider our home/land an investment. We built it because that is the way we wanted to live. It was a great feeling once we paid off the mortgage, one less expense to worry about. But as you said there are still considerable expenses once the mortgage is paid off. Having said we don't consider it an investment it does represent value we can tap if things become desperate and something to pass on to our kids when we croak.

[@DonaldStokes-p]

Exactly. A home is NOT an investment in a typical sense such as rental properties, stocks, bonds, gold, or a business. The huge difference is that a home is a NECESSITY. I NEED a home to live in, so I refuse to gamble and leverage my home...so I decided to pay it off. However, I DO NOT need any stocks. Stocks are great, but they aren't a necessity.

[@PASCALDAB]

45% of Americans do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor.

[@viviancarolgioao]

Mind if I ask you to recommend this particular advisor you using their service?

[@PASCALDAB]

I've stuck with SHARON ANN MENY since the pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.

[@viviancarolgioao]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@terryhutchings7701]

I paid cash for my house ten years ago, but did sell it last year. As a widow, I could see the writing on the wall. Expensive insurance premiums, rising property taxes, high deductibles and outrageous home repair charges were eating away at my savings. I was probably only two more hailstorms away from emptying my account for deductibles. I loved my home, but it was tying me down. Have been living in France this past year and traveling. Best decision I ever made. When I return to US, I will be a renter with a one bedroom apartment and I’m good with that. I just don’t want the headaches anymore. You are only one knee or hip replacement away from possibly not being able to get around. Travel while you can and enjoy life. Not for everybody for sure, but I’m having the time of my life at age 69.

[@andyspinball]

My dad is 86. He sold our childhood home and moved into an adult community and is very happy not to have to cut the yard or maintain the house after my mom passed. There is a time and a place for everything. Later in life, I think this makes a lot of sense.

[@judyg9976]

When my husband divorced me in 1993 we had just paid off our mortgage in Florida. My income though we both had Master Degrees was less then half my spouses,no way could I afford the home insurance, property tax, H. O. A , yard man, all the various utilities in keeping up a 3 bedroom, 2 bath , 2 car garage home. I have rented various apts thru the years, one beachfront direct on the Gulf of Mexico, then 2 apts on a waterfront canal couple of blocks from the beach and now a mobile home with beautiful pool , and a roommate to share expenses. My rent has always been less than if I kept up that marriage home. I invested the difference in the stock market with savings now and peace of mind it was the right choice for me, to rent all my life rather than keep my marriage home.

[@trina2100]

I’m 45 and this is my retirement plan. I agree wholeheartedly. I’ll even take a studio if it allows me to travel extensively before I settle down.

[@dirtbikefan2007]

You hit the nail on the head, insurance and property taxes are skyrocketing. People DO NOT OWN A HOME! They think they do but they have a partner in that ownership, the tax man! We sold our paid off home last May. We had a lot more equity that was sitting tied up in our home. We felt property values were getting too high and an adjustment as likely to come as affordability is a major issue. We invested the proceeds and the return on the investments have easily paid our rent and WAY WAY more! When they are shoveling snow for us or mowing the lawn, I smile because I know I am not doing it. We have a garage, pool, gym, and other amenities that we paid for while living in our house, they are now included. So we have zero regrets and if we change our mind later we can always purchase another house, I just don't see it happening. Oh and we are now traveling monthly and staying gone for 1-2 weeks at a time, I don't have to worry about ANYTHING! Best move we ever made. Just my opinion, but so far things have been awesome!

[@peteshallcross787]

@@dirtbikefan2007 I want to bottle your comment! I'm 67, retired carpenter. My wife is 61, a NMT till she's 65. Our home is in a nice suburban neighborhood and the 2.35% mortgage will be paid off in 10 years. However, there is a lot of equity now. Unfortunately, she wants to die in this little WI home, I'd rather travel. We'll see in 4 years where we're at, a lot can happen! Huh, by then we'll have a different president, or maybe sooner!

[@dancurran8977]

A couple years before I retired we paid off the last $30K. Being debt free in retirement brings without mortgage or rent brings a lot of peace of mind.

[@dirostudios]

Btw, I’m a single 72 year old dude in Los Angeles still working part time. My rent just went up to $2,400 a month. I sold a beautiful 2k ft home here for $222k back in 2000, which is now worth $1 million. I would have had it paid off in 2016. Now I pay increasing rent for a 800 sq ft apartment. Wisdom I should have kept the house.

[@DiscoFang]

Yes. He missed that critical point of inflation. Rental gain has on average been 2-4% per annum depending on cycle of the market.

[@comicus6769]

Assuming your house wasn't in the Pacific Palisades. Ask those folks (40%) that will now be paying two mortgages.

[@DiscoFang]

@@comicus6769Why 2 mortgages? Unless someone is crazy enough to be underinsured for replacement value funds will be there.

[@BR549_o7]

@@DiscoFang because the insurance companies canceled their fire insurance just before the fires. Those fires were a setup to grab the land, just like it was in Hawaii. If the Govt. wants your land they will get it, even if they have to burn you out.

[@JBoy340a]

@@comicus6769 my guess is many of the people in Palisades have considerable assets and can handle an additional monthly rental payment. Now Altadena is another story. Blue-collar workers there.

[@dnorris4733]

I bought my home almost 30 years ago with retirement in mind. I was 39 at the time. Best decision I ever made. Not planning on leaving as long as I remain in good health. My mortgage was so small renting today would be quite a shock :-).

[@raykrv6a]

We built in 88, had to pay down the interest rate to get 10.75%. I knew people that were paying 18% mortgage rate and truly house poor.

[@incognitotorpedo42]

@@raykrv6a But wouldn't those people have multiple opportunities to refinance at a lower rate as rates continually declined from the 80's?

[@raykrv6a]

@@incognitotorpedo42 Of course. I started out with a 30 year 10.75% mortgage that I had to buy down to get the 10.75%. I refi'd 3 times and ended up with a 3.5% 15 year mortgage. House payment was 461 a month. Still paid it off fast.

[@BR549_o7]

@@raykrv6a i got mortgage for 1st house in 1986 and was happy at 9.95%, just to be under 10%... Wow.

[@JBoy340a]

@@raykrv6a Back then 10% was a great rate. We paid 11% instead of the normal 13% because we had a friend in the mortgage biz.

[@DonaldMark-ne7se]

This is my fifth year after retirement. I’e been following the 4% rule thing I saw on a youTube channel, but this isn’t really how hard I expected things to be. After I cashed out a lump sum, I still have about $760k left, but at this rate, and with how the market is (we were putting money away in an index fund), I’m starting to get really worried.

[@Jamessmith-12]

Not a lot of people are able to save that much in a lifetime. But now you are retired and depend on your investment, it’s best you redistribute your capital. To simplify the process, you could allocate your resources with the help of a financial advisor.

[@kevinmarten]

I’m closing in on retirement, too, and I have benefitted so much from using a financial advisor. I didn’t start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who had been investing for many years.

[@JacquelinePerrira]

Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?

[@kevinmarten]

When ‘Carol Vivian Constable’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

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I just copied and pasted her full name on my browser, super impressed with what I've seen so far. thanks for sharing!

[@n2skcmo]

Just paid my home loan off ! Just got the deed of release in the mail. MY HOME is secure. I am secure!

[@BIgBass255]

Security is an Illusion.

[@gpdoyon]

I paid off my home a year before I retired. And, I made sure to upgrade or replace anything that I felt could die on us after I retired. Our homeowners insurance is stable, but, our town property taxes were reevaluated last year. As a result, there was a huge jump is tax payments. However, I will live in my house until I die as it’s a well kept 1973 house that we can afford to fix under almost any circumstance.

[@rustykatt3870]

gpdoyon... 👍

[@You-Be-The-Judge]

Very smart. I plan on having my house paid off before I retire but hadn't thought about making sure to upgrade or replace anything that could die on me after I retire.

[@catpaladin1]

Check with your state/county. Some areas have discounts on taxes for people over a certain age.

[@garyclark979]

Our woke city leaders are very upset. They can no longer increase real estate property taxes on people 62 years old and up eligible for Social Security. They were about to raise our taxes by over $700 this year but could not! They desperately want boomers to pay for illegal aliens. No way!

[@ghggp1]

IT IS EVERYTHING!!! Paying off your home is peace of mind… PRICELESS!

[@ethanadams8165]

nonsense. I have a 3% mortgage and am investing the difference (from paying off the home) in the stock market, averaging 10% return.

[@itsYourfuture-f6x]

rt peace of mind worth wayy more then anything i could buy

[@user-yj3ob9kd3l]

@ethanadams8165 no, not nonsense. Check your amortization schedule to see how much interest you're paying over the life of your loan. If it's a 30 year note, you're probably spending your stock market gains on interest AND could lose it all. Paying interest is like throwing money away. The less, the better!! A mortgage free home will ALWAYS provide the security of a roof over my head. One other point to make--a mortgage free house = the security of a home AND more funds for other investments, such as your stocks!! PRICELESS!!

[@percivalgooglyeyes6178]

It's a nice feeling until property taxes come, and you realize that you are pretty much renting too.

[@Donkeyearsa]

For many yes for me no. I like the returns that I am making in the stock market over paying off my home. I am 54 and semi retired. If I paid off my home I would be in a worse financial position as I would have to work more hours. The only reason that I am still working now is the cost of health insurance. I'm 11 years from having Medicare and in your late 50s and early 60s is when health insurance is at its most expensive. My job even with me working part time I get mostly free health insurance. So I am motivated to work as few hours as possible where I still get my mostly free health insurance.

[@bookmagicroe9553]

The trick is to own a smaller home from the get-go. We bought our 1450 sq ft home while in our 40s assuming it would be our retirement home someday. We raised our family comfortably and enjoy a fairly large yard. Now that we are old, the house still works and the mortgage has been paid off years ago. My mother lived in her small house until age 98. The house sold for a lot more than it cost and the money is now paying her assisted living costs.

[@jml9550]

Exactly our situation. I paid off my home right at 50YO 2 years ago, it is worth $2M, SF Bay Area bought it 20 years ago at $500K. My 2 teenagers grew up in the same house and they are off to college. I will sell it as soon as I retire at 60 and move to a cheaper cost of living area.

[@Eileen49654]

1,450 sq ft is small? Strange how people view things differently. My husband and I lived in a 1,200 sq ft house for 22 yrs. We felt it was to big for us when we neared retirement We now live in a 3 bed 1 bath 750 sq ft. House. It's paid for. Seems a bit small at times but I wouldn't want to have to clean anything bigger, pay more taxes, carry more insurance.

[@FirstHillSeattle]

Totally right. Or if buying a two-story home making sure it has a primary bedroom on the first floor to “age in place”. Some of the best financial advice is “one house, one spouse”. :)

[@jml9550]

My home is 1350 sqft with a 3000 sqft lot size. 3bed+2.5bath. My family of 4 have been living here for 17 years and doing just fine. my 52YO legs are not fond of climbing 14 steps of stairs. As soon as the kids finish college in a few years I am selling it and buy a one story retirement home.

[@wj2791]

I did totally another way.. and have 8000 sq ft house with 1.2 acre lot in the middle of affluent city lot. I built this house 30 years ago and am still working. It is hard to move away.. I am debt free, but the tax+ ins + lawn and pool care + maintenace =. about $10k per month.. You are smart.. i should done smaller, but when young, I was competing with Jone's next door.

[@sandradavis7132]

My mother bought her last home for cash, and her owning it outright meant it could be rented out when her health forced her to move into assisted living - that rent and her SS and pension income cover the ALH cost each month. Everyone's situation is different, but definitely food for thought.

[@Comm0ut]

That's a very good idea since if a property contributes income to the owner the government is much less likely to take it in return for years of benefits leaving it to pass to inheritors. Self and sister arranged for our mothers care to be supported by renting her house which let her live in a top notch facility to get 24/7 supervised care.

[@BR549_o7]

i'm surprised the assisted living place did not make you sell or sign over the house to them before being allowed to be in assisted living. That is what they do around here.

[@400calfix]

We've never had a mortgage. It was crazy the way we managed to build a house with a start of a $7500. personal loan. We'd pay that off and borrow another $7500. to buy more building supplies...until we finished the house. We're still in the same place 59 years later. It's been a good life. So grateful.

[@debbieframpton3857]

You might not have had a traditional mortgage but you still borrowed money to build the house

[@maxwellhouse750]

Literally paid my house off just yesterday. I like knowing that if everything does go south in my last 5 years, I could move back to where I grew up with family, buy a very nice place much cheaper and still have a very hefty sum left over to get me over the finish line.

[@jayg6434]

Nicely said.

[@colddeadhands5167]

Congrats........ we've been completely debt free for 6 years. Very satisfying

[@benjamindover4033]

It’s worth paying off your home at any time in your life. It reduces your financial risk. Even if you could “earn more” in the market than you are paying in interest, you are better off and safer with a fully paid-off home.

[@1linkbelt]

Then, you don't have to worry about your rent going up or having to deal with the "landlord", you can do as you dang well you please!!

[@torpedo2030]

Rising property taxes and homeowners ​insurance, and some people have annual HOA fees. These costs are going up every couple of years.

[@DannyBrooks1]

When you are dealing with a mostly fixed income in retirement then a paid off house will get you plenty of breathing room when inflation hits or a bad year in the market comes along. I will not retire until my house is paid for.

[@ethanadams8165]

your comment is totally illogical. if you can "earn more" in the market, then you are not risking anything financially.

[@philipem1000]

@@torpedo2030 Yes but the biggest cost in owning is a mortgage. Even if those go up you can probably downsize or move to a cheaper area and have a very nice place and know you'll always have a roof over your head.

[@KimberlyManuel-ee3ov]

We paid off our home last year. My husband retires in 3 years and there is no way I wanted to go into retirement with a mortgage. I worked in banking for most of my working life and I saw people work late in life because of the mortgage then got sick and couldn't work and lost their home. So they were sick and having to move in with family. Not everyone has the money to pay off the house. It is a really sad situation to be in. The more equity you have in your home the faster the lending company will foreclose on you because they are going to make a lot of money on the resale of that home. Work hard to pay off the mortgage before you retire.

[@j.j.lanblaster42390]

Great for you! I'm 48, built a house in 2021. Put a lot down on it and will be on pace to have it paid off by the time I'm 65. The goal is to have it paid off sooner. The only thing that sucks is that even with my house paid off by the time I retire I will still probably spend at least $600 a month in land taxes and home owners insurance. And that's me living in a small town South/East of Cincinnati, Ohio! I'm probably in the mid range for taxes in the United States. Anyway, I hope to do what you all did!

[@phanttomracer]

all depends. we have a 3% mortgage, no rush to pay it off as our investments are getting a LOT more than that! also can take a HELOC on the home. if retired, should have most of it all paid. Be a good secure way to have a nest egg of money for emergencies

[@andyspinball]

"Not everyone has the money to pay off the house." Failing to plan is planning to fail. Many people have messed up priorities.

[@Amsepamse]

Renting can never be cheaper than owning. It falls on its own absurdity that by renting the costs would magically become lower even when adding profits to the owner. However, it is cheaper to live in a small 2-bedroom apartment in a crime-ridden area compared to lìving in a 4-bedroom house with your own lawn in a friendly neighbourhood. That is what is being compared when using "average rent" with "average house mortgage".

[@davidbrooks8809]

At an old age at 80 years old you'll thank me renting is better than owning😊

[@AAWGASHTADS]

Retiring overseas ( depending where ) blows up the entire equation . Even earning low but steady dividends you have more $ coming In from that house $ than you rent , plus utilities and then some . That's before you even add in your SS check , Pension , 401k etc . Not for everyone of course But nothing is

[@phanttomracer]

costs aside. i hate being at the whim of the landlord. Just deciding to not renew a lease or he sells the home or something. I like the security of not being forced to move

[@phanttomracer]

if you are retired and the house is mostly paid off . get a heloc and rent or buy a smaller home with the value. faster than getting a mortgage,

[@JBoy340a]

@@phanttomracer or double or triple rent. It is their property, they can do what they want. As the renter, you can only react and take it or leave.

[@tiomoidofangle102]

I like this approach. When in doubt, run the numbers. Everything is out in the open, no guesses, no suppositions, just facts.

[@irwinsaltzman979]

Something to add to the analysis. When my dad was 70 we looked at selling parents house and renting using the cash from the sale of the house. Parents lived another 20 years. The funds from the house sale would not have covered the next 20 years of rent as rental costs increased 3-4 times over a 20 year period. Also the rental apartment had no yard, no garage, 1/2 the square footage of the house.

[@elisabethdorrer4831]

So did they stay in the house or rent? This was not clear from your post.

[@irwinsaltzman979]

@ they stayed in their house. Also the value of the house appreciated by factor of 3.

[@Mark.Harrington]

I paid off my home at 55 and overnight it gave me peace of mind and financial stability. 11 years later and now retired, I still think it was one of the best things I ever did.

[@MrKbsweeney]

Moved from Southern California to NC. We lived in our California home for 22 years. We never took fancy vacations, paid cash for our cars (I just sold our 1998 Honda CRV). Our priorities were private school education for our children and paying cash for their college education. The CA home had crazy high appreciation and sold two and a half years ago near a market high (dumb luck!). Paid cash for our beautiful home with lots of land here in NC. Financial life is truly a marathon not a sprint. I’ve never monitored what the Jones’s have.

[@billibarou]

As a landlord I want to add one valid point to renting. There is nothing wrong with renting a home to live in. There are factors outside of cost that you have to keep in mind when you rent that can make it very stressful. The property owner can decide to sell the house forcing you to move. Unless prohibited by law the property owner can raise the rent as much as they see fit. Making your costs not very predictable. It’s tough as a tenant renting because often your needs are counter to the needs of the property owner. Meaning maybe they want to sell the house, or live in it themselves. That means moving for the tenant which is never a fun process, plus trying to find a new place you can afford and want to live in can be very difficult. My preference is to have my home paid off before retirement. Also we looked for the lowest tax basis we could find in an area we wanted to live in so that’s where we bought our retirement home. Some people simply don’t want to own a home. Some want nothing but that. You decide what is best for you and don’t overthink it. Peace of mind is worth more than money.

[@sirheisenberg4459]

Hi there, I’m two years away from retirement and, as a senior, I’m wondering how others typically allocate their income. How much goes towards savings, living expenses, or investments? I make about $50K annually, but so far, I haven’t built much with it.

[@belobelonce35]

I’m 77 and still working full time. I do enjoy my work, it provides me with purpose and has secured my financial future. Most people are too eager to retire as early as possible. Even if you do retire early, best to get a part time job for the reasons cited above, as well as following many if not all of the suggestions in this video.

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All these issues stem from an economy grappling with uncertainties, including housing problems,foreclosures, global fluctuations, and the aftermath of the pandemic, leading to instability. Rising inflation, sluggish growth, and trade disruptions demand urgent attention from all sectors to restore stability and stimulate growth.

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Wow, seeing her name pop up here too is a pleasant surprise! Didn’t realize she was spreading so much positivity around. This is awesome! I’m in the fifth deal with her, and it’s been amazing!

[@greghanna7753]

I paid my coincidental last monthly payment 7 months after retiring. Things went so great since then that I bought a second home too and it's been great. Very fortunate thanks to living within my means, a pension, social security, and enough savings to spend down.

[@kristinb5121]

It's so important! I'm currently having to do a lot of home maintenance since I've been in my home so long. Every month sees a few thousand in projects. These aren't "make it pretty" projects, rather older home maintenance. This would not be possible without my home being paid off.

[@deerhaven3350]

That's what you call "deferred" maintenance. That's awesome that you're getting it done, which will give you that invaluable peace of mind. Kudos to you!

[@kristinb5121]

@ I've noticed over the years that maintenance comes in waves. Certain things must be included on every wave, like house painting, but the first wave was roof, gutters, furnace, water heater, appliances, etc. now it's decks, driveway, plumbing. All pretty big and not easy if you still have a mortgage. When you look at houses for sale, it's pretty easy to see those that are going to take a boatload of money to bring up to speed.

[@tenfodaddy4351]

Paid off our home (we are debt free and scrimped for years) to ensure we didnt need higher Traditional IRA withdrawals/distributions when retired, and thus, less fed income taxes now. Plus, if we had to take a larger distribution to include covering mortgage/debt payments, would work against our medicare adjusted income calculation and trigger higher medicare premiums. Your IRA withdrawals are 100% counted as income. <a href="#" class="seekto" data-time="849">14:09</a> Pay off your mortgage and even if a small interest rate, stop giving it to the bank. Its bad enough paying property taxes and high insurance premiums that actually are used for other people’s homes in most cases, you can play all day long with numbers gained/lost in the market/inflation- but it’s tough beating the overall wellness one gets from housing security and being debt-free.

[@deangrisham2858]

Paid my home off about a week ago. It’s a great feeling knowing that if I’ve done nothing else, I’ve secured a home for my family

[@De-Centralized]

If you are married to an Italian grandmother like I am, you wouldn't even ask that question.

[@edb3877]

Bravo! 👍

[@sntstafford]

I am in the same boat with an Italian nonna. Before any retirement toys, I had to get “her” house paid off to remove a large stressor in her life; to her, paying off the house meant no one could take her house from her (don’t bring up taxes to her!!!).

[@Marcia-e2u]

What a fantastic video. So well done. All of the numbers you used for property values expenses, interest rates, utilities, etc. , etc, were so, refreshingly, relatable for the average retiree. So often the average home and associated expenses that are used as examples in retirement content videos are basing things on home values in high income/high property valuations in affluent areas as opposed to the median. Thank you for making content that doesn’t require re-working all of the numbers for so many of your viewers😊

[@HolySchmidt]

My pleasure!

[@Jamaal67i]

I'm hoping to retire next year at 55. My goal next year is to be more serious and consistent with my investments I've been investing since I was 22. 2025 is going to be more serous for me investing consistently for the long term. starting to save for a house down payment. I want to invest more than $105k, but I'm not sure on how to mitigate risk.

[@larrypaul-cw9nk]

Its unclear which stocks and sectors will lead the market in the next uptrend. It is advisable to diversify while retaining 70-80% in secure investments. looking at your budget, you should consider financial advisory.

[@jerrycampbell-ut9yf]

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert

[@Peterl4290]

Being heavily liquid, I'd rather not reinvent the wheel. Since this strategy works for you, how can I contact your advisor?

[@Aarrenrhonda3]

Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@Peterl4290]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@pamp212]

Sold our house in one beloved neighborhood when we became empty nesters. Paid cash for our current home (barely a downsize) in another area still close to family. Yes, we are emotionally attached to each CURRENT home we have. But now we have no mortgage.

[@philipem1000]

I'm emotionally attached to having a secure place to live where I never have to worry about keeping the roof over my head. No mortgage!!

[@pamp212]

@@philipem1000exactly!

[@misterenergy959]

So here’s what my hard costs with my paid off home in Northern Colorado: 3BR 2BA 1400sq ft value $400k Property taxes= $1875 Home insurance =. $2025 Utilities $200 x 12=$2,400.00 Maint (wild card)= $4000.00 HOA =. 0.00 Mortgage. = 0.00 Total. 🟰 $10300 /12 months. = $858.00 2026 home costs 4% =894.00month Rent in my City Rent. = $2400.00/ mo x12 =28800.00 Renters insurance. =$1200.00 Rental total. =30000.00 2026 rent is $2500.00 2026 home escalator = $36/ mo 20256 rental escalator =100.00/mo Paid off house wins in my area. ( I live in a desirable area of the U.S.)

[@Cynicalgeek743]

With the greatest of respect, comparing a paid off house’s monthly costs to rental costs is missing the point somewhat. The premise is that were you to sell and rent, you would be able to invest the sales proceeds for a return, which return would offset the obviously higher monthly costs of renting. In your case, and applying the model covered in the video, you would release $372k which at 4% would generate $14880 p.a. and at 6% $22320 p.a.. per your figures the difference between owning and renting is $19700 p.a.. At 6% you would benefit from selling and at 4% return you would not, exactly as his example showed. Personally, I would never gamble on the roof over my head (those returns aren’t certain whereas rent would be), the freedom to model it as I see fit and putting myself at the mercy of landlords who can increase rent at a higher rate than any sensible investment return, but those are the numbers.

[@grandpagun2843]

1400 sq ft here in Western Co is more like 600k and renting is higher.

[@tammy9964]

This video was spot on for me. My husband and I live in a condo. Most people, except for a few are retired. The neighborhood is good. I would be afraid to dale it and rent some place. I don’t want to get a notice to leave a place I would be renting or the price of the rent rising. The condo we live in was paid for before I retired. The property value has risen, and it’s nice that all the necessities are all on one floor. Thank you, this video has made me feel more grateful for what I have. 🙏

[@DrSchor]

I am still learning the real estate lingo. what does it mean to dale it.

[@tammy9964]

@ opps, I meant sale it.

[@nightdipper5178]

If you do rent you are still paying property taxes, it is included in the rent with the maintenance costs, insurance cost and all other costs, vote accordingly you have skin in the game. Thinking longer term I see a home as an asset that adjusts with inflation.

[@philipem1000]

You are absolutely correct about renters paying all those costs. Renting has really few advantages -- you don't have to fix things when they break and you can move much more easily if you want to. I see a home as a roof over my head; some costs will rise but with no mortgage they are all a small percentage of my living cost. The security of knowing your housing situation is secure is priceless.

[@JBoy340a]

@@philipem1000 even if you do not fix them yourself the maintenance cost is factored into the rent. I have a relative who manages rentals for a group. He tracks monthly the maintenance costs so they can factor them into the rent.

[@tomj528]

In my early 20's I designed and built our small ranch style home 2Bed/1Bath and while it was supposed to be our starter home due to a few pretty rough life events we're still here. Fortunately it's been a comfortable place to live and we'll never have to downsize, lol. The cash flow aspect is huge as beyond the simple numbers you can do some pretty amazing things with your 1040 thanks to lower spending including making sizeable tax free Roth conversions. Then there's the absolute security of being able to live well under social security alone because you hardly have any bills...the cashflow is amazing.

[@imlistening1949]

I'm in the own your home in retirement column. I fell into a nightmare of a situation with renting an apartment (2018). Rented a lovely apartment overlooking a golf course, 8 apartment complexes, wonderful neighbors. The landlord decided to turn it into an Airbnb, was lied to said fixing one of the apartments for MIL come visit. New baby not enough room at his house, sounded reasonable. When the MIL never showed up, thought odd. Then rent was increased we all kinda frowned at the $200 a more per month, discussed amongst ourselves and figured costs were increasing. The parking became difficult, which never did have enough spaces, we managed. It was the parties, over the top music absolutely no parking, garbage everywhere. When a "call girl" propositioned my then BF in the parking lot, last straw. Called to ask what was going on, then told flipping to Airbnb. Landlord said to call the police or handled it yourself! Right, some old lady bang on a door to an unknown and what shake my cane at them. It was not worth calling the police. It all happened so fast within a 3-month period. It was a forced move out. Purchased a house. It's called peace of mind.

[@gamerguy5696]

Besides the financial aspect, renting generally includes the risk of having to move from time to time as not all rental owners keep their rentals forever. Moving at our age is not something we want to deal with. Also, rent always increases, most often when the cost of everything else is increasing.

[@jmurphy6767]

Moving without closing costs and realtor commissions.

[@calinpop1443]

Absolutely worth it! Your peace of mind is priceless

[@llew-AZ]

Insurance costs are huge and going to keep rising. Pay off your home and get enough into dividend stocks to perpetually pay your property taxes and insurance costs. Then you are just looking at home maintenance. That is the game plan I am working under now.

[@nubicep65]

I’m retired and that’s what i did. Took the dividends paid in 2024. And paid all my insurance policies. House , car, umbrella. And property taxes for 2025. And my pension covers everything thing else

[@llew-AZ]

@nubicep65 You're my hero. The only path forward I believe so you're not selling the assets you need to keep paying those bills. It's a race at this point. Nice work

[@raykrv6a]

Third of my investments are dividend payers monthly and weekly Lots of options to invest in these days.

[@andyiswonderful]

Your video reminds me of a conversation I had with a colleague when we were both in our late 30's. One of his jobs was to do the cash flow analyses of all of the projects in the department. He and his wife had good jobs, so they were able to pay off their mortgage very early. I asked him why he did this, since the cash flow analysis plainly showed that he would make more money paying his mortgage at a low interest rate, and investing the wad of cash that he had. But, he said that he just couldn't bear writing that big mortgage check every month, so plainly an emotional decision. I paid off my mortgage in my mid 40's because by that time, the mortgage payment was so low compared with my earnings that it was just an annoyance. Again, an emotional decision.

[@Comm0ut]

Those were WISE decisions since you no longer depend on a job to keep your home. The economy can change so theoretical outcomes are not guaranteed. OTOH owning your home early drastically slashes overhead. Paper money can be wiped out in an economic crash, but should that happen I'd rather pay my (very low because I planned it that way) property tax and very low overhead.

[@yannip2083]

Mortgage-free at any time is STRESS-FREE and PRICELESS PEACE OF MIND!

[@2legit2Kwit]

I agree. It’s AMAZING! ❤❤❤

[@Chassenach]

Thanks for the great video, all good points to consider. Two things I'll contribute for thought. One, with all the natural disasters we have now, I've heard of people being no-fault evicted so that the landlord can move back in to their rental property after their primary residence became uninhabitable. Two, post-Covid, the rental prices in my area have gone through the roof, and people have been forced out due to rapid, drastic increases in rental prices. I believe I will have more peace of mind if I can retire in my own, paid off home.

[@machintelligence]

If you own your home, you are in effect, your own landlord.

[@Zil-can]

As a soon to be retiree owning a home with a low rate mortgage, the last thing I want is the headache of a tenant and maintenance of a rental home I’m not in as a landlord, or being a tenant at the mercy of a landlord as a tenant. I can’t think of a worse nightmare combination in retirement.

[@jdollar5852]

Speaking from personal experience, the mental value of paying off my mortgage FAR outweighed any financial issues. In 2013, I wrote my final mortgage payment. It was in the $90k range. I swear that when I woke up the next morning it was as if a weight had been lifted off my shoulders. Like most people, I had a mortgage most of my adult life. For 25+ years, I made that payment every month. Suddenly, I had $1500 a month that stayed in my account. Yes, I had $90k less in CDs, but it was a mental thing. I would do it again today.

[@johnyaskoveakarpaccio4737]

hey there,im just curious,so now with say the extra 1500ish,would you leave that alone,and/or re-invest that into a new cd or cd-ladder,again just curious,btw congrats!

[@etcomehome39]

Debt free is liberating! Peace of mind is wonderful!

[@nogames8982]

I own a very small home. 690 ft.². I paid off the mortgage and then I use the equity to upgrade the house because it had not been updated in decades. In five more years or actually probably less I will have that debt paid off and I will be debt-free. All the upgrades have been made, including a new roof. I could definitely never afford the rent in this town so I hope to live in this house till I die. I’m realistic and know that it might not turn out that way, but I’m gonna hope.

[@user-yj3ob9kd3l]

Yes, it's REALLY worth it. My goal for my entire life was to have as little as possible going out each month. A mortgage payment was the biggest of them all, and not having it was the ultimate goal. Unfortunately, we have evolved into a society of monthly subscriptions that didn't exist before. That requires much more discipline, but much of it isn't needed. Paying off the mortgage is a sense of security and frees up money for other spending that may have been avoided. Yes, well worth it!!

[@Ambassador055]

I’m 69 and my wife and I were told last week by our Landlord that her grandson wants to move in our rented condo. Need to find a place within 2 months. We’re buying this time.

[@one4blondes]

We left a lovely and rent controlled apartment in Westchester County (due to growing family) and moved south 30 years ago and purchased a home. As empty nesters, we would love the easy lifestyle of renting that apartment again. Something breaks, call the landlord. Appliance no longer works, they replace. Leave for vacation, just lock the door and leave. THAT is easy living 😊

[@C2yourself]

Until the landlord has a reason to sell or they realize they could raise the rent 25-50% in 60 days. My sons new in-laws have always rented. My total housev payment, taxes insurance, HOA is $2400 and I've been here 16 years. Their rent is $2300 and has been pretty steady for years. Last week the owner brought a realtor/property manager over and the agent said she could be getting $4500 mo rent. All she has to do is give them 60 days notice and can significantly raise their rent. My mortgage is set with a slight increase in taxes and insurance

[@mydressmemos]

I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 54 and my husband 57 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.

[@LUCIASMITH-d1z]

That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..

[@ThomasLuke-u3v]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

[@HoskinsShanellNicole]

That's really interesting. My portfolio is getting smaller; how can I get in touch with your asset-coach?

[@ThomasLuke-u3v]

Melissa Terri Swayne is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

[@winifred-k9e]

I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!

[@whataboutmusic211]

We paid off our home 20 years ago (while working). Sold it four years ago (at retirement). Not owning is the most liberating feeling I have ever felt. Now the equity is strategically invested and we are living well off the cashflow, and other income sources, in retirement. I will likely never feel the need to own again.

[@johnyaskoveakarpaccio4737]

yeah but that rent rolls around EVERY month with no end in sight and with the hopes it's not raised

[@OneDayataTime-ek9sn]

Having a paid off home actually vaulted us into a situation where we could from that point forward pay for the next house in cash. We've purchased two homes since we paid off the first one and we've upgraded from a 1800 sq ft home to a 3000 sq ft home that was fully updated with low maintenace costs with no mortgage. This took 7 years to pull off but it worked out well for us. Nothing like a paid off home and now using that money to invest and make more passive income during retirement.

[@jamesp.7496]

2.75% makes a big difference. Would rather have it paid off. YES. BUT here we are and living happily retired .❤️🌵

[@justbs549]

One thing similar to the "invisible person" but I feel most important to myself is the "peace of mind" factor, knowing that when I lay my head on my pillow at night, I can rest easier knowing the roof over my head is all mine, and as long as I pay my taxes, I'll always have a place to live and not have to worry about where the money will come from to pay my mortgage.... plus the house continues to be a steady investment, having averaged an 8% yearly gain in value over the years.

[@Stanleee-8]

I sold my home 2020 and I've been dollar cost averaging all year long and I've almost maxed out my reserve, so I'm basically waiting for stocks to fully recover so I can break even, but on the other hand, I've been coming by articles on people who are puIIing off recurring proflts of over $150K wlthln just weeks of trades, what am i doing wrong?

[@Jillyshrum]

look at it this way, while some folks are waiting to make minimal profits when stocks recover, some others folks already know where to look and what to do to make hefty gains in these times, so yea, it all boils down to knowledge to risk mltigation.

[@Jeffcraparo]

True, I was in dilemma myself due to this chaotic mrkt, wasn't sure if to sell or just wait a little longer, 75% of my portfolo was tanking and in the red and the economy isn’t looking promising, but I began gaiinng clarity and have more confidence in my invt through an lnvt-advlser, I know most DlY-lnvestor like me would say advlsors aren't essential, but come to think of it, they're better trained and equipped at this and if I have to give just a little amt in fees for me to be able to net $650K in less than 8months like I did this year, I truly don't mind.

[@ImariJust]

@@Jeffcraparo Do you mind sharing info on the adviser who assisted you?

[@Jeffcraparo]

My CFA ANNETTE MARIE HOLT a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..

[@mamasgigglesquad]

Insightful... I curiously looked up her name on the internet and I found her site and i must say she seems proficient, wrote her an email outlining my objectives. Thanks for sharing.

[@KISSGreatestFan]

Thanks!

[@fremontpathfinder8463]

Since I bought my house at 55 in 2018, it won't be paid off. However I do have a 2.6% interest rate and I bought it for security and because I have lots of pets. I don't have any intention to use it as an investment. I am still working but will have a pension when I retire. Because of my interest rate and living in the high desert 30 miles outside of Los Angeles with Proposition 13, I do feel like I probably won't sell my house unless something changes.

[@nightdipper5178]

Unfortunately I think it is only a question of time before prop 13 is overturned.

[@edhcb9359]

@@nightdipper5178People have been saying that for over 40 years. 😂

[@lindadorman2869]

I owned a house for 20 years and it was nothing but a money pit. Taxes rose every year and there was always something major that needed repair or replacement. Finally sold it with no gain after paying broker fees. Now I'm retired and rent a nice apartment, they've never raised the rent in 7 years. I don't pay for or do maintenance, and I can leave whenever I want. Home ownership is not for everyone.

[@HereForToday42]

where on earth can you rent an apartment where they don't raise the rent?

[@DrSchor]

@@HereForToday42 rent controlled district

[@robinburrell4421]

Where on earth did your home not increase in value over 20 yrs.

[@greggpurviance7252]

Not happening in most places. The renter always pays the taxes, insurance & maintanance. The renter just does not have to make the call to the plumber

[@oldmanwood5011]

Why would I want to go back to paying rent and being subject to someone else's rules? I'll gladly pay extra to maintain autonomy over that part of my life.

[@j.m.7056]

No kidding! Plus unknown neighbors! No me.

[@teekay_1]

Some people are so strapped in retirement, they have no choice.

[@oldmanwood5011]

@@teekay_1 I understand that, but the premise here is that the house is paid off going into retirement.

[@masoncnc]

I hated homeownership. Sold house proceeds can pay my rent, hopefully in perpetuity. I get to (have to?) move every few years.

[@aolvaar8792]

You work for an employer that offers a FREE home and at 30 years of service it is Deeded to you. ??? you would gladly pay ~$2500/mo?????

[@steveneylon644]

Owning a paid-off home is so beneficial in many tangible and meaningful ways. I believe it is the cornerstone of a fundamental financial strategy as you approach retirement - reducing and/or removing debt. Removing debt before retirement, is an equalizer in achieving an equitable way of life if you've never had access to building substantial monetary wealth.

[@johnward8064]

My wife and I paying off our home was the best thing we ever did to build wealth and have peace of mind.

[@keadog1838]

I have my last mortgage payment slip framed. It sits on my desk so I can see it every time I sit down. Zero regrets even though we paid off a 15 year 3% note early. Worth it to me to look around knowing we own everything we can touch.

[@tomschmidt381]

My wife and I built our home in 1982 and have long since have paid off the mortgage. That was an emotional moment but as you and others have posted expenses don't stop once the mortgage is paid off but it is one less expense helping with cash flow. When we built the house did not take into account getting old. For example it is a two story cape very common here in New Hampshire and until a few years ago did not have air conditioning and in winter we heated with cord wood. So far we are pretty heathy geezers but that can change at any time. Our plan it is stay in it as long as possible. Apartment rents are pretty high in our area and at least as of now my wife and I have hobbies that while not impossible in an apartment are not ideal.

[@Hofftimusprime1]

Love this. I’m 44 now but I paid off my 3 bedroom house 6 years ago. It allowed me to save more for a minute but actually left my job of 25 years in 2023. I have been living on cash since then. Im very intentional when it comes to spending and live modestly. It’s defiantly a question i ask myself a lot. I could sell for around 300k and it’s been my thought thats what I would continue to use for retirement. Single and so I often wonder if I could just retire. 1.5 years in I know my expenses and its a fun thought experiment.

[@patriciasanders6955]

Rentals tend to make around 10% income on their property. The scenario uses 4% return on proceeds from the sale of the house. This situation causes a 6% loss unless their was a 60% downsizing in living accommodations. This is also excluding the loss from closing costs.

[@corralescruiser8957]

It was my first step in early retirement planning. Back when interest rates were higher than they are today. Havent had a mortgage in 20 years! Allowed us to hyper save during the 08 meltdown and eventually retire in our mid 50s.

[@LarsBergstrom-uh2eu]

Discovered this video; it's an excellent primer for neophytes. My portfolio has appreciated twofold in less than two years. Any similar triumphs here?

[@Erinmills98]

Impressive growth! What strategies did you employ to achieve such returns? I'm wary of where to start or whom to consult.

[@AstaKristjan]

I was once in your predicament until I engaged Stacey Marie Wildberger. Her bespoke investment strategy aligned with my risk profile has been transformative. Look her up for sage advice.

[@IrenaDolinsek]

I'll investigate Stacey Marie Wildberger. Any additional insights for those embarking on this journey?

[@AstaKristjan]

Beyond expert consultation, self-educate. Leverage videos, literature, and forums. Diversify to mitigate risk, and patience is paramount. Always conduct thorough research before significant moves.

[@johnstanczak5075]

How did you do in 1973, 2001, 2007 and in 2020?

[@funnlivinit]

Your observation about your house being a "family member" is a very cogent one. A point that I never realized was true until last week when our childhood neighborhood and the entire town of Pacific Palisades literally went up in smoke. Even though we sold the property 3 years ago. I, and everyone else that I grew up with, are now grieving for the memory of the most idyllic town anyone could ask for. Growing up there in the '60s, '70s & '80s Pac. Pal. was simply a tight-knit working class neighborhood on the edge of Los Angeles. Where everybody knew and cared for everyone else.

[@Zulonix]

I paid off my mortgage 27 years ago. I paid it off in 5 years because I hate debt.

[@DrSchor]

i pity those who dont know how to use other people's money to become wealthy. sad.

[@Zulonix]

@@DrSchor I also have a condo which I paid off in six years. I could have paid cash. I bought it in 2012 at the absolute bottom of the market. The person I bought it from lost $72,500 in the deal. The following month, the market started ticking upward. It's worth about $560k now. Living life without debt is awesome. If a person wants to play some leverage game, that's their thing.

[@TT-fq7pl]

@@DrSchor Spoken like a true leech.

[@sonnydacuse7622]

Just subbed! I’m planning to payoff my current mortgage in 2 years. One already paid off as a rental. Real estate is 👑!

[@TonyVear-z8y]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[@Jakepattison42]

as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management

[@AnneButche]

Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I allocated my assets right.

[@WilliamWhite-d4t]

It’s called peace of mind just achieved this after having a mortgage all my working life aged 76 but enjoy travel and cruising

[@thomasmoshier3920]

Money and emotions are a terrible combination. Very few of us get more emotional than over our home. In 2022 my father passed away and we settled his estate which consisted of his house that he built over 40 years ago. A four bedroom three bath, 3,600 sq ft estate on three acres. Full of goats, chickens, and fruit trees. A place where my children grew up. My mother, who is still active and with us at 85, made it clear to me she wanted to die in her home just like my father did. Fortunately I had the means to make that happen even if she didn’t. I paid my sister her half of the appraised value of the property and then made 150k of improvements to modernize the home. Essentially making it a reverse mortgage for my mother with myself the lender. My sister inheriting money while I inherited debt. In the end, was it fair? Not really. Was it a good financial decision? Probably not. Would I do it all over again? Absolutely……

[@davidknoke692]

Good morning Geoffrey. Once again great presentation. As I mentioned to you on prior occasions, you really should look into selling your presentations to state sponsored CPE agencies or create special presentations to that purpose. You have an outstanding presentation style and your content is value and reason oriented. Couple of comments. I am 71 and am a retired CPA. During my earning years I often paid down mortgages(double payments) as a savings and value building tool. Nothing wrong with that as long as you don’t keep up scaling your home choice. And it was a good choice when interest rates were 16% in the 80s. In this presentation you primarily are addressing retirees. And I believe it’s addressed to those who can still do the necessary maintenance on their homes. Get a little older it’s another calculation. You mentioned rate assumptions. First over 50 years that changes all the time. I think your 4% tax free rate assumption is too high. I get maybe 3.5 tax free rate or less and a good dividend rate is 4.25%. Relying on growth in your portfolio shouldn’t be assumed. And I think you stated that. Also, property taxes are a reality whether you rent or buy. In Michigan you actually pay more, a lot more than non homestead real estate. If you have earnings from investments from your sale of residents that may bump up the taxable social security calculation(and that’s big). Lastly, the emotion factor is big as you have indicated. I built two homes in my lifetime and I would have a hard time moving now. And just to say it out loud the safety factor of owning your own home debt free is a huge peace of mind issue for pretty much everyone. Love your work. Good luck.

[@Magpie-1111]

If you are wealthy, if you have enough money in the market and then some, to pay off your house any time you want, then keep your mortgage. For the rest of us, the working middle class who pay off our mortgage early by making extra principal payments every month, the peace of mind that comes from having a paid off mortgage is unbeatable!! If I lose my job, or have lots of medical bills I will still have a roof over my head.

[@paulconner4614]

Especially if you live in a state like Texas with the Homestead exemption. Doesn't matter how high medical bills get, they can't touch your home.

[@BostonHarborLight]

Having a paid-off home controls one of the biggest costs in retirement. Yes it's tying up capital, and yes there are occasional costs like replacing a furnace or a/c unit, but one is unaffected by housing price increases, and it is an asset that can be passed to one's heirs. I can't imagine how tough it must be for retirees who face constant rental increases for the rest of their lives so I am so grateful for housing stability. I agree with other commenters that going into retirement debt-free is essential.

[@mikefigures5075]

I'm the opposite of most everyone here. I'm 57 and retired. Gives me great emotional and financial satisfaction carrying a mortgage at less than 3% and using the funds to generate much greater returns.

[@glennet9613]

The main consideration is when do you want to realize the value of the asset, when you are alive or after you are dead and if the former at what age? When we relocated we decided to rent rather than buy was so we can gradually draw down the capital we got from selling our house to better enjoy our retirement. There are downsides, you need a good landlord who values you, you have to be prepared to move if the landlord gives you notice, your heirs will lose out and so on but on the other hand you don’t have to worry about repairs and maintenance as you age.

[@skydancerforever]

House being payed off or not didn't effect my decision to retire at 62. But over the years of owning my house i worked on getting the payment down to around $275.00 a month with interest in the low 3 percent range. So having a morgage payment of $275.00 is fine with me when i retired. I do have plenty of equality in case i ever do decide to sell.

[@robins_rodeo]

If you pay off your house and you tackle the big maintenance things before you retire, then owning a home is wonderful peace of mind. It's freeing to know that as you shift to a more fixed monthly income approach in retirement that you're not facing huge mortgage payments. By owning vs renting, I've been able to run an Airbnb from my property for additional income. Additionally, I have an elderly mother who might need to move in with me soon, and if so, I'll need to make a few modifications (which a landlord would not allow if renting).

[@mwscuba]

its very interesting (no it really is) as someone who lives in Wales ( the bit of the UK that's next to England, look west and you can see us) to listen to all your videos, while lots of it is irrelevant to us here its still great to listen to the parts that are.keep up the great work.

[@marynotcontrary3]

@mwscuba what do you think of this mortgage pay down question? Thanks

[@mwscuba]

@@marynotcontrary3 its not something over here in the UK we would normally do, we are more accustom to owning our homes over renting, example our house is worth £600k and the mortgage left is £5k which has to be paid of by 2028 so all fine here, i do know people who rent but they are all younger and saving up to buy, i dont know anyone who has sold at retirement (65) to move to a rented house, if anything people sell their big ( 1.5 million ) house and downsize buy a 400k house

[@marynotcontrary3]

@@mwscuba thank you

[@user-po4jj9cx9l]

Welsh heritage here. Greetings!

[@johnmadden1898]

Thanks , like fingerprints there are no two people with the same financial match, but this a good amount of info to consider for important decisions. Keep it coming … very helpful.

[@esbenlund99]

Home appreciation and rent increases are going to favor home ownership in the medium to long run.

[@pamelachristie5570]

I paid cash for my house in 2021. I'm 71 now, and haven't felt this secure since I was a child with no worries at all. I've been a renter my entire adult life, dealing with things like rent increases, new owners turning the property into their private home, and even a landlord who entered my house while was at work and stole my possessions! Another one insisted that I plant flowers in the yard at my expense, and handed me a list of the flowers she wanted me to buy! The knowledge that I'll never have to put up with this kind of thing is worth the cost of property taxes, utilities and maintenance expenses.

[@Atwater20]

Never go into retirement renting your home, never. Literally millions of seniors have been forced out of their rental home because of huge rent increases. Some of the rent increases are so large, the cost of the increase would pay for all the costs of owning a paid off home in just two years. Yes, you can move and try to find a less expensive place, but is that what you want to do in your retirement years?

[@aidahiser5154]

Paid cash for my home.....my peace of mind for not having to have a mortgage is priceless. I can't rent for what mine is worth!

[@wallacecarter1468]

Home or rental insurance should be added as a cost. I would add also that owning a home with no mortgage gives you a fairly stable cost as opposed to renting, where the landlord could raise prices beyond your ability or desire to pay.

[@jimpie231]

I’m 78, got married in 1970. Bought our first home (1600 sqft) in 1973, 50% down, private mortgage. Paid off in 2 years, sold another investment, and concentrated to pay off. Saved money in those first 20 years. Purchased next home (custom 3750 sqft) small mortgage (couldn’t sell old home until 10 months later), then paid off mortgage (10 1/4%). Then 14 years later, 3 kids gone, hard for me to walk stairs, sold home. Purchased retirement home at 57 years old, a tract ranch home with no mortgage. Now living in this home for 22 years, best home I’ve ever had. Never paid PMI insurance, have always had home insurance. Taxes on home have always been 2x higher (or more) than national average. PS: What has this given me in my life? Only had one car loan in my life, currently have 3 cars and 3 car garage (have owned about 25 cars, 8 new). Better and more vacations with my wife and kids. Paid for 2 kids University educations, 1 to Beauty School. Gave two my kids a 20% down payment for a home. One of the kids (single mom) got a 50% down payment on a home. On mine and wife’s average salaries this could never have happened otherwise.

[@dougalward1075]

And owning your home is an appreciating asset that was not a part of these comparisons. Great information though, thank you.

[@jmurphy6767]

The cash from selling your home, invested, is an appreciating asset. Historically, better than real estate in most regions.

[@robertthomas9564]

No guarantee home values won't go down. You think all of those homes lost in CA fires are going to collect on their homeowners insurance? Good chance some of those insurance companies will go bankrupt and the owners get pennies on the dollar. No guarantees but death and taxes.

[@robertthomas9564]

@@jmurphy6767 Correct your home is a liability not an asset. (taxes, maintenance, repairs......) It is an asset to your heirs when they sell it after you pass.

[@jmurphy6767]

@@robertthomas9564 And equity is only useful when you sell.

[@cynthiapreston-w8h]

I agree if you already own a home definitely pay it off before retiring. If you are buying now it may be cheaper to rent. The lowest homes in my area are about 4-500k. Rent for 2 bedroom about $1700-1800.

[@prairiemark4084]

Great video Geoff! I recently went through a decision about renting or owning in retirement. Often owning only pencils out if you stay in the same place. We retired when we were in rural Montana. We had our nice trailer house paid for...3 BR, on four lots on the edge of town. We sold it for 54K and moved to Cedar Falls,Iowa...close to grandchildren. Houses there cost $350K for a 3 BR. So we are renting for $1650/month. And it works for us. We are right across the street from children and grandchildren.

[@yacaattwood2421]

Rent vs Buy: It. Depends. Renting can make more sense if your job situation may require you to move frequently Renting can make more sense if age or ability to maintain a property could be issues. It’s one thing to have a home, it’s another thing to keep it Renting can make more sense if buying a home would leave you ‘house rich and cash poor’ - there are maintenance, insurance, taxes and often HOA costs and fees to consider Buying can make more sense If you know you’re putting down roots in an area and will be there a number of years If being able to decorate and make improvements to a property is important to you If the home purchase doesn’t stretch you too thin with taxes, insurance and other fees such as HOA. It’s increasingly more challenging to find non-HOA properties, especially in new developments You’re comfortable with home maintenance and home repairs It. Depends.

[@GP-fw8hn]

Ive been debating this for a while now. I have 2 houses with interest rates of 3%. I could pay them both off today. its a LOT to pay off so I cant stand the idea of parting with that much money that I have financed at 3%. BUT I am planning to retire within 1 year and I would rather not have the mortgage payments. Unlike when I didnt have money, I dont feel stress. I just struggle with what to do? Maybe pay one off? decisions, decisions. I do agree that regardless of where you are in your life, having a paid off home feels wonderful and you cant put a price on peace of mind.

[@dougjohnson435]

it's a mindset problem for sure, but you still owe a LOT of money to the bank(s). the concern is the obligation, not the interest rate.

[@CruisingSolo]

Sell one and pay off the other?

[@churchofpos2279]

Downsized and bought a home for cash with low property taxes. I have no debt. It's liberating,