My wife and I have found a house that we would like to buy and move into as our final house. It has everything we need and want (ie no need for upgrades or renovations) so we would like to move on it quickly.
I have A strategy, but I do not know if it is a good strategy, for paying for this house.
I would ask that those more knowledgeable than I have a look and see what may make the best sense in the long run for maximizing spending, or at least not making mistakes by pulling from the wrong accounts.
Edit: Retired..no income
1) New house will be bought for approx 670,000 before closing costs, title etc
2) Current house (fully paid for) will sell for approx 450,000. To be safe, we're saying we might clear 400,000 after commissions and fixup, and other expenses etc.
3) Currently withdrawing 8k per month from IRA to support our lifestyle. This amount also gets us cheap health insurance premiums as they get subsidized by govt. Any 'overages' that we may have (estimated at 10k/year) would be pulled from Roth.
4) we would like to buy and move in to new house before putting the current one up for sale.
Full Financial position as of today:
Checking: 5,000
Savings: 90,000
Me (60):
IRA 2,800,000
Roth 400,000
Her (54 1/2):
IRA 6,400
Roth 770,000
My proposed plan:
Want to keep minimum 40k in savings.
Trying to keep this year's income to the planned 96,000 to avoid having to payback the health insurance subsidies. (is this a good idea?)
Get a mortgage to allow us to buy the new house before selling the old one. We could put up 20% using 50k from savings and the rest from my Roth.
We would have to use more funds from the Roth to pay closing costs and mortgage payments to keep down the income.
Sell current house and put those funds plus remaining difference from Roth to close the mortgage.
There is always a chance that the lender's appraisal could fall short and we would have to come up with say 50k (swag) right away to cover that amount.
I am not attached to this plan and am happy to listen to advice that will help me make good decisions now.
Thanks in advance
I have A strategy, but I do not know if it is a good strategy, for paying for this house.
I would ask that those more knowledgeable than I have a look and see what may make the best sense in the long run for maximizing spending, or at least not making mistakes by pulling from the wrong accounts.
Edit: Retired..no income
1) New house will be bought for approx 670,000 before closing costs, title etc
2) Current house (fully paid for) will sell for approx 450,000. To be safe, we're saying we might clear 400,000 after commissions and fixup, and other expenses etc.
3) Currently withdrawing 8k per month from IRA to support our lifestyle. This amount also gets us cheap health insurance premiums as they get subsidized by govt. Any 'overages' that we may have (estimated at 10k/year) would be pulled from Roth.
4) we would like to buy and move in to new house before putting the current one up for sale.
Full Financial position as of today:
Checking: 5,000
Savings: 90,000
Me (60):
IRA 2,800,000
Roth 400,000
Her (54 1/2):
IRA 6,400
Roth 770,000
My proposed plan:
Want to keep minimum 40k in savings.
Trying to keep this year's income to the planned 96,000 to avoid having to payback the health insurance subsidies. (is this a good idea?)
Get a mortgage to allow us to buy the new house before selling the old one. We could put up 20% using 50k from savings and the rest from my Roth.
We would have to use more funds from the Roth to pay closing costs and mortgage payments to keep down the income.
Sell current house and put those funds plus remaining difference from Roth to close the mortgage.
There is always a chance that the lender's appraisal could fall short and we would have to come up with say 50k (swag) right away to cover that amount.
I am not attached to this plan and am happy to listen to advice that will help me make good decisions now.
Thanks in advance
Statistics: Posted by Bass4 — Wed Jun 26, 2024 8:11 pm — Replies 1 — Views 181
