AUTHOR: bbbobbins on 10/11/2024 FIRST: Ben Rodriguez on 10/11/2024 | RECENT: Billy McKelvy on 10/15/2024
Comments
Mortgages are a necessary tool and have been for well over 50 years. I think care is needed to ensure people understand the pros and cons of leverage and there is a fair bit of accompanying personal psychology. For the normal case - take out a necessary but not excessive mortgage, plan to pay down over time and aim to clear by retirement seems a reasonable strategy. For those who leverage into the biggest possible home and remortgage to release equity at every opportunity I think it is more problematic. Yes people can do very well on property gains particularly without any capital gains taxation on private residences. But in order to benefit from that they have to ultimately be prepared to downsize. And yes there is a case for renting and alternately investing. A property is a lot of concentration in an overall "wealth" portfolio and may not be the best fit for everyone. Particularly those who may be relocating often.
What you can and you can't control should be the line between whether it is worth having worries. The market you'd can't control. Your plan in relation to it you can control and fix ahead of time. Your stepson is a nice kind of worry. You can help more if you want. He's presumably going to inherit so can't see a downside in gifting early particularly if its meaningful (e.g. enabling him to join you on a special trip, make a housing downpayment, pay into an IRA). CCRC - seems to be highly personal and varies by health, age, single v couple and even intended inheritances. Can't see there is a slamdunk answer for many.
The other thing is the attachment to branded goods against like generic products. To me that's just throwing money away given that retail prices can easily be double for branded FMCG. Sure some things may have a specific taste profile you can't find elsewhere but what you are really paying for is not superior ingredients - it's just the enormous amount of marketing they do. I'm amazed by how many people have the attitude that status somehow attaches to not having store brands in the house.
Yeah from those number of down thumbs you definitely don't meet most concepts of frugal. You've never had a pre-owned car or taken public transport? Even the most profiligate can probably claim those ones.
I think the emotional response is entirely understandable - if even the process of accumulating less is a concern then of course you'll find the flip from accumulation to decumulation challenging at first. That doesn't mean you shouldn't do it. There is one inescapable thing for everyone - mortality. And though the numbers on time are even more unforecastable than money we have to remember that far, far more people run out of time before they absolutely run out of money. So trust in the planning you've done. Know that you aren't suddenly going to change character and start chartering private jets to Vegas etc. And enjoy the best of what the new phase brings you.
Congratulations. While anything like that can feel like a kick in the teeth - it really is just businesses being businesses. Just make sure you have no regrets and plan something fun to spend the payoff on. Look forward to hearing how the transition goes.
I think you need to apply the context of where you are travelling. And I speak as someone who in early 20s chickenwired the inside of my backpack to prevent slash thefts in Asia (in hindsight maybe OTT). Certainly when I took overnight buses in Mexico I made sure I had a throwaway wallet in the event of a hold up but e.g. on a cruise to Alaska I wouldn't bother with much security beyond the day to day. Pavement cafe in Barcelona or Paris I'd probably keep much closer to my kit than in a village in the Alps because of scooter grab and go theft. Saw it happen once in Barca. Astonishingly fast.
Not sure the give up question is black and white. Surely it really depends on the terms of the deal offered. If someone offered you 25 x pension into a taxable IRA at your present age would you not even consider it?
Simple and practical for sure. Logical maybe, maybe not -depends on running the numbers and what you are leaving on the table for someone else for that peace of mind. I do consider the theory that if you have annuitised income on your baseline needs it frees you up to be more aggressive on the growth part of your portfolio to be valid though. Worst worse case you're still eating and paying your bills (assuming no insurer default). But to wholly subscribe to that you need to consider whether you are being too prudent with substantial cash buffers plus bond buffers etc.
Comments
Mortgages are a necessary tool and have been for well over 50 years. I think care is needed to ensure people understand the pros and cons of leverage and there is a fair bit of accompanying personal psychology. For the normal case - take out a necessary but not excessive mortgage, plan to pay down over time and aim to clear by retirement seems a reasonable strategy. For those who leverage into the biggest possible home and remortgage to release equity at every opportunity I think it is more problematic. Yes people can do very well on property gains particularly without any capital gains taxation on private residences. But in order to benefit from that they have to ultimately be prepared to downsize. And yes there is a case for renting and alternately investing. A property is a lot of concentration in an overall "wealth" portfolio and may not be the best fit for everyone. Particularly those who may be relocating often.
Post: A Contrarian View of a Mortgage
Link to comment from August 19, 2025
What you can and you can't control should be the line between whether it is worth having worries. The market you'd can't control. Your plan in relation to it you can control and fix ahead of time. Your stepson is a nice kind of worry. You can help more if you want. He's presumably going to inherit so can't see a downside in gifting early particularly if its meaningful (e.g. enabling him to join you on a special trip, make a housing downpayment, pay into an IRA). CCRC - seems to be highly personal and varies by health, age, single v couple and even intended inheritances. Can't see there is a slamdunk answer for many.
Post: Why Money is Taking Up More Space in My Mind Lately
Link to comment from August 19, 2025
The other thing is the attachment to branded goods against like generic products. To me that's just throwing money away given that retail prices can easily be double for branded FMCG. Sure some things may have a specific taste profile you can't find elsewhere but what you are really paying for is not superior ingredients - it's just the enormous amount of marketing they do. I'm amazed by how many people have the attitude that status somehow attaches to not having store brands in the house.
Post: Frugality for fun and profit… but please, not necessity
Link to comment from August 19, 2025
Yeah from those number of down thumbs you definitely don't meet most concepts of frugal. You've never had a pre-owned car or taken public transport? Even the most profiligate can probably claim those ones.
Post: Frugality for fun and profit… but please, not necessity
Link to comment from August 18, 2025
I think the emotional response is entirely understandable - if even the process of accumulating less is a concern then of course you'll find the flip from accumulation to decumulation challenging at first. That doesn't mean you shouldn't do it. There is one inescapable thing for everyone - mortality. And though the numbers on time are even more unforecastable than money we have to remember that far, far more people run out of time before they absolutely run out of money. So trust in the planning you've done. Know that you aren't suddenly going to change character and start chartering private jets to Vegas etc. And enjoy the best of what the new phase brings you.
Post: Keeping Calm
Link to comment from August 15, 2025
Congratulations. While anything like that can feel like a kick in the teeth - it really is just businesses being businesses. Just make sure you have no regrets and plan something fun to spend the payoff on. Look forward to hearing how the transition goes.
Post: When the Spreadsheet Gets Real
Link to comment from August 15, 2025
Not to say life threatening, Weil's disease et al.... ;)
Post: Not Retired, Just Re-Directed
Link to comment from August 14, 2025
I think you need to apply the context of where you are travelling. And I speak as someone who in early 20s chickenwired the inside of my backpack to prevent slash thefts in Asia (in hindsight maybe OTT). Certainly when I took overnight buses in Mexico I made sure I had a throwaway wallet in the event of a hold up but e.g. on a cruise to Alaska I wouldn't bother with much security beyond the day to day. Pavement cafe in Barcelona or Paris I'd probably keep much closer to my kit than in a village in the Alps because of scooter grab and go theft. Saw it happen once in Barca. Astonishingly fast.
Post: Not Qualified to Carry This Anymore
Link to comment from August 14, 2025
Not sure the give up question is black and white. Surely it really depends on the terms of the deal offered. If someone offered you 25 x pension into a taxable IRA at your present age would you not even consider it?
Post: Outliving Your Money? Let’s Do the Math on Annuities
Link to comment from August 14, 2025
Simple and practical for sure. Logical maybe, maybe not -depends on running the numbers and what you are leaving on the table for someone else for that peace of mind. I do consider the theory that if you have annuitised income on your baseline needs it frees you up to be more aggressive on the growth part of your portfolio to be valid though. Worst worse case you're still eating and paying your bills (assuming no insurer default). But to wholly subscribe to that you need to consider whether you are being too prudent with substantial cash buffers plus bond buffers etc.
Post: Outliving Your Money? Let’s Do the Math on Annuities
Link to comment from August 14, 2025