A big problem with that plan is that there is a good chance that you will not actually want to move when you retire. By then you could have more ties with your current area and may not want to move then.Would it be unwise to continue working in this area and renting while investing for the next 15 years with the goal of retiring, and then moving to a LCOL area to buy a house cash? I used to think this was a pretty solid plan,....
I did a cross country job relocation when I was somewhere around your age. The plan was that I would work their until I retired then we would move to some retirement destination. By the time I retired my son had graduated from college and was married to a woman with strong family times to this area. They bought a house which is about ten minutes from us and now have two kids(our grandkids). Once they settled in the area the idea of moving away from then went out the window so we are staying here. It has actually worked out well but it is not what we were planning on.
Even if you do not have kids or a spouse you might be in a relationship with someone by the time you retire with someone who does have strong times to your current area.
I would suggest that you take hard look at finding some affordable area that you would want to retire in and moving there now.
Keep in mind that you may not need an "average" house especially if you do not have kids and don't need good schools.Average single family homes here are now 600k+.....
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I do have enough in investments to make the 53% downpayment, but it would take over half of my taxable account value.
I did not follow your numbers but it sounds like you could reasonably pay cash for a house, townhouse, or condo in the $400K to $500K price range. The current interest rates don't really matter much if you have a very small or no mortgage.
Statistics: Posted by Watty — Mon Jul 08, 2024 9:54 am — Replies 13 — Views 1004