After a mortgage, then what?

[FlyerInHi]

spd, to do what you want, you need money.

Teaching could be rewarding, but maybe not teach loser kids who won’t listen.

If you don’t work and save, then your kids won’t have anything. Are you sure you want them to go to state schools and then fend for themselves afterwards?

Anyway, slowing down has a downside, because everybody else is moving forward. You can’t say society doesn’t need smart phones, new cars, home remodels. They will be built and used regardless. If you opt out, you lose.

It’s fine if you’re old, retired and waiting to die…. but if you’re young, opting out marginalizes you from the rest of society.

You could argue that society is choosing the wrong path, but why do people look to America? Because we’re rich with good economic growth. Nobody would want to come to America or would listen to us if we were poor. To be rich, we need commerce, consumption, capitalism… Reverie and contentment don’t create wealth.

As a New Yorker, you must appreciate Donald Trump. He’s pretty much saying: “I’m rich so I’m right. If you were right, you’d be rich. So shut up!”

BTW, I don’t think that NY is less show than CA. Things are expensive there and people pay a lot for housing so they don’t as much left over for other things. New Yorkers love bling more than anyone. Maybe Vermont is more like Scandinavia.

[spdrun]

Donald Trump — a buffoon who just insulted 40% of his city, including a lot of his employees? I also personally know people in the building business who have subcontracted for him and been stiffed.

NY burbs are somewhat cheaper than San Diego burbs. And really, no one will care what you drive as long as it’s in halfway decent shape.

[Anonymous]

Refinance as much as you can with a 30 year note at today’s incredibly low interest rates.

Invest the most of the proceeds in a diversified portfolio of equities that pays decent dividends. Keep about 10% in cash as a buffer.

The dividend income will cover much of the interest payments. If you need more cash, sell some of the stock every five years or so, depending upon where the market is.

Do the math, and learn to ignore folks who brag about having their mortgage paid off.

[UCGal]

flu –
I think you know I paid off my house prior to retiring early. For me it allowed me to plan a retirement budget that was MUCH smaller than one that included mortgage P&I. It’s a little different situation than yours, since you’re younger and still working. If I was still working I would have put the extra money into investing… I have a fairly conservative asset allocation (60% equities, 40% bonds… 100% in index funds rather than individual stocks.)

The piece of mind having no mortgage is nice for me. Others feel differently and would rather have debt and more money to invest. We’re all wired differently.

[Coronita]

[quote=UCGal]flu –
I think you know I paid off my house prior to retiring early. For me it allowed me to plan a retirement budget that was MUCH smaller than one that included mortgage P&I. It’s a little different situation than yours, since you’re younger and still working. If I was still working I would have put the extra money into investing… I have a fairly conservative asset allocation (60% equities, 40% bonds… 100% in index funds rather than individual stocks.)

The piece of mind having no mortgage is nice for me. Others feel differently and would rather have debt and more money to invest. We’re all wired differently.[/quote]

I was hoping you would be one of the people lurking around here and would post!!! I actually got my inspiration to pay off my mortgage earlier from you. Although my 15 year mortgage has a low 2.5% rate, I started to contemplate paying things off earlier because I felt I had too much concentrated in the stock market (individual funds, indexes, etc), and wanted a safety cushion of having a big debt paid off in case the markets go really down and my portfolio tumbles 50+% over the next few years. (I don’t think it will, but I really don’t want to take any chances IF it does). This year, the stock market didn’t treat me as well as I had hoped, and I had a lucky windfall from an acquisition and sales of other stock at the beginning of the year. So it was my way of diversifying out of the stock market and trying to get rid of my largest monthly expense. Plus, I don’t know when I will go into early retirement (voluntarily or forced 3-4 years down the road), so I guess I’m trying to play it safer now at least to guarantee I have 1 decent primary home to live in, if the rest of my finances/career crumbles.

Despite all this, I still feel like I am way to concentrated in the stock market, and was looking for more of a conservative/reliable investment. Though, I guess once I have my primary paid off, and keep my rental income in mostly cash, I guess I can afford to take more risk by staying in the markets.

The other thing I have to investigate. I am going to see if I can pay off my Mello Roos. I’ve been told that for Carmel Valley, this isn’t an option, but I’ll find out.

[bearishgurl]

[quote=FlyerInHi]spd, to do what you want, you need money.

Teaching could be rewarding, but maybe not teach loser kids who won’t listen.

If you don’t work and save, then your kids won’t have anything. Are you sure you want them to go to state schools and then fend for themselves afterwards? . . . [/quote]

Ahem …. brian, there’s nothing wrong with “state schools.” My kid(s) who graduated from them (4-year schools) are doing just fine …. to the tune of $120K to $140K annually, AFAIK. They’re doing better in life than I ever did. Students who graduate from CA “state schools” with a marketable degree can and should “fend for themselves.” That’s what I did (with a limited education) from age 17 forward and that’s what every able-bodied adult with sound mind should do!

You’re “fear-mongering” here and I don’t think that’s going to come off too well to the parent-masses reading your post. The UC and the CSU are the best in the country at what they do for the masses of young people in this state …. for different reasons.

[Coronita]

FYI: San Dieguito School District does not allow one to pay off the MR early. However, the MR is guaranteed to be fixed for the 35 years duration, so they say….Well, at least CV doesn’t have all those other added bond initiatives that other places have (for now).

Del Mar Unified has yet to call me back about what the situation is there.

[FlyerInHi]

BG, I just meant to say that you can’t just let the state take care of your kids. They are many young folks who can’t do what they want because they don’t have family financial support.

Some people just don’t have the inclination of getting a marketable degree and going to work right after college. Some people find their ways later. For those guys, family support is essential or they can drift down quickly.

Of course, everyone is different, but I don’t think leaving the rat race is recommended for most people.

I just met a neighbor at complex where I have a rental. She is 21 with new baby child and husband. Her parents paid cash for the condo in a nice community, Seven Hills in Vegas. Good school district. Without her parents she could be a drug addict living in the hood.

[bearishgurl]

[quote=FlyerInHi]BG, I just meant to say that you can’t just let the state take care of your kids. They are many young folks who can’t do what they want because they don’t have family financial support.

Some people just don’t have the inclination of getting a marketable degree and going to work right after college. Some people find their ways later. For those guys, family support is essential or they can drift down quickly.

Of course, everyone is different, but I don’t think leaving the rat race is recommended for most people.

I just met a neighbor at complex where I have a rental. She is 21 with new baby child and husband. Her parents paid cash for the condo in a nice community, Seven Hills in Vegas. Good school district. Without her parents she could be a drug addict living in the hood.[/quote]

I agree that students going to public colleges in CA without financial aid (waivers, grants or scholarships they don’t have to pay back) is at a disadvantage unless they have a deep-pocketed benefactor(s) to keep them going long enough to obtain their degree. I’m not sure in all cases but I don’t think getting a 4-year degree from a UC/CSU is worth it (depending on campus and major) if the student is going to be saddled with more than $20K in student loans to pay off after graduating. The recent graduate has too many needs in the months after college graduation, especially if they have to relocate for their first job. For example, the old beater they were driving in college might need to be replaced to hit the road, pulling a small u-haul. They may now be too old to qualify to be on their parent(s) healthplan anymore (Tricare upper limit is still age 23) … and the list goes on.

My kid(s) were/are fortunate in that they have a fee waiver (tuition only) and a scholarship of up to $7K year (if they attend summer term FT in addition to the academic year FT) as long as they maintain a 2.0 GPA. My youngest kid’s expenses were/are the greatest, of course, due to substantial fee hikes (campus and dorming fees) over the years. Last year (their freshman year living on campus) was ~$22K for which I paid ~$12K and this year (soph year, living off campus) will cost about ~$20K, for which I will pay ~$9K. I set aside $50K to get them to graduation (combo masters/bachelor degree in 4.5 to 5 yrs attending summers) and I expect it will be enough if there are no substantial rent hikes (split 4 ways) or campus fee hikes.

Without this aid, my kid(s) would have had to go to community college their first two years and attempt to transfer into university, which is NOT guaranteed. The “track record” of my kids’ community-college bound “homies” so far has been lackluster. I only know of ONE of my youngest’ HS friends who is on the deans list at CC and headed straight for SDSU (w/ guaranteed admission). The rest have dropped out or are only now taking one class at a time, due to all of their “overly-familiar” distractions.

As for my older kid(s), all their compadres from HS who stayed home to go to CC are still working for minimum wage locally or in parent-owned businesses and most of their female friend’s now have 2 or more children and no spouse. As far as their seriousness to attend and complete CC, that is a distant memory.

It doesn’t help that my kids’ local CC is right across the street from their HS :=0

I really feel it is best to get your kids out of dodge ASAP after HS graduation so they can grow up and learn to function on their own. From ages 18-25, hanging around in a parent(s) home with your straggling HS buds surrounding you (under the guise of “attending local CC”) is a road that surely leads to a dead end.

[bearishgurl]

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