Bankers keep you in debt
Doctors keep you sick
We do all in our power NOT to participate with them
Doctors keep you sick
We do all in our power NOT to participate with them
contemplating retirement options - looking for input
- Thread starter TnT_M
- Start date
Everyone needs to decide for sure. Its not a simple question. The only thing I would question is if you have $1M in liquid (stocks, bonds, etc - not real estate or a business) assets, and a $300K mortgage - are you "in debt"? I would say your not - IMHO.
The things most likely to kill you in retirement is either lack of short term liquidity and inflation. A mortgage helps with both.
I am now 6 years into retirement and all I can say is that reducing debt before retiring makes all the difference. We have no debt at all, no mortgage, nothing. We still need to pay our property taxes, put gas in the cars, pay the light bill and so on but here's the big thing that I believe most people don't get...Everyone needs to decide for sure. Its not a simple question. The only thing I would question is if you have $1M in liquid (stocks, bonds, etc - not real estate or a business) assets, and a $300K mortgage - are you "in debt"? I would say your not - IMHO.
The things most likely to kill you in retirement is either lack of short term liquidity and inflation. A mortgage helps with both.
Income taxes don't go away when you retire. Most of your retirement income whether its SS or pension or 401k (Roth excepted) withdrawals will be taxed.
And. You do not pay taxes on income that you don't receive to make payments on debt that you don't have. No debt means less income is required to maintain your standard of living.
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I would have to disagree...a fixed income and inflation is what can kill you. That combo can dramatically impact your ability to save. Sure you can borrow against equity but it only puts you deeper in debt. Controlling debt is crucial for most retirees.
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That is a very good point - because it’s always going to apply if the money for the house payment comes from income from one place or another. Even if you are paying with money that was taxed 10 years ago!
Math needs to work if you keep a mortgage. Would it make sense today? NO never, no way! And I'm not even sure what mortgage rates are. (6%+??)
I gained over (net) around $13K to the positive 2025. I know this because I just finished my taxes. I mean I knew by eyeball we would be fine. Even after taxes my mortgage is so low and when rates went up the last time very much worth it. The plan is to sustain this the next 5-6 years and then condo super DOWN size, pay cash and yes of course no mortgage. We remain flexible - true beauty - we could just pay our current mortgage off. To me this good peace of mind.
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Sounds like Dave Ramsey word salad bunk. I lived it both ways.
Lets start with a mortgage against a much more valuable asset isn't really debt in the true definition. Its a liability on a balance sheet.
In-laws, net worth of at least 4X my parents, mostly real estate, completely illiquid. When my FIL passed away my MIL basically lived in poverty. I told my wife her and her siblings should do something but that family has always been disfunctioanal. I had learned long before not to get involved.
Conversely my parents had some very modest real estate - they didn't owe anything but a small monthly payment would not have changed things. They had lots of cash in the bank - invested in very liquid interest paying accounts. The interest went up with inflation. They had lots of buffer to cover some fairly large expenses, never a problem. My dad passed, mom apparently still does fine with the buffer - my sister manages it and I ask frequently.
So lesson learned. You can't spend net worth. My parents had a much nicer retirement than my in laws. I will get a much larger check from my in laws estate - if that dysfunctional family can every get it settled that is. Of course I neither need nor deserve the check.
I suspect the OP has his financials all figured out based on his post.
Since he is looking for insights, I suspect the basic financials he has got it together. It’s possible he may even have some type of health benefit being will be collecting a pension that I don’t know.
So this is my only thought in preparing. Much of it depends on where you live and your particular circumstances however, I know somebody around that 55 age group that will be retiring.
They have planned for it and I would stress anybody doing that keep in mind depending where you live.
You have to be prepared over a 10 year period to layout over $300,000 for health insurance. This is a low number for the northeast and possibly a realistic number for the southeast. But you need to keep in mind that is today’s cost in the year 2026. Certainly it will be higher by the time the OP retires.
The couple I know in the northeast currently pays $30,000 a year for two people. If in the unlikely event health insurance did not go up over that 10 year. It will cost them $300,000 but let’s assume health insurance keeps going up. You will be looking at $350,000 - $400,000 or more
Anyway, it’s a good number to keep in mind, in your calculations make sure to allow health insurance expenses because they’re very well may be one of your biggest expenses untill you reach age 65 should you choose to carry health insurance
Since he is looking for insights, I suspect the basic financials he has got it together. It’s possible he may even have some type of health benefit being will be collecting a pension that I don’t know.
So this is my only thought in preparing. Much of it depends on where you live and your particular circumstances however, I know somebody around that 55 age group that will be retiring.
They have planned for it and I would stress anybody doing that keep in mind depending where you live.
You have to be prepared over a 10 year period to layout over $300,000 for health insurance. This is a low number for the northeast and possibly a realistic number for the southeast. But you need to keep in mind that is today’s cost in the year 2026. Certainly it will be higher by the time the OP retires.
The couple I know in the northeast currently pays $30,000 a year for two people. If in the unlikely event health insurance did not go up over that 10 year. It will cost them $300,000 but let’s assume health insurance keeps going up. You will be looking at $350,000 - $400,000 or more
Anyway, it’s a good number to keep in mind, in your calculations make sure to allow health insurance expenses because they’re very well may be one of your biggest expenses untill you reach age 65 should you choose to carry health insurance
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I don't dispute that your friend and his wife pay 30k per year for healthcare. But we are well cared for and I had two surgeries last year while paying a small fraction of that. I feel sorry for your friends.
Im not so sure they care, as they can afford it and why they retired, I was answering the question asked by the OP.
Their Health Ins in New Jersey cost them $2,500 a month. So a vald response to the OP question asking us if anyone has any insight for his planning to maybe retire at 55
You dont offer your age of insurance that you have.
