OK, YMer's here you go! I need advise!

[Regis]

Jan 10, 2015 11:03:28 GMT -5 Value Buy said:

We are having our first "disagreement" in retirement.

She wants to pay off the mortgage (57,800) so we can but a place in Florida with a mortgage......Due to small interest amount and taxes we have not been able to take anything but standard deductions, so maybe we should just sell some equities and pay it off.

She may be correct, because we never refied this house and would get an excellent rate right now. Paying 5.375%

My problem is she only wants to spend 3 to 4 winter months there, the rest up here, and I cannot accept spending that much money on a part time residence.

If we paid off the house and bought in Florida, I figure I would have to liquidate another $100,000 and finance the rest at a much lower rate, but I expect our monthly needs might jump another $700 a month to pay utilities, taxes maintenance, etc. More than that if in a gated community.

Neither of us are interested in a modular development there. We prefer a house.

We already have a park model trailer in a campground for summers here, so that makes three places. She refuses to sell that, about $30,000 in equity.

I am welling to sell the house of our permanent residence, and do an apartment rental here plus the campground, but she wants all three. I cannot see me surviving a campground lifestyle for four months. too confining, no storage, etc.

I nailed the amount we needed to pull from funds at $1,800 a month to maintain our lifestyle so far.

My biggest concern is selling equities right now. I expect another good year of returns.

I really do not want to say what we have saved here, but we could do it, and still be okay.

It's whether we want to leave the kids more equity savings than our parents did for us.

If I stayed working, we would not be having this discussion!

Decisions

Decisions

Decisions

I see the word "want" a lot in this post.  The word "need"?  Yeah, not so much.  In the words of The Rolling Stones, "You Can't Always Get What You Want".

[Bonny]

But if you try real hard you'll get what you need...

[tallguy]

I think you had too many glasses of wine in your hand at the reception.      

"But if you try sometimes you just might find
You get what you need"    

[Bonny]

LOL, I like my version better!

[Value Buy]

Jan 10, 2015 12:24:32 GMT -5 oped said:

3 is a lot in my opinion. 

You could rent out your two 'vacation' properties when you are not using them. There are obviously pros and cons to this. 

You can take loans now and sell equities when it is more enviable to you to do so...

The summer trailer is strictly that. May to late September. It will be used rather than rented out.

The house in Florida, not sure if my wife or I would like renting it out, what with personal items etc, being there, plus unless a tourist neighborhood hard to rent out, and winters would be our time there.

[Deleted]

People down there have owner closets where they lock personal stuff, and use managers to handle rentals. It's what my father does with his condo, and his friends, and how we've rented more when we needed them for events.

[Value Buy]

Jan 11, 2015 1:16:48 GMT -5 @taliare said:

Does she send you back to work so you can afford house in FL? At beginning of thread you say you think buy in FL is cheaper than rent. What was agreement about FL with wife before you retired? Do you change mind now that money is fixed? I agree that really only want one house to take care of for retirement.

Does wife have active roll in finances and know what you have and how long it is to last?

Not going back to work. I would have stayed working if that were the case.

Rentals are expensive on everything we want.

Our "agreement", was a work in progress.

We spent three weeks in November checking property out. Some property older than 2000 is reasonable, but not hurricane updated for the insurance companies not to ding you a lot, and need kitchen bathroom updating.

Properties built around 2007 still way cheaper than their original prices, but tens of thousands more than two years ago

She plays an active roll in finances. She and I share everything and she runs the checkbook, I run the investments for the most part, but I discuss the investments, and we reach an agreement on everything but the little stuff, and it is always mutual agreement on the big stuff.

This is the big stuff we are at an impasse on this right now.

[Deleted]

I have rentals rather than vacation homes. In total we have 5 properties, but 4 of them are apartments, and 2 of those are studios. Even those small places have problems, give us grief, etc. 

I think 3 places is a lot  too many. I would try to come to an agreement on the 2 places you'd (ideally) both rather spend time, and then rent a place in the 3rd place (maybe not for 4 months though). 

If I understand correctly, of the time you wouldn't be in Florida, you'd be spending half of that time in your home, and half of it at the campground? Is that right?

So (ballpark) you'd be spending 4 months at your real house, 4 months at the campground, and 4 months in Florida.

Again, I think having 3 properties is too much, both financially, and headache-wise. Personally I'd rent in Florida next winter (since you already own the other 2 places), and then reevaluate. But I'd aim to own 2 places, not 3.

And maybe (since you'll be renting) you can't afford 4 months in the third place. So do 4.5-5 mo in one home, 4.5-5 mo in the second home, and 2-3 mo in the rental. 

It still sounds like a great lifestyle to me!

ETA: I don't get wanting to own everything, there's a LOT to be said for going to hotels or renting. But I DO get wanting to still own a house. So, you both need to decide which house you want to own ... where you are, or Florida? For me, the answer would be the place I'd be most likely to spend time with my kids / grandkids. But, you have to be realistic. It's not necessarily because you own it that "they will come", if it's far from where they live ...