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Asked by someone from MO on 2/21/2019
Bill Smith
Bill Smith, CFA, CFP says
According to FHA guidelines, the home and at most 5 acres of the property can be included in the valuation. It is important to note that finding comparable valuations for an appraisal for properties in rural areas and/or those situated on large lots such as the one you are describing can be difficult and may not even be possible. Another ... (Read More)
Asked by a 56 year old man from WA on 3/10/2019
Bill Smith
Bill Smith, CFA, CFP says
The 4% Rule assumes that you can draw 4% (on an inflation adjusted basis) from a balanced portfolio comprised of equities and fixed income. Your pension and/or social security income means that you will need to rely less upon your portfolio for income. Remember that rules of thumb are helpful guidelines but not absolute. There are several ... (Read More)
Asked by a 64 year old woman from IL on 3/5/2019
Dana Anspach
Dana Anspach, CFP, RIA says
I would probably not recommend paying it off for two reasons: 1. Your expected return on your portfolio is higher than the cost of the debt. Over time, a portfolio allocated as you have described has an expected return higher than the 3.875% interest rate on your mortgage. 2. Why pay taxes at a higher rate if you don't have to? Perhaps there is a ... (Read More)
Asked by a 64 year old woman from IL on 3/5/2019
Bill Smith
Bill Smith, CFA, CFP says
I don't think that it makes sense to pay off the mortgage while you are still working and saving. As you noted, taking money out of the 401K would push you into a higher marginal tax bracket. Once you retire it will then become more about whether paying off the mortgage will enable you to sleep better at night. Mathematically, paying off the ... (Read More)
Asked by a 59 year old man from MO on 2/24/2019
Dana Anspach
Dana Anspach, CFP, RIA says
You are correct. Her maximum spousal benefit is received if she files at her FRA - and she gets 50% of your FRA amount. An annual COLA (cost of living adjustment) is applied to that amount. Upon death, the survivor continues to receive only the larger benefit amount. So your benefit amount that you are receiving at 69 and 4 months (assuming that is ... (Read More)
Asked on 3/29/2008
A NewRetirement User says
Depends on where you want to live. The beach? Central Mexico? , etc. I would research the country and spend time in several different locations to determine what might be the best place to retire in Mexico. I lived several years in Oaxaca and Guanajuato and like both areas very much. Also, I wouldn't immediately buy a place. Rent for a while first ... (Read More)

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