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Look At This Cute Little House

April 23rd, 2023 at 06:38 pm

Look at this little house, isn't it cute? 

Carbondale, IL Real Estate - Carbondale Homes for Sale | realtor.com®

And what do you know?  It just happens to be located in the same town where my very favorite 2 people in the whole world live.  What a coincidence.

Almost a year ago now, I re-named my "hobbies" sinking fund "house down payment".  I have been adding small bits of money here and there.  Well, I am ready to get serious about this sinking fund.  Because I want to make a large down payment on my last house; 100% to be precise.  The balance in the account at this moment is $857.46.  While this is a lofty goal, notice that this little house is listed for sale at 49.9k.  There is plenty for sale in the area in this price range.

I intend to stop making extra payments on my car loan for now.  I intend to stop making Roth IRA contributions for now.  I have always intended that my Roth would be long-term savings for something like a new roof or a vehicle replacement.  I don't want to touch it for anything else.  While 71k is not a huge sum of money, it is a fund I do not plan to tap anytime soon.  I hope to need the house down payment much sooner.  

I am only contributing 5% of my gross to my 457 plan.  I will just keep doing that.

When will I make this move?  I do not know.  But I know that when the time comes, I want to be financially ready. 

Posted in Retirement Dreams | 4 Comments »

4 Responses to “Look At This Cute Little House”

  1. terri77 Says:
    April 23rd, 2023 at 08:01 pm 1682280112
    1682280112

    So you’re stopping extra contributions to save a down payment for a home? When are you looking to buy & how far away is retirement?

  2. Petunia 100 Says:
    April 23rd, 2023 at 08:28 pm 1682281696
    1682281696

    I'm not certain exactly when I will retire and move. I am 56 now and will continue working full-time until age 62 at the latest. It is possible I will look for a part-time job once I have moved, to supplement income. And also, it's a great way to meet people in a new area.

  3. Lots of ideas Says:
    April 24th, 2023 at 05:33 pm 1682357617
    1682357617

    Provided you can hold something very stable like Cd’s in your Roth, it makes sense to save for your House Deposit there and when you withdraw, leave the accumulated interest. It will remain untaxed and continue to grow until you can withdraw it untaxed when you are 59 1/2.

    One year CDs are paying 5%. Even 3 month ones are paying north of 4.

    It might be a small amount of money, but why not get it?

    If you feel comfortable doing this, look into bonuses that financial institutions might offer for opening accounts with high balances. If you are ultimately going to withdraw from your Roth for the down payment, it might make sense to do that now to leverage $200-$1000 bonuses. But read the fine print carefully twice and ask a lot of questions.

    I wouldn’t suggest withdrawing from a Roth for much but I think to stabilize housing costs it could be worth it. The house will presumably remain worth ‘1 house’ if you take care of it (which I am sure you will)

    Best wishes on this adventure.


  4. LivingAlmostLarge Says:
    April 28th, 2023 at 12:03 am 1682640223
    1682640223

    Why buy a house after you have an RV at your age? Wouldn't it make sense to plan on just staying RV? Isn't that what many people retire and downsize into?

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