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Hi there; exciting market today, huh?

On the Retire Early Home Page: I have enjoyed visiting it, but I enjoy this Motley Fool forum much more frequently. You know, here I have a chance to express my opinions, which I give out freely . . . <grin>

On financing the house: Certainly I am giving up deductible interest payments. There would be a decent chance of making more by putting my money into the market rather than into paying off the house. OTOH, I might make less that way. I just cannot see being 100% in equities at age 60. It makes a lot of sense to me to have some of my retirement assets in fixed income. I sleep better this way and I certainly eat well enough. The house represents only a fraction of the retirement assets anyway. With the house paid off, I could get by on just my pension and social security in a severe pinch. The fixed income portion is about 27% of my retirement assets. It includes only these items

• the discounted present values of both my corporate pension and social security (using the current rate on 30-year treasuries as my discount factor),

• and the base price of the new house.

(I don't include all the optional extra upgrades I put into the house; I figure that money is spent and gone. I "had" to have the tiled floors, extra bathroom, kitchen tile and cabinet upgrades, the plantation shutters througout, the extra insulation, improved windows and air-conditioning system, porch extension, and on and on. I think this probably adds little or nothing to the resale value. It sure has been fun, though. Why did I work and scrimp all those decades if not for some luxury now?)

Chips, who has rejoiced in seven years of retirement so far and plans to enjoy the future even more
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