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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