No. of Recommendations: 1
I've posted this on other boards; but I just found this board and wanted to hear what you had to say:::

I'm selling my home in an expensive area and moving to buy a home in a much less expensive area.

I am 35, married with 4 young kids. Currently, DW and I have about $30,000 each in 401(k)s and IRAs. We have about $25,000 in an e-fund.

I'll have about $280,000 net profit after the sale of my home. We'll be buying a new home for $211,000. My thought was to put 20% down on that home and take a mortgage on the rest. We'll invest the remaining money (approx $240,000) in various ways and for various reasons including: Kids College, Real estate investments, max out IRAs annually, maybe contribute more to 401(k), keep some in money market for future expenses (car, home improvement, vacations, etc).

I've been asked lately by a few people why I am not just buying my home outright to avoid having any mortgage payments. Each time I try to explain that I am diversifying this way, I find it harder to explain myself, and I start to think perhaps it would be better to pay off the house and have less monthly liabilities.

If I do buy the house outright, I'll have approx. $70,000 to use in the various ways mentioned above, and will be able to put away more cash on a monthly basis.

So I'm looking for any opinions on what someone my age, in my situation should do. I should also mention that employment will be a question mark at first, I do not know how long it will take me to find a job at the time of our move.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.