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| Savor the limelight |
Thank you. I knew it couldn't be that simple. | |||
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Now in Florida |
I keep actual cash in my safe for true emergencies - don't care about a return or inflation. For cash that I want to park without undue risk while still earning a decent return, I use one or more municipal bond funds, which pay a tax-free yield right around 2%. | |||
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| Three Generations of Service  |
Well, the realtor gave us a number that is lower than we'd hoped, but doable if it actually sells for that price. There will be a relatively small difference between what we cash out and the cost of the new place and I'm investigating ways to fund that. NFCU doesn't do HELOC loans any more, and the cost of a Home Improvement loan, which is basically a personal loan, is just stupid. 7.9x is the best they can do, and the upper end is 18%. Not only no, but HELL no. The fly in the ointment here is that we're thinking (pending legal advice) of having the daughter pull the permit and "owning" the new house. The advantage is asset protection on our part if we wind up in a nursing home, and the increased value of her property means she can get a pretty decent equity loan from her bank at around 3.5% which we would of course pay. We'd need, at most, $50K. A mortgage won't work due to that fact that we won't technically own the house. (Thinking a lifetime tenancy arrangement). Personal loan is too expensive. So here's what I'm thinking if the HELOC via daughter's bank doesn't fly: If I clean out my IRA (and pay a 10% one-time tax hit), most of savings and clean out the mattress, I can come up with that $50K or very near it. That makes more sense to me than borrowing money. What am I missing? Be careful when following the masses. Sometimes the M is silent. | |||
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| Green grass and high tides  |
So maybe I missed something here. Do you own the current house an property outright now? Or is there a big portion of it that will go payoff the mortgage when you sell it. A while back I thought you were talking about selling your current home. Renting it back while you get the new place set up? "Practice like you want to play in the game" | |||
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| Three Generations of Service |
Own it outright. Have for years. Sell and rent-back is still on the table, but not a deal breaker. Sell AS IS is carved in stone. Willing to adjust the price a bit if needed to avoid spending a lot of time and effort putting lipstick on this place. Be careful when following the masses. Sometimes the M is silent. | |||
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| Three Generations of Service |
BTW, we ARE getting professional legal and financial advice, just trying to get a preview here. Be careful when following the masses. Sometimes the M is silent. | |||
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| Green grass and high tides |
So is the proceeds from the sale going to more than fund the new place? Also, I would get a second opinion on the value. A realtor might tell you a low price for a lot of reasons. All are not in your favor. Also, I would build a stick frame house vs drag a trailer in there. A trailer will always be a trailer. Everything beyond the initial purchase and set up. Will be a downer going forward. Don't do it. You can get a stick built house framed up and roofed in a couple weeks buy someone that knows what they are doing. The finish will take a few months. Worth every penny and the extra wait. "Practice like you want to play in the game" | |||
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Caribou gorn |
You can look into promissory notes paying a fixed rate. My Mom was looking at some recently. 5 year P-notes paying 4%. 6-month paying around 2.5%. On demand paying around 2.25%. That's from a specialized fund that she qualifies for but you might find something comparable on the market. I'm gonna vote for the funniest frog with the loudest croak on the highest log. | |||
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| Banned for showing his ass |
I like where you are going with this. Being retired, having last year worked a small time gig before Covid kicked in ... got a little nut of income to drop into the Roth IRA. Always wanted to have a small front end loader/backhoe and did the math that a few jobs around here, and there are plenty, would easily make up for the lack of interest on the money. Also, we just chatted with our daughter who is wanting to refinance her first little house she bought at 4.25% interest. Figured that we would pay off her 135k balance and draw up an agreement where she pays us back at 2% (and save the closing costs). A three-way win.  | |||
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| Three Generations of Service |
Be careful when following the masses. Sometimes the M is silent. | |||
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| Experienced Slacker |
Maybe I missed it being mentioned, but what are the property taxes now vs. if you proceed as planned? You don't have to answer here (obviously), just want to make sure it is factored into the decision. You say you're not good at finance, but I'm certain you grok monthly/annual expenses like that fairly easily. The answer may make the savings rate question moot. | |||
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| Three Generations of Service |
Oh, they'd go up for sure. Around $1850 here, daughter is paying around $2400 on what would be a smaller house than we intend to put up. I figure around $2800 as an educated guess. What we'd save on heat and electrical costs on a better insulated house would cover a big chunk of that. Plus gas savings from being half a mile from shopping vs. 20+ miles. The other thing I need to consider is home insurance rates. It'll no doubt be more than this place but won't know how much until I have more information. Better/closer fire protection may alleviate that somewhat. Be careful when following the masses. Sometimes the M is silent. | |||
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| Green grass and high tides |
if they roll it in there, it is a trailer. There are companies that if you pick one of their designs can build a site build home pretty quickly. If you go that route (I would over a mobile/modular) just make sure they have a good reputation. They should be able to get you in and finished in six months on a 1500 sq. ft. home for about the same $. I drive by one (modular) all the time. And every time I think, man. They could of had a stick built home done for the same $ and actually have a nice place that will appreciate in value instead of a trailer house. They did it for the same reason you are planing to do one. Bad choice imho. "Practice like you want to play in the game" | |||
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safe & sound |
There is a bit of a difference between a mobile/modular and a prefab, all of which would be trailered in. I have been in several prefab houses and absent seeing some exposed sections of work, would be almost indistinguishable from stick built. There are some pros to prefab over stick as well. | |||
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| Green grass and high tides |
I know that. Every single trailer I have seen whether a manuf. or modular it obvious what it was. "Practice like you want to play in the game" | |||
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| Three Generations of Service |
I think we have a terminology issue here. Perhaps "prefab" is the term I should be using. Come in sections, assembled on the foundation at the site. Daughter's is indistinguishable from stickbuilt with the exception of the main center beam in the cellar. Be careful when following the masses. Sometimes the M is silent. | |||
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His Royal Hiney |
The best account I found was something I've had for a long time: Baxter Credit Union Power Plus Checking account. It pays 2.00% APY on balances up to $15,000. I think it's hard to beat that with just a checking account. You just need to deposit monthly and 15 transactions against the account. Qualifying transactions are debit or credit card purchases, online bill payments, direct draw against the account Link "It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946. | |||
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Fighting the good fight |
Wow. That's pretty near impossible to beat with any kind of bank account these days. Nearly all of even the best interest-bearing savings accounts, money market accounts, or even CDs are paying like 0.5% to 0.6% at most right now, with the majority being less, and many being much less (such as 0.01% to 0.05%). And 2% is even better than most of the ultra-safe investments, like money market mutual funds or US treasury bonds, which have been ~1.5% or less lately. Good for you! | |||
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| Member |
Check interest rates on savings accounts/money markets on banks in Panama. They pay quite a bit higher than the U.S. does and Panama is very stable. | |||
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| Member |
^^^^^^ They do pay more, but you would be better served with a Money Market fund that had a variety of securities. They pay more because there is more risk involved. | |||
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