Mailbag: How Much is Too Much to Spend on a Forever Home?

Today’s Prep:

Retirement decisions involve a lot more than just the money, but also the emotional and lifestyle decisions, too. Eric answers three questions from the mailbag from listeners making retirement decisions.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Ellen in Nevada just sold some stock she had for over 25 years. How does the tax get calculated? This will be a long-term capital gain, but the shareholder is responsible for tracking that. Do you know what your cost basis is?

Elise in West Des Moines asks how much is too much to pay for their forever home. Her husband wants to spend less on their next home purchase but she wants to find the perfect place since it will be where they live for the rest of their lives. Home prices have gone up so much lately, so don’t assume the next house will be a lower price, even when you’re downsizing. You do want to get it right now. Having an income in retirement isn’t that bad since it’s a fixed monthly amount. Make sure your plan works with what you want.

Finally, Steven in Grimes just turned 72 and is about to retire. Between Social Security and RMDs, he will actually have a higher income in retirement than right now, while still working. Eric explains though that if you continue working, you do not have to take any required minimum distributions from the 401(k) you are contributing to at work. When you like to work, you might find yourself staying at your job longing. But there are other ways to stay active in retirement. When your finances are covered to maintain your standard of living in retirement, that might open a door to a lot more options you hadn’t considered before now.

Listen to the entire episode or skip ahead using the timestamps below.

[0:46] – Mailbag: How does tax get calculated on stock sold?

[4:04] – Mailbag: How much is too much to spend on a forever home?

[6:44] – Mailbag: What do I do when my retirement income is more than my working income?


Today’s Takeaway:

Retirement is about a lot more than just the money.

-Eric Peterson

Related Resources:

401(k) Weaknesses

Financial Security in Retirement

Mailbag: Pensions, Vacation Homes, and More

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Mailbag: Where Should I Invest after Maxing Out 401(k)?

March 16, 2023

When saving for retirement, a lot of people look to their 401(k). But what happens after you’ve maxed out your contribution based on the yearly limit? Eric explains what options you have to invest toward your retirement beyond a 401(k). This will include money in the different buckets as well as other products to consider.

Read More

Stories People Tell Themselves

March 9, 2023

When it comes to where you’ve ended up financially, you may have a running narrative on how that happened. There are a number of common stories people tell themselves to make sense of their situation. On today’s show we discuss some of these stories and how we can both understand them and improve upon them.

Read More

Financial Main Characters and Secondary Characters

March 2, 2023

When you watch TV shows or movie, it doesn’t take long until you realize who is the main character or who is more of a secondary character. When it comes to your financial life, which strategies, products, or tools are main characters in your financial plan and which ones are secondary?

Read More

Separating Your Money

February 23, 2023

Do you have all of your money in one place? Sometimes your money should be kept in separate funds and separate places so that it can be used for the appropriate purposes. You want to be able to access the money you have when you need it, both now and in the future.

Read More

Mailbag: Do We Need So Much Money in Cash?

February 16, 2023

Eric explains where things like your emergency fund can come and how couples usually think about savings. He also answers two other questions from the mailbag regarding retirement.

Read More

Rescuing Old Accounts

February 9, 2023

Do you have an old account laying around collecting dust, so to speak? Instead of forgetting about these, it’s important to find them, assess them, and get them up-to-date. It may even be an easier process than you think.

Read More

SECURE Act 2.0 – What Retirees Need to Know

February 2, 2023

Congress passed the SECURE Act 2.0 at the end of 2022, and you might have missed it because it was part of a larger bill.

Read More

Retirement Lifestyles

January 26, 2023

Retirement planning is so much more than simply having enough money socked away. Social activity, hobbies, skills, physical activity, and routines are all big components of your life now and likewise, should be in your retirement.

Read More

Good Intentions and Financial Advice

January 19, 2023

How can you use your money wisely? Eric answers three questions that range from short-term travel plans to long-term estate planning decisions. While it’s good to be a good steward with your money, remember what it’s really there for.

Read More

Mailbag: Should I Invest Unused Travel Funds Into Something More Practical?

January 12, 2023

How can you use your money wisely? Eric answers three questions that range from short-term travel plans to long-term estate planning decisions. While it’s good to be a good steward with your money, remember what it’s really there for.

Read More

Leave a Comment