Today’s Prep:
Are you considering making a move this year? When it comes to home buying or selling decisions, there are a lot of factors to consider. Eric answers a few questions from the mailbag related to real estate.
Equipping Points:
Your home is an important asset, but also a source of rest and refuge. Making decisions related to real estate can be tricky because you must consider both the financial elements as well as some of the emotional ones. In this week’s episode of the Retirement Ready podcast, Eric answers three questions from the mailbag from our listeners.
If you are buying a new home but your current home won’t sell in time to cover the closing costs, where should you get the money? From an IRA and pay the taxes or by acquiring a short-term loan? Is there a program available through your local bank for this type of situation? Harriet from Ames wrote in with this question as she transitions from one home to another.
If you have multiple homes, but have a goal of retiring early, is it worth selling one home now? Jim in West Des Moines is debating what to do and how to prioritize his retirement goals. Part of the answer comes down to, is it affordable? Are both homes paid off or do you still pay a mortgage? Another aspect worth considering is taking advantage of the hot real estate market right now.
Finally, Kathy’s daughter is a single mother who never seems to be able to make ends meet. Is there a good way to support her financially without enabling her to make bad decisions? Remember, it’s hard to give people money with strings attached. From a financial gift standpoint, you can give $15,000 without creating any gift tax implications for her or for you. But ultimately, you have to give what you feel comfortable giving.
Listen to the full episode or click on the timestamps below to hear Eric’s answer to these questions in the mailbag.
0:46 – Mailbag: Need cash for closing on a new house before current home sells, should this be done through a short-term loan?
3:13 – Mailbag: With two homes in different states, should you sell one home to be able to retire early?
6:07 – If retiring early, how can you cover the medical insurance gap?
7:32 – Mailbag: How can I help my adult child financially without enabling her?
Related Resources:
How To Ask Better Financial Questions
Today’s Takeaway:
[spp-tweet tweet= “Sometimes when you need to sell something you’re not going to get the best price, but sell it when you can sell it. Remember, the way you make money on anything is to buy it low and sell it high. –Eric Peterson“]
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