Comments on: House or Home?

By: Julie Thompson

Julie Thompson — Fri, 06 Feb 2009 16:19:10 +0000

Lee, Your financial picture is certainly not unusual. We are taking Financial Peace at Fellowship Bible on Monday nights at 6:30 PM, 10th and Urish. Take the time for you and Ellen to attend this and glean from Dave Ramsey’s wisdom – iron sharpens iron you well know. Give yourself the tools to form a plan, and work a plan and as Dave says – learn to make your money behave! This will only enhance whatever else you are doing. There are probably several Financial Peace University’s going on all over Topeka at this time. Just check the website. We will be on the fourth lesson Monday, the 16th. Come join us!!

By: Bob

Bob — Fri, 06 Feb 2009 14:39:12 +0000

Lee, thanks for being transparent. You had the courage to say a lot of things, that I would be too afraid to admit to another person, let alone the world. I’m afraid you are having the “average” feelings of most of us. Where has life gone? How did I get in this situation? How can I make the most of my present condition? The number one rule must be: Keep your eyes on the ultimate prize. In 100 years none of this will matter anyway!

By: Adrian

Adrian — Tue, 03 Feb 2009 02:29:08 +0000

@ Diane – Great comments. Just want to point out, however, that the 20% rule is independent of your Number; it’s designed to ensure that you are always investing at least 75% of your Net Worth FOR your and your children’s/grandchildren’s future.

By: Diane

Diane — Mon, 02 Feb 2009 14:58:12 +0000

Sounds like everyone’s addressed the things to do: $ in house is higher than 20% of net worth; alternatives are refi or HELOC. Other thing is to reassess life’s purpose? Is it something you really feel strongly enough about to make this risk (with your home and your wife’s and your daughter’s and your grandchildren’s home, too) or – alternatively – you need to focus more on raising capital from organizations and people who are hard-strapped to fund all the charitable and good organizations they’ve funded in the past (and which are hit first in a recession of belt-tightening), plus federal/state/local grants and matching funds, etc. Is there a way you can put your family to work to help this or to help build this in the future – maybe using free labor a’ la habitat for humanity, getting policemen and their families, firemen and their families out to help build on their day’s off. Get some land donated or find it cheap in the countryside. Or, decide you need to invest your own money (Adrian’s question) and follow the refi/heloc advice above. Thanks for braving the first set of bullets…I’m sure my gauntlet is coming up soon…

By: Adrian

Adrian — Sun, 01 Feb 2009 03:59:08 +0000

@ mark – If rates are low, I always like to see how I can lock them in … a HELOC can’t, a refinance can. Of course, if you need a flexible line (or can’t refi-) then a HELOC @ 2.5% sonds pretty good to me! Just remember, it could be 12.5% in a few years … or not

By: Mark

Mark — Sun, 01 Feb 2009 03:20:11 +0000

HELOC rates are low now since it is mostly tied to the Prime Rate which is 3.25 currently. The rate will change but for short term investments, I think you can do better than 3.25. If you are with a credit union or co-op, I think you can find prime minus one which is now at 2.25%.

By: Adrian

Adrian — Fri, 30 Jan 2009 13:35:10 +0000

@ Lee – Conventional wisdom says that you are on the right path for a person of ‘retirement age’: pay down the equity in your home and who cares if half (or more) of your Net Worth is tied up in the value of your home?

Get a part-time job in the local supermarket, with the other ‘retired folk’ – which will help pay for the canned food, and still leave you plenty of time for volunteering at the local church …

… but, you are no ordinary 60 year old … and, this is no ordinary forum!

Here, we measure the passage of time not in % of expected lifespan (a.k.a. ‘age’), rather in Percentage of Required Number:

If you are at a low % of your required Number, we move straight into Making Money 201 … we have plenty of time for shifting to Making Money 301 AFTER we get close to our Number and/or Date – that is OUR version of the ‘old age pension’ (at 70 for you, 49 for me, and maybe late 20′s or early 30′s for some of our Community).

If that is the case, and you are committed to achieving your Number, then Josh is right on the money: you want a HELOC or a simple refi (if you can talk a bank into giving somebody your age either) and use that money to help build your ‘Lee Inc.’ empire!

Just make sure that you have a great idea, an even better plan to execute, and a stand-out team around you … unlike, say, Josh you only get one shot at this, or it’s full-time at the supermarket for you and a room for you and your wife with one of the kids …

… you sure the Retreat Center, etc. is worth it?

By: Lee

Lee — Thu, 29 Jan 2009 19:07:22 +0000

@ Josh – I do now thanks

By: Josh

Josh — Thu, 29 Jan 2009 18:37:27 +0000

Lee, sounds like your a candidate for a home equity line of credit to free up capital for investing. Is this an avenue you plan to explore?

By: Lee

Lee — Thu, 29 Jan 2009 16:12:29 +0000

@Adrian – Confessional jokes? The only thing inappropriate in life is takeing yourelf too seriously. I tell people if you don’t want to enjoy life stay awar from me, because I do.
@Scott- I hope I didn’t leave the wrong impression, at 61 years of age I am happier and more excited about the future thatI have ever been. The past is simply something I can learn from.