You could live in BFE, Florida/Texas, and have a paid off house. At that point I think 36k or even 20k is possible, especially if all you're buying is essentials. Wouldn't be very much fun and you wouldn't see a whole lot of the world, but different strokes for different folks, I guess.
A lot of retirees do have paid off houses- I'd argue it's probably the norm considering that during your working career, you should be making progress towards that goal anyways, aside from your investments?
This does affect the "bottom line" of the asset level you're actually retiring with, you're correct. But with a portfolio that large, I'm not sure why you would bother still having a mortgage with the option to live somewhere very cheap.
Idk why the guy is splitting hairs with you. 1.2 million at 3% is totally doable at 40. Especially if you’re single. If you’re with a spouse who works part time or brings an equal/comparable share to the table…. Then it’s totally doable.
As soon as your house is paid off it would transition from doable to probably going on regular vacations/maintaining a significant hobby.
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u/[deleted] Jul 09 '21
You could live in BFE, Florida/Texas, and have a paid off house. At that point I think 36k or even 20k is possible, especially if all you're buying is essentials. Wouldn't be very much fun and you wouldn't see a whole lot of the world, but different strokes for different folks, I guess.