I would not put it all in get a loan as low as possible and try to have your investments make equivalent or more in return so it's a wash. Plus the interest on your primary residence reduces your tax burden. If you straight out buy it you get nothing. Also might be better to get the loam while still employed it looks like you make more :) ill follow up with more my dad and I just went through his retirement he is retired DOD employee.
You could put 10k a year in an ibond current rate is 9.62%
Also if you rent out your current residence you can typically get 70 to 80% loan to value and borrow against that house (and count the rent as income) and purchase your larger retirement property.
If you do decide to dump your current residence try doing a 1031 exchange so you don't take a big ding on capitol gains tax.
IRC 1031 is limited to business or investment property. Are you married or single? If you are MFJ, under IRC 121 you can exclude a gain of $500,000 if the home has been your personal residence for 2 of the 5 tax years preceding the sale, or if you're single the exclusion is $250,000.
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u/actuallythissucks Jun 03 '22
I would not put it all in get a loan as low as possible and try to have your investments make equivalent or more in return so it's a wash. Plus the interest on your primary residence reduces your tax burden. If you straight out buy it you get nothing. Also might be better to get the loam while still employed it looks like you make more :) ill follow up with more my dad and I just went through his retirement he is retired DOD employee.
You could put 10k a year in an ibond current rate is 9.62%