Lots of moving parts here -- what would you do?

Investing
#1

My brother is talking about selling the apartments again, which we share 50-50. If we sell, I’ll have $1.2 mil. So I’m trying to figure out –

  1. Do I pay off the $420,000 mortgage to my condo, which is my primary residence?
  2. And do the following with the balance –

If I have a balance of $820,000 earning 7%,
If I withdraw $4,000 each month starting today,
If I deposit at least $250 every month,

my total investment will continue to grow.

I am 61 years old. At 80 years old, I will have $1,200,000.

Another idea –

  1. Instead of paying off my $420,000 mortgage, take the $420,000 and buy a new-build townhouse in Santa Fe, NM, and rent it for $3,000-$3,500 a month.
  2. And do the rest, stated above? The mortgage to my condo is $2500 a month (including escrow and HOA).

Meanwhile, I have a teacher’s pension that pays me $4700 a month.

What would you do? Lots of moving part here, I know. Buying a condo in Santa Fe, NM is about diversifying my money, and not relying on VTTVX to pay me $4,000 a month. What if VTTVX doesn’t earn 7% one year?

Thank you.

Pauline

#2

Finances are personal; you have a lot of good options… one thing that I’d prioritize in your situation is having 2-3 years of expenses in something like a savings account or CD. That would give a withdrawing cushion for “years that VTTVX does earn 7%”.

Paying off your mortgage is good, buying another place in Florida is good and investing is good… all great options! Enjoy retirement!
My $0.02

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#3

Hi Pauline- I would get that monkey off my back and pay off my mortgage. That leaves a balance of $780k, and if you invest that and get (hopefully) 7% a year, you could safely withdraw $3k per month and the balance would still grow. Not sure why you want to withdraw $4k and then deposit some back? Just w/d less and call it a day.

Good luck with everything :+1:

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