- Posted May 7, 2012 by
West Palm Beach, Florida
This iReport is part of an assignment:
In need of a Money Coach?
Retirement - is it really at the end of the tunnel
I turn 59 in a few months. I am divorced, still have a 22 year old living at home. I actually dont have much debt other than my house and car. I owe around $189K on my home, Payments are $1480. per month - 4.75% rate and is valued close to $250K today. Still have 27 years left on the mortgage since I refinanced a fews years ago to get a better rate. I earn $150K per year, but that just started in January of this year. I have previously worked in the homebuilding industry in South Florida and have either lost my job or have had to take deep pay cuts to keep going and therefore I have not saved much over the last 5 years. I have always been a saver, but surely I could have done better.
I have been paying extra towards the mortgage each month. Since January, I have increased the amount from $400.00 to $800.00 in addition to putting $4200.00 a month in savings.
I have the following accounts:
Money Market /cash $50K
Brokerage Acct $ 20K
My question to you is: I know I will not be able to pay off my home once I retire ( hopefully in the next 5-10 years)
Is it best to keep making extra payments or should I just bank that cash?
Should I sell my home now, downsize now and buy something for less?
I am truly concerned, as many of my piers are, that I won't be able to take care of myself once I retire.