Well, if the home is paid for, he is not paying monthly rent. Even with his yearly property taxes and insurance divided by twelve months his "rent" is quite low which equates to a better cash flow.
I guess the real question is why purchase a home after a divorce. You are single so you can live just about anywhere. I can guess there was no money to invest until the house was paid off.
I guess I'm getting confused on the fact if he had 800k at retirement and it gained 4% a year it's 32K a year divided by 12 is $2666 a month so wouldn't it be that he only needed to actually take about $600 out every month extending his money? And at 5% growth on his 800K he'd have $40k and not need to touch his 800k at all?
This one seems familiar. Im watching though.
A paid off house is obviously great but it doesn’t provide needed cash flow for living expenses.
Well, if the home is paid for, he is not paying monthly rent.
Even with his yearly property taxes and insurance divided by twelve months his "rent" is quite low which equates to a better cash flow.
I guess the real question is why purchase a home after a divorce. You are single so you can live just about anywhere. I can guess there was no money to invest until the house was paid off.
@@jjred233 Why not.
Ownership always trumps transient renting.
Hello from St.Louis.
While you do a great job I think your over estimating his expenses as it's proven as you go from 60 to 70 and 70 to 80 your expenses go down not up.
I guess I'm getting confused on the fact if he had 800k at retirement and it gained 4% a year it's 32K a year divided by 12 is $2666 a month so wouldn't it be that he only needed to actually take about $600 out every month extending his money? And at 5% growth on his 800K he'd have $40k and not need to touch his 800k at all?
Could you please say that although you may get 100% of FRB you are still paying for Medicare part B out of those funds. So it isn’t 100%
You repeat yourself too many times. I heard 150k so many times!