Is a tax deduction worth about 0.2% per year of the value of all housing somehow going to cause the value of all housing to drop 10%? Especially when a large majority of house owners can’t even take the deduction? I highly doubt it.
I’ve seen homes in the Seattle area sell for $75,000 over asking! Homes are rarely on the market over 5-6 days, as they set a ‘bid acceptance date’ often 5-7 days after listing, when all offers are to be reviewed. Even then, Realtors have called off the acceptance date one day prior, because an offer was prematurely accepted. Can anyone explain the logic behind that? Why would a seller not wait until the bid acceptance date to at least see if it comes in even higher?
@kjofkw, that might be a condition of the bid, and they might have bid high enough to make it worth it (to the realtor, if not the seller ). IMO, usually a bad idea, but realtors work for the deal, not the seller.
No, It does not reflect on the realtor, not in our market. The client drives the decision-making. That offer was most likely all cash and so over the ask that no reasonable person would have offered more than that. We sent an offer in before the bid review date at full price… It was rejected because another buyer put an offer in on the same date… $200k over ask, set to expire in 24 hours. If you were the seller, would you take it? I would even if the realtor told me to wait. The verbiage is usually “all offers are reviewed on date X but the seller reserves the right to accept an offer earlier.”
Some of my friends in education will receive 50 - 75% of their salary on retirement. I agree new teachers are not highly paid, but those with 30 years can be. Anyone in a career still eligible for a pension, do not need nearly the same net worth as the rest of us.
When calculating your net worth, do most people figure out the NPV of pension payments, and add that in?
It’s hard to estimate how many years you may get it, but I guess you take a SWAG and hope for the best?
Sorry to have opened a few can of worms. I talked to a lady from NY some years ago, as well as a neighbor who was moving to Long Island - and many sellers will break a contract and sell to another buyer. No explanation. Most potential buyers will not go and sue because you are throwing $$ and time and maybe getting no-where but emptier pockets.
Off the current topic: last night I accidently posted here a reply to the “where do you think you will retire” thread. Sorry for that. Evidently I had more than one CC tab open.
And yes, those still lucky enough to have defined benefit pension plans can get by with far less in investments. Since my Texas teacher retirement will reduce my spousal SS to nearly zero, my 18 years in the classroom will come out as pretty much a wash as far as retirement income.
that really is a lousy thing for TX teachers @dragonmom - I know this happens in some other states too.
H’s company was sold so we ‘lost’ the defined plan (the last 15+ years of his employment since the change; they also wiped out over 2,000 hours of sick leave he had accrued, which could have been paid time at retirement). fortunately I have done well with our other investments.
I guess it all depends on what purpose you have in mind for the NW number. I have Quicken calculate mine, but only to see how it changes, year on year. I don’t think there’s much the number can do, except as a means of keeping score. My personal NW number is whatever I could turn to cash in a month or two, so pensions and SS don’t count. I also don’t add cars. I do add my home equity. But, it’s my number, and I’ll cry if I want to, cry if I want to . . .
@IxnayBob, maybe I should have phrased it “how much you have for retirement” as opposed to net worth.
I am not really concerned about my total total, so to speak, but I do want to have a really good sense that I have enough to live fairly well and not be a burden to my kids.
For those of us in the realm of 5-10 years from retirement, without defined benefit pension, given real estate is running pretty hot right now and the stock market is up and bank interest rates are miniscule, what is your investment outlook this year? How are you investing your last 5-10 years of retirement contributions (whether protected in 401k/IRA or just savings?)
@somemom, I am pretty risk-averse. I have a fair amount in cash (savings account). I have decreased my percentage in stocks (it was never that high anyway). I definitely have less than 50% of my invested assets in stocks.
My H has all of his retirement in a retirement year based fund.
We are thinking we may retire in 3 years.
We have a significant amount in cash as well. H retired in 2012 and now receives a pension that covers most of our needs and many of our wants as well. We are very fortunate. If he does before I (likely as he is significantly older), I will still get 55% of the pension every month, plus will entitled to keep our family medical plan with H’s former employer paying 66% of the premiums.
We went out to dinner with friends tonight, the hubbie recently retired. I swear, hardly a conversation about retirement goes by these days without Medical topic coming up. Sigh. DH would be retired now (and maybe me too… 7 years younge) if still on our original"Plan A" with pension / retirement medical still in place. But I think we are now on “Plan D” now.
H (almost 61) has fasting lab Thursday and a physical after lab results are back. Will see what all gets run and how fit he is. I see my oncologist in July, and may ask for similar work up. H and I are both exercising, watching our diets, getting more fit. Hey, we could get hit by a bus/truck tomorrow, but feeling pretty good with the health gains.Will feel even better May 2018 when younger DD graduates from college, on time and w/o debt. Friend with her same degree got 3 job offers in a city DD now wants to live in, so she is going to follow through with those companies in the fall.
Is there actual talk about eliminating the mortgage deduction? I hadn’t heard that. Not that it applies to us but it’s interesting if it is being considered. The fears that fewer will own homes may not become reality. Home ownership rates in the U.S. and Canada are fairly similar and we’ve never had that deduction available here. It also hasn’t had an effect on our market as it continues to be very strong with ridiculous prices.
Very difficult question to answer for me. Not sure on retirement, but would like to drastically change my work when undergrad tuition is done in 4 years (knock wood). But we will be 55 then and tough to walk away from the steady pay and health insurance. I am risk averse, so we will see.
Like many others on this board, I am worried about healthcare coverage until Medicare kicks in. Between pre-existing conditions and potential legislative changes to healthcare insurance, I’m not sure we can accurately predict our healthcare costs from 55 to 62. (TBH I am worried about healthcare coverage after we go on Medicare, but that is a topic for a different board.)
). IMO, usually a bad idea, but realtors work for the deal, not the seller.