I’m touching 60 soon and thinking about retiring. In a discussion with some recent hires (young people less than 30) many were surprised that only last month- after working 40 years- did I pay off the mortgage.
Many, many expected to outright own their homes by mid 30s. They were unable to give details but I am wondering how long does an average family take to do this.
Do kids now grow up in households without a mortgage?
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“ we use the Costco credit card for everything and keep an American Express card active for international travel.”
Sorry for asking a basic question but what advantages do you get with AmEx that you can’t get with a regular CC? Do you get better protections when overseas?
dang....what's with the down arrows for peeps succeeding. yall jealus mofos
Great posts! We follow the Ramsey plan except we use the Costco credit card for everything and keep an American Express card active for international travel. We are very grateful The Lord led us to The Total Money Makeover.
Praise Be!
Followed the Dave Ramsey plan since 2000. Got the whole family involved and the rest is history. The first year was tough but after that is good. We became closer as a family and closer to Our Lord and Savior Jesus Christ.
Hope this helps.
@7swb+1ryBcM73
Do you mind sharing your story? That’s cool you could save 3M.
What roles were you in? Do you have kids?
At @7swb+1ryBcM73 - congrats! I’m in similar state, over 60 with 30+ at Vz sales before it became so toxic. Here at TMo to pile on as much cash as possible while wife extols me… “Stay employed - we need the health benefits”. I’m thinking this is the key for so many reading this forum. Find a role with get’s you to 6 figures early …Hint - It’s sales. Work to Hone the craft and enjoy your career. Paid our house off almost 10 yrs ago, using strategies like paying extra toward mortgage principal and living within our budget (SHOCKING, I know!!!)
You people are sad. Get some therapy. Move on.
Post ID: @8xjd+1ryBcM73
Looks like we were laid off at the same time. 17 years with T-Mobile here. They got rid of a lot of us older guys who actually could run the network to hire a bunch of contractors who couldn't find Sievert's ar-e if they tried.
https://www.youtube.com/watch?v=d3SYg_d4ynI
27 years in T-Mobile and Laid off
pays to plan. I'll be 57 this year with almost $3M saved and no debt. Not one penny inherited. I'm quite certain I will retire if laid off.
I happened to talk with my financial advisor recently and he said many will come in to his office and tell him they play to retire in their mid 50’s. He’s like okay, let’s put the numbers into the cash flow planning software he has and almost always are they shocked and humbled and realize either they better make a lot more money or spend way less than they currently do to make that work. Plus, no one “plans” for job gaps in their career but they happen regularly and are expensive. Good luck to the 30 year olds. It will be a hard road, especially with the national debt increasing at the rate it is. My bet is taxes go up, inflation stays high and social security won’t be around.
@ FIRE-bound
That is such a great write up full of practical advice.
I think your kid is giving you a hint with the TikTok video (lol).
I’ll add two things that people should NOT do in addition to the four points you made.
- Don’t (or think twice about) marrying someone who doesn’t prioritize their health. Health care costs can derail your plans.
- Don’t marry if there are hints of possible divorce. If the other person doesn’t want children or like/don’t like pets etc, you might be setting yourself up for failure.
Congratulations on paying off your mortgage! That's a huge accomplishment. I envy you.
I think it is delusional to think a significant amount of people would have their mortgages paid off by mid-30's. I think that is the product of the unrealistic expectations that the various online videos are feeding the youth these days. Those things are planting seeds that will bloom into significant disappointment in the coming years, for those young people. Plus, they will likely be spending loads of their income chasing their FOMO, rather than investing in their own futures and building net worth (retirement, 401k, investments, etc.). It is very sad.
As an example, my teenager asked me recently if it is true what a tiktok video said (something along the lines of how a deed is prepared on a paid off home, that the parents own, to avoid tax consequences when the parent "gives" the home to the child, lol!). I explained to him that is not reality in my tax bracket, and to assume that someone will "give" him a house is absurd. Point being, these young people think that is reality, and it is very, very far from it. That might be stuff the top 1% might do, but for the rest of us, not even close.
At any rate, I believe, for the most part, there are four ways that "most people" who have a mortgage can own a home free and clear before retirement age:
- Receive a windfall at an early age (inheritance, successful investments, etc.), then pay off all or most of mortgage principal (with potential opportunity cost being higher yielding investmen/s/opportunities);
- Make extra principal payments over time, reducing the number of years until mortgage payoff (with potential opportunity costs being less money available to invest in retirement and/or other higher yielding investments);
- Accumulate home equity, sell, purchase a smaller/lower priced home with cash;
- Use leverage to purchase and rent out multiple properties while (hopefully) building equity, then use method #2 above, and/or sell some of the properties at some point, to net the cash needed to pay off the mortgage in the primary residence).
I'm sure there are a few lucky bitcoin, etc. early speculators that own their homes, and maybe a Lambo or three...but that is the exception and not the norm (even though everyone thinks they're gonna get rich from some penny stock or cryptoeconomy, ugh).
Otherwise, it isn't abnormal for a lot of people to be in their early sixties before owning their home outright.
With current mortgage rates being 6-7%+, and the real estate market being what it is, I do not envy the challenges that young people are faced with today, in trying to purchase a decent home with a median salary. It's a tough market out there.
As for me, having a sub 3% mortgage rate (2020 refi), I have no inclination to pay any extra principal, nor pay off my mortgage early, especially since the market is returning much more than that (even CD's are paying 5%+), so it would be mathematically incorrect for me to forego the higher returns, and throw extra payments at my mortgage. Now, if/when the market goes the other direction, then I would consider paying down/paying off my mortgage sooner, rather than directing money into the equities market. Otherwise, I am resigned to the fact that (unless I sell my home and downsize) I will have a mortgage payment when I retire.
However, the 10-year plan (after all kids are gone and hopefully graduated college or started their careers), is to sell my home, downsize, and buy the next home with cash, using the elusive "equity" that may or may not exist (lol), which would put me at mortgage free well before retirement. Of course that concept is fluid, and dependent on whatever the market and life's circumstances are doing at that time.
Congrats on finally paying off the mortgage.
That’s a huge accomplishment.
My parents didn’t pay off their home until they were close to retirement and I helped with the last few payments so they won’t be burdened with huge debt.
As for my retirement plans, all I know is I’m aiming for a one bedroom rather than something in Miami Beach 😀
I’m surprised to see someone making it to retirement. I can’t remember the last time I’ve even been to a retirement party, and would think we should regularly see them given the size and age of T-mobile. Perhaps more evidence of top grading layoff practices that keep the majority of staff young and cheap and hopeful for “upward mobility”. Congrats on the paid off mortgage, too! Most people are delusional about the wealth they expect to achieve, it’s true for every generation imo. I too thought I’d have a million bucks and paid off house by my 40’s without any real plan. That didn’t happen, neither will homeownership nor retirement from the looks of things at this time.
Yes, kids are growing up in homes without mortgages because their middle-class parents are forced to be life long renters.
At least I have the benefit of knowing I'm paying off Mike's 5th mortgage with my suppressed wages.
I don’t think our mortgage will be paid for until I’m about 64 and that’s with two adults working.
The “kids” you dealt with seems a bit short sighted.
Good topic. At this rate, the young employees can expect to be laid off in 5 years or less. The current rate of inflation and life will also draw on wages and savings. They don't think of that.
Congrats! Paying off a mortgage is a huge accomplishment and gives you options.