A tough life decision......

[shilala]

Another thought, just to throw it out there, and I don't have any way of knowing if it's something you guys would consider...
Buy your parent's home as an investment property. Rent it, lease it, or leave it sit if you can swing that. It's an enormous tax advantage and it'll leave the option to sell your current home wide open.
You won't need to produce any cash, you let the bank take a second on the equity in your current home as collateral.
When you buy the parent's home, claim it at twice what you paid for amoritization purposes, assuming you'll be doing tons of upgrades. That way if you ultimately sell it at a profit, you can still take a large capital gains loss and leave the game whistling.
There's obviously more to talk about so far as that route goes, but it would be one that keeps all your options open for years to come.
It may change your retirement portfolio a bit, but you won't realize the tax hit you'll get with the Roth and 401K in the end. Plus you'll save a fortune between now and retirement on taxes.
You'd have to crunch all the numbers, but it smells pretty sweet from here. It worked real well for me. I retired at 42, although mine was forced by my health. Fortunately I was prepared (enough).

[kaisersozei]

Originally Posted by shilala

Another thought, just to throw it out there, and I don't have any way of knowing if it's something you guys would consider...
Buy your parent's home as an investment property. Rent it, lease it, or leave it sit if you can swing that. It's an enormous tax advantage and it'll leave the option to sell your current home wide open.
You won't need to produce any cash, you let the bank take a second on the equity in your current home as collateral.

That's the direction I was recommending, but I went the refinance route on his current house. Didn't think about the second mortgage on the first.

[neoflex]

I think Shilala nailed it with both of his posts.
I'm 35 and 5 years ago my wife and I bought the current home we're living in with the intentions of living here long enough to see the mortgage out. Truth be told we are not satisfied with the neighborhood as we bought in the early stages of the subdivision and now we have no intentions of staying here. We are both hoping the market rebounds in the near future so we can sell and move elsewhere even if it just means breaking even on our current home. I personally want to either move to a subdivision where it has a tighter nit community feel or further out in the country where I will have a decent amount of property where I don't even see my neighbors home and can do more with mine. Long story short location is everything. Will you be 100% satisfied with going from one extreme to the other? Unless you plan on spending the majority of your early retirement traveling the location of where you will be living is key as you will be spending a whole lot more time there. If your not satisfied with where you are living will the earlier retirement be worth it to you and your family in the long run?

[jluck]

Originally Posted by ashtonlady

The house that you are in now can be reproduced if you find what you did didnt work for you. The house you are talking about moving into is your family home. If it wasnt about the money would you do it?

That is the one big negative, I could never reproduce the property I currently have. And about the money question...It is always about the money (debt) with me. If I had this place paid for I would keep it forever.

Originally Posted by BigCat

I think it depends on how much enjoyment you're giving up by moving and how long you will have to go without to retire early. I wouldn't want to live a really austere life for 18 years just so I could retire at 50. Those 18 years should be enjoyed, too. And I don't think my answer would change if you were setting yourself up to retire at 40 either. I'm not advocating spending all you have in a carpe diem kind of sense, but if you can add good money to your savings while living well, that seems like a fine formula. We aren't guaranteed to make it to retirement age, whatever age that is.

Really the only enjoyment given up would be my personal. I look around my property and yes I smile (Maybe Ego, maybe accomplishment, I don't know),I have worked my ass off to have what I do already. But the family is all for moving to get closer to civilization. Also don't get me wrong about my folks place, It's a great home/location that most anybody would love to own.
I thought about a second mortgage and equity loan too and I could almost just buy it out of my portfolio too, But that goes against what I am trying to do with carrying no debt or it would empty my current retirement fund.
This is something I have put many years thought in to and yet I still brought it here so yes it is tough for me.I truly believe my family's quality of life would be greatly improved by making this move also as do they.

Health....I was not going to bring this in to it but its a good point Scott. I don't have any weird, funky or strange illness but I have a lot of self inflicted body damage from motorcycle/ATV riding and racing. I broke my back at 17 and have major arthritis,nerve and soft tissue damage. I don't see myself effective working more than another 15-20 years.

Thanks,guys/gals

[357]

Originally Posted by shilala

Another thought, just to throw it out there, and I don't have any way of knowing if it's something you guys would consider...
Buy your parent's home as an investment property. Rent it, lease it, or leave it sit if you can swing that. It's an enormous tax advantage and it'll leave the option to sell your current home wide open.
You won't need to produce any cash, you let the bank take a second on the equity in your current home as collateral.
When you buy the parent's home, claim it at twice what you paid for amoritization purposes, assuming you'll be doing tons of upgrades. That way if you ultimately sell it at a profit, you can still take a large capital gains loss and leave the game whistling.
There's obviously more to talk about so far as that route goes, but it would be one that keeps all your options open for years to come.
It may change your retirement portfolio a bit, but you won't realize the tax hit you'll get with the Roth and 401K in the end. Plus you'll save a fortune between now and retirement on taxes.
You'd have to crunch all the numbers, but it smells pretty sweet from here. It worked real well for me. I retired at 42, although mine was forced by my health. Fortunately I was prepared (enough).

A similar thought, lease your place (aka let someone else pay the mortgage for you) and buy your parents place. Live at your folkds place to keep lower upkeep/mortgage costs. 5-10 years later you might be able to sell your parent's place for enough to pay off the remaining owed on your place. Then you'd have the house you really wanted and it would be paid off.

Try to lease your place for full mortgage price, but if not you can put in the difference plus extra to pay your place down quicker.