2nd House strategy- Feedback requested

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Topic Author
Katoswims
Posts: 48
Joined: Fri Nov 06, 2020 8:44 pm

2nd House strategy- Feedback requested

Post by Katoswims »

Hello,

Needing to get thoughts on my current thinking regarding the timing and financing of a 2nd home.

Quick status update.

59.8 yrs old- retired
Spouse 57.8- still working

My tIRA's - $3,600,000
Roth- $82,000

Her 401k- $593,000
MYGA- $409,000

Taxable Cash= $125,000

AA 35/55/10

Wife earns approximately $260,000 annually based on performance, not salaried. Stable position.

Primary home paid off- $500,000 (though Zillow says $712,000).

Besides daily living expenses and insurance plus college costs and vacations we spend most of my wife's take home pay. Annual savings about $35,000.

We want to build a home on a lake front lot (totally paid off, appraised at $174,000).

My plan:
Thinking we use the lot equity for down payment and get a mortgage while my wife is still employed.
Then I take monthly distributions from tIRA for monthly payments, taxes and utilities.
Cost to build $450,000-$500,000.

This would last approximately 2 years, at which point we'd sell our primary home and payoff 2nd home.(or not)
Thinking a lake house is something we'd enjoy while we are still active vs waiting until everything's perfect, at which point we'll be several years older.

Thanks for your feedback !

Thoughts ?
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