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 ?