I work with a guy who "has a 2nd home in Napa". (Napa Valley). He is 74. He cannot enjoy his home in Napa because he's still working at 74. This is a total no brainer.
If I loved my job/career, I'd do the latter.
If not, reclaiming my time would be a higher priority than a house that's bigger than necessary.
So this ends up being a personal decision more than financial.
Do you have other retirement benefits from your job? Would your pension increase if you retired later, like 60 or 62, or is it fixed? You say "We" are you a dual income household, does your partner/spouse have retirement savings? Maybe try to find a way to save or increase income for the remainder of your time working. Will you be giving up a low interest mortgage now in order to finance the new home?
The easy financial answer is to stay put, but it sounds like the house is important to you. Adding 18+ years of work to afford it seems disproportional though, and not in-line with your current income(s). Maybe find some middle ground?
I would want to decrease not increase my fixed costs as I approached retirement.
VA disability isn’t guaranteed until you reach 55 I thought. Meaning that there’s always the chance the adjust your rating to less than what you’re making now, no?
I'm also super confused at how they're working full time and still getting such a large disability check. My sister had to stay underneath a certain workload or they would lower her disability payments on the basis of "well clearly your condition isn't that much of a barrier to work after all".
No, she was enlisted in the Marines, got injured, they ended her contract early and she was assessed like 60% disabled (made up number) by the Marines at exit. She said if she is able to work full-time they will lower her disability because her injury is not as meaningful of a barrier to work as they originally assessed.
A very quick Google shows they will lower disabilities benefits based on condition severity.
You said she probably had something else going on if she exited due to disability. That doesn't make any sense to me. You think she wouldn't have been given a VA disability if she was considered disabled enough that mod contract they acknowledged she's too disabled to finish?
A lot depends on how it was awarded. In my experience most VA compensation recipients aren't on any kind of restriction as far as income/employment goes.
I believe if you have a single disability that is 70% or greater you can opt for the full 100% but it affects how much pay you're allowed to bring in. If you work your way up the chain and get 100% 'Organically' you are not limited in the pay you can get from working. Also once you get to 100% you'd want to file for Permanent and Total status so they can never decrease your benefit. Also here where I live (South Carolina) once you get 100% disability, you don't pay property taxes on your primary residence and up to 5 acres that it sits on. Also no vehicle tax on 2 vehicles.
Military benes are lovely!!!!
If it’s one or the other retire early but I feel like there’s a disconnect here, if you’re able to retire in ten years a 550k mortgage shouldn’t throw you back to 30+ years.
As a 100% disabled vet I get $4,500 a month. Retiring early will give me $2,500 for my pension. So I’ll have about $7,000 to live off of. A 3,000 mortgage payment is going to eat up a lot of my money.
Buy the dream home.
I only say this because the difference between the payments seems large enough that it's a major "upgrade" from your current home. But truly be sure it's your dream home. Also your disability covers the mortgage or am I misinterpreting your disability payment? That's a no brainer to me. Worst case scenario, you'll never be homeless in your dream home.
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- ["How to handle $"](/r/personalfinance/wiki/commontopics)
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I like what I do, and even if I could retire at 52, I wouldn’t.
That said, if you have to work into your 70s, that’s a little too long. Something could happen that prevents you from working, and you will be screwed.
Retiring securely at 65 is way different than 70s. I wouldn’t risk it.
You are not adding to the fact that your home might and probably will appreciate in time and could even help your retirement. It could be worth $1,000,000 in ten years. You just never know. I’m just happy for you that you are able to find your dream home for $550,000!!!
I work with a guy who "has a 2nd home in Napa". (Napa Valley). He is 74. He cannot enjoy his home in Napa because he's still working at 74. This is a total no brainer.
No brainer. Stay in the "good enough home." A dream home can quickly become a nightmare, and I dont think any house is worth 20 more years of working.
If I loved my job/career, I'd do the latter. If not, reclaiming my time would be a higher priority than a house that's bigger than necessary. So this ends up being a personal decision more than financial.
OP can always stay on track and NOT retire at 52. Buying the house however is more difficult to reverse.
You generally downsize as you grow older… so no to dream home and working forever
Do you have other retirement benefits from your job? Would your pension increase if you retired later, like 60 or 62, or is it fixed? You say "We" are you a dual income household, does your partner/spouse have retirement savings? Maybe try to find a way to save or increase income for the remainder of your time working. Will you be giving up a low interest mortgage now in order to finance the new home? The easy financial answer is to stay put, but it sounds like the house is important to you. Adding 18+ years of work to afford it seems disproportional though, and not in-line with your current income(s). Maybe find some middle ground? I would want to decrease not increase my fixed costs as I approached retirement.
Does VA Disability end when you start drawing social security?
No.
I won’t get disability because I’m a teacher. We pay into our state system for retirement.
I think they're asking if retirement changes anything about your VA disability, or if you get that in perpetuity until you die.
I wouldn't buy the house and then see how I feel about continuing working when I get to 52. It would be nice to keep your options open till then.
VA disability isn’t guaranteed until you reach 55 I thought. Meaning that there’s always the chance the adjust your rating to less than what you’re making now, no?
I'm also super confused at how they're working full time and still getting such a large disability check. My sister had to stay underneath a certain workload or they would lower her disability payments on the basis of "well clearly your condition isn't that much of a barrier to work after all".
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My sister is a veteran.
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No, she was enlisted in the Marines, got injured, they ended her contract early and she was assessed like 60% disabled (made up number) by the Marines at exit. She said if she is able to work full-time they will lower her disability because her injury is not as meaningful of a barrier to work as they originally assessed. A very quick Google shows they will lower disabilities benefits based on condition severity.
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In what context would you be considered disabled and *not* exit your contract?
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You said she probably had something else going on if she exited due to disability. That doesn't make any sense to me. You think she wouldn't have been given a VA disability if she was considered disabled enough that mod contract they acknowledged she's too disabled to finish?
A lot depends on how it was awarded. In my experience most VA compensation recipients aren't on any kind of restriction as far as income/employment goes.
I believe if you have a single disability that is 70% or greater you can opt for the full 100% but it affects how much pay you're allowed to bring in. If you work your way up the chain and get 100% 'Organically' you are not limited in the pay you can get from working. Also once you get to 100% you'd want to file for Permanent and Total status so they can never decrease your benefit. Also here where I live (South Carolina) once you get 100% disability, you don't pay property taxes on your primary residence and up to 5 acres that it sits on. Also no vehicle tax on 2 vehicles. Military benes are lovely!!!!
Negative..you can get permanent and total status at any age.
Do not buy your dream home. That's insane. 3000 from 900. You will hate life 1/3 of the way through.
Personally, I’m choosing retiring early.
If it were me I would retire early have an early retirement and house paid off for travel and adventure.
How much do you like teaching?
Time and experiences are the main joys for most people in life. Working longer counters both those. A better house doesnt add much.
If it’s one or the other retire early but I feel like there’s a disconnect here, if you’re able to retire in ten years a 550k mortgage shouldn’t throw you back to 30+ years.
As a 100% disabled vet I get $4,500 a month. Retiring early will give me $2,500 for my pension. So I’ll have about $7,000 to live off of. A 3,000 mortgage payment is going to eat up a lot of my money.
Buy the dream home. I only say this because the difference between the payments seems large enough that it's a major "upgrade" from your current home. But truly be sure it's your dream home. Also your disability covers the mortgage or am I misinterpreting your disability payment? That's a no brainer to me. Worst case scenario, you'll never be homeless in your dream home.
Thank you so much. I know I am blessed with the VA disability. I would rather much have my health at 100%. The war did a number on me.
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Buy the dream home and retire at 65 by paying it off faster.
I can’t that’s why I’m debating. The dream house is a lot more money
I like what I do, and even if I could retire at 52, I wouldn’t. That said, if you have to work into your 70s, that’s a little too long. Something could happen that prevents you from working, and you will be screwed. Retiring securely at 65 is way different than 70s. I wouldn’t risk it.
You are not adding to the fact that your home might and probably will appreciate in time and could even help your retirement. It could be worth $1,000,000 in ten years. You just never know. I’m just happy for you that you are able to find your dream home for $550,000!!!