M$D: April 14, 2047
Meet Mary
Age: 41
Mary’s main concerns, in her own words:
My husband and I have been happy lifelong renters, partly because we didn’t want to put down roots. Now we know we want to stay. He’s 46 and I’m 41. We’re wondering if time is running out to get a mortgage, so we’re planning to buy this year. But my husband has $70,000 in student loan debt, and I’d have to take a small withdrawal or loan from my 401k for a downpayment. We don’t have any savings besides $47k in my 401k. Chances our, our mortgage would be less than our $850 rent – possibly a couple hundred less. Our house budget would be $130k tops. Our motivations to move are equity, diversifying our investments, and quality of life. We don’t want to be beholden to landlords much longer, although our current, longtime arrangement is pretty nice and stable. We don’t have kids. Our annual combined income is $88,000, and our other debt is a $250/month car lease and about $6,000 in credit card debt. We live fairly leanly, and could tighten our belts a tad more. Should buying a house be a priority, at our age?
What we cover in this episode:
- When it’s the right time to buy a home
- The role of a home in retirement planning
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Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.