# Retirement - how to time it



## Linda Doc (Aug 24, 2020)

I plan on retiring from my full-time job at 65 (it's too stressful and I've had enough!). I'm planning to sell my house in Philadelphia and use the equity to buy a smaller, very inexpensive one in a 55-up community in southern NJ. I'm having trouble deciding how to time it - sell my house while I'm still employed, buy my new one, then retire and collect my Social Security, or wait until I retire to sell. The problem is where I want to live is too far away from my full-time job to commute. Any suggestions/advice appreciated!


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## Ferocious (Aug 24, 2020)

I think that you have answered your own question, Linda, if you don't want to commute. Good luck.


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## Don M. (Aug 24, 2020)

Retire first, then begin your search for a new place to live.  Trying to balance work with moving plans would be a real hassle.


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## Aunt Bea (Aug 24, 2020)

With interest rates so low is it possible for you to buy and carry the retirement home with a large mortgage?

It would allow you to gradually move your possessions adjust to the new area and make a few friends.  When it's time to retire you can sell your primary residence and pay off the mortgage on your retirement home.

Good luck with your decision.


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## asp3 (Aug 24, 2020)

There certainly are advantages to being able to purchase your retirement home while you're still employed.  You might want to find out what you could afford for a minimal rental that where you would live M-Th nights, spend F-Su nights at your new place and then just do the long commute Monday morning and Friday evening.


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## bowmore (Aug 24, 2020)

asp3 said:


> There certainly are advantages to being able to purchase your retirement home while you're still employed.  You might want to find out what you could afford for a minimal rental that where you would live M-Th nights, spend F-Su nights at your new place and then just do the long commute Monday morning and Friday evening.


Not a bad idea. We bought our retirement house while I was still working. My house was much closer to my job, so I stayed there M- Thu, then took the train Friday night to our new home. The only bad part was I had to catch a 6:30 train Monday morning which meant getting Kayelle up to drive me to the station.


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## StarSong (Aug 24, 2020)

Depends if you intend to carry a mortgage on your new home.  Might get better rates and qualify more easily if you're still employed. 

If you're planning to pay cash, I echo @Don M.'s advice. Wait until you're done with one phase before starting the next.


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## Knight (Aug 25, 2020)

Planning & retiring early at 54 meant adjusting the sale of our home because we wanted to take advantage of the once in a lifetime of no tax on our home if sold after age 55 and having lived in it for over 3 years. You won't have that issue. We stipulated completion of the sale would take place the day of my 55th birthday. We had 4 offers all approved for purchase & signed contract to buy with the non return of the 25k earnest money if the buyer backed out. We owned the home so the sale @ 4 times what we bought it at and no taxes on the equity was pure profit.

You could do something similar. If selling in your area is hot now & you can get the price you want setting up a buy completion when you leave work for good. You should have the place you want to move to assured.

Another tip would be to inventory what you have & decide what you can rid yourself of so moving excess "stuff" isn't a problem


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## Manatee (Aug 26, 2020)

I made my last mortgage payment and retired the following week at age 63.


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## Don M. (Aug 26, 2020)

Manatee said:


> I made my last mortgage payment and retired the following week at age 63.



Retiring Debt Free is the best way to enjoy retirement, IMO.  We made our last house payment somewhere in the middle 1980's, and haven't paid a nickel in interest on anything since.  If we buy anything on Credit, we pay the bill in full when it arrives.


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## Knight (Aug 26, 2020)

Don M. said:


> Retiring Debt Free is the best way to enjoy retirement, IMO.  We made our last house payment somewhere in the middle 1980's, and haven't paid a nickel in interest on anything since.  If we buy anything on Credit, we pay the bill in full when it arrives.


That was a major part of our retirement planning.  No debt & paying off any credit charges in full works. One thing we enjoy especially when buying on credit is taking advantage of cash back & buying needs on sale. Price reduction , no interest, & cash back every time! Nice making money work for you instead of working for money in retirement


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## Linda Doc (Aug 27, 2020)

Thanks everyone for all your replies!


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## OneEyedDiva (Aug 28, 2020)

Ditto what @Don M. replied.  A friend of mine is in a very similar situation as you now except she is currently self employed. She is probably going to be selling her home soon and wants to move. She was considering South Jersey  and had asked about 55+ communities too. 
Questions: Do you have a target retirement date?             
                  What is your plan if you close on your home before an apartment becomes available? Timing can be tricky in these situations.
Best of blessings with all of this.


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## aTreeFallsinTheWoods (Aug 29, 2020)

Linda Doc said:


> I plan on retiring from my full-time job at 65 (it's too stressful and I've had enough!). I'm planning to sell my house in Philadelphia and use the equity to buy a smaller, very inexpensive one in a 55-up community in southern NJ. I'm having trouble deciding how to time it - sell my house while I'm still employed, buy my new one, then retire and collect my Social Security, or wait until I retire to sell. The problem is where I want to live is too far away from my full-time job to commute. Any suggestions/advice appreciated!


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## Random Retirement guy (Aug 30, 2020)

Linda Doc said:


> I plan on retiring from my full-time job at 65 (it's too stressful and I've had enough!). I'm planning to sell my house in Philadelphia and use the equity to buy a smaller, very inexpensive one in a 55-up community in southern NJ. I'm having trouble deciding how to time it - sell my house while I'm still employed, buy my new one, then retire and collect my Social Security, or wait until I retire to sell. The problem is where I want to live is too far away from my full-time job to commute. Any suggestions/advice appreciated!


Rent before you buy. Take time to relax and readjust. In three years you could easily wish you were somewhere else.


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## Random Retirement guy (Aug 30, 2020)

Rent before you buy. Take time to relax and readjust. In three years you could easily wish you were somewhere else. And on SSI, wait as long as you can. (but sign up for medicare as soon as you can)


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## davidscheff (Sep 29, 2020)

Linda Doc said:


> I plan on retiring from my full-time job at 65 (it's too stressful and I've had enough!). I'm planning to sell my house in Philadelphia and use the equity to buy a smaller, very inexpensive one in a 55-up community in southern NJ. I'm having trouble deciding how to time it - sell my house while I'm still employed, buy my new one, then retire and collect my Social Security, or wait until I retire to sell. The problem is where I want to live is too far away from my full-time job to commute. Any suggestions/advice appreciated!


Hey Linda! I'm also in a similar situation. I think it's better to search for the place and work on your retirement plans. You don't want complications in your way.


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## IrisSenior (Sep 29, 2020)

Retire, collect your Security, sell your house. find your new house and move.


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