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Lev, Tax Preparer
Category: Finance
Satisfied Customers: 34316
Experience:  Personal Investment, Tax Preparation
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I am 64 years old & plan to retire in 20018. I am a building

Customer Question

Hello, I am 64 years old & plan to retire in 20018. I am a building superintendent & live in a apt for free. when I retire I must move out. I have about 350K in savings w/ no debt. I am thinking of buying a apt for 150K & they do not accept financing.Must buy in cash.Is this a wise decision? The good part would be no montage payment & between my pension & social security would have low monthly expenses.& would not need to withdraw from my IRA. I also feel I would like to keep as much cash as possible In case of a emergency. I have most of the money invested in mutual funds (stock & bonds) & would like to keep it growing.What do you think? Thank You!
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: no.
Submitted: 1 year ago.
Category: Finance
Expert:  Lev replied 1 year ago.

Not only you will be free of mortgage payments - but also when you purchase without financing - your closing cost is lower and you may negotiate lower purchase price.

So - generally - that would be a wise move.

Expert:  Lev replied 1 year ago.

Regarding using cash vs taking a mortgage - we need to compare expected mortgage interest rate and expected return of capital - if your possible earning are same or less that your expected payments - that purchase will be good choice from financial prospective.

Please elaborate.