We have great jobs make great money and invest the typical 401k backdoor Roth etc. we also used to have a large (700k or so) liquid savings we used to put down payment on 2 homes roughly 3.5M worth. With rates on one being 5% and other 6.625, we’re thinking of just paying principals instead of stock market (we are renting the cheaper house out). What’s the risk long term? Just missed gains? Alternatively we can sell the cheaper house and have 500k in equity to roll into current home.

Also we have exposure to market (roughly 500k worth + I get compensated in shares), but want to just buy more houses.

This post was edited on 7/5/24 at 12:39 pm

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Posted by MrSpock

Member since Sep 2015

4833 posts

Posted on 7/5/24 at 12:44 pm to fareplay

They're fine assuming the number work.

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Posted by fareplay

Member since Nov 2012

5897 posts

Posted on 7/5/24 at 1:24 pm to MrSpock

Is there risk to selling homes vs drawing from 401k at maybe 55?

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Posted by notiger1997

Metairie

Member since May 2009

60888 posts

Posted on 7/5/24 at 2:33 pm to fareplay

Same risk as having a 401k. Depending on the market, there could be a crash and the value of the house could go way down.
It’s not likely, but it is a risk.

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Posted by lctiger

Member since Oct 2003

3383 posts

Posted on 7/5/24 at 8:44 pm to notiger1997

I have a somewhat similar situation. I’m 55 had house paid off, decided to pay off lake house and hunting land. I’m in a spot where if I had to I could retire, but probably will work 5-10 more years. Felt like I had too many eggs in the stock market basket. Some peace of mind having tangible assets that if needed down the road can liquidate. We rent out the Lake house and is good mailbox money.

This post was edited on 7/5/24 at 8:45 pm

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Posted by jizzle6609