New

Should My Parents Downgrade Their House To Prioritize Retirement?

Here’s the situation: my parents used to live in a paid off house and in 2024 decided that they needed something bigger/closer to work so they decided to take move into a bigger house. The math: home 1 was bought for 650k (2014) and sold for 1.175m (2024). They then moved into house 2 bought for (1.5m) (2024). They took a 600k loan, when they didnt need to and nothing couldve justified it I know, but it is what it is. Anyway, they are also both business owners and one of them have had a significant downturn. Is it completely insane to sell house 2 (it could probably go for 1.65m) move into a smaller house for 1.1 and contribute the 500 k to the loan payoff so they are debt free? The reason I think they should push for debt feee is bc their retirement is very low for where they should be roughly 400k saved at 55 year old. Without the 500k loan they could save heavily for the next 10 years and be in a significantly better spot. They say that they never want to retire bc they are workaholics but their age is showing and i know they won’t be able to continue the 60 hour weeks that they have been doing

Edit: It seems everyone feels the need to comment on the relationship dynamics of my parents and I, no thanks! I would not be making this post if they weren’t curious about the financial feasibility and they know it wasnt the smartest financial decision to move. If you don’t have an answer to my question then don’t respond thank you.

submitted by /u/Zooturzot
[link] [comments]

Back to Listing

credit:

Should My Parents Downgrade Their House To Prioritize Retirement?

Popular Products