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Designing Your Home Ownership to Retire Earlier

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The following is a guest contribution from reader and blogging friend Chris Mamula, a pending early-retiree in his 40’s. Chris has been writing on personal finance topics for several years. His efforts first came to my attention with his insightful review of my second book. In this post, Chris explores how to craft home ownership to support an early retirement, requiring less retirement savings while improving the quality of your life….

For many years, my wife and I made two assumptions about owning our home to facilitate our early retirement:

  1. We should live in a low cost of living area, pay our home off quickly, and own it outright. We could then essentially eliminate our housing expenses during retirement.
  2. Our home would be a safe investment because it would increase in value while simultaneously providing our family shelter.

Over the past year, I began studying real estate investing as a way to diversify our current portfolio that consists primarily of paper assets. As I learned, I thought about ways to incorporate real estate investing principles to reframe how we would approach buying our next home.

First we challenged our original assumptions. Real numbers told a different story about the cost of home ownership. Then we made the conscious decision to approach our next home as an investment in the life we truly want. This allowed us to decrease retirement savings needs by six figures while simultaneously enabling the lifestyle we desire.

[Continue reading]

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In the first part of this series, I noted that the baby boom generation has lived through a uniquely stable period in human history. Sadly, there is no guarantee that this will last. There are forces in the world that could lead to … [Continue reading]

Alternative Investments for Savvy Retirees – Part 1

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Nantucket sunset

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