But we all need to get real. It seems like we all still have held on to this this 1950s concept of retirement; like its some optional thing that you just ring a bell whenever you want and head to Florida. But the truth is that retirement comes for us all, and mostly before we expect it. 

 

Retirement is mostly not optional - 58%  of us will end up being forced to retire well before 65, either from layoffs, illness, or just ageism.

 

Highly competitive fields (Hollywood / Silicon Valley) typically die off in middle age. With kids and declining energy, you just can’t keep up, so, off you go: major paycut or second career, sorry, thanks for playing.

 

And unlike the 1950s, there are no lifetime pensions or annuities waiting for us. You've got your social security and what you've invested and saved. That's all.

 

So the reality is, if your in your 40s or even 30s, retirement should be top of mind. Maxing your social security, 401ks, IRAs and pensions is vital, as well as having cash savings goals – it should all be part of that.

 

 

All the math around retiring is way, way easier… with a paid off house.

 

Suze Orman is a financial guru you don’t see much anymore, but she always recommended paying off your house, well before retiring.

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The good news is, you don’t have to do anything for that to happen – your home loan is already set up to pay itself off.

 

That's our plan: this year, we're planning on refinancing into a 15-year loan. By 65, my primary residence will be paid off. 

 

 

Buy a house. Don't move. Refinance only to lower your payment. And if you're nearing retirement, pay your loan down aggressively.

 

It's the only wealth-building strategy that works on autopilot for people who are terrible at saving, which is 98% of us.

 

By the time retirement forces itself on you, without a mortgage payment, an income of zero will be a lot easier to digest (ask your parents). No mortgage means your biggest expense (40% for most of us) is mostly gone.

 

Suddenly, Social Security might be enough and your sad 401k lasts twice as long.

 

A paid off house won't fund your retirement but it will sure make it go much easier. So plan for it.

 

       -Brock

🏘️ 🕸️  With nearly 40 mil residents, and only 102,000 new units of housing  permitted,  the California Housing Shortage is Here to Stay.

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