Finance Ques...I am 60, husband 61, $100,00 no real retirement, owe $205,00 on house. What can we do to save?

Our jobs have no retirement. I am now really worried. We do have some savings $5,000, no credit card debt, but a large mortgage $205,000, equity $100,000. Any thing we can do but still have money left to buy necessities????

Public Comments

1. Life is hard at best right?? Well you rate in a small group of people that has a house in America. you have 100,000 dollors I would save what i could and when 65 rolls around begin to think ofselling out and head for lower priced housing. say owning a manufactured home in Northern AZ you could get in on a low down and live much cheaper. You could also do a reverse mortagage im not to up on them so youd have to check it out. Many people will be in yur shoes in 5 years me included i have 82,000 in savings but rent. It seems that we will both in a much cheaper area. Good luck baby boomer aint life grand. I guess thei is were your faith comes in. More then likely you have had a roof over yur head for years now and have eaten also me too so we have been taken care of so i guess we gotta keep beliveing that it will continue no reason to think different right? Well, live good be part of others lives give some away to get some and keep the flow going weather it be love friendship money or just a smile to some one that needs it. I really think we will be OK Thanks good question
2. You have to live within your income and really cut back so you can sock more money away. You want to be living off the interest income and you won't be doing that on $5000 - but get it in something that gets you better interest - check Capital One money market acct. or Ford Advantage - while still keeping it available for emergencies. Might consider a smaller/cheaper home but really look at the costs (6% Realtor fees and $3000. in closing cost on sale and purchase on new home). Check to see if the local senior center has financial counseling services. Good Luck.
3. You don't say your income level so I'll assume it's 70k a year. I'd save as much as you possibly can...if that means selling the house and moving into an apartment then do that. Reality is that you aren't going to pay off the house. So you'll have to either sell it when you retire or keep working part time to pay the mortgage. If you're going to have to sell anyways may as well use the 100k as a base for future earnings. The 100k that you have built into your house now will almost double in the next 7 years. Your home may appreciate that much but not likely given market conditions. Also, with lower rent payments it allows you to save more...save save save...at least 30k a year in IRA's(most will be nondeductible but income won't be taxable until you take it out)....that should get you to 400k total in about 7 years. That will get you about 25k in withdrawals each year to live on after that...add in your social security and it'll be tight but you can live out your days on that.
4. Read The Total Money Makeover by Dave Ramsey. While part of his plan is paying off debt, but he also addresses saving and investing. Good luck...
5. It seems obvious that you can't retire at 65 based on the numbers you mention. Plan on working into your 70s.