Hello guys. Got a mentor who I am returning a favor for. He is a 65 year old recent retiree who has been burning his time camping and enjoying the outdoors. He is a bit of a luddite hence my reaching out for him.
He recently retired and has roughly $700k in his work 401K and was looking at buying a $130k house with land.
We are lost to the best, most effective way to go about this. His proposal was to pull out $200k to buy the house and any other expenses that may come up. He has a fair amount of liquid savings that he has been living off and is really good regarding living off the land and minimizing his expenses that most of us have. He has a $25/month phone, fully paid for truck.
I proposed that he needs to go to a fiduciary or other financial expert and see if he can invest his his money and get set up with a monthly allotment of money. I am also aware of the time value of money and know that buying the house outright vs paying a low interest mortgage and investing the money for a net gain is also a thing.
What is everyone's advice? As of right now I told him to hit up the credit union he is a part of and talk to them about his situation. Right now a good portion of money is tied up in stock of a company that is, of course, at a low point right now. Once the summer warms up it obviously will increase in value as it does every year netting about a 10% in stock price for almost 80% of his 401k.
Thanks in advanced!!
Submitted January 22, 2017 at 03:35PM by eNomineZerum http://ift.tt/2jmkWzB
