Government Finances

I would prefer to move to a 55+ community where we could rent a nice apartment and have amenities, with no property taxes or maintenance. He says we will be homeless because our rent keeps going up and we won’t last long on our combined Social Security.

What is the best path forward?

See: I’m 53 and I hate my job. My husband, 59, and I have two homes and $1 million in savings. Can we afford to retire?

Do you have a question about your own retirement savings? Email us at HelpMeRetire@CNET.com

Dear reader,

What’s best for both of you will depend heavily on your finances—that is, your daily expenses and your retirement nest egg.

There is no one-size-fits-all approach to retirement living. In some cases, renting may be the best choice, as there are no maintenance, renovation or repair costs or taxes to worry about. On the other hand, as you’ve seen, with an owner-occupied home, the value (and any growth in that value) is entirely yours, and you’re not relegated to potential rent increases.

A 55+ community isn’t a bad idea, but many offer homes for purchase with maintenance fees, similar to a condo or co-op. It sounds like your husband is trying to avoid cost of living increases that are beyond your control. In this case, it may not be the best option for both of you, as a homeowners association can easily increase your maintenance fees or dues. year after year. These locations would likely maintain the exterior of your home, including landscaping.

If you explore this option, ask the homeowners association who is on the board, how often they have raised fees, how much reverse financing is, and if you can attend community meetings, suggested Rocket Mortgage .

Buying a house, on the other hand, can be a lot of work and cost a lot of money. You need to worry about maintenance – a new roof or furnace, or perhaps amenities to help you age in place, like widened door frames and extra guardrails, when the time comes. There are also property taxes, as you mentioned, and utility costs.

Also see: Will our social security contributions be reduced? My wife has a school pension and I am a veteran.

The median listing price for a home in Houston is $340,000, while the median sales price is $311,300, according to Redfin, meaning it’s not impossible to find a home in the price range your husband is considering. Before you jump into the housing market, take your current budget and future projections seriously.

Look at your expected income and expenses with a new home. Try to be as specific as possible and include expenses such as your mortgage with a realistic interest rate, property taxes, utilities and other necessities including groceries, transportation, health care , etc.

Paying off the mortgage quickly is a fantastic goal, but only if you have extra money saved for emergencies and a retirement nest egg. These two goals should be separated: you don’t want to dip into retirement funds in an emergency, so that your retirement assets can grow over the long term and your emergency assets are liquid in case you need to money immediately.

If you rely heavily on Social Security, as it appears you may eventually do, it is imperative, regardless of your housing choice, to have money to fall back on outside of Social Security. Receiving Social Security benefits is helpful, but it shouldn’t be your primary source of retirement income, especially if you plan to buy a home. Expenses arise for both renters and homeowners, and if you’re not financially prepared, you’ll have problems no matter what type of housing you choose.

Readers: Do you have any suggestions for this reader? Add them in the comments below.

Do you have a question about your own retirement savings? Send us an email at HelpMeRetire@Crumpe.com