Given the sum I am inheriting, and the pension and Social Security I am eligible for, can I afford to buy a house for $950,000?

I'm inheriting $2,200,000. I'm 61 years old and my wife is 60 years old. We own a co-op worth $315,000. I have a pension of $33,000 per year and my Social Security will be $1,720 per month if I wait to take it out until I am 62 years old. My wife's pension and Social Security will be around the same amount. We have one daughter in her last year of college. She will also be going to graduate school. Can we afford to buy a house for $950,000?

Pensions, Social Security, Real Estate
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2 weeks ago

No, you can't afford a $950k house.

Not that you don't have enough money, but why would you spend that much?

Housing is (usually) a terrible investment unless it's a cash flowing rental.

Your daughter is no longer living with you. Buy a house for $250,000. 

Invest the rest. Cheap ETFs and a couple of rentals houses that are net income.

Also, don't take Social Security at 62. Wait until you're 70.

Be smart with that money. Don't buy an expensive house that you'll then fill with depreciating assets (TV's, furniture, carpet, appliances, etc.)

Hope that helps...

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