What about taking as much and many life insurances as you can - obviously without her knowing. If she knew she could become a multi-millionnaire retiree so "quickly", she might want to make "things happen" !
In a way I'm feeling overleveraged anyway. We refinanced a few years ago to acquire a rental property. I'm looking forward to raking in that stream of passive income with that debt retired.
I'm not a full-time trader, if that's what you're asking. I've been piker-trading for like 15 years but got serious about it like 3 years ago. Yes, I'm trading profitably.
In that case, please do not consider my postings as valid. I'd say less than ten years full time trading is a minimum before starting to make life financial plans that take trading into account. Otherwise, very well done for your well managed financial situation. At least you are not one of those who are just waiting to inherit from various family members. Then one wonders why funerals don't seem to be always a sad event!!!!
I've always seen my primary residence as an investment, and made my financing plans accordingly. (Love that tax free 500K every couple years!) Thus for me, I would be thinking about the value of the renovations as an investment. How long do I plan to stay in the home? Is there a cost/benefit in taking on the debt? Or am I planning to staying forever and I don't care? These issues and many other are very personal to your situation. Nobody else can advise. Good luck.
Thanks for all the thoughtful replies. Yes, we've always had a HELOC. I don't think the terms are as good as a refi though. I keep forgetting that our economy is upside down from what my parents lived in. Back in 1968 when my parents bought a house the inflation rate was about 4% and their mortgage was about 7%. Who could have imagined a future of 3% mortgages back then? Maybe I should re-think this.
Wow! If that is the case perhaps you really cannot afford and should not do the renovations? If you still want to go ahead, total up your regular income, now and during retirement, and subtract all expenses (including your new mortgage), if the outcome is positive cash flow, then you should get a new mortgage, otherwise no. Negative cash flow has a way of snowballing and swallowing you up quickly and at your age you don't have time to recover. Good luck.
I'll grind through the numbers and see. We were already in good shape with cash reserves when my mom died. The inheritance was about 1 year's pay so we really had too much cash reserves at that point. One of the big pre-retirement questions is are you going to stay in your house or move? We're planning on staying. Our renovations are modest IMO. No additions, just updating and remodeling. When we're done we'll still have the recommended cash reserves. Plus I still have a 6-8 year work horizon during my peak earning years.