Originally Posted by
sailingfun
I would not live your life in fear of what might happen. Once you have 15% below you on the seniority list a quick stoppage of income is highly unlike. The things you mention can be sold if needed. A vacation home for me was always a investment with the added bonus that my family gets personal enjoyment out of it. You want a diversified portfolio and one part of that should be real estate. The real estate side of my portfolio is what is allowing me to enjoy a great retirement without financial issues.
What would you say is a conservative/liberal debt to income ratio.
I have read banks generally don’t like to lend more than 40% of gross income tied up in payments.
People balk when Dave Ramsey says 25% of net at 15 years for an home and 0 other debt.
Is it reasonable for a mid age pilot earning 25k-35k a month gross to have 10k-14k a month tied up in payments to a bank for toys or a mortgage or vacation home.