I am retired, but I want to build the house of my dreams. Do I have to take out a mortgage to pay it off?

Dear Crumpe,

I am 68 years old and I am retired. My current house is valued at around $ 400,000 and is paid off. I own land in Delaware and will be building a house that will cost around $ 450,000 to $ 500,000.

I don’t want to sell my current house until the new one is ready, so I will need a construction loan to finance the new house. At the same time, I have sufficient funds in my IRA. What’s the best way to finance the new home? Should I use the money from the sale of my current home to pay off the construction loan, …