Posted on 11/28/2015 6:15:46 AM PST by SeekAndFind
Good point. You definitely want to reduce your debt as much as possible going into retirement. Its just one less thing to worry about and it will enable you to absorb other unexpected expenses more easily.
...and when the IRS comes for our annuities, IRAs and pensions to pay for Achmed then it won’t matter anyway.
Same here. In fact, our investments are still growing our income. Could not be more at peace about it...a nice feeling to have.
I predict the exact moment the government starts confiscating these accounts for SS, there will be blood in the street, and violence not seen in this country since 1865.
Except the Messiah come it will be. Its standard payout will reduce most Americans' income more toward a global average. Wealthier Americans will pay more taxes; even when they thought they had tax shelters.
They will naturally turn to politicians for help; politicians will be only to happy to confiscate the reserves of those wise enough to have saved for old age
When the time comes, we must be ready to deal with those politicians.
Good question that I don’t know the answer to. I know what ROI is and how to compute it but I am not a very sophisticated investor. I would think (again, depending on individual circumstances) that my present real estate investment circumstances provide an ROI north of 20% and much better than a REIT (which I have owned and can be great investments). If one does decide to go the rental route, I would advise keeping the investment local, (no out-of-town condos, timeshares or pooled money purchases etc), owning small houses in stable neighborhoods needing some cosmetic work but structurally sound. Local markets usually rise and fall more on local economic conditions but other investments are impacted by national and international conditions. You would be shocked at how many people would pass over a prospective rental due to a lack of imagination, skill or ability to turn a dog into a charming rental property. Biggest issue is not ownership its making sure to find good renters and compliance with sometime onerous federal and state fair housing laws.
Same here. I was obsessed with a comfortable retirement even at age 25. Could have retired at 46, but waited till 55 (health care). A while back I provided my strategy, let me see and I’ll post it again.
There were two scenarios that motivated the wife and I to save...
Care for either/both of us in an elderly care facility without our kids having to come out of pocket for the funds. It’s tough enough on the children when parents are in those facilities. I don’t want to add to the strain by forcing them to write financially crippling checks every month.
A good chunk of change left over to give the kids upon our passing.
Don’t worry too much myself about retirement as defined as not working. I think I will work doing something I like until I am physically unable to. We have assets but don’t tap them except taking the RMD from our IRAs. we also spend all our SS and pension income. Travel and eat out a lot, have a nice life at 76. I see a lot of people like us in our friends and contacts in our travels.
Big worry is debilitating illness. Go to gym and eat carefully, to forestall whatever will get us in the end. Our assets should cover for 4-5 years. After that the kids will.
If nothing is left at the end I see that as a good plan.
Biggest issue is not ownership its making sure to find good renters
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That rings true from everything I’ve heard from friends who have real estate investments like yours.
The 20% return sounds about right, given that you need that kind of yield to justify your personal time, effort and financial commitment that is inherent in owning real properties. REITs are just passive investments but the yields can be fairly generous, and of course there is the possibility for additional capital gains if the total portfolio increases in value. Liquidity is another advantage of REITs — if the market cooperates. :)
If I told you how much I pay in taxes now (as a percentage of my income) it'd blow your mind.
The top tax rate in this country is WELL over 50% if you live in a state that has Income, Property, Sales Tax and other taxes on income like we have here in Illinois.
The ONLY thing that keeps me above water financially is because of how I choose to live and the things that I DO NOT spend money on.
The only thing that keeps me here until June of 2017 is my youngest son still being in high school. My family moved TWICE while I was in high school and it sucked for me. I won't do that to my youngest son.
That's coming. You are 100% correct on that. Smart people will figure out how to shelter their income from discovery.
The rest will pay, and pay, and pay.
One word: EXPAT. I've applied for my Irish Citizenship, which I'll get ... as my Grandmother was born in County Cork, Ireland. By extension, my wife and sons (if they choose) will also get Irish citizenship as a result.
If it comes to it, I'll leave America and move to Ireland. In retirement my taxes will be far, far less there than they will be here.
I'd rather not leave .... I will if I have to.
The more likely issue is reducing the amount that can be put in the 401K and IRA but not the MyRa, which invests in government bonds.
A likely “solution” is the feds saying that to avoid uncertain market returns, X% of IRAs and 401Ks must be invested in government bonds. The percentage starts at 1% or 2% before ratcheting up.
Don't wait; distribute it yourself. Charge them that are rich in this world, that they be not highminded, nor trust in uncertain riches, but in the living God, who giveth us richly all things to enjoy; That they do good, that they be rich in good works, ready to distribute, willing to communicate; Laying up in store for themselves a good foundation against the time to come, that they may lay hold on eternal life.
First Timothy, Catholic chapter six, Protestant verses seventeen to nineteen,as authorized, but not authored, by King James,
bold emphasis mine
REITs like Camden can be bought and sold like stock. Lower rates of return than a buy a house below market rates, fix up and rent out, but you can sell it ASAP to pay emergency bills or settle legal matters. Real estate sold in those conditions is called a bargain.
Be nice to your kids since they will be the ones to pick out your old folks home.
Since you qualified your taxes as a percentage of your income it would be wrong to include taxes based on non-income sources (assets, purchases). Your average income tax rate should be less than 50% and you should be grateful to the living God you have so much to give and are not hungry or in peril.
Crazy statistics.... No wonder our country is so messed up....
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