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My statement was forward looking, not present. Many retirees today are part of a more financially conservative generation.
So far as the so called studies go, they are for the most part worthless. Poverty guidelines for 2014 for a family of 2 is $15,700.00. I do not know about you, but if I were trying to get by on less than 30K I would consider myself pretty hard up.
In fact the figure of 1mm in 35 years seems ridiculous given the inflation rate. A million is barely in the comfort zone today. It is still a long way from being financially secure.
we did a lot of real estate investing to grow money but i would never entertain being a landlord in retirement.
last thing i want to do is deal with tenants. we have been selling off all holdings the last 12 years and are down to just 2-co-ops left.
real estate investing is all good until its not. then it can be your worst nightmare dealing with tenants , lawyers and courts.
retirement is no time to have income disruptions from tenants who eventually have one of 3 things happen. illness-divorce-job loss as eventually these strike even the best of tenants.
not so bad when you have a pay check coming in but it could be a disaster when you don't.
just my opinion.
i would far sooner have equities ,bonds and annuities providing my income where i am fully in control of the downside of things i want to risk. one click and i am out if i need to be.
that vs months tied up in court in some areas trying to get a tenant out.
If you have desirable properties and do thorough tenant screening it's very little work.
Here's what I see first hand. At a minimum know what your social security amount is. If you have a pension great. If not be serious about your 401k or whatever. Put that money month after month or week after week if that's the way you do it.
Here's the kicker. Be debt free.No mortgage, no credit cards, no car payment, I mean nothing.
You have to know what your guaranteed income will be going forward. If married consider your life and long term care insurance.
Retirement is no joke especially if it's not by choice such as for heath reasons. Yup date your Will or Trust, and POA' s. It may not t a me a million depending on your lifestyle but you need to know what your guarantees income will be.
Here's what I see first hand. At a minimum know what your social security amount is. If you have a pension great. If not be serious about your 401k or whatever. Put that money month after month or week after week if that's the way you do it.
Here's the kicker. Be debt free.No mortgage, no credit cards, no car payment, I mean nothing.
You have to know what your guaranteed income will be going forward. If married consider your life and long term care insurance.
Retirement is no joke especially if it's not by choice such as for heath reasons. Yup date your Will or Trust, and POA' s. It may not t a me a million depending on your lifestyle but you need to know what your guarantees income will be.
And you can do the same for stocks - buy for dividend growth rather than price speculation.
no such thing. that is a myth. we beat this to death already.
dividends without capital appreciation will have a loss with each payout unless the dividend payout is retraced by the same amount in appreciation. selling off a non dividend payer on your own to create that dividend is identical in nature assuming the same total return.
a stock is reduced by the payout and needs to retrace in appreciation what was payed out . when you get a rent payment it is not subtracted off the value of the property so they are not equivelant.
the rent is more akin to an interest payment where it is added on to the principal with no downweard adjustment.
a dividend is just siphoning off part of the share price appreciation with a matching drop in share price value.
in order to get back to where it was it first has to appreciate over the quarter by the amount that was payed out.
as you can see the appreciation always has to match at least the payout or you are at a loss. realistically it only comes down to the fact that dividend investing only differs in the ease of getting that check since you do not have to sell off a piece on your own , in effect they are selling off a piece of your share price for you..
no matter how you slice it you are investing for total return no matter how you break it apart.
Last edited by mathjak107; 08-25-2014 at 03:01 AM..
8% hasn't been hard to come by in this high risk low reward environment, although I'm not really sure what you mean by this or tptb
considering the s&p 500 has seen just a touch more than 1% real return on any money invested pre 2000 yes returns have been hard to come by.
new money did fine but any older money has basically stalled out. any money i had invested in equities did very little since 2000 ,especially once inflation adjusted.
any money invested pre 2000 has seen around the following
since the 2000 peak and as of the close of july ,including dividends reinvested.
1k in money invested in the s&p 500 or total market fund is 1698.00 today . in todays dollars that is a 1.39% real return the last 14 years .
the point is new money did okay but older money fell way behind goal. back in 2000 where i expected to be 14 years later based on predictions fell way short.
Last edited by mathjak107; 08-25-2014 at 02:59 AM..
considering the s&p 500 has seen just a touch more than 1% real return on any money invested pre 2000 yes returns have been hard to come by.
new money did fine but any older money has basically stalled out. any money i had invested in equities did very little since 2000 ,especially once inflation adjusted.
any money invested pre 2000 has seen around the following
since the 2000 peak and as of the close of july ,including dividends reinvested.
1k in money invested in the s&p 500 or total market fund is 1698.00 today . in todays dollars that is a 1.39% real return the last 14 years .
the point is new money did okay but older money fell way behind goal. back in 2000 where i expected to be 14 years later based on predictions fell way short.
That's an issue with price one pays, which is another side of seeking returns. If somethings overvalued, its overvalued.
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