U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-13-2011, 03:00 PM
 
1,060 posts, read 1,639,785 times
Reputation: 1928

Advertisements

Quote:
Originally Posted by Wwanderer View Post
You can't take it with you, but you can bequeath a mortgage to your children, at least here in Canada.

And so far here in Canada, real estate still is an investment, not a drain.

That being said, when we get older if all goes well, we intend to sell a property and use the money to finance our lifestyle, renting a decent apartment instead of hanging on to a luxury downtown condo. But would never mortgage it to do this--what a terrible thing to do to your heirs.
I have watched in both my family & my wife's family that in nearly every case, when a house was left, it became an issue within the family. That is a terrible thing to do to your family. The well being of my wife & I in our retirement are the primary concerns in our retirement planning, not what we will leave to our heirs.

When my wife & I got to the point where we needed more intensive care, the house would be sold, the mortgage paid off, and the remaining equity would become part of our assets. We would then rent for the remainder of our lives. If I leave anything to my heirs, it will be liquid financial assets and even then, I would do everything i can to get it to them while I'm still alive, not waiting until I'm no longer around. That was my father's attitude and it worked wonderfully. He took care of us while he was still alive and when he got to the end, he only left a small amount on which very little in taxes was due.

Regarding real estate being an investment or a drain, ask the US homeowners who are upside down on their mortgages. The housing bubble affected many here. In addition, houses need maintenance, insurance, roofs replaced, furnaces replaced, painting, taxes paid, etc. It all adds up. You can't tap the equity in a house if you need it without selling it or mortgaging it. What good does it do to own your house outright if you're broke? You end up having to sell or mortgage it anyway. I know many people who are "house poor". They suffer in so many other areas of their lives because they're trying to keep up with that fancy house. When we retire in a few years, We'll build a new house that will be secured by a mortgage. When we become invalid, the house will be sold, the mortgage paid off, & then we'll rent.
Reply With Quote Quick reply to this message

 
Old 11-13-2011, 07:24 PM
 
29,764 posts, read 34,851,819 times
Reputation: 11675
Quote:
Originally Posted by SoButCounty View Post
I have watched in both my family & my wife's family that in nearly every case, when a house was left, it became an issue within the family. That is a terrible thing to do to your family. The well being of my wife & I in our retirement are the primary concerns in our retirement planning, not what we will leave to our heirs.

When my wife & I got to the point where we needed more intensive care, the house would be sold, the mortgage paid off, and the remaining equity would become part of our assets. We would then rent for the remainder of our lives. If I leave anything to my heirs, it will be liquid financial assets and even then, I would do everything i can to get it to them while I'm still alive, not waiting until I'm no longer around. That was my father's attitude and it worked wonderfully. He took care of us while he was still alive and when he got to the end, he only left a small amount on which very little in taxes was due.

Regarding real estate being an investment or a drain, ask the US homeowners who are upside down on their mortgages. The housing bubble affected many here. In addition, houses need maintenance, insurance, roofs replaced, furnaces replaced, painting, taxes paid, etc. It all adds up. You can't tap the equity in a house if you need it without selling it or mortgaging it. What good does it do to own your house outright if you're broke? You end up having to sell or mortgage it anyway. I know many people who are "house poor". They suffer in so many other areas of their lives because they're trying to keep up with that fancy house. When we retire in a few years, We'll build a new house that will be secured by a mortgage. When we become invalid, the house will be sold, the mortgage paid off, & then we'll rent.
On the other hand ask those of us who sold in 2007 or sooner and realized a 4 fold appreciation on our houses over a 23 year period. That is to many one heck of a rate of return. The ROI on housing right now is a very mixed picture as the folks in my old neighborhood who bought when I did may not be getting a 4 fold rate of return but they will gladly take their 3 fold return. As with most things it is timing. One of my sons doubled his purchase price in two years when he sold a townhouse. Now the person who purchased his house was major upside down. The person who purchased mine had a substantial down payment.
Reply With Quote Quick reply to this message
 
Old 11-13-2011, 07:45 PM
mlb
 
Location: North Monterey County
3,179 posts, read 2,852,979 times
Reputation: 4871
Quote:
Originally Posted by Escort Rider View Post
The cross-generational resentment which I find on CD has usually surprised me by its vehemence. Boomers are this, that, and the other. Self-absorbed and materialistic according to many younger folks. Or, conversely, they are guilty of raising a younger generation which is spoiled and which feels entitled. I am of two minds about those sorts of things, unable to generalize. As for the question in my thead title, there are obviously Boomers in both groups, some sitting pretty and some out on a limb, but I don't know the relative size of each group. I'll bet someone will post some article with data on this very question. What is your perception of the Boomers?
Very interesting questions. I just realized that most of my siblings - with the exception of the oldest sister born in 1943 - are boomers. The youngest born in 1961 (there are 7 of us altogether). I was born in 1953 - middle of the family.

All of us are in stable relationships and jobs. Alot of this attributed to our parents whose work ethic was pretty wonderful. Most of our choices - interms of jobs and lifestyles- are similar. Public service - health and government. We're all pretty stable.... and helped change the world - each in our own way.

I'm pretty damn proud of us. All of us own homes.... none of us use our homes as cash registers. None of us are upside down in our homes....and I think all of us will have pretty normal retirements.

You don't have to stay at the same job - for over 30 years - to be successful these days. My dad did that.... but success these days doesn't have to be determined by staying at one place. It takes guts to leave a workplace - when you know it's time - and find something else that interests/sustains you. The longest I've been at a job is my current stint of almost 11 years.

It takes even more guts to pick yourself up - like many boomers have had to - and reinvent yourself and your profession after being laid off. I know alot of people who are deadwood in the very same job forever. It's not pretty.

Nope. We're not all the same. And any attempt to lump us together is just plain stupid.
Reply With Quote Quick reply to this message
 
Old 11-13-2011, 08:22 PM
 
1,060 posts, read 1,639,785 times
Reputation: 1928
Quote:
Originally Posted by TuborgP View Post
On the other hand ask those of us who sold in 2007 or sooner and realized a 4 fold appreciation on our houses over a 23 year period. That is to many one heck of a rate of return. The ROI on housing right now is a very mixed picture as the folks in my old neighborhood who bought when I did may not be getting a 4 fold rate of return but they will gladly take their 3 fold return. As with most things it is timing. One of my sons doubled his purchase price in two years when he sold a townhouse. Now the person who purchased his house was major upside down. The person who purchased mine had a substantial down payment.
I sold my last home in 2005 and received more than my asking price. Made a tidy profit on it. Turned around and bought a less expensive home with only than 1/3 of the property taxes. When I bought my current house, mortgage rates were higher than they are today, so I financed for 15 years and paid $1,000 extra every month to pay it down quickly and would have had it paid off in 7 years total. With the cheap money available now, that just didn't seem so attractive anymore. It became much more attractive to refinance to 30 years and take as much cash out as they would give me. My monthly payment stayed the same, and I had hundreds of thousands of $ more in cash too work with, and tripled my tax benefits on the mortgage interest deduction.

Timing is indeed everything. What is appropriate in one set of circumstances may not be in another. Since circumstances change with time, it's critical to make a decision based upon what is best under those circumstances. I'll only be in my current home for a few more years so I don't expect to pay it off until I sell it. I'm fortunate to live in a market that stayed stable during the real estate bubble build up so there was no crash in home values either. Just a slow down in sales for a while. In addition, since lenders will only refinance up to 80% of the appraised value of the property, I was required to maintain 20% equity in the property, still a substantial amount of value.
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 11:48 AM
 
Location: Toronto, Ottawa Valley & Dunedin FL
1,409 posts, read 2,353,473 times
Reputation: 1159
Quote:
Originally Posted by SoButCounty View Post
I have watched in both my family & my wife's family that in nearly every case, when a house was left, it became an issue within the family. That is a terrible thing to do to your family. The well being of my wife & I in our retirement are the primary concerns in our retirement planning, not what we will leave to our heirs.

When my wife & I got to the point where we needed more intensive care, the house would be sold, the mortgage paid off, and the remaining equity would become part of our assets. We would then rent for the remainder of our lives. If I leave anything to my heirs, it will be liquid financial assets and even then, I would do everything i can to get it to them while I'm still alive, not waiting until I'm no longer around. That was my father's attitude and it worked wonderfully. He took care of us while he was still alive and when he got to the end, he only left a small amount on which very little in taxes was due.

Regarding real estate being an investment or a drain, ask the US homeowners who are upside down on their mortgages. The housing bubble affected many here. In addition, houses need maintenance, insurance, roofs replaced, furnaces replaced, painting, taxes paid, etc. It all adds up. You can't tap the equity in a house if you need it without selling it or mortgaging it. What good does it do to own your house outright if you're broke? You end up having to sell or mortgage it anyway. I know many people who are "house poor". They suffer in so many other areas of their lives because they're trying to keep up with that fancy house. When we retire in a few years, We'll build a new house that will be secured by a mortgage. When we become invalid, the house will be sold, the mortgage paid off, & then we'll rent.
Yes, up here we all know about the real estate situation in the States. In fact, we were the beneficiaries of this, recently buying in Florida at a very good price. We look forward to pumping money into the local economy for a few years, and have no expectations of being able to re-sell our new place unless something drastically changes.

As for our estates, we have only one child, and he gets everything. So whether it's real estate or not, he wins. Even if our housing market goes bust somewhere down the line, he would have a place to live in the city, or he could rent it out and take the profits.
Reply With Quote Quick reply to this message
 
Old 11-14-2011, 11:50 AM
 
Location: southern california
55,644 posts, read 74,585,953 times
Reputation: 48133
we are all, i mean all americans standing on a banana peel, called 1929 revisited.
when the ship goes down the sharks wont ask if you are dem or GOP. it all tastes the same.
Reply With Quote Quick reply to this message
 
Old 11-19-2011, 05:43 AM
 
Location: New England
400 posts, read 646,911 times
Reputation: 354
Quote:
Originally Posted by Hamish Forbes View Post
... Also, staying with the same private-sector employer for a working lifetime doesn't necessarily result in a decent pension anymore. I believe that many companies like IBM have ended their traditional defined-benefit pensions. In any case, most private-sector pensions have never had any mechanism for inflation adjustments.
True where I am. I have a good job with NY State and when I was hired they had just done away with the pension option. Up until that point new employees could choose whether to go the pension route or the 403(b). I think there were always additional investment options, but there was a choice of those two main paths. When I started, we had the 403(b) only. The State contributes to my account and provides other good benefits, but as far as a regular monthly income that I can count on after I retire, frankly, I'm nervous.
Reply With Quote Quick reply to this message
 
Old 11-19-2011, 05:48 AM
 
Location: New England
400 posts, read 646,911 times
Reputation: 354
Quote:
Originally Posted by LauraC View Post
I'm a boomer (60) and I'm doing fine. I don't relate to other boomers.

Put myself through college. Worked 34 years for one employer. Have a pension. Will never collect Social Security. Have a savings plan (all my money, no government matching contributions) and money market that I've never touched. Don't owe any money to any creditor. Pay my credit card (only use one) off every month. Didn't have any kids, rotten or otherwise, to ruin/spoil/baby. Never owned a house so none to worry about taking a bath on, now, or to drag me down with repairs. Husband got the heave-ho in the 80s. I give a decent amount of money to 4 charities. Oh yeah, and I'm boring, plain and not materialistic. I don't have the latest anything except for maybe, books and photo software. It's not that I can't afford those other things or that I'm cheap, I just don't feel a need to have them or the old stuff still works. I buy good "stuff" when the old "stuff" doesn't work anymore. I drive an "old lady car" (meaning it's a plain old sedan that's not a hybrid or has any special add-ons) because it's easy for me to get into it and out of it after a long drive. Thieves would be pretty disappointed if they tried to rob me. No jewelry, no flat screen TV, no smart phone, no stereo, no flashy clothes, no gamer stuff, no fancy furniture, no flashy dishes, no art and I'm still sitting at a desktop. I have one nice camera and a few lesser ones, that's about it. I have A LOT of books but as far as I know, no one has ever been jealous of a lot of books.
I love your posts, Laura.
Reply With Quote Quick reply to this message
 
Old 12-03-2011, 03:14 PM
 
Location: Florida -
8,760 posts, read 10,829,371 times
Reputation: 16632
Being a "boomer" is sort of like discovering late in life that things you have always eaten will kill you. The term "boomer" was coined in the 1980's by Landon Jones. By then, most of the "boomers" were already in their 40's and unlikely to 'escape' any subsequently assigned category. The notion that people have certain characteristics or will behave in a prescribed way because of their birthdate, has about the same credibility as astrology.
Reply With Quote Quick reply to this message
 
Old 12-03-2011, 06:17 PM
 
Location: Sierra Vista, AZ
16,133 posts, read 20,812,641 times
Reputation: 8293
Quote:
Originally Posted by SoButCounty View Post
I have watched in both my family & my wife's family that in nearly every case, when a house was left, it became an issue within the family. That is a terrible thing to do to your family. The well being of my wife & I in our retirement are the primary concerns in our retirement planning, not what we will leave to our heirs.

When my wife & I got to the point where we needed more intensive care, the house would be sold, the mortgage paid off, and the remaining equity would become part of our assets. We would then rent for the remainder of our lives. If I leave anything to my heirs, it will be liquid financial assets and even then, I would do everything i can to get it to them while I'm still alive, not waiting until I'm no longer around. That was my father's attitude and it worked wonderfully. He took care of us while he was still alive and when he got to the end, he only left a small amount on which very little in taxes was due.

Regarding real estate being an investment or a drain, ask the US homeowners who are upside down on their mortgages. The housing bubble affected many here. In addition, houses need maintenance, insurance, roofs replaced, furnaces replaced, painting, taxes paid, etc. It all adds up. You can't tap the equity in a house if you need it without selling it or mortgaging it. What good does it do to own your house outright if you're broke? You end up having to sell or mortgage it anyway. I know many people who are "house poor". They suffer in so many other areas of their lives because they're trying to keep up with that fancy house. When we retire in a few years, We'll build a new house that will be secured by a mortgage. When we become invalid, the house will be sold, the mortgage paid off, & then we'll rent.
Yet the markets in Las Vegas and Phoenix seem to be full of Canadians looking to step in the poo with us.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top