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Old 02-04-2016, 12:07 PM
 
26,589 posts, read 52,277,138 times
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Quote:
Originally Posted by otterhere View Post
Being a landlord (landlady) isn't for everyone, especially if you're living in the same house. Sounds like easy money, but the income isn't really "passive." Consider carefully the responsibility it entails, unless you -- OP and daddy -- plan to manage things for her. Signed, "landlady of ten years and never again."
Being a Landlord is a job with responsibilities...

My example was of an elderly woman who had no problems managing her two units.

It was not a roommate situation... she owned a 3 unit property, lived in one and rented the other two of the units.

Her tenants became a kind of extended family... they would do grocery shopping for her and would check on her... she was 93 when she passed.
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Old 02-04-2016, 04:20 PM
 
Location: Wisconsin
21,536 posts, read 43,992,643 times
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Compatibiity is key if one lives with one's tenants.

I've owned and lived in two-family properties all my life. Still do. Son/dil rent from me and have done since 2004. Prior to that, son/roommates for about six years.

Prior to that - for about 20 years - tenants. In all that time, I had only ONE tenant - husband/wife my age, no kids - who were IDEAL. The rest, I couldn't get rid of fast enough. Issues varied - depending on tenant - from extended family being given run of the rental unit, divorced kids coming over weekends with THEIR kids and parking a wreck of a vehicle in front of property all weekend to the point other neighbors came over asking what was going on; moving strangers in and never telling me or turning property over to extended family while tenant was on vacation - this happened twice. Last tenant was a lesbian couple, one of whom made a couple of passes at me. At that point I no longer felt safe and asked my son to move back in with me, which he did. When these women bought a house a year later (they stole the stove that was in the unit and replaced it w/an inferior modeL when I wasn't home, btw), my son moved into the rental unit and I haven't had a real "tenant" since.

The ONE couple I loved actually rented from me twice. Once for five years before they bought a property, and again for another couple of years when they sold it and were between properties. We got along great.

The rest were just awful. Older retired couples - I had three. You'd think they'd be great. NOT. All - all were an issue because of their adult kids/grandkids running amok through property at all hours of day and night; single guys - both moved in girlfriends w/o telling me; young married couple - he decided to do auto repairs in my driveway and in front of house, and it goes on and on and on. I gave notice to one couple, got a real estate agent friend of mine to contact another about buying which they did, complained to the others enough about their presumptions so they moved.

I actually kept property vacant for nine months I was so fed up, before I finally rented again to the lesbians. And, then, that was it.

Should son/dil move, either my sister moves in - or I leave it vacant - or I move.

Never again. Like someone on this board says, "the more I see of people, the more I prefer my dogs." That's the way I feel about "tenants."
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Old 02-04-2016, 04:37 PM
 
Location: Tucson for awhile longer
8,872 posts, read 13,547,969 times
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If your daughter ends up losing her job when she is older (not at all uncommon these days) she will suffer a great additional financial loss if she takes her Social Security at age 62 instead of later. That's happening to more and more Americans every year. It's next to impossible to prove age discrimination so employers lay off highly paid older workers in favor of new hires who earn less.

Many people who experience that end up with lifetime penalties for what they can collect on SS. Due to the difficulty of finding a decent-paying job past age 45, many workers are basically forced to sign up for SS at the earliest possible age, rather than waiting to 65 or 70 when their lifetime earnings would increase tremendously. So they are hit twice: first by losing their jobs, second by losing SS earnings.

Additionally, if your daughter ends up taking care of you (or any other elder in your family), it might be necessary for her to quit her job earlier than she might have without the responsibility of elder care. That's what happened to me. I already had my mother living with me when I was still working. But she eventually became so care-dependent that she needed someone in the home with her all day. Since I was making less than $16 an hour and in-home care where I live costs a minimum of $18 an hour, I had to quit working. For us to be able to pay the bills (which include her ever-rocketing medical care), I had to take my SS at age 62. And I will pay a financial penalty for that the rest of my life. Not HER life, my life.

Any single woman who is not planning for the worst-possible financial scenarios for their old age better at least be a completely selfish person who feels no responsibility whatsoever to provide for anyone else's welfare. The National Council on Aging says, "Older women typically receive about $4,000 less annually in Social Security than older men due to lower lifetime earnings, time taken off for caregiving, occupational segregation into lower wage work, and other issues. Older women of color fare even worse."

SunGrins, have your daughter read this article:
The High Price of Being Single in America - The Atlantic
There are people who dispute some of its findings, but overall it issues the same warning the NCOA puts out. Single women are getting punished financially for being single in many different ways and need to look out for their future welfare.
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Old 02-04-2016, 06:18 PM
 
26,589 posts, read 52,277,138 times
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Quote:
Originally Posted by Jukesgrrl View Post

SunGrins, have your daughter read this article:
The High Price of Being Single in America - The Atlantic
There are people who dispute some of its findings, but overall it issues the same warning the NCOA puts out. Single women are getting punished financially for being single in many different ways and need to look out for their future welfare.
What about single men or single dads?

I don't think it is just single women...
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Old 02-04-2016, 06:58 PM
 
Location: Tennessee
23,579 posts, read 17,553,447 times
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Quote:
Originally Posted by brightdoglover View Post
Property management seems to be easier to find and more professional for large complexes, not so much for a single property or lower-level cost property. I found this out the hard way in 1990 and couldn't replace my useless PM long distance no matter what I was willing to pay.
I'm just not cut out to be a LL, I know that.
The guy I know doing this has five properties or so managed by a guy who manages a few hundred properties.
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Old 02-04-2016, 07:15 PM
 
Location: SoCal
13,223 posts, read 6,320,879 times
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Quote:
Originally Posted by Ultrarunner View Post
What about single men or single dads?

I don't think it is just single women...
And it's not in America, it's every where, worst in some places.
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Old 02-05-2016, 07:26 AM
 
9,444 posts, read 5,246,863 times
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Quote:
Originally Posted by SunGrins View Post
I'm trying to convince my 30 year old daughter to save up for retirement. She is single and looks to stay that way for a while. She is working at a good (public service) job with a career path and paying off her college loan and has few other debts. She has nothing going toward retirement that I know of apart from a future work pension and social security.


Most retirees I know were couples with two incomes and gained some financial leverage over time. I have one friend who has remained single and just retired but she is fearful of every bump in the road. How does a single-for-life person plan for retirement? How different from a couple?
I'm single, never been married, don't have children. I retired at 62, four years ago.

My entire career was in IT and I worked for an institution that supplied matching funds wrt retirement savings.
Because I did not have any dependents, I tried to discipline myself to save as much as I could in variety of things: Roths, muni Bonds, and my work retirement plans.

I was able to buy property to create some wealth through home equity.

In any case your daughter needs to start additional saving now even if the quantities seem small. The biggest mistake I made, as a young adult, was to delay saving until I was about 35. If I had started saving in my 20s my nest egg would, obviously, be much bigger.
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Old 02-05-2016, 09:37 AM
 
13,891 posts, read 7,395,585 times
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Quote:
Originally Posted by kyb01 View Post
I'm single, never been married, don't have children. I retired at 62, four years ago.

My entire career was in IT and I worked for an institution that supplied matching funds wrt retirement savings.
Because I did not have any dependents, I tried to discipline myself to save as much as I could in variety of things: Roths, muni Bonds, and my work retirement plans.

I was able to buy property to create some wealth through home equity.

In any case your daughter needs to start additional saving now even if the quantities seem small. The biggest mistake I made, as a young adult, was to delay saving until I was about 35. If I had started saving in my 20s my nest egg would, obviously, be much bigger.
That's fine but IT is normally fairly high income and you enjoyed a 401(k) match that most people don't get. Median household income in the United States is $50K. At that income level, it's tough to pay all your bills and accrue much of a retirement nest egg when you don't have 401(k) matching.

I'm twice divorced with no children. Try applying "divide your net worth by 2" divorce math to your personal financial balance sheet a couple of times and see where you stand. Inflation adjusted, my net worth was higher in 1998 than it is now. It's been stated many times but the formula for economic success is to get married, stay married, and save and invest a big chunk of that dual income. I've had problems with the "stay married" part. Fortunately, I'm high enough income to recover from it but I'm not going to have the lavish retirement I envisioned for myself in 1995.
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Old 02-05-2016, 11:20 AM
 
7,913 posts, read 5,034,051 times
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Quote:
Originally Posted by GeoffD View Post
I'm twice divorced with no children. Try applying "divide your net worth by 2" divorce math to your personal financial balance sheet a couple of times and see where you stand. Inflation adjusted, my net worth was higher in 1998 than it is now. It's been stated many times but the formula for economic success is to get married, stay married, and save and invest a big chunk of that dual income. I've had problems with the "stay married" part. Fortunately, I'm high enough income to recover from it but I'm not going to have the lavish retirement I envisioned for myself in 1995.
Wise words! I'm only once-divorced (also no children), amicably, and though the parting was expensive, it wasn't anywhere near the harrowing quagmire that it could have been, were it to have been a literally 50/50 split. As it was, my finances recovered, while she received a lump-sum enough to last her for decades. She never earned much, but was scrupulously frugal.

The optimal marriage-formula isn't merely to stay married for life, but to choose a partner with compatible values and commensurate earnings/assets. Let's suppose that the OP's daughter does manage her finances wisely, and also gets lucky with the stock market... but chooses not to marry. Fast forward 20 or 30 years. Now she's priced herself out of the marriage-market. I don't in the least mean this as sexist remark; it affects both genders! Her financial peer-group is almost universally married. If she's going to remain responsible with her finances, and then wants to marry, she'll aim to marry a peer... who is almost non-existent.

I agree with the linked articles in this thread, that outline how singles or divorcees are punished financially. But if somehow they manage to succeed anyway, they still get punished... maybe not financially, but in terms of their social prospects.
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Old 02-05-2016, 11:36 AM
 
26,589 posts, read 52,277,138 times
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Many never recover from a divorce... it can devastate in many ways.

Years ago there was a study of very successful people and good first marriage was commonality.
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