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The appreciation was only a number i pulled at random. The homes did pretty well . That 30k home is likely 600-700k today. But the area is not about just home appreciation , the pay can be quite high too.
Cops make well over 100k . Most family's have 2 decent pay checks coming in if they own homes
No one can predict the future but I don't see similar appreciation in homes quite like they have from 30-40 years ago. Sheesh if they do, who will be able to afford them.
7. You must be sure you do not need to stay in the stock market in order to maintain income enough after retirement. Way too risky. You must have the money you think you'll need + 25% before you retire. Believe me - it's never enough.
Also, as soon as possible, start emptying those IRA's. Taxes on IRA withdrawals could go sky high (like 60 - 70% is not out of the question) any day. It keeps coming up for discussion. The "Redistributionists" are going to insist on it. In the right political setting, it'll happen over night. Don't get caught.
My property taxes are about $1000 a year, so its pretty insignificant compared to my mortgage payment.
I have enough property that I can turn part of it into income producing, if Im so inclined. I can also lease out part of it as grazing land, so I have a lot of options for staying here. Ive thought about this a lot, and even moving to a small apartment, you are still paying a good chunk of your retirement money on living arrangements, and rent can go up every year.
I still think, for me, that peace of mind will come with a paid off home.
People are individuals. Reality is that many people cannot meet these expectations, like $100,000 in the bank. Are those people destined to work until they die in their 80s or 90s. People can and do retire with much less than is listed here and live happy lives.
Sometimes I read these threads here and think the only people that should be allowed to retire are upper middle class to wealthy. That's a rather elitist attitude IMO.
I once read a thread where someone spends $900 a month just on cooling their home and it's no big deal at all. Good lord, that's more than many people pay for their entire mortgage or rent.
My point is that many people can are are happily retired with a lot less than is often portrayed here. Many don't need to go to the opera or ballet or eat at 5 star restaurants and are very happy living in a small apartment or home without having thousands of dollars coming in every month from an IRA or having at least $100,000 in the bank.
I've never been a big fan of having lots of cash but rather access to cash with a personal checking account average balance in the $5,000 to $10,000 range and no personal savings or money market accounts. I keep a higher balance in the business account but that doesn't get counted in my mind.
My model has been to take excess cash to pay down real estate debt but have access to cash via a $300,000 home equity line of credit. This model has served me well. Now, it appears than in about 6 weeks, we'll be real estate debt free again with zero owed on a line of credit and likely to have more cash than needed. It's something with which I'm not familiar.
I think the following are practical goals before a person can retire. It is a rather simplified plan and may not work for everyone. Just my views. I welcome others views and goals
1) Be debt free.
2) Own home
3) At least $100,000 in the bank.
4) Have as much as possible in 401K, Roth IRA and regular IRA.
5) Have retirement plans to fill void of having more free time.
You do not need 100 grand in a bank account unless you have over 2 million in investments. It would be best to have some bonds, and look into mutual funds. Learn the market; times to buy are going to be better after stock prices drop, as, in the long run, the stock will rebound, and makes for good future investment. If learning the market is not for you, then look into a finial management company.
All the rest seems spot on; ideally, one should be mortgage free by age 65, and have a paid off nice sensible car. Have all outstanding debts paid. Money in retirement tax free accounts will have to be withdrawn after age 70, so, you need good investments set up to reinvest.
Lastly, you need more than Social Security; a pension is ideal, without it, an annuity is a good choice for many people.
Look at retirement as a second, or third education; you need to know about investments. Save what you can and invest wisely, and your retirement will be secure.
I still don't see owning a paid off home as necessary. We pay a mortgage and for us it's just part of the non-discretionary spending. If it fits into your budget to pay rent or a mortgage, there's no reason to have a paid off home. It just ties up all your money that could be earning higher returns elsewhere, and then you need a HELOC or something to give you spending flexibility unless you have a big pile of cash.
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