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Old 11-30-2016, 01:56 PM
 
625 posts, read 381,483 times
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BTW low cost places also have no earning opportunities. For instance I have a condo near the beach I rent. Common charges are like $500 a month taxes around $400 a month and insurance is around $1,000 a month. However, in summer you can rent it by the month. One widow in one unit rents it every July/August for $12,000. She stays with daughter who lives nearby and visits friends or does the vacation. The two months pays 100% of carrying cost of units. So she lives for free.

Even better we have a retired couple nearby who has a ski and a beach house. They live the off season in their houses. Summer at ski house, winter at beach house. This is up in New York. The live for free and clear around 40K profit each year.
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Old 11-30-2016, 02:23 PM
 
Location: Loudon, TN
5,769 posts, read 4,827,803 times
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Quote:
Originally Posted by FloridaBeachBum View Post
BTW low cost places also have no earning opportunities. For instance I have a condo near the beach I rent. Common charges are like $500 a month taxes around $400 a month and insurance is around $1,000 a month. However, in summer you can rent it by the month. One widow in one unit rents it every July/August for $12,000. She stays with daughter who lives nearby and visits friends or does the vacation. The two months pays 100% of carrying cost of units. So she lives for free.

Even better we have a retired couple nearby who has a ski and a beach house. They live the off season in their houses. Summer at ski house, winter at beach house. This is up in New York. The live for free and clear around 40K profit each year.
I like that idea! We are planning to sell our long term rental property (DH's old home) and use the money to buy a vacation rental to increase our cash flow. I never thought of doing it in 2 places like that.
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Old 11-30-2016, 03:47 PM
 
6,353 posts, read 5,156,240 times
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Quote:
Originally Posted by Submariner View Post
When I retired we had accumulated a large net-worth, we spent some on land and built a house so we could live mortgage-free. Then the crash of '08 took the remainder of our portfolio, so by the end of '09 we were broke.
How does this happen? The market was down 57% in the crash, then recovered quickly and was back to the old high by 2013. It is now almost 50% above the 2007 high.

Did you spend out of a declining portfolio? Hold a few stocks that went down more than the market? I also have a retirement portfolio, as do millions of other people, but after losing money in 2008 it went up and is now well above the pre-crash level. I mostly own index funds.
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Old 11-30-2016, 04:35 PM
 
71,511 posts, read 71,674,131 times
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bad investor behavior is the way it happens , not markets .
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Old 11-30-2016, 05:17 PM
 
14,258 posts, read 23,979,216 times
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Quote:
Originally Posted by Larry Siegel View Post
How does this happen? The market was down 57% in the crash, then recovered quickly and was back to the old high by 2013. It is now almost 50% above the 2007 high.

Did you spend out of a declining portfolio? Hold a few stocks that went down more than the market? I also have a retirement portfolio, as do millions of other people, but after losing money in 2008 it went up and is now well above the pre-crash level. I mostly own index funds.

I was on our company's 401(k) committee and handled most of the questions regarding performance.

MOST of the largest complainers were people who converted to "Stable Value" at the bottom of the market in 2009 and remained out of the market until 2014.

As painful as it was in 2008-09, I remained in the market and as my income increased, I was able to recover in 2-3 years.
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Old 11-30-2016, 06:43 PM
 
249 posts, read 196,930 times
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My friend said the same thing about her neighbor, lost all their money in the market downturn. The market didn't go to zero,
even if they sold some really bad individual stocks at the lowest point, overall should be zero? Did they own options?
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Old 12-01-2016, 03:23 AM
 
71,511 posts, read 71,674,131 times
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any losses since 2008 were the result of bad investor behavior not the result of markets .
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Old 12-01-2016, 04:09 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,546 posts, read 39,924,861 times
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Originally Posted by Willistonite View Post
Totally agree. One should never retire unless you are debt free unless forced into it.
If you are debt free you can control what you spend to match your income.
works for some, but I will NEVER be debt free, nor plan to be.

No Pension, so I need to retain diversity of cash flows during 50+ yrs of retirement.
The 2008 crisis killed / disclosed the commercial lending risks (banks calling your million dollar loans at will), so... I use sub 4% Real estate mortgages on several properties to 'self-bank' my commercial properties. I get good cash flows that can handle the minimal mortgage payments, and I don't have to go plead mercy every 5 yrs with my commercial lenders. (I now have ZERO commercial lenders). I also use HELOCS and Stock Margin accts (at will) to buy bargain properties that I can turn for cash / get 10% cap rates.

Debt is my friend, not my enemy. I have always used it as a tool, where reasonable. (includes retirement, ALL of retirement). I keep enough cash reserves to make several yrs payments if the rental income were to ever fail. But rental income is quite inflation adjusted and just keeps pouring in. Most places are 'managed', so I was able to be gone most of 2016 without a single issue.

Use all your tools wisely, I have many retired friends who bought annuities the day they left employment. They are happy as clams and live well (at a cost). but if you have enough dough to do that... congrats, but you probably have (had) 'millions', so don't belong on this thread.

Retiring without millions($USD), and without pension, without HC, and well below age 65, you need to be creative, but millions do it (not just Mr. Mustache). (Beats 'working')

With a reasonable pension, $500k might be MORE than enough for retirement.
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Old 12-01-2016, 09:50 AM
 
249 posts, read 196,930 times
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Quote:
Originally Posted by StealthRabbit View Post
works for some, but I will NEVER be debt free, nor plan to be.

Debt is my friend, not my enemy. I have always used it as a tool, where reasonable.

Retiring without millions($USD), and without pension, without HC, and well below age 65, you need to be creative, but millions do it
I agree, there is not one RULE for all of us to follow.
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Old 12-01-2016, 10:33 AM
 
Location: Forests of Maine
30,678 posts, read 49,430,310 times
Reputation: 19129
Quote:
Originally Posted by FloridaBeachBum View Post
BTW low cost places also have no earning opportunities. For instance I have a condo near the beach I rent. Common charges are like $500 a month taxes around $400 a month and insurance is around $1,000 a month. However, in summer you can rent it by the month. One widow in one unit rents it every July/August for $12,000. She stays with daughter who lives nearby and visits friends or does the vacation. The two months pays 100% of carrying cost of units. So she lives for free.

Even better we have a retired couple nearby who has a ski and a beach house. They live the off season in their houses. Summer at ski house, winter at beach house. This is up in New York. The live for free and clear around 40K profit each year.
That is a very specific scenario.

When we started buying tri-plexes, they were much lower priced than single-family-residences of the same square-footage.
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