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Old 01-16-2017, 06:30 PM
mlb
 
Location: North Monterey County
3,179 posts, read 2,852,979 times
Reputation: 4871

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The grass is not always greener on the other side...... I'm hearing stories from my brother who moved to Brazil that make me shake in my boots.

We all wonder what he'll do when he needs his knee replaced.

As for real estate - my inlaws were small business people who were not wildly successful in their small business ventures - matter of fact there were some spectacular failures.

My fatherinlaw was a barber - but they bought real estate - in Los Angeles and built many of their own homes - from the 1940's until they divested in the 1990's. Made them millionaires.
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Old 01-17-2017, 01:59 PM
 
12,825 posts, read 20,129,272 times
Reputation: 10910
Quote:
Originally Posted by creeksitter View Post
If you are working 20 hrs overtime then you would have a base rate of pay less than $8.25 to make it come out less than 30K.



That's the crux of the matter... as a society we haven't managed to discourage starting a family until one is further up the wage ladder.

You may be reacting to Submariner's glib comment. I bet if you tallied up the market value of his building and farming ventures it could well add up to more than 30K. Especially if you add a pension he probably acquired for serving our country. Plus the kids may not have seemed like an expense if they are growing/trapping their own food.

But you have a good point - it is a lot easier to get ahead on 30K a year when you aren't overworked.
Well on other subforums and at times even this one people will comment, regarding kids, just do it, everything will work out, the sacrifice is worth it, etc. Then they come on here and state "how can I retire with 50K in retirement savings?"
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Old 01-17-2017, 02:04 PM
 
12,825 posts, read 20,129,272 times
Reputation: 10910
Quote:
Originally Posted by city living View Post
Not sure who left me a comment about the OP not posting an article to be read---yes, I am well aware of that. I was responding to the comment about an article link that was posted in this thread---post #70 if you're confused. And I thought it was an interesting article, because if people in their mid-to-late 20s and early 30s are "years behind" monetarily compared to their parents, how are they going to fare in retirement?
30 is the new 21
50 is the new 30
70 is the new 50

And it is not a good thing!
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Old 01-17-2017, 02:07 PM
 
12,825 posts, read 20,129,272 times
Reputation: 10910
Quote:
Originally Posted by craigiri View Post
You are correct.

It's like amway or other multi-level marketing. If everyone is selling it there is no one to buy it!

The basic facts are these. Schiller (expert) checked housing values over 150 years and found appreciation of less than 1% per year.

Less than 1%.

Just as with winning the lottery and casinos we all hear about the one that made it.

Guess what? I have made millions on the internet. Can you? No. You can't. But there are thousands of peope who will take your money and teach you how to.

A hard worker can invest time and money in real estate and make a fair return on their investment. Over the long run it can be approx. equiv. to stocks (10% per year historically) or a little less.

But any "get rich quick" or "you can definitely do it" stories are BS. Not to doubt that someone hasn't done it. But - again - it's the same old story....you can hire a firm which promises to put your web site on the first page of google. Huh? How is that possible? What if this and other firms promise 5,000 people with the same subject matter that they are all going to be on the first page?

A lot of snake oil in this world. Sure, lots of ways to make a living in construction and real estate. But it's not an easier path than other work and certainly everyone can't do it.
Meanwhile the US savings interest rates are skirting zero and in Europe they are negative. So, there is no foundation for the financial pyramid (not a pyramid scheme, but, a good allocation scheme). If there is no place to hold safe money, and the only place for savings is various forms of gambling ... no wonder so many people have money problems.
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Old 01-19-2017, 12:27 AM
 
Location: Midwest
12 posts, read 7,067 times
Reputation: 19
Impossible unless you heavily fund a 401k and NEVER touch it throughout your working years.
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Old 01-19-2017, 02:08 AM
 
5,823 posts, read 10,149,308 times
Reputation: 4531
Cool can you tell me something ?

Quote:
Originally Posted by craigiri View Post
I have been working since I've been 18 (63 now and LONG retired from having to work..although I always do stuff...some that makes money)....

We have been saving money since we were about 24.

When I look at my SS printout I notice that we never made a lot of money. I wouldn't say "low income", but I would say middle class income. And yet we sold our main mom and pop shop and I stopped needing to go to work at 46 years old.

Definitely am in the spirit of the "Millionaire next door".....

Saved $100 a month, then $200 per month - then had $500 per month put in a Vanguard fund. It averaged 10% compounded over many many years. After the kids were through college we started fully funding and IRA with as much as $12K per year. It all adds up.

I have a friend who always made more than I do - sometimes twice as much. He never invested in the stock market do only made 2-5% on his money. Ended up with maybe 1/2 of what we have.

For those interested in the secrets - here are some of them....

For those who want the secrets, some of them are obvious.
1. Don't drink (a lot). (why do you think Mormons are so wealthy?).
2. Don't go to "fine" eateries (they aren't really fine anyway).
3. Don't buy "up-trimmed" cars and trucks. Buying a 45K Audi which is effectively the same as a 26K VW is just ridiculous - especially if you lease or finance)
4. Do most everything yourself - this is BIG one. In 42 years owning homes I've rarely had a contractor do anything.
5. Be a slob - since I worked for myself in retail and construction I probably never spent more than $200 a year on clothes.
6. Don't sell yourself short - getting a job with a 2 hour commute each way that you have to dress up for - and the resulting expense for child care, etc. will eat you alive.
7. Avoid paid child care (sure, we all need a break, but don't spend the big bucks).
8. Avoid any "paid for" primary schools - at 20-30K per year, they can drain your account quickly for little or no return.
9. Same with college...state schools are often as good or better than high priced.
10. DO NOT avoid the stock market. Invest constantly - out of your paycheck monthly.
11. Do not commit adultery
12. Do not go to jail - nor get close enough where many lawyers are involved.
13. Avoid lawyers at all costs.
14. Avoid partnerships
15. Enjoy your work (you'll do it more and therefore make more $).
16. Read - work on continuous education. Don't specialize (doesn't apply if you are a surgeon!).
17. Don't make completely ignorant mistakes....you can do a lot of things right and then one BIG thing wrong, and all is lost.
18. If you are losing money you can't make it up in volume.
19. Buy Life Insurance - Have health Insurance.
20. Money should be easy coming in and hard going out! This is a retail example - but we always collected money due for jobs or products on completion. When we paid our bills, we made sure to scour the invoices, take advantage of early pay discounts and watch for errors.

Good Luck to all attempting this! If you go out to dinners, concerts or even movies regularly you probably won't make it. If ou are in debt for high amounts (more than, for example, twice your yearly salary), you probably won't make it unless that debt covers properties creating income.

I followed all these reules save 4, one of the most important, I know. I just hate DIY with a passion. However I enjoy doing menial tasks and household chores (even cooking from time to time, most of the time my wife does it, though). I have another Financial weakness : I love travelling when on vacations. I gues it's because of both those shortcomings that I didn't make it to being wealthy.
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Old 01-19-2017, 06:32 AM
 
Location: Forests of Maine
30,671 posts, read 49,423,020 times
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Quote:
Originally Posted by Smartgirl709 View Post
Impossible unless you heavily fund a 401k and NEVER touch it throughout your working years.
Under the assumption that your employer will match your contributions into that 401(k), those can be pretty smart investments.

My employer has never offered a 401(k), so I have never contributed to one.

If you earn anything over Minimum-Wage it may be possible to start buying apartment complexes. Which is what we did when we were in our 20s. By the time that my employer [US Navy] gave me a small pension, we had already built up a large enough portfolio that we were able to settle down and live on the combination even though we were still raising children at the time.

Now after 10 years of retirement, we inherited a Fidelity 401(k) which holds a cluster of six mutual funds. We were shocked to see how low the actual return is on these mutuals. So we have begun taking the money out and buying more apartment complexes. We know from experience that we can do far better than these mutuals have been doing.
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Old 01-19-2017, 10:01 AM
 
Location: Tennessee
23,541 posts, read 17,535,380 times
Reputation: 27576
Quote:
Originally Posted by Submariner View Post
Under the assumption that your employer will match your contributions into that 401(k), those can be pretty smart investments.

My employer has never offered a 401(k), so I have never contributed to one.

If you earn anything over Minimum-Wage it may be possible to start buying apartment complexes. Which is what we did when we were in our 20s. By the time that my employer [US Navy] gave me a small pension, we had already built up a large enough portfolio that we were able to settle down and live on the combination even though we were still raising children at the time.

Now after 10 years of retirement, we inherited a Fidelity 401(k) which holds a cluster of six mutual funds. We were shocked to see how low the actual return is on these mutuals. So we have begun taking the money out and buying more apartment complexes. We know from experience that we can do far better than these mutuals have been doing.
You were also in the military and had a defined benefit pension. While the pension benefit you've mentioned is certainly not making you wealthy, it would be roughly equivalent to someone working a $30,000/year job around here, in a state with no income taxes.

Someone who is making the burger flipping wages here ($8-$10/hr) isn't going to meet underwriting standards unless they have a huge down payment, they simply won't make enough to make it under DTI requirements. That's just for their primary residence.

Since you're in ME, I basically threw a dart at the map and came across Rumford, some little town in the interior. This place looks great on Google Maps and only $65,000. I guess someone could buy it and rent out the other units.

https://www.trulia.com/property/1065...mford-ME-04276

I was also looking at properties in Waterford. Absolutely beautiful places.
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Old 01-19-2017, 10:38 AM
 
Location: Forests of Maine
30,671 posts, read 49,423,020 times
Reputation: 19124
Quote:
Originally Posted by Serious Conversation View Post
You were also in the military and had a defined benefit pension. While the pension benefit you've mentioned is certainly not making you wealthy, it would be roughly equivalent to someone working a $30,000/year job around here, in a state with no income taxes.
I am not sure where $30,000/year comes from. My US Navy pension is $1,480/month, so a bit over $17k/year. I do not pay income taxes.



Quote:
... Someone who is making the burger flipping wages here ($8-$10/hr) isn't going to meet underwriting standards unless they have a huge down payment, they simply won't make enough to make it under DTI requirements. That's just for their primary residence.

Since you're in ME, I basically threw a dart at the map and came across Rumford, some little town in the interior. This place looks great on Google Maps and only $65,000. I guess someone could buy it and rent out the other units.

https://www.trulia.com/property/1065...mford-ME-04276

I was also looking at properties in Waterford. Absolutely beautiful places.
We settled in the Southern half of Maine about 20 miles North of Bangor. Zillow keeps sending me emails of homes in my county going on the market. We have been seeing nice 2bdrom homes on 1 or 2 acres starting at $25k.
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Old 01-21-2017, 08:46 AM
 
Location: Central Massachusetts
4,800 posts, read 4,843,254 times
Reputation: 6377
Quote:
Originally Posted by Submariner View Post
Under the assumption that your employer will match your contributions into that 401(k), those can be pretty smart investments.

My employer has never offered a 401(k), so I have never contributed to one.

Your employer only recently began offering a 401k. You were never allowed to contribute to it.

If you earn anything over Minimum-Wage it may be possible to start buying apartment complexes. Which is what we did when we were in our 20s. By the time that my employer [US Navy] gave me a small pension, we had already built up a large enough portfolio that we were able to settle down and live on the combination even though we were still raising children at the time.

Now after 10 years of retirement, we inherited a Fidelity 401(k) which holds a cluster of six mutual funds. We were shocked to see how low the actual return is on these mutuals. So we have begun taking the money out and buying more apartment complexes. We know from experience that we can do far better than these mutuals have been doing.

Quote:
Originally Posted by Serious Conversation View Post
You were also in the military and had a defined benefit pension. While the pension benefit you've mentioned is certainly not making you wealthy, it would be roughly equivalent to someone working a $30,000/year job around here, in a state with no income taxes.

Someone who is making the burger flipping wages here ($8-$10/hr) isn't going to meet underwriting standards unless they have a huge down payment, they simply won't make enough to make it under DTI requirements. That's just for their primary residence.

Since you're in ME, I basically threw a dart at the map and came across Rumford, some little town in the interior. This place looks great on Google Maps and only $65,000. I guess someone could buy it and rent out the other units.

https://www.trulia.com/property/1065...mford-ME-04276

I was also looking at properties in Waterford. Absolutely beautiful places.

He has been retired for a while now. His pension is based on what his pay was at his retirement. Not what military retirees get today.


Quote:
Originally Posted by Submariner View Post
I am not sure where $30,000/year comes from. My US Navy pension is $1,480/month, so a bit over $17k/year. I do not pay income taxes.





We settled in the Southern half of Maine about 20 miles North of Bangor. Zillow keeps sending me emails of homes in my county going on the market. We have been seeing nice 2bdrom homes on 1 or 2 acres starting at $25k.

COL in Maine is very good. Income for you is perfect and you have a great life. On some level I do envy you. However because I hate cold weather now and snow/sleet/slush/ice I am glad you have it and not me.
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