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Old 03-06-2008, 06:06 AM
 
5,002 posts, read 4,250,294 times
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Hi there
we are in our mid early 40's with two children (9 & 7). So far we are doing ok but dont have a lot saved for retirement. Maybe about $20,000. But we are in the process of buying our 4th home. Two are rented out (one of which is paid off). So between equity in this miserable market, we probably have about $500,000. Our business is also worth the same again. Now we dont have any stocks ; was hoping next year to tackle buying stocks and bonds. Any advice on where to go from here, we probably ahve about $10,000 per year to sock away into some kind of fund.
We are hoping to hold onto the properties until we retire, have them paid off and then sell them. We are in NY. Yes, we will have college also. I am thinking that the children can get their own loans, if they do well and graduate, we would help them pay them off at the end.

any words of advice from retirees or soon to be.

Thanks
d
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Old 03-06-2008, 06:28 AM
 
8 posts, read 31,429 times
Reputation: 35
Default My suggestions

I'm retired now (I retired in my 40's) and rental income has helped me out and my property has appreciated more than it's depreciated, but I also know this:

RealEstateJournal | Why Your Nest Is Not Your Nest Egg

I suggest consider buying a LOW-COST target date retirement fund:

One-fund retirement: Buy and forget - MSN Money

Avoid 'financial advisors'. Their fees will eat you alive.

Advice

I like your idea about college.

Last edited by Aisa; 03-06-2008 at 06:29 AM.. Reason: correct url
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Old 03-06-2008, 06:56 AM
 
Location: Northern MN
592 posts, read 2,579,453 times
Reputation: 353
I was the "victim" of a forced retirement at the ripe old age of 38 and soon discovered I needed something to do. I can't speak of finances as I have guaranteed income until my demise, but I would very strongly urge you to find something to keep yourself busy. Three of my co-workers retired about the same time I did (they were in their early 50's) and are all now worm food. I saw three vibrant, funny men turn into lazy, apathetic, uninterested individuals just waiting to die. I sought out hobbies, interests, and travel to keep myself busy and must say its worked rather well. Frankly, I don't know how I ever found time for work! Seriously, if you've worked your entire life, it becomes part of you, part of your whole being and I've met many that have a tough time mentally and physically with time on their hands.
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Old 03-06-2008, 07:20 AM
 
Location: lumberton, texas
652 posts, read 2,457,574 times
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I am not a retiree but Highly reccomend you NOT put to much in stocks right now. reason? With the market, real estate, and possible serious recession and the fact all of your assets seem to be in real estate (not all paid off) and your own business (which may suffer?). If I were you I would put as much money into things that could be liquified if the need be.

I also did some reading about "ression proofing yourself" which stated if you are within 10 yrs of retirement not to put anymore money into stocks. I dont know if that advise is good for the average joe but IMO it is for you.
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Old 03-06-2008, 07:21 AM
 
Location: SF Bay Area
1,423 posts, read 2,429,415 times
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Why sell the property when you retire? Why not keep it for income? I retired at 52 and half of my income is from the rentals in a small apartment building that I own. The other half is a pension.

My twins will be in college in 5 years and I've been saving for years to help them along and plan to continue saving. If nothing gets screwed up, they'll be able to an attend an in state/public college (UC or Cal State) and I can cover the cost for both kids for four years.
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Old 03-06-2008, 02:16 PM
 
16,092 posts, read 36,565,737 times
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I have 13 rental properties, the last few of which will be paid off in 3-4 years. I am just about to turn 50. I will keep them as "semi-retirement'.

I however am maxing out my 401K at work now while stocks are cheap.

If you go on an extreme austerity program, most people with good jobs can be millionaires in 10-15 years. But most people wouldn't want to do that...
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Old 03-06-2008, 08:43 PM
 
48,516 posts, read 83,890,268 times
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The trouble with that is at one time that money was worth alot more.
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Old 03-07-2008, 07:00 AM
 
3,750 posts, read 9,599,239 times
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My two points are:
1. Diversify. Never have all your retirement funds in one asset or type of asset.
2. Have a complete knowledge of your spending and control. Does not mean austerity but knowledge and making spending decisions based on that knowledge.

In addition, know your spending. Know things like what exactly are you getting for what you are paying for and is it "worth it". Do you have exactly what you need and not paying for unnecessary or unwanted extras.

We have been tracking our spending for 25 years and know where we stand and what affect any purchases will have on the annual budget. Since we know what we spend, we feel comfortable with our asset base and the retirement income it will throw off.

Sometimes it is as simple as buying soda from the drive thru or planning ahead and bringing your own. Or searching out a great deal on a cruise and investigating all related expenses before making the committment. Paying ahead of time instead of putting on credit card.

Also with knowledge you can decide whether to retire or whether you will need to continue with some income producing activity and how many hours you will need to work.
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Old 03-10-2008, 09:04 PM
 
Location: Boca Raton, FL
5,165 posts, read 8,687,150 times
Reputation: 6166
Smile Investing ...

I believe in real estate. You will be fine.

Story:
Client comes to the US 28 years ago from Thailand. Knows some English; goes to college (he is already married). Becomes a pharmacist. Gets good job at hospital. (By this time, great English).

Starts to invest in property. Plans to buy a different type every 5 years.

Net worth in property over 5,000,000 now - only about 900,000 owed on properties.

He and his wife are such an inspiration and believe in this country and feel so fortunate to be given the chance to be here
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Old 03-10-2008, 09:05 PM
 
Location: Boca Raton, FL
5,165 posts, read 8,687,150 times
Reputation: 6166
Smile Part 2

I meant to say, their net worth is NOW $5,000,000 just from their properties. And yes, they could if they wanted, live off their rental income which is superior to their other income! They are in great shape but worked hard!
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