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Old 06-23-2019, 03:52 PM
 
888 posts, read 205,726 times
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Quote:
Originally Posted by crone View Post

Plan on the price of everything doubling every 10 years.

Very good point. I'm seeing this in automobiles already as I'm in the market - but just might delay it as long as possible.
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Old 06-23-2019, 03:56 PM
 
Location: Central IL
15,211 posts, read 8,518,332 times
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Quote:
Originally Posted by Submariner View Post
I disagree.

When I was working, my Dw and I owned four homes. [one at each of four duty stations] Each of those homes was a multi-family-residence [Tri-plex, Four-plex, Five-plex property]. We had one apartment to live in ourselves, and we had 2 to 4 tenants who paid us rent that covered the mortgage, insurance, taxes, and maintenance.

So none of my salary income was needed for any of the monthly bills.

With my income, we made a monthly principal-only payment to buy down the outstanding mortgage notes.

The first time that we owned a single-family house was after I retired. We cashed out our apartment complexes and used that cash to buy our farm. [no mortgage].

We accumulated a huge Net Worth, but we have never had much cash savings. We have never invested in the stock market, no mutual funds.
Guess I'd have felt much safer diversifying than having all my money in real estate. Apparently it worked out for you, but would we have heard from you if it had not? We never hear from "the losers" so it's an obviously biased sample.
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Old 06-24-2019, 12:52 AM
 
1,971 posts, read 2,718,849 times
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Quote:
Originally Posted by crone View Post
DH retired at 52. He was able to do that due to his employer paying his health insurance forever. What paid for everything in 1992 now covers the employer provided Medicare Advantage. We have no deductibles and can see any Dr. we want.

Plan on the price of everything doubling every 10 years.

All that leisure time is expensive. Better have a heavy duty checkbook. As you age, the money requirements diminish. I'm thinking around 75. Our biggest expense after property taxes is baseball tickets and spring training. Our team moved to a more expensive place.

DH is ADHD. He finally got bored after 3 years and got some part time jobs.
The only expense that doubled for me over 10 years was food. Actually, it took 14+ years to double and not every food item did.

Ten years ago I did a projected budgets for the next 10 years. Each year included 5% inflation. I'm spending less -- and not deliberately -- than my projected budget for this year. So, overall, my expenses haven't increase by 50% in the last ten years. I think food and utilities are the biggest concern.

Anyway, I tend to agree with crone's DH -- I think boredom would be a big problem.
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Old 06-24-2019, 12:32 PM
 
Location: Florida
4,359 posts, read 3,696,311 times
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Quote:
Originally Posted by Fran66 View Post
The only expense that doubled for me over 10 years was food. Actually, it took 14+ years to double and not every food item did.

Ten years ago I did a projected budgets for the next 10 years. Each year included 5% inflation. I'm spending less -- and not deliberately -- than my projected budget for this year. So, overall, my expenses haven't increase by 50% in the last ten years. I think food and utilities are the biggest concern.

Anyway, I tend to agree with crone's DH -- I think boredom would be a big problem.
I think using 5% for your projection was a good idea and I would have expected that inflation would not reach that level. Thinking about the % maybe use 5% for a couple of years (build a cushion) then cut the rate every few years to you get down to about 3% which I think is about the historical level.
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Old 06-24-2019, 02:12 PM
 
6,240 posts, read 4,725,740 times
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The historical rate is about 3.5%. We have been about half that for quite a few years but who can guess when that might change.
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Old 06-24-2019, 03:24 PM
 
1,321 posts, read 645,714 times
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Quote:
Originally Posted by TBMorgan View Post
Very good point. I'm seeing this in automobiles already as I'm in the market - but just might delay it as long as possible.
Why delay, If prices keep going up.
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Old 06-24-2019, 04:39 PM
 
2,173 posts, read 531,207 times
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Quote:
Originally Posted by reneeh63 View Post
Well, as long as we're talking about what we'd PREFER...

For the sake of the OP, let's get serious, and realistic, while we're at it.
Killjoy.
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Old 06-24-2019, 09:48 PM
 
Location: New Mexico
6,559 posts, read 3,659,218 times
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I have a friend who made a fortune and retired at 35. He has no hobbies or interests other than ordering stuff off the internet and staying in his big house and drinking. I rarely see him sober. His relationship failed when his girlfriend threw in the towel and left town. That is probably a worst case scenario.

I retired at 52 and after 90 days went to work part-time (in a different field) because I really wasn't mentally or emotionally retired. I learned a lot in that part-time job and found the social and intellectual stimulation I still needed. Frankly, you are facing a lot of challenges and I think 40 is too young to just retire...maybe a career change would be a strategy for a few years.
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Old 06-25-2019, 06:08 AM
 
2,443 posts, read 2,070,283 times
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Quote:
Originally Posted by Piney Creek View Post
Re: counting on rental properties, real estate investments, or owning vacation rentals as a way to subsidize retirement.


My one piece of advice here is to get all your advice from people in real life. Preferably people that you personally know, and preferably people who have actually retire and are having success following this plan. It's amazing how many people out there give lectures on how you can retire doing this, but you'll notice they haven't actually done it themselves.


Also, I hope you're aware that a lot of people on the internet who brag about their many investment properties are completely full of it. There is at least one on the city-data real estate forum who frequently has me rolling my eyes.



Now, if your relatives or friends who you know personally have done this, they're more likely to have valuable advice.


Best of luck with this, but to be honest I'm not sure it's a good idea. What do I know, though? If you decide to do it I hope you continue to post so we can follow your adventures, and see how it works out for you.
Great post. While rental property can be great provided you get good renters, it can also be a nightmare. I think it is more difficult now as renters have more rights and they know how much they can get away with.

I recall going to real estate investing seminars 30 years ago and the presenters painted a rosy picture but as you said in your post, I am not sure they ever did what they were pitching.
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Old 06-25-2019, 06:12 AM
 
71,515 posts, read 71,694,121 times
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Our governor just signed in to law new rental laws that are terrible for owners ..we are hoping the Supreme Court overturns some of these new laws .....

You will see landlords pull out in mass ....they killed off many reasons investors go in to real estate
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