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Old 07-01-2019, 04:41 PM
Status: "Re-edit status" (set 14 days ago)
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,148 posts, read 1,886,778 times
Reputation: 3167

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I think we are getting a definition problem.
example: is a Rental, an Income producer, or an Investment? Both?
For us, the rentals are Income producers and tax moderator. The rentals are Not an Investment to us since we plan to pass the rentals forward. Our DS-inheritee may think think of them as investments since his efforts as PM goes towards property enhancements...The Rentals are Not an Income source for him.

I did include the rentals' original cost in our Retirement assets, post #--, to maintain a generally accepted thought on how Rentals work in retirement, Net Worth.
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Old 07-01-2019, 04:42 PM
 
Location: Rust'n in Tustin
2,176 posts, read 2,375,015 times
Reputation: 3808
Quote:
Originally Posted by Perryinva View Post
The only time I ever paid someone to do my taxes was because the divorce decree required it, (paranoid psycho ex) and it was done wrong. I had to refile and amend my part. Iíve used many different programs, TaxAct the last few years.

There is nothing special about returns in a calendar year. A fiscal year can be what you make it. For calendar year 2018 I was down 5%, but virtually all of it occurred in December. It was a good year to buy at times, which is what I did, and is mainly why I am up 15% for 2019 so far.

Plenty of people retire entirely on investments, in fact, that is exactly what the wealthiest do. To say one is crazy to retire without an income stream is fairly ignorant.
If you retire on stock market investments only, when the market goes up, your portfolio goes up, guess what happens when the market goes down?
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Old 07-01-2019, 04:45 PM
 
Location: Rust'n in Tustin
2,176 posts, read 2,375,015 times
Reputation: 3808
Quote:
Originally Posted by leastprime View Post
I think we are getting a definition problem.
example: is a Rental, a Income producer, or an Investment? Both? I
For us, the rentals are Income producers and tax moderator. The rentals are Not an Investment to us since we plan to pass the rentals forward. Our DS-inheritee may think think of them as investments since Ds efforts as PM goes towards property enhancements...they are Not an Income source for him. I

I did include the rentals' original cost in our Retirement assets, post #--, to maintain a generally accepted thought on how Rentals work in retirement.
Rental properties in California do a couple of things.

1. They pay you every month
2. They appreciate over time
3. They may reduce your taxes

It's not rocket surgery.
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Old 07-01-2019, 05:53 PM
 
39 posts, read 35,450 times
Reputation: 53
Quote:
Originally Posted by ysr_racer View Post
Rental properties in California do a couple of things.

1. They pay you every month
2. They appreciate over time
3. They may reduce your taxes

It's not rocket surgery.
Life in your world seems very simple and devoid of nuance. I truly hope you don't every realize that your above definition is ridiculously basic and not reality. If you bought in socal in 2005/6, you would know that markets in cali don't go up. We bought our house for 845 in 06...and now, 13 years later, it is worth 800. Yes, many people have done very very well in real estate, but it is simplistic views like the above that get people in trouble.
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Old 07-01-2019, 06:06 PM
 
71,492 posts, read 71,674,131 times
Reputation: 49074
Quote:
Originally Posted by BadgerNCarolina View Post
Life in your world seems very simple and devoid of nuance. I truly hope you don't every realize that your above definition is ridiculously basic and not reality. If you bought in socal in 2005/6, you would know that markets in cali don't go up. We bought our house for 845 in 06...and now, 13 years later, it is worth 800. Yes, many people have done very very well in real estate, but it is simplistic views like the above that get people in trouble.
Stop letting facts get in the way of these good story lines
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Old 07-01-2019, 06:21 PM
Status: "Re-edit status" (set 14 days ago)
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,148 posts, read 1,886,778 times
Reputation: 3167
Quote:
Originally Posted by ysr_racer View Post
Rental properties in California do a couple of things.

1. They pay you every month
2. They appreciate over time
3. They may reduce your taxes

It's not rocket surgery.
We don't even care about, "2. They appreciate over time."
Item 2, is a concern for DS. It is not a concern for his parents other than to keep pace with housing COL inflation.

The point I am trying to make is that people define different retirement vehicles differently. Our Rentals are Income vehicles not Investments. Our Annuities are GLWB annuities and we only see them as Income streams and not residual to DS which he will likely receive. Because we define stuff differently, How much we need in "safe" funds in a 100-age=bonds or bond like.
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Old 07-01-2019, 07:12 PM
 
Location: Rust'n in Tustin
2,176 posts, read 2,375,015 times
Reputation: 3808
Quote:
Originally Posted by BadgerNCarolina View Post
Life in your world seems very simple and devoid of nuance. I truly hope you don't every realize that your above definition is ridiculously basic and not reality. If you bought in socal in 2005/6, you would know that markets in cali don't go up. We bought our house for 845 in 06...and now, 13 years later, it is worth 800. Yes, many people have done very very well in real estate, but it is simplistic views like the above that get people in trouble.
We bought our rental condos in 2000, and paid 100k, and 107k. Both are now worth 330k ish, each. So far so good.
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Old 07-01-2019, 07:13 PM
 
Location: Rust'n in Tustin
2,176 posts, read 2,375,015 times
Reputation: 3808
Quote:
Originally Posted by leastprime View Post
We don't even care about, "2. They appreciate over time."
Item 2, is a concern for DS. It is not a concern for his parents other than to keep pace with housing COL inflation.

The point I am trying to make is that people define different retirement vehicles differently. Our Rentals are Income vehicles not Investments. Our Annuities are GLWB annuities and we only see them as Income streams and not residual to DS which he will likely receive. Because we define stuff differently, How much we need in "safe" funds in a 100-age=bonds or bond like.
What the heck is a ds?
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Old 07-01-2019, 07:23 PM
 
Location: Rust'n in Tustin
2,176 posts, read 2,375,015 times
Reputation: 3808
Quote:
Originally Posted by BadgerNCarolina View Post
Life in your world seems very simple and devoid of nuance. I truly hope you don't every realize that your above definition is ridiculously basic and not reality. If you bought in socal in 2005/6, you would know that markets in cali don't go up. We bought our house for 845 in 06...and now, 13 years later, it is worth 800. Yes, many people have done very very well in real estate, but it is simplistic views like the above that get people in trouble.
And I've bought stocks that went down, what's your point? But rental properties pay you monthly regardless of what their value does.

Trust me, in 20 years your home will be worth more. Unless you bought in a crappy neighborhood.
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Old 07-01-2019, 07:24 PM
 
2,372 posts, read 2,390,052 times
Reputation: 2373
Quote:
Originally Posted by ysr_racer View Post
What the heck is a ds?
Darling son or dear son
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