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yep ,being a landlord is anything but passive income . if i wanted to have grief at times and actually have to work i would have kept my job .
we had a model tenant who after her divorce had trouble with the rent . it took months of lost rent , legal fees and aggravation to get her out .
there was 8k worth of damages when she left and had zero money to go after . i thank god that apartment wasn't my income in retirement .
I've heard stories like this for 40 years.
A long time ago I decided that I don't have the patience to deal with renters. I'm also way too kind. I'd have a difficult time kicking out a single mom who can't pay the rent because her ex ran off with a stripper.
So if I want to invest in real estate, I'll buy shares in a REIT.
that was our problem . my wife kept cutting her slack and felt bad and then it reached the point of no return . she fell 2 months or so behind . it took months for it to wind its way through the courts .
the danger is had she declared bankruptcy as she threatened if i tried to sue her , typically the judge may have given her another month or two on my dime to get her act together since she had a young daughter .
not my idea of a way to generate my retirement income . we had multiple 7 figures worth of both commercial space and co-ops in manhattan and over the last 13 years liquidated as much as we could in preparation for retirement .
only 2 co-op apartments left . both over look central park and have rent stabilized tenants in them so i can't just get them get out . so we have a standing offer of 100k to buy out the leases and then we sell the apartmentss but so far the last 2 are not ready to leave .
Last edited by mathjak107; 09-18-2015 at 05:14 AM..
Wait...you were making a living stripping at 62? And you were an employee of the strip club, not a contractor, so SS was being withheld?
Started stripping at age 47, ended at 57. Strippers are free contract agents, PAY to work at the club and are responsible for their own IRS issues, etc. I have SS (and a pension) due to 25 years of fulltime employment at a university.
very interesting study by michael kitces on the effects of market plunges on retirement success.
A sharp guy, that Kitces. I cannot recall reading anything from him that I could disagree with. Here is an especially good quote from the article...
"the reality of sequence-of-return risk is that it's more about having a mediocre decade's worth of returns, not just a sharp single-year decline"
Indeed, 2008 was scary, but if one had an appropriate allocation and stuck with their plan it did not take long to recover. Except for behavioral mistakes, like panic and sell, or excessive "bets" on individual stocks that did not work out, there is no reason that 2008 should have derailed anyone's plans. My stock account was back to it's previous high-water mark before the summer of 2010.
In 2007, I had 950K in my retirement accounts and my goals was to retire as soon as I got up to the magic number of ONE MILLION. My wife and I would get $2000 combined in our Social Security and I planned on a 5% withdrawal per year adjusted up each year for inflation. I was so close and both of us were almost 62 years old.
By 2009, after the market crash, I had $470K in all my retirement accounts and determined it was impossible for us to retire because 5% of $470K would not pay our bills and needs. I was forced to keep working for five more years and just last year got up to $950K again.
Last edited by big thinker; 09-18-2015 at 11:19 AM..
A sharp guy, that Kitces. I cannot recall reading anything from him that I could disagree with. Here is an especially good quote from the article...
"the reality of sequence-of-return risk is that it's more about having a mediocre decade's worth of returns, not just a sharp single-year decline"
Indeed, 2008 was scary, but if one had an appropriate allocation and stuck with their plan it did not take long to recover. Except for behavioral mistakes, like panic and sell, or excessive "bets" on individual stocks that did not work out, there is no reason that 2008 should have derailed anyone's plans. My stock account was back to it's previous high-water mark before the summer of 2010.
kitces is actually brilliant when it comes to this stuff and numbers crunching . there is just no end to what i learn from him . he too is big on disproving a lot of the myths that folks believe .
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