Too bad. I know that I needed something to settle my nerves as I approached mid-life, and at least doing that and considering where I was in terms of readiness for retirement; helped me.
Maybe it gave me some kind of reading as to where I was and whether I needed to focus on doing further investing or not.
Mary-
You are sweet.
I am glad that it was able to help.
I find that I still have lots of junk from years of counseling, just glad that some part of it is usefull for you.
It's funny when I think about it. Most of my siblings and parents are so good at "being poor" that it wouldn't matter if we didn't have any money. I save a large percentage of my income because I just can't help it. It is just way too much fun to find bargains, fix other people's cast offs and use them or turn the oddest things into planters or other yard decorations. My dad has a very healthy net worth but still buys his clothes at thrift stores and likes to go with me when I drive my truck around looking for good junk.
I have a plan which if executed correctly, will allow me to retire before I turn 40, possibly even to start making preparations for it by the time I'm 30.
I've been considering investing in the stock market, but being a fan of Paul Krugman I'm convinced that we're on our way to a Japanese style economy. I will still probably put $5,000 or so into an index fund that I've been looking at anyway just to see how it does. I also am leery of the seeming impending burst of the real estate bubble in the U.S., so I plan to buy some properties in Mexico not too far from the ocean. Even if commercial and residential real estate go bad, people will still want to take vacations and retire.
Galen this is a good topic (great actually) as I've been giving some thought to what I want to do when I hit 70 or so. My situation got turned upside down a few years ago so I've made several adjustments to compensate. First off I'm in nursing school and when I'm done (age 52) I'll do a bit of local work to satisfy some forgivable loans and then do travel nursing where I ought to be able to sock away a few bucks and build up my ss (which I'm not counting out just yet). Right now I am lookin at several older homes that could stand some work and I hope to capitalise on the homes value as well as improvments (I've remodeled an old house recently and can do everything but brickwork) which should help me build a tangible asset base of some kind quickly.
Thats basicly it, it's interesting to read the responses and to realise we are all struggling like most americans with figuring out how to provide fer our golden years and I'd say most of us will still be concerned about it when we meet that date.
I've always felt that having a solid asset base like a house, ownership/interest in an ongoing business, a decent amount of cash reserves (enuf fer a year or two) and a part time job doing what you love is the way to go.
While a topic that most people dont consider, it is a topic which I beleive we should consider every now and again.
Bonnie and I did, starting when we were about 30 and again every few years. Such discussions helped me to maintain my commitment to stay in the Navy, and to invest on the side (after our tithe). I am glad now that we did.
"A couple things that I am factoring in for my retirement are:
SS, Hopefully it still be around and I can get something out of it..."
You can request from SSA a printout of their information on you. It will show how much they think you have contributed each year, and how much you would recieve assuming that you continue contributing until you turn; 65, 67, 70 or 75.
I requested it once and they send it to me annually now.
"Retired Reservist pay, I retired from the Army Reserves, I will get a few bucks from that after I turn 62."
Until SSA kick-in, at which point the amount of the DOD pension is ... (compared to the amount of your SSA and ... I man I forget how they do the smoke and mirrors, take the TAP course and it is all explained. (TAP - the Military's "how to retire" course, required for all retirees). I had to attned TAP to be able to retire from the Navy, but it is offered quarterly at most bases, and you are welcome to attend at any point of your military career.
"I am hoping to retire from civil service and will get a retirement pension from that as well."
Double-dipping is good.
"aside from planning to have my house paid off, savings, investments etc... in short, I will be living off tax dollars."
Always a good option (assuming that USA is still around).
"Of course there might be a future in passing out shopping carts at Walmart for me in the future..."
This option was discussed a great deal at my TAP class.
Through our our younger years we could not find the expendable income to put money away, other than payments on our mortgage. In fact several times I found it necessary to refi the house in order to catch up on taxes. My wife did not work at a paying job- (tip of the hat to stay-at-home mom's) while the kids were in school. It was a decision we made, which we would gladly repeat.- even though it meant few vacations and older cars. Once the kids got to college, we at long last were able to focus more on our own long term needs.
I immediately refied the house again, but this time without taking cash out, and turned the mortgage back to a 15 year loan, but at a lower interest rate. The payments are actually far less than they were under the previous 30 year higher interest mortgage. This freed up cash to lower credit card debt, and also set a target for the mortgage being paid at the same time I am of retirement age.
The biggest factor in my improved financial state is taking hold of bill paying, on time and online. Online billpay has improved my credit scores dramatically. My bank guarantees that my creditor will receive my payment on the day I schedule it. They have not failed to do that in two years. On the first of the month I schedule the entire month's bills, to be paid throughout the month. There is no depending on having a stamp, or remembering to mail the check, or sometimes delayed mail.
A higher credit score means lower insurance rates, lower interest rates, greater flexibility in many of your bills, and a higher level of self esteem. i.e. you have more expendable money to invest.
Having taken care of my immediate needs, I was able to use a modest inheritance to purchase an investment property which my son will live in for the next two years. I will build an addition to augment the modern needs of a single family home and resell it. I am a contractor, so this method of gaining equity falls well within the oft recommended guideline of "invest in what you know" I do not share the view of a coming realestate crash, but watch where you buy and what you buy. I personally do not wish to be a landlord, so I do not intend to keep these properties
These steps have helped me more than meet Galens formula, but I wonder if your formula is adequate in today's economics Galen. Is this a recent formula or one from your past training?
". . . I do not share the view of a coming realestate crash, but watch where you buy and what you buy."
Same here.
"I personally do not wish to be a landlord, so I do not intend to keep these properties"
It worked out for us, but it is not for everone.
". . . These steps have helped me more than meet Galens formula, but I wonder if your formula is adequate in today's economics Galen. Is this a recent formula or one from your past training?"
It shows things differently according to your level of income and cost of living. It is a bit of a 'sliding scale'. It should still be good.
I got it from the Navy in 2001, at the time one of my 'hats' was 'Command Financial Specialist' and 'IRS-VITA Tax planning Specialist'.
At the end of this month, I will be debt free!!! (that is until I need a new car, and then I'll have car payments.)
I have been working on this for years now...
Starting the fall I will be able to sock away money for my old age.
I have no pension...just ss...and that doesn't look like too much.
I started 2 IRAs 10 years ago, but, golly...it's next to nothing, even tho I put the max I could in them....wouldn't support me for a year I bet... :(-->
I'm feelin' pretty free and breezy these days :)-->
I'm also downsizing...getting me a more simple life...even simpler than it already is...
"I personally do not wish to be a landlord, so I do not intend to keep these properties"
Galen said: It worked out for us, but it is not for everone.
Yes Galen, I know it works for some, I only said for me it was not my desire (nor my stomach)
HAPe4me: ". . . Is this a recent formula or one from your past training?"
Galen: "It shows things differently according to your level of income and cost of living. It is a bit of a 'sliding scale'. It should still be good.
I got it from the Navy in 2001, at the time one of my 'hats' was 'Command Financial Specialist' and 'IRS-VITA Tax planning Specialist'.
Ok, then it is not that old. Thank you again. However, I think my first goal will be to have that amount in liquitable assets (i.e funds/stocks/ cds/ IRAs etc) at my retirement, as well as having some additional amount in other less liquid assets.
My estimated Ideal Net Worth is far greater than what it is in reality.
As JWs we weren't encouraged to save for retirement. After all, the "new system" was "just around the corner" and a young chick like me would never get old enough in this old system to have to retire.Armageddon and the Paradise would be here before I reached retirement age. -->
Thus, I am 30 years off retirement with less that $15,000 saved in superannuation trusts. :(-->
Yes, I did know Jan, and had the pleasure of meeting her a couple of years ago when I had recently exited the JWs. Her experience in dealing with exit-counselling and cults was incredible. She is greatly missed :(-->
I was living in Sydney at the time of the 2000 Olympics. It was a fantastic time - everyone was in such a happy, joyful party mode. I'm glad you had such a great time!
If you look at big business's record you'll see that at least one sector (if not more) has been through a depressed cycle in recent memory, it is an ongoing thing in our economy and won't change soon.
The Federal Reserve (aka Alan Greenspan) has gotten quite good at managing our economy through all this however and it looks like they are going to manage the real estate *boom* by slowly raising rates. I'm guessing that banks will respond by selling more non assumables or leaving rates open to some adjustment.
There's tons of speculating going on in the RE market with value exceeding reality in many cases so from a long term standpoint slowing the market down makes sense
So what to do in the RE market knowing that it will be down for a few years (just how long will it take fer our kids to grow up n buy homes??)
I'm thinking of buying an in town lot and having a home roughed in, finishing it out myself or...
finding a location with a great view and building there
or finding an older home in a transition neighborhood and redoing it...
Hey Oz!!! Jan was a sweety and very very kind. I still have numerous emails from her with all her jollies I've saved...they're cluttering up my yahoo mail, but I don't care...I save them...and read them now and then.
I'm planning on backpacking New Zealand next winter (your summer)...if you'd like to take a hop over ;)-->...would love to meet you...
I've been thinking about this subject over the weekend, and although I still plan to keep saving money, investing in index funds, and purchasing real estate in the future, I think it's all for naught.
It's entirely possible that within the next ten years, the U.S. is going to have a huge economic recession, perhaps even a depression, due to the baby boomers retiring and pulling their money out of stocks. I think the real estate market will be killed as well when they all start dying off. The only solution would be to open up the floodgates at the borders and start replacing these people, but I doubt that will happen.
So my question would be what do those of you that are not baby boomers plan to do in the event that something catastrophic happens when they retire?
“At the end of this month, I will be debt free!!!”
Congratulations! ! !
“. . . (that is until I need a new car, and then I'll have car payments.)”
I don’t buy vehicles on credit. After reading (and re-reading) “The Millionaire Next Door”, we only buy 5 – 10 year old cars at that age they can not depreciate any further and if they are still in good condition it is a guarantee that they were not a factory lemon.
HAP-
“. . . . However, I think my first goal will be to have that amount in liquitable assets (i.e funds/stocks/ cds/ IRAs etc) at my retirement, as well as having some additional amount in other less liquid assets.”
It is good to have a goal.
I question some forms of investments, as both sets of my grandparents lost all their money when their banks went under, my parents have lost their money once from financial institutions going under, and I narrowly escaped a bank going under in 1991. We had been using a local bank, when their policy insulted me terribly and I decided to withdraw all my funds, fortunately I closed my accounts just one week before that bank closed suddenly.
More recently I use the Enron scandal as a good example, as EVERYONE has been taught that mutual funds are very ‘safe’, but cities / states / municipalities and even Public utilities have all been hurt as they had the bulk of their operating capital invested in funds when the market tanked. Now cities and states through out nation are still trying to climb out of financial difficulties.
Herbie-
“If you look at big business's record you'll see that at least one sector (if not more) has been through a depressed cycle in recent memory, it is an ongoing thing in our economy and won't change soon.”
True.
“There's tons of speculating going on in the RE market with value exceeding reality in many cases so from a long term standpoint slowing the market down makes sense”
As always.
Though I will stick to residential-rental properties. Generally people need housing. To buy them for no money down, and to use rental income to cover mortgage payments, taxes and insurance, and then to use one unit to house my family; is a strategy that has done us well.
The only thing I see that would really upset this, is should a city be left standing, but it’s entire population suddenly leave it behind.
P’mosh-
“I've been thinking about this subject over the weekend, and although I still plan to keep saving money, investing in index funds, and purchasing real estate in the future, I think it's all for naught.”
I hope not.
“It's entirely possible that within the next ten years, the U.S. is going to have a huge economic recession, perhaps even a depression, due to the baby boomers retiring and pulling their money out of stocks. I think the real estate market will be killed as well when they all start dying off. The only solution would be to open up the floodgates at the borders and start replacing these people, but I doubt that will happen.”
Where we live, we are seeing incredible influx of immigrants currently (Chinese, Vietnamese and Puerto Rican) due to there being such a shortage of workers of course. They just brought in 3500 Polish and Cheks College students to work through the summer.
Galen and others- A book you might be interested in is called Missed Fortune by Douglas R. Andrews.
He has some interesting ideas on managing home equity, home buying strategies and secure investment ideas that are tax advantaged. I will be using some of his ideas for my self.
One thing I suggest people do is get educated on the payout requirements on your IRA's and pensions. From what I understand there are serious penalties if you aren't carefull.
"Galen and others- A book you might be interested in is called Missed Fortune by Douglas R. Andrews."
Will have to read it, thanks.
"One thing I suggest people do is get educated on the payout requirements on your IRA's and pensions. From what I understand there are serious penalties if you aren't carefull."
Cool, the penaltys on early withdrawls from IRAs are sure bad.
Galen and others- the penalties I was talking about are for not withdrawing it soon enough or fast enough- I am not sure because I am still trying to get reliable info but it appears to me that one possible scenario is that you can out live a retirement account- even if or especially if you have a lot of money in it because it may all have to be withdrawn by a certain age- I am thinking 85 or 90. More and more people are living longer and longer. Essentially it has to be pulled out and by a certain age and taxed then the "Surplus" needs to be put into some kind of savings account. Then you would have to be very carful how to live on the remainder when you are say 95-110.
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Tom Strange
Galen... good info... but I didn't see an option for "I don't care, I won't be there"... and I am soooo "not close"...
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Mary Cate
Galen,
Thanks for the info. The vote I got to cast made my day. Not bad for a poor farm kid.
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Galen
Tom-
Too bad. I know that I needed something to settle my nerves as I approached mid-life, and at least doing that and considering where I was in terms of readiness for retirement; helped me.
Maybe it gave me some kind of reading as to where I was and whether I needed to focus on doing further investing or not.
Mary-
You are sweet.
I am glad that it was able to help.
I find that I still have lots of junk from years of counseling, just glad that some part of it is usefull for you.
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Mary Cate
Galen,
It's funny when I think about it. Most of my siblings and parents are so good at "being poor" that it wouldn't matter if we didn't have any money. I save a large percentage of my income because I just can't help it. It is just way too much fun to find bargains, fix other people's cast offs and use them or turn the oddest things into planters or other yard decorations. My dad has a very healthy net worth but still buys his clothes at thrift stores and likes to go with me when I drive my truck around looking for good junk.
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Mister P-Mosh
I have a plan which if executed correctly, will allow me to retire before I turn 40, possibly even to start making preparations for it by the time I'm 30.
I've been considering investing in the stock market, but being a fan of Paul Krugman I'm convinced that we're on our way to a Japanese style economy. I will still probably put $5,000 or so into an index fund that I've been looking at anyway just to see how it does. I also am leery of the seeming impending burst of the real estate bubble in the U.S., so I plan to buy some properties in Mexico not too far from the ocean. Even if commercial and residential real estate go bad, people will still want to take vacations and retire.
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herbiejuan
Galen this is a good topic (great actually) as I've been giving some thought to what I want to do when I hit 70 or so. My situation got turned upside down a few years ago so I've made several adjustments to compensate. First off I'm in nursing school and when I'm done (age 52) I'll do a bit of local work to satisfy some forgivable loans and then do travel nursing where I ought to be able to sock away a few bucks and build up my ss (which I'm not counting out just yet). Right now I am lookin at several older homes that could stand some work and I hope to capitalise on the homes value as well as improvments (I've remodeled an old house recently and can do everything but brickwork) which should help me build a tangible asset base of some kind quickly.
Thats basicly it, it's interesting to read the responses and to realise we are all struggling like most americans with figuring out how to provide fer our golden years and I'd say most of us will still be concerned about it when we meet that date.
I've always felt that having a solid asset base like a house, ownership/interest in an ongoing business, a decent amount of cash reserves (enuf fer a year or two) and a part time job doing what you love is the way to go.
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Galen
While a topic that most people dont consider, it is a topic which I beleive we should consider every now and again.
Bonnie and I did, starting when we were about 30 and again every few years. Such discussions helped me to maintain my commitment to stay in the Navy, and to invest on the side (after our tithe). I am glad now that we did.
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GrouchoMarxJr
My retirement plan is called death.
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Zshot
A couple things that I am factoring in for my retirement are:
SS, Hopefully it still be around and I can get something out of it...
Retired Reservist pay, I retired from the Army Reserves, I will get a few bucks from that after I turn 62.
I am hoping to retire from civil service and will get a retirement pension from that as well.
aside from planning to have my house paid off, savings, investments etc... in short, I will be living off tax dollars.
Of course there might be a future in passing out shopping carts at Walmart for me in the future...
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Galen
Zshot:
"A couple things that I am factoring in for my retirement are:
SS, Hopefully it still be around and I can get something out of it..."
You can request from SSA a printout of their information on you. It will show how much they think you have contributed each year, and how much you would recieve assuming that you continue contributing until you turn; 65, 67, 70 or 75.
I requested it once and they send it to me annually now.
"Retired Reservist pay, I retired from the Army Reserves, I will get a few bucks from that after I turn 62."
Until SSA kick-in, at which point the amount of the DOD pension is ... (compared to the amount of your SSA and ... I man I forget how they do the smoke and mirrors, take the TAP course and it is all explained. (TAP - the Military's "how to retire" course, required for all retirees). I had to attned TAP to be able to retire from the Navy, but it is offered quarterly at most bases, and you are welcome to attend at any point of your military career.
"I am hoping to retire from civil service and will get a retirement pension from that as well."
Double-dipping is good.
"aside from planning to have my house paid off, savings, investments etc... in short, I will be living off tax dollars."
Always a good option (assuming that USA is still around).
"Of course there might be a future in passing out shopping carts at Walmart for me in the future..."
This option was discussed a great deal at my TAP class.
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HAPe4me
Through our our younger years we could not find the expendable income to put money away, other than payments on our mortgage. In fact several times I found it necessary to refi the house in order to catch up on taxes. My wife did not work at a paying job- (tip of the hat to stay-at-home mom's) while the kids were in school. It was a decision we made, which we would gladly repeat.- even though it meant few vacations and older cars. Once the kids got to college, we at long last were able to focus more on our own long term needs.
I immediately refied the house again, but this time without taking cash out, and turned the mortgage back to a 15 year loan, but at a lower interest rate. The payments are actually far less than they were under the previous 30 year higher interest mortgage. This freed up cash to lower credit card debt, and also set a target for the mortgage being paid at the same time I am of retirement age.
The biggest factor in my improved financial state is taking hold of bill paying, on time and online. Online billpay has improved my credit scores dramatically. My bank guarantees that my creditor will receive my payment on the day I schedule it. They have not failed to do that in two years. On the first of the month I schedule the entire month's bills, to be paid throughout the month. There is no depending on having a stamp, or remembering to mail the check, or sometimes delayed mail.
A higher credit score means lower insurance rates, lower interest rates, greater flexibility in many of your bills, and a higher level of self esteem. i.e. you have more expendable money to invest.
Having taken care of my immediate needs, I was able to use a modest inheritance to purchase an investment property which my son will live in for the next two years. I will build an addition to augment the modern needs of a single family home and resell it. I am a contractor, so this method of gaining equity falls well within the oft recommended guideline of "invest in what you know" I do not share the view of a coming realestate crash, but watch where you buy and what you buy. I personally do not wish to be a landlord, so I do not intend to keep these properties
These steps have helped me more than meet Galens formula, but I wonder if your formula is adequate in today's economics Galen. Is this a recent formula or one from your past training?
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Galen
HAPe4me:
Very well done.
And some good thoughts as well.
" "invest in what you know" "
Good idea.
". . . I do not share the view of a coming realestate crash, but watch where you buy and what you buy."
Same here.
"I personally do not wish to be a landlord, so I do not intend to keep these properties"
It worked out for us, but it is not for everone.
". . . These steps have helped me more than meet Galens formula, but I wonder if your formula is adequate in today's economics Galen. Is this a recent formula or one from your past training?"
It shows things differently according to your level of income and cost of living. It is a bit of a 'sliding scale'. It should still be good.
I got it from the Navy in 2001, at the time one of my 'hats' was 'Command Financial Specialist' and 'IRS-VITA Tax planning Specialist'.
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Wacky Funster
Thanks Galen for that info. It is a big help!!!
At the end of this month, I will be debt free!!! (that is until I need a new car, and then I'll have car payments.)
I have been working on this for years now...
Starting the fall I will be able to sock away money for my old age.
I have no pension...just ss...and that doesn't look like too much.
I started 2 IRAs 10 years ago, but, golly...it's next to nothing, even tho I put the max I could in them....wouldn't support me for a year I bet...
:(-->
I'm feelin' pretty free and breezy these days
:)-->
I'm also downsizing...getting me a more simple life...even simpler than it already is...
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HAPe4me
Ok, then it is not that old. Thank you again. However, I think my first goal will be to have that amount in liquitable assets (i.e funds/stocks/ cds/ IRAs etc) at my retirement, as well as having some additional amount in other less liquid assets.
~HAP
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The Girl From Oz
My estimated Ideal Net Worth is far greater than what it is in reality.
As JWs we weren't encouraged to save for retirement. After all, the "new system" was "just around the corner" and a young chick like me would never get old enough in this old system to have to retire.Armageddon and the Paradise would be here before I reached retirement age.
-->
Thus, I am 30 years off retirement with less that $15,000 saved in superannuation trusts.
:(-->
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Wacky Funster
Oz!!!
You're still in alot better shape than many of the single women I know!!!
Did you know Jan Groenveld?...she was in Brisbane...was a deprogrammer for the JW's and other such cults.
I was in Oz in 2000...had a blast for a month...never went to Melbourne tho...Uluru, Kakadu, the Reef and Sydney...
were you only a JW???
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The Girl From Oz
Hi Wacky,
Yes, I did know Jan, and had the pleasure of meeting her a couple of years ago when I had recently exited the JWs. Her experience in dealing with exit-counselling and cults was incredible. She is greatly missed
:(-->
I was living in Sydney at the time of the 2000 Olympics. It was a fantastic time - everyone was in such a happy, joyful party mode. I'm glad you had such a great time!
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herbiejuan
If you look at big business's record you'll see that at least one sector (if not more) has been through a depressed cycle in recent memory, it is an ongoing thing in our economy and won't change soon.
The Federal Reserve (aka Alan Greenspan) has gotten quite good at managing our economy through all this however and it looks like they are going to manage the real estate *boom* by slowly raising rates. I'm guessing that banks will respond by selling more non assumables or leaving rates open to some adjustment.
There's tons of speculating going on in the RE market with value exceeding reality in many cases so from a long term standpoint slowing the market down makes sense
So what to do in the RE market knowing that it will be down for a few years (just how long will it take fer our kids to grow up n buy homes??)
I'm thinking of buying an in town lot and having a home roughed in, finishing it out myself or...
finding a location with a great view and building there
or finding an older home in a transition neighborhood and redoing it...
any suggestions?
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Wacky Funster
move to Costa Rica
Hey Oz!!! Jan was a sweety and very very kind. I still have numerous emails from her with all her jollies I've saved...they're cluttering up my yahoo mail, but I don't care...I save them...and read them now and then.
I'm planning on backpacking New Zealand next winter (your summer)...if you'd like to take a hop over
;)-->...would love to meet you...
Glad you're out.
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Mister P-Mosh
I've been thinking about this subject over the weekend, and although I still plan to keep saving money, investing in index funds, and purchasing real estate in the future, I think it's all for naught.
It's entirely possible that within the next ten years, the U.S. is going to have a huge economic recession, perhaps even a depression, due to the baby boomers retiring and pulling their money out of stocks. I think the real estate market will be killed as well when they all start dying off. The only solution would be to open up the floodgates at the borders and start replacing these people, but I doubt that will happen.
So my question would be what do those of you that are not baby boomers plan to do in the event that something catastrophic happens when they retire?
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Galen
Wacky-
“At the end of this month, I will be debt free!!!”
Congratulations! ! !
“. . . (that is until I need a new car, and then I'll have car payments.)”
I don’t buy vehicles on credit. After reading (and re-reading) “The Millionaire Next Door”, we only buy 5 – 10 year old cars at that age they can not depreciate any further and if they are still in good condition it is a guarantee that they were not a factory lemon.
HAP-
“. . . . However, I think my first goal will be to have that amount in liquitable assets (i.e funds/stocks/ cds/ IRAs etc) at my retirement, as well as having some additional amount in other less liquid assets.”
It is good to have a goal.
I question some forms of investments, as both sets of my grandparents lost all their money when their banks went under, my parents have lost their money once from financial institutions going under, and I narrowly escaped a bank going under in 1991. We had been using a local bank, when their policy insulted me terribly and I decided to withdraw all my funds, fortunately I closed my accounts just one week before that bank closed suddenly.
More recently I use the Enron scandal as a good example, as EVERYONE has been taught that mutual funds are very ‘safe’, but cities / states / municipalities and even Public utilities have all been hurt as they had the bulk of their operating capital invested in funds when the market tanked. Now cities and states through out nation are still trying to climb out of financial difficulties.
Herbie-
“If you look at big business's record you'll see that at least one sector (if not more) has been through a depressed cycle in recent memory, it is an ongoing thing in our economy and won't change soon.”
True.
“There's tons of speculating going on in the RE market with value exceeding reality in many cases so from a long term standpoint slowing the market down makes sense”
As always.
Though I will stick to residential-rental properties. Generally people need housing. To buy them for no money down, and to use rental income to cover mortgage payments, taxes and insurance, and then to use one unit to house my family; is a strategy that has done us well.
The only thing I see that would really upset this, is should a city be left standing, but it’s entire population suddenly leave it behind.
P’mosh-
“I've been thinking about this subject over the weekend, and although I still plan to keep saving money, investing in index funds, and purchasing real estate in the future, I think it's all for naught.”
I hope not.
“It's entirely possible that within the next ten years, the U.S. is going to have a huge economic recession, perhaps even a depression, due to the baby boomers retiring and pulling their money out of stocks. I think the real estate market will be killed as well when they all start dying off. The only solution would be to open up the floodgates at the borders and start replacing these people, but I doubt that will happen.”
Where we live, we are seeing incredible influx of immigrants currently (Chinese, Vietnamese and Puerto Rican) due to there being such a shortage of workers of course. They just brought in 3500 Polish and Cheks College students to work through the summer.
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ckeer
Galen and others- A book you might be interested in is called Missed Fortune by Douglas R. Andrews.
He has some interesting ideas on managing home equity, home buying strategies and secure investment ideas that are tax advantaged. I will be using some of his ideas for my self.
One thing I suggest people do is get educated on the payout requirements on your IRA's and pensions. From what I understand there are serious penalties if you aren't carefull.
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Galen
ckeer:
"Galen and others- A book you might be interested in is called Missed Fortune by Douglas R. Andrews."
Will have to read it, thanks.
"One thing I suggest people do is get educated on the payout requirements on your IRA's and pensions. From what I understand there are serious penalties if you aren't carefull."
Cool, the penaltys on early withdrawls from IRAs are sure bad.
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ckeer
Galen and others- the penalties I was talking about are for not withdrawing it soon enough or fast enough- I am not sure because I am still trying to get reliable info but it appears to me that one possible scenario is that you can out live a retirement account- even if or especially if you have a lot of money in it because it may all have to be withdrawn by a certain age- I am thinking 85 or 90. More and more people are living longer and longer. Essentially it has to be pulled out and by a certain age and taxed then the "Surplus" needs to be put into some kind of savings account. Then you would have to be very carful how to live on the remainder when you are say 95-110.
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