(Topic ID: 286379)

Retirement! Hacks, tips and insights to get there faster.

By DadofTwins

3 years ago


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  • Latest reply 12 days ago by PinJim
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“At what age do you plan on retiring?”

  • 45-55 100 votes
    30%
  • 56-65 176 votes
    53%
  • 65 and over..... 57 votes
    17%

(333 votes)

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#701 2 years ago

Thank you Hench4Life and DanMarino - those are good ballpark figures, that helps me figure it out.
Yes, I'll also do my own research by trying to see availability from the renter's end on the areas / types of houses I'm thinking about.

#702 2 years ago
Quoted from DanMarino:

We have an AirBnB beach house in the Outer Banks of North Carolina. Last year we rented something like 156 nights. Most rentals are May through September.

Yes, it is in the black.

#703 2 years ago
Quoted from PhilGreg:

Jacksonville area, not beachfront because I can't afford that, about 250-300k budget

Good luck! This housing market is nuts. I'm in Central Florida and Opendoor keeps upping their offers. They started at ~$270K a little over a year ago. The last offer was $372K a week ago. A home just like mine with a pool, but backed up to a busy road just sold for $440K. It's a tough market to buy a house in.

#704 2 years ago
Quoted from mcluvin:

Good luck! This housing market is nuts. I'm in Central Florida and Opendoor keeps upping their offers. They started at ~$270K a little over a year ago. The last offer was $372K a week ago. A home just like mine with a pool, but backed up to a busy road just sold for $440K. It's a tough market to buy a house in.

Ever since I started looking on Realtor.com, I'm getting a bunch of e-mails everyday and I'm seeing many houses that seem ok to me for those purposes within my price range, but of course, location, location, location. They do typically look pretty expensive for the size but as long as the AirBnb market follows I guess that works.
I have a look at https://crimegrade.org/safest-places-in-jacksonville-fl-metro/ to try and only look at the green stuff.
Keep in mind that my primary goal is to spend only a few months (1-3) out of the year and for the rest of the time it should be AirBnB friendly, so I'm not looking for something that needs to be very large.

One thing I hadn't thought about until this weekend though is the HomeExchange thing - maybe that would be another way to get away from the Quebec winter and just have a change of scenery once in a while at little or no cost.
Still evaluating the scenarios - if the AirBnb could end up paying for itself I guess that should be my #1 plan.

#705 2 years ago
Quoted from Jackalwere:

...My 401k isn't quite as high as I'd like it to be, but it should be fine since I won't have any major expenses except COBRA, taxes, and insurance, and I will have some rental income...

I retired on 1/1/2021. I did COBRA the first year of retirement. Planning ahead, I saved up enough to live off of cash the first year in order to convert some IRAs to Roths (helping to help minimize taxes due to no work income). But because of the IRA/Roth conversions being treated as income, we wouldn't qualify for the Affordable Care Act (ACA, i.e. Obama Care) subsidies since the cliff for subsidies was around $68K. If your income went a penny above the limit on Dec 31st, you'd have to pay the subsidies back. COBRA was pricey at ~$1.1K/mn. I could have just outright bought insurance, but those had max plan limits. COBRA didn't.

Fast forward to 2022, the subsidies cliff went away (it just decreases now) and the ACA plan we signed up for is only ~$233/mn. Just a huge difference. Yes, the deductibles are very high, but if you think about it...I was essentially already paying the deductibles w/COBRA because of the high premiums, whether I got sick or not.

So far we've used the ACA plan for just minor stuff (common meds, some PT) and I have to admit...the copays are lower than our super-duper COBA plan. We may get a low cost supplemental plan for things ACA doesn't cover, but wanted to let the dust settle first.

5 months later
#706 1 year ago

this thread died, did everyone retire?

10
#707 1 year ago
Quoted from BMore-Pinball:

this thread died, did everyone retire?

Current high inflation forced them all back into the workforce.

#708 1 year ago

Right on lol

#709 1 year ago

Retirement is transitory.

#710 1 year ago

I have 8-9 years still, nothing has changed in my planning. Trying to ramp up savings for additional real estate income property, as I think a housing correction is imminent. Still plugging away at 401k and Roth maximum contributions.

#711 1 year ago

Also, no extra payments on my primary mortgage!!! That 2.875% 15yr fixed is looking real nice these days..

#712 1 year ago

Of all my work, biz I owned, etc, Real estate outperformed all, to reach retirement.

#713 1 year ago
Quoted from Hench4Life:

...as I think a housing correction is imminent...

I've been thinking about that too (buying a 2nd home...but more of a winter 'getaway house' in a warm climate than an investment). More and more articles are showing up about mortgage applications slowing down. There's a national mortgage chain headquartered in a nearby town, and they are definitely seeing a drop in applications, resulting in some layoffs. But we're also considering just utilizing AirBnB's and traveling around might be a better option. No maintenance to worry about, water heaters to leak, roofs to replace, taxes, etc. Just keep the primary residence.

We seriously thought about buying during the 2008 dip, but didn't want to own a 2nd home 1800 miles away at that time in my career (now retired). Not sure what's going to cause another crash (i.e. loan defaults or just a big slowdown due to interest rates).

#714 1 year ago
Quoted from mbwalker:

I've been thinking about that too (buying a 2nd home...but more of a winter 'getaway house' in a warm climate than an investment). More and more articles are showing up about mortgage applications slowing down. There's a national mortgage chain headquartered in town, and they are definitely seeing a drop in applications, resulting in some layoffs. But we're also considering just utilizing AirBnB's and traveling around might be a better option. No maintenance to worry about, water heaters to leak, roofs to replace, taxes, etc. Just keep the primary residence.
We seriously thought about buying during the 2008 dip, but didn't want to own a 2nd home 1800 miles away at that time in my career (now retired). Not sure what's going to cause another crash (i.e. loan defaults or just a big slowdown due to interest rates).

I’ve been considering the same thing for awhile now and looking at the cost of purchasing, maintaining and insuring a vacation house vs. the cost of constantly renting but not establishing any equity. When the cost of housing skyrocketed during the pandemic it was a better deal to just rent than to buy at the height of the market. But if the housing market has a correction I’ll need to crunch the numbers again.

#715 1 year ago

We have pondered the same thing, buying a 2nd vacation home somewhere. But then you almost always have to go there to get your money's worth. Almost seems better to skip buying a 2nd property and just travel around when you desire to do so and rent a room/house in each location.

#716 1 year ago

You can make money in real estate speculation, but it’s not all it’s cracked up to be. Lots of fees, taxes, insurance to deal with. Repairs, carrying a second mortgage, bad tenants, assessments if you have a property in a community, damage if you have storms. and appreciation is very cyclical so you could go years where prices go down and then it takes many more years to recover. If you have the stomach for it, go for it, it’s not for me.

#717 1 year ago
Quoted from DadofTwins:

We have pondered the same thing, buying a 2nd vacation home somewhere. But then you almost always have to go there to get your money's worth. Almost seems better to skip buying a 2nd property and just travel around when you desire to do so and rent a room/house in each location.

Another plus of AirBnB would be to let you experience a lot of other locations so if you do decide to get a 2nd home (or just outright move), it's in a location you really enjoyed.

#718 1 year ago

Haha, still retired. Trying to balance "Do I want this much money in pins?" with "Do I want that money invested and growing?". I'm eager to see what the next few months and years bring us in terms of market fluctuations and news. I find it all very intriguing.

Quoted from BMore-Pinball:

this thread died, did everyone retire?

Everyone loves talking money when thing are going up and are high. When there's a drop, people get a little jittery

#719 1 year ago
Quoted from mbwalker:

I've been thinking about that too (buying a 2nd home...but more of a winter 'getaway house' in a warm climate than an investment). More and more articles are showing up about mortgage applications slowing down. There's a national mortgage chain headquartered in a nearby town, and they are definitely seeing a drop in applications, resulting in some layoffs. But we're also considering just utilizing AirBnB's and traveling around might be a better option. No maintenance to worry about, water heaters to leak, roofs to replace, taxes, etc. Just keep the primary residence.
We seriously thought about buying during the 2008 dip, but didn't want to own a 2nd home 1800 miles away at that time in my career (now retired). Not sure what's going to cause another crash (i.e. loan defaults or just a big slowdown due to interest rates).

I say short term rentals is the right call. If you’re trying to retire early a second home is a bad idea - Unless you are wealthy enough that it won’t matter. Rental property is another matter entirely.

#720 1 year ago
Quoted from arcyallen:

Haha, still retired. Trying to balance "Do I want this much money in pins?" with "Do I want that money invested and growing?". I'm eager to see what the next few months and years bring us in terms of market fluctuations and news. I find it all very intriguing.

Everyone loves talking money when thing are going up and are high. When there's a drop, people get a little jittery

Pins keep up with inflation plus some traditionally. Ok the past year may be an exception. I once calculated my pin collection appreciation over time as if it were an investment and it amounted to about a 3-4% apy return. So you could a lot worse: for example keeping it as cash or in a money market or even a CD. So I say hold on to them!

#721 1 year ago

Retire Age 50? I think that's pretty uncommon for majority of population.
Most people don't want to diminish the quality of living so soon.

A. Your not going to be happy if you withdrawl your 401k - Don't do that
B. Your probably not going to be able to ever return to your previous life before you Skipped out - Year away maybe - couple years no way.

Just find something you love doing and do that for a living.
Retirement is really a state of mind. Some people never live to make that milestone.

I retired 15 years ago. Got married. Have 3 kids and work everyday. Trust me I love what I do. Wish I would never have
to stop doing what I'm doing and retire. I love life and not workin would be hell for me.

#722 1 year ago
Quoted from jackd104:

I say short term rentals is the right call. If you’re trying to retire early a second home is a bad idea - Unless you are wealthy enough that it won’t matter. Rental property is another matter entirely.

After the crash in 2008ish, there were some really decent prices out near Phoenix. Builders were going crazy putting in additions as fast as they could prior. Even on a good day, I thought this was insane.

Even tho I could have done it, just the thought of an empty property that far away didn't set well. Son was out there, but didn't want to burden him. Wife could have went out in the winter for 2-3 months and visited the son if she wanted (cheap direct flights made it very convenient). But the upkeep...ins., taxes, maybe some utilities, and you always run the risk of someone just 'moving in'. Plus I didn't want to be a long distance landlord. Bit my lip and put it behind me.

Of course, those houses probably are x3 or x4 the 2008 selling price now. Still don't regret my decision tho.

#723 1 year ago
Quoted from TechnicalSteam:

Retire Age 50? I think that's pretty uncommon for majority of population.
Most people don't want to diminish the quality of living so soon.
A. Your not going to be happy if you withdrawl your 401k - Don't do that
B. Your probably not going to be able to ever return to your previous life before you Skipped out - Year away maybe - couple years no way.
Just find something you love doing and do that for a living.
Retirement is really a state of mind. Some people never live to make that milestone.
I retired 15 years ago. Got married. Have 3 kids and work everyday. Trust me I love what I do. Wish I would never have
to stop doing what I'm doing and retire. I love life and not workin would be hell for me.

401K: Plus you'd get dinged for tapping into it before age 59.5.

#724 1 year ago
Quoted from mbwalker:

401K: Plus you'd get dinged for tapping into it before age 59.5.

Not necessarily. They rule 72(t) for SEPP withdrawals can be used to withdraw money from a 401(k) if you retire before age 55 or 59.5.

https://www.forbes.com/advisor/retirement/rule-72t-early-withdrawals-sepps/

If anyone has done this and can share their experience, I would be interested in hearing about it.

#725 1 year ago

Some ways to pull early are also the rule of 55 from your employer sponsored 401K or you can pull initial contributions from your Roth to bridge the gap as well.

#726 1 year ago

I'm guessing this is in response to me? You are correct, the majority of the population does not retire at 50. Also, the majority of the population doesn't have much money saved either. In general, people that think and talk about finances Iike us have a large sum of money saved and have goals in mind that they will achieve.

We are going to cut out 401k contributions here soon , except for enough to get the company match. Instead, we will start stockpiling cash so we can bridge the years between early retirement and when we turn 60/S.S. distributions. It's a fluid plan, never know what might change.

Just because we "retire" doesn't mean we can't re-enter the work force if need be. I would rather be able to travel sooner and younger than later and older.

Quoted from TechnicalSteam:

Retire Age 50? I think that's pretty uncommon for majority of population.
Most people don't want to diminish the quality of living so soon.
A. Your not going to be happy if you withdrawl your 401k - Don't do that
B. Your probably not going to be able to ever return to your previous life before you Skipped out - Year away maybe - couple years no way.
Just find something you love doing and do that for a living.
Retirement is really a state of mind. Some people never live to make that milestone.
I retired 15 years ago. Got married. Have 3 kids and work everyday. Trust me I love what I do. Wish I would never have
to stop doing what I'm doing and retire. I love life and not workin would be hell for me.

#727 1 year ago
Quoted from Eric_S:

Not necessarily. They rule 72(t) for SEPP withdrawals can be used to withdraw money from a 401(k) if you retire before age 55 or 59.5.
https://www.forbes.com/advisor/retirement/rule-72t-early-withdrawals-sepps/
If anyone has done this and can share their experience, I would be interested in hearing about it.

But that looks like it's used for exceptions, not the typical early retirement?

#728 1 year ago
Quoted from TechnicalSteam:

Most people don't want to diminish the quality of living so soon.
Just find something you love doing and do that for a living.
Retirement is really a state of mind. Some people never live to make that milestone.
I retired 15 years ago. Got married. Have 3 kids and work everyday. Trust me I love what I do. Wish I would never have
to stop doing what I'm doing and retire. I love life and not workin would be hell for me.

I think if someone retires and diminishes their quality of life they're doing it wrong! It's critical to be happy with whatever you're doing. Someone can always have "more", but once you have "enough" you just don't need more anymore. Especially for the price you have to pay to get it. It's great you're happy with what you're doing, most people are pretty unhappy. I would ask, though, do you love it so much that you'd do it for free? If not, it's worth re-evaluating what retirement means to you. To me, it's getting to the point that you don't -have- to work anymore. If you love it so much that you keep going, great. I have a very part time job driving cars that I'd do for free (and have joked with my employer about). But working is like fishing...and most anything else...it's a lot more enjoyable to do it because you want to vs because you have to.

Quoted from mbwalker:

But that looks like it's used for exceptions, not the typical early retirement?

You can use 72t for any reason you want. It's important to know the details - for example, you can't undo it. But it's a great tool for the right situation.

Quoted from jackd104:

Pins keep up with inflation plus some traditionally.

Excluding the last few years, I think you'll find that really hasn't been the case. Pre-covid if you took a brand new High Speed, or Ripley's, or your average pin, you would have lost value on average. A 4% return means they double every 18 years, which hasn't been the case. If it were the pins selling for $3500 new in 2000 would be almost $7k today. Of course, if you buy a beater and fix it up that's a whole other situation. As a fun factory, pins traditionally have been great. As an investment, recent results aside...well, they're great fun!

#729 1 year ago
Quoted from arcyallen:

I think if someone retires and diminishes their quality of life they're doing it wrong! It's critical to be happy with whatever you're doing. Someone can always have "more", but once you have "enough" you just don't need more anymore. Especially for the price you have to pay to get it. It's great you're happy with what you're doing, most people are pretty unhappy. I would ask, though, do you love it so much that you'd do it for free? If not, it's worth re-evaluating what retirement means to you. To me, it's getting to the point that you don't -have- to work anymore. If you love it so much that you keep going, great. I have a very part time job driving cars that I'd do for free (and have joked with my employer about). But working is like fishing...and most anything else...it's a lot more enjoyable to do it because you want to vs because you have to.

You can use 72t for any reason you want. It's important to know the details - for example, you can't undo it. But it's a great tool for the right situation.

Excluding the last few years, I think you'll find that really hasn't been the case. Pre-covid if you took a brand new High Speed, or Ripley's, or your average pin, you would have lost value on average. A 4% return means they double every 18 years, which hasn't been the case. If it were the pins selling for $3500 new in 2000 would be almost $7k today. Of course, if you buy a beater and fix it up that's a whole other situation. As a fun factory, pins traditionally have been great. As an investment, recent results aside...well, they're great fun!

It has worked out to like 4% apy for me given the prices I paid and how long I keep my machines. One example. Funhouse purchased for $1200 around 2001 and if you grant me it’s $6k now then that like an 8% apy. So when I calculated my whole collection and prices I paid and current values it was like 4%. It will vary for each collection on those factors.

Also, have not pin prices doubled or a lot more in the last 18 years?

PS I don’t see pinball as an investment. It’s a hobby. I just did some of this math for fun and curiosity. I’ve never sold a machine in 20+ years collecting!

#730 1 year ago

Anybody buy ibonds? I know the limit is low and they come with strings, but the return for now is decent. I bought some for the wife and me….

Where is everyone else parking their cash? I got into a fluid fund that returns just over 2%, beats the bank anyhow. Most of my other cash is in the market, rolling the dice…

#731 1 year ago
Quoted from PinJim:

Anybody buy ibonds? I know the limit is low and they come with strings, but the return for now is decent. I bought some for the wife and me….
Where is everyone else parking their cash? I got into a fluid fund that returns just over 2%, beats the bank anyhow. Most of my other cash is in the market, rolling the dice…

Yes, I-bonds are a no brainer right now. You can put up to $20k as a married couple. I did in April. For other cash best I have come up with is a money market or high yield savings which are around 1-2%. Closer to 1% I think so what is the 2% fund you mention?

#732 1 year ago
Quoted from jackd104:

Also, have not pin prices doubled or a lot more in the last 18 years?

If I look back at the pins released in the mid-2000s, no. No doubling. If I average the turds with the rockstars of that era they're probably breaking even factoring in the post-covid price increases.

It's interesting to note you said you don't see pins as an investment. I think that's a smart way to approach it, but despite what everyone is saying many people are much deeper into the hobby because "pins prices always go up". They believe they will always "get paid" to be in the hobby.

#733 1 year ago
Quoted from jackd104:

Yes, I-bonds are a no brainer right now. You can put up to $20k as a married couple. I did in April. For other cash best I have come up with is a money market or high yield savings which are around 1-2%. Closer to 1% I think so what is the 2% fund you mention?

It’s a Morgan Stanley Preferred Savings account, 2.15%. Not great, but beats my bank offerings.

We also did $20k in ibonds. I’m constantly debating rolling some of our rollover IRAs into Roths. It’s a gamble of taxes now vs. retirement as I see it. And of course, any rollover now gets hit as income, at the highest tax bracket. First world problems. I don’t see taxes going down though, someone has to pay (eventually) for the reckless spending by Uncle Sam. Unfortunately, I assume my children will have to take on some of that burden….

#734 1 year ago
Quoted from PinJim:

It’s a Morgan Stanley Preferred Savings account, 2.15%. Not great, but beats my bank offerings.
We also did $20k in ibonds. I’m constantly debating rolling some of our rollover IRAs into Roths. It’s a gamble of taxes now vs. retirement as I see it. And of course, any rollover now gets hit as income, at the highest tax bracket. First world problems. I don’t see taxes going down though, someone has to pay (eventually) for the reckless spending by Uncle Sam. Unfortunately, I assume my children will have to take on some of that burden….

Yes I hear you. Same thoughts here. You can hedge and put some $ in traditional and some in Roths. If you make too much to contribute to Roth IRAs you can see if your 401k plan allows backdoor Roth contributions. You can use that to contribute to your traditional 401k then up to several 10s of thousands (forget exact limit) to after tax roths and you will never pay tax on that money again. No captital gains, no more income tax. It’s been a while since I’ve read up on all this so maybe a got a detail or two wrong but just google back door Roth or mega back door Roth IRA

#735 1 year ago
Quoted from PinJim:

Anybody buy ibonds? I know the limit is low and they come with strings, but the return for now is decent.

Quoted from jackd104:

Yes, I-bonds are a no brainer right now.

Quoted from PinJim:

We also did $20k in ibonds.

We did too. Very easy to do, did the married couple limit as well.

#736 1 year ago
Quoted from TechnicalSteam:

Retire Age 50? I think that's pretty uncommon for majority of population.
Most people don't want to diminish the quality of living so soon.
A. Your not going to be happy if you withdrawl your 401k - Don't do that
B. Your probably not going to be able to ever return to your previous life before you Skipped out - Year away maybe - couple years no way.
Just find something you love doing and do that for a living.
Retirement is really a state of mind. Some people never live to make that milestone.
I retired 15 years ago. Got married. Have 3 kids and work everyday. Trust me I love what I do. Wish I would never have
to stop doing what I'm doing and retire. I love life and not workin would be hell for me.

Just curious, what do you do for a living that’s so satisfying? Of course, most people aren’t that fortunate.

#737 1 year ago

Retirement can be divided into three sections:

The GoGo years ( bucket list, travel, dine out, visit family )
The SloGo years ( travel less, dine out less, family on holidays )
The NoGo years ( NO travel, traffic, family or restaurants )

The goal should be to expand the GoGo years as much as possible and reduce the NoGo years as much as possible.
Retirement also changes priorities. #1 Time, #2 Health, #3 Money will become the new order.

9 months later
#738 1 year ago

I am at Atlanta airport and only on page 3 of this thread, so got a lot more to read.

Can't help but notice since inflation blew the roof off, it got awwwwwwfffullllllyyyyy quiet in here.

How have things changed since then? Anyone's plans go sideways? Adjustments had to be made? Unexpected expenses come up? How about those used car prices, interest rated on any loan on the market, housing shortage, student loans kicking back in this October, property taxes in Florida, home insurance folding in Florida, etc.....?

What say the crowd here now? Totally curious. I'll type out my own situation once I return home later today. Curious how everyone's doing given the last 2 years and how silent it has gone for 296 days.....

#739 1 year ago

I know I've been able to raise the rent on my rental property 25%.

Granted I was under market because they'd been there a while, but they didn't renew their lease so out w the old, in w the new.

#740 1 year ago
Quoted from NPO:

I am at Atlanta airport and only on page 3 of this thread, so got a lot more to read.
Can't help but notice since inflation blew the roof off, it got awwwwwwfffullllllyyyyy quiet in here.
How have things changed since then? Anyone's plans go sideways? Adjustments had to be made? Unexpected expenses come up? How about those used car prices, interest rated on any loan on the market, housing shortage, student loans kicking back in this October, property taxes in Florida, home insurance folding in Florida, etc.....?
What say the crowd here now? Totally curious. I'll type out my own situation once I return home later today. Curious how everyone's doing given the last 2 years and how silent it has gone for 296 days.....

I'm becoming more and more happy with my decision to split some of our real estate money into REITs. They just keep going up; 4.5% basically guaranteed return (same as my MS money market account), but they offset taxes as expenses and the properties increase in value, so I get to keep that growth as well. Time will tell if the interest rates will have a huge impact, but so far so good. This offsets any losses we may see in other real estate because the prices are Too Damn High. People rent. That helps my REIT.

#741 1 year ago

I'm currently working on my rental to prepare it for sale. After owning it 5 years with very minimal costs, I had to do some big repairs that I needed to take out a loan for. With the current loan rates I wasn't a fan, plus the stress of owning the rental and having to do work on it without much warning was starting to get to me. It will likely sell for 35% more than I paid for it and the income I made from rent more than covered the cost of the recent repairs, so I'm still happy I did it. But I'll be glad to no longer have the stress and work of owning a rental and put that money back into the market.

#742 1 year ago

Real Estate, Since the modern age and before those who have real estate are the wealthy, everything is relative so having more real estate than others leads to comfy life.

So my hack and insight for anyone wanting to retire faster is in real estate. I have made more money in real estate than my full time jobs over the years.

Paychecks help you live day to day, investments make you the big money

#743 1 year ago

We have just

Quoted from JohnTTwo:

Real Estate, Since the modern age and before those who have real estate are the wealthy, everything is relative so having more real estate than others leads to comfy life.
So my hack and insight for anyone wanting to retire faster is in real estate. I have made more money in real estate than my full time jobs over the years.
Paychecks help you live day to day, investments make you the big money

Not in every situation....we bought 2 houses in a major regional centre in Australia (220 000 population of the city), 1 suburb from city centre. Bought in 2005 (property was at a peak then) for 300k each (next door to each other). Always trusted the line "real estate doubles every 10-14 years". We were losing around $15k/yr per property - rents dropped, vacancy was high. We were in the unenviable position we couldn't afford to keep, and we could really afford to sell (would have too much debt). Finally after 18 years of holding, we sold them recently for $330k each. So total loss over the 18 years was $450k....

That said, we also bought a unit (many suggest by land, not apartments) in the same city and neighbouring suburb. It was losing money as well, about $200/w rent was what we were getting. We then changed to airbnb, kept the nightly rate cheap ($95/night for 2 bedroom apartment) and now we average 26 to 28 nights a month of bookings, over $500/w rent, and about $10k/ yr profit and its finally paying the loan down a bit. Its an advantage that my wife can clean it as well, and i can do any maintenance to save a few $.

With all the above, we feel so much better not having the hige debt of the 2 houses we owned, and i've made a lot more money in crypto than real estate.

#744 1 year ago
Quoted from NPO:

How have things changed since then? Anyone's plans go sideways? Adjustments had to be made? Unexpected expenses come up? How about those used car prices, interest rated on any loan on the market, housing shortage, student loans kicking back in this October, property taxes in Florida, home insurance folding in Florida, etc.....?

No issues here, still FIREd since 2018. Most of the things you mentioned can be prepared for - rising interest rates, used car prices, etc. If you retired with no room for those sorts of things, then that's a prime situation for failure. I don't think the quiet on a two year old thread has anything to do with crushed retirement dreams. Likely more that it's a two year old thread and people get distracted by the next thing. I, however, could talk about this stuff forever

Quoted from robm:

Not in every situation....we bought 2 houses in a major regional centre in Australia (220 000 population of the city), 1 suburb from city centre. Bought in 2005 (property was at a peak then) for 300k each (next door to each other). Always trusted the line "real estate doubles every 10-14 years".

I'm not familiar with Australian real estate market value growth, but I can't see why it would be any different than the US - which, unless someone is BSing you, is closer to the rate of inflation, 3-4%. You're talking 5-7%, which seems awfully high. But as you said, you bought at a peak, and that's often a tough start to making money. I wonder how much your properties had gone up from 1995-2005 - likely more than the average. Which then unfortunately for you factors into the average. For example, according to Zillow my own home rose almost 20% last MONTH. But since I've owned it over twenty years? 4.7%. And that's including a huge recent spike.

#745 1 year ago
Quoted from NPO:

...Curious how everyone's doing given the last 2 years and how silent it has gone for 296 days.....

That's because we're all too busy enjoying retirement!

Personally, I do a little volunteering now (probably not enough). Old job twisted my arm a bit at a weak moment, so I do a little 'work from home' for them. But my hours can be zero/wk and that's OK with them. More about helping my friends than money. Just a few hours a week typically. Made a big dent on the 'little jobs around the house list' I had put off knowing I was close to retirement.

Marketwise, I did have one fund that had exposure in banking, and that took a hit recently. But the other funds treaded water pretty well.

Probably time for a new truck, old one is nearing 200K miles/17 years. Still dependable, but I'm a little leery of going on a long trip with it. Buying a car is still easy - but finding one is the royal PIA in my case. I'd like to buy local, not drive 200 miles for one. And the days of dealers swapping cars w/another dealership are about gone.

I wouldn't mind going on a road trip to Boca Chico, Tx to check out the SpaceX facility. Maybe watch them work on a rocket for a day. And stop at every little stupid thing along the way that looks interesting just because I can! Wifey wouldn't want to go on that trip.

#746 1 year ago

Retirement changes your views on the upcoming week in general. Once I got into the zone, I stopped going out on the weekends and compartmentalized all of my travel activities down to Tuesday - Thursday 10 am - 2pm. I schedule all of my appointments for those times and leave morning/ lunch appointments for people under a time crunch that are still in the workforce.

Also, just about everything I need is within 5 miles of my home so I probably drive less than 100 miles in any given week now.

One downside to retiring early (FIRE) is that almost all of our friends are still working so social situations can sometimes be a bit awkward.

#747 1 year ago
Quoted from nwpinball:

I'm currently working on my rental to prepare it for sale. After owning it 5 years with very minimal costs, I had to do some big repairs that I needed to take out a loan for. With the current loan rates I wasn't a fan, plus the stress of owning the rental and having to do work on it without much warning was starting to get to me. It will likely sell for 35% more than I paid for it and the income I made from rent more than covered the cost of the recent repairs, so I'm still happy I did it. But I'll be glad to no longer have the stress and work of owning a rental and put that money back into the market.

I hate hearing stories like this. Real estate is a long game, but maybe I've just been lucky.

I put down $5k on my first rental property in 1997. I replaced the water heater a month later, and again this spring. Replaced the furnace in 2010, which was $1800, the biggest repair I've ever had. A few years ago did about $4k in updates. I've replaced all of the appliances over the years. But it's been paid off for years now (by my tenants - thanks guys!) I probably have $25k into it over 25 years and could sell it for way more than I paid, but I gross about $18k/yr from it. Why sell it?

Rentals are like pins - when you get one, you rebuild the flippers/pops/slings, new ball/glass/rubber, rebuild connectors, bulletproof boards. With a rental, you replace crappy windows/plumbing/cabinets/flooring before you start renting. Make it as tenant-friendly as possible (maintenance free). I rarely hear from my tenants. Maybe once a year they'll need something.

#748 1 year ago

Still a ways to go until retirement (I'm 37) but I've shifted from individual stocks back into the S&P500.

Basic plan is to semi retire for a longer period of time, and earlier. I like the idea of dialing my hours back to 32ish hours at about 55 or 60 and continuing to dial back until about 70 unless I'm playing local Grandpa.

One thing that has been brought to my attention is... the retirement home. My Father In Law is in very ill health, and we moved him from his old Townhouse with home aides that played on their phone all day and ignored him into a retirement home (assisted living) 20 minutes from us. We felt SOOO GUILTY, but... he loves it! I can honestly say that his quality of life has greatly improved since moving into the place. He has his own room, but goes down to the communal kitchen for 3 hot meals a day, has scheduled activities, lots of social interaction and hangs out in his room and watches sports all day. It's like a mediocre cruise. Now... do I want to retire straight to a home when I'm 70? heck no! But I do want to pick one out with my wife when we are in our early 60s so we have a place in mind when it doesn't make sense for us to live at home anymore. We saw some awful assisted living places that reminded me of military barracks (painted concrete block walls, hospital food), but there are some nice ones too.

#749 1 year ago

The current state of the world hasn't altered my plans any, my 1 son deciding in his senior year that he wants to go to college did!

Looks like I'm going to be employed for 4 more years to help him pay for schooling. This falls into my worst case scenario of working until I'm 50. We'll see where we are at the end of college with health, kids and my wife's employment situation.

#750 1 year ago
Quoted from SantaEatsCheese:

Still a ways to go until retirement (I'm 37) but I've shifted from individual stocks back into the S&P500.
Basic plan is to semi retire for a longer period of time, and earlier. I like the idea of dialing my hours back to 32ish hours at about 55 or 60 and continuing to dial back until about 70 unless I'm playing local Grandpa.
One thing that has been brought to my attention is... the retirement home. My Father In Law is in very ill health, and we moved him from his old Townhouse with home aides that played on their phone all day and ignored him into a retirement home (assisted living) 20 minutes from us. We felt SOOO GUILTY, but... he loves it! I can honestly say that his quality of life has greatly improved since moving into the place. He has his own room, but goes down to the communal kitchen for 3 hot meals a day, has scheduled activities, lots of social interaction and hangs out in his room and watches sports all day. It's like a mediocre cruise. Now... do I want to retire straight to a home when I'm 70? heck no! But I do want to pick one out with my wife when we are in our early 60s so we have a place in mind when it doesn't make sense for us to live at home anymore. We saw some awful assisted living places that reminded me of military barracks (painted concrete block walls, hospital food), but there are some nice ones too.

Lots of good ideas there!

My mom is 83 and recently spent 3 weeks in the hospital after falling in the bathroom. She averages an injury-inflicting fall every 9 months the last few years but refuses to think about moving from her little house into any kind of retirement place. I think she would find it exactly like your dad did - enjoy some company when she feels like it, some activities, and watch tv when she wants to be alone.

Glad to hear your dad is enjoying it!

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