Life How prepared are you for retirement? - Page 5

KC Jones · 08-19-2012, 08:32 AM

So seeing oldandslow has made it to his retirement and having seen a few early retirements at work recently, I'm curious how many planeteers are on track for this? I'd really like to retire a little early or plan for a sabbatical before I fully retire. Not sure I'm on plan for that though...

What about you?

(poll questions coming, and if you've already retired pick the options that most closely follows your retirement planning)

Nightfyre · 08-19-2012, 02:13 PM

I can tell you that if you go that route, you cannot put any sweat equity into it, you cannot control the property and you must own less than 50% of the property. In other words, you must research it in-depth before jumping in.

**Rain Man** · 08-19-2012, 02:13 PM

Quote:

Originally Posted by Nightfyre

I can tell you that if you go that route, you cannot put any sweat equity into it, you cannot control the property and you must own less than 50% of the property.

Really? That seems kind of stifling.

Nightfyre · 08-19-2012, 02:14 PM

the IRS is super strict about it because your sweat equity or improvement money plowed into it is a method of tax evasion

**DaneMcCloud** · 08-19-2012, 02:14 PM

Quote:

Originally Posted by Rain Man

I remain intrigued by the concept of investing my IRA in alternates to financial markets, like buying investment real estate. Anyone here doing that, and how's it working for you?

(Note that I'm not talking about real estate instead of an IRA. I'm talking about real estate within an IRA.)

I think real estate is a shaky investment this time, at least in most markets. Not only could the real estate market collapse again, dealing with renters is nothing short of a nightmare. I've had several friends buy properties to rent, only to get out as soon as possible due the massive headaches that renters bring.

There is no safe haven for your money at this time. CD's and MMA's are your best bet until the worldwide economy has settled down. With all the unrest in Europe and the US, it's impossible to see the future. My advice would be hang onto your money as tightly as you can for the time being.

R8RFAN · 08-19-2012, 02:22 PM

No way in hell I would rent houses, scumbags tear out your walls and the courts always seem to side with the tenant...

If you rent houses you damn well better know how to fix them or you will go broke.

Nightfyre · 08-19-2012, 02:23 PM

Successful renting is all about either:
a) Not giving a shit about the property (IE slumlording)
or
b) Picking the right tenants

R8RFAN · 08-19-2012, 02:25 PM

Quote:

Originally Posted by Nightfyre

Successful renting is all about either:
a) Not giving a shit about the property (IE slumlording)
or
b) Picking the right tenants

2 is damn near impossible these days because of being accused of discriminating.

**DaneMcCloud** · 08-19-2012, 02:30 PM

Quote:

Originally Posted by Nightfyre

Successful renting is all about either:
a) Not giving a shit about the property (IE slumlording)
or
b) Picking the right tenants

Picking the right tenants is often about having good luck.

I had a friend rent a 1,600 square foot home for $5,500 per month in my area. You'd think that for $5,500 a month, you'd get a decent renter(s). But what happened was that the renter's girlfriend moved out three weeks after the leased was signed, so the guy got a bunch of buddies to move in to defray the cost.

The house was trashed and after the guy lost his job and, unbeknownst to the home owner, sublet the house. Well, a neighbor's friend met the new tenant and was invited inside the home to hang out.

When he entered, he saw guns, scales and about a ton of marijuana. He told the neighbor and I personally called the home owner (who lives out of state) to inform him of what was going on. He called the Feds, the people were evicted and jailed, and he had to spend $40k to restore his home.

No thanks.

**DaneMcCloud** · 08-19-2012, 02:33 PM

Quote:

Originally Posted by R8ers

2 is damn near impossible these days because of being accused of discriminating.

That's why it's best to hire a property management company in order to protect oneself if renting.

Even then, it's a dicey situation at best.

stevieray · 08-19-2012, 02:33 PM

".....you killed my father, prepare to die."

other than than that, are any of us really prepared?

R8RFAN · 08-19-2012, 02:35 PM

Quote:

Originally Posted by stevieray

".....you killed my father, prepare to die."

other than than that, are any of us really prepared?

Not really, if you have a bunch of money it seems you will spend it all on medical shit later on in your life, people are probably better off not to have a pot to piss in when they get old.

BWillie · 08-19-2012, 02:51 PM

Quote:

Originally Posted by R8ers

No way in hell I would rent houses, scumbags tear out your walls and the courts always seem to side with the tenant...

If you rent houses you damn well better know how to fix them or you will go broke.

I dont know how to do shit, its been really easy. Been doing it for 4 yrs, but its a rroommate scenario but other one is not. Best thing I've ever done, easy money. I sign them all to month to month leases so its 10x easier to evict them and they hhave less "rights". Only had one bad seed and it was easy to get rid of him

**Rain Man** · 08-19-2012, 02:57 PM

Quote:

Originally Posted by BWillie007

I dont know how to do shit, its been really easy. Been doing it for 4 yrs, but its a rroommate scenario but other one is not. Best thing I've ever done, easy money. I sign them all to month to month leases so its 10x easier to evict them and they hhave less "rights". Only had one bad seed and it was easy to get rid of him

Yeah, month to month is definitely the way to go.

I've been renting an apartment for 16 years now and it's been the best investment I ever made. It's in my house, so there are some distinct advantages to that, but my wife and I have off and on considered buying rental properties due to our success with this one.

I recognize that every investment is risky these days, but all I got from my $10,000 investment in f'ing JDS Uniphase was a pile of nothing, whereas if I lose money on a rental property I at least still have something of value.

Pablo · 08-19-2012, 02:59 PM

Put back 6% every pay period; employer contributes 4.5%.

I'm 26, so I figure I could target retirement around 58 or so and be comfortable.

**DaneMcCloud** · 08-19-2012, 03:01 PM

Quote:

Originally Posted by PostRockPablo

Put back 6% every pay period; employer contributes 4.5%.

I'm 26, so I figure I could target retirement around 58 or so and be comfortable.

59.5 years old. That's the first year that you can withdraw money from your IRA or 401k without the 10% penalty and State penalty (which depends on your state).

Also, keep in mind that you will pay taxes on the money that's withdrawn. It's not tax free. Oh, and depending on the plan that your employer set up, there could be administration fees taken out as well.

View Poll Results: Are you on track to retire?
No way! It's a global banker illuminati conspiracy I read about on infowars.com!	3	3.06%
We're just living paycheck to paycheck - I'll worry about that when the time comes.	14	14.29%
We've put away a little, but I doubt we're on track.	27	27.55%
My retirement plan involves a second career, "welcome to walmart!"	6	6.12%
Saving steadily here and believe we're on track to retire at 65.	27	27.55%
I'm looking at early retirement	15	15.31%
I built myself a small fortune early I'm just doing what I want now	4	4.08%
trust fund bro!	2	2.04%
Voters: 98. You may not vote on this poll

08-19-2012, 08:32 AM
KC Jones Genious Join Date: Aug 2000 Location: Colorado Casino cash: $10012761	How prepared are you for retirement? So seeing oldandslow has made it to his retirement and having seen a few early retirements at work recently, I'm curious how many planeteers are on track for this? I'd really like to retire a little early or plan for a sabbatical before I fully retire. Not sure I'm on plan for that though... What about you? (poll questions coming, and if you've already retired pick the options that most closely follows your retirement planning)
Posts: 5,366

08-19-2012, 02:13 PM	#61
Nightfyre MVP Join Date: Mar 2004 Location: Helena, MT Casino cash: $1298849	I can tell you that if you go that route, you cannot put any sweat equity into it, you cannot control the property and you must own less than 50% of the property. In other words, you must research it in-depth before jumping in.
Posts: 18,647

08-19-2012, 02:14 PM	#63
Nightfyre MVP Join Date: Mar 2004 Location: Helena, MT Casino cash: $1298849	the IRS is super strict about it because your sweat equity or improvement money plowed into it is a method of tax evasion
Posts: 18,647

08-19-2012, 02:22 PM	#65
R8RFAN Molôn Labé Join Date: Sep 2001 Location: North Carolina Casino cash: $8466872	No way in hell I would rent houses, scumbags tear out your walls and the courts always seem to side with the tenant... If you rent houses you damn well better know how to fix them or you will go broke.
Posts: 23,182

08-19-2012, 02:23 PM	#66
Nightfyre MVP Join Date: Mar 2004 Location: Helena, MT Casino cash: $1298849	Successful renting is all about either: a) Not giving a shit about the property (IE slumlording) or b) Picking the right tenants
Posts: 18,647

08-19-2012, 02:33 PM	#70
stevieray Most things I worry about… Join Date: Aug 2000 Location: Under Pressure Casino cash: $-1324727	".....you killed my father, prepare to die." other than than that, are any of us really prepared?
Posts: 74,125

08-19-2012, 02:59 PM	#74
Pablo Ultrabanned Join Date: Oct 2007 Location: Northland Casino cash: $-1890644	Put back 6% every pay period; employer contributes 4.5%. I'm 26, so I figure I could target retirement around 58 or so and be comfortable.
Posts: 43,930