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Retirement Plan?

Old 03-06-2018, 08:01 AM
  #61  
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Why would you pay cash for a house when you can get a 15 yr loan for 3.5%. I would think your money could earn much better then that over the same 15 years.
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Old 03-06-2018, 08:39 AM
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Originally Posted by joesacc View Post
I started saving for retirement at age 42 .Before then I had nothing . Working for the family business . My stepfather sold the business after promising to give it to me for 25 years . I borrowed money from the bank to buy my first house ,. I then played the mortgage game by refinancing and buying other rental income properties . I now own nine houses . two have mortgages with less then four years left on them. The income totals 12k a month . Once I can no longer take care of them , I will sell them all and collect 1.5 million .I am 51 years old now .I will retire soon with no debt . My plan seems to be working out .
Very similar to my story, married the right woman and started getting my chit together at 43 and now at 53 have 10 rental properties.

Develop multiple income streams (passive is the best) - I am a manager at an inspection company and wife a real estate broker. We run an FFL business, small powder coating operation, make tee shirts/banners/decals/etc. I am constantly buying and reselling motorcycles, 4 wheelers, trailers - anything to turn an extra nickel.

I have some 401K going but is chump change compared to what real estate will pay you - on the good deals.

My retirement plan is a real estate license and working for the wife.


Originally Posted by fishingfun View Post
Why would you pay cash for a house when you can get a 15 yr loan for 3.5%. I would think your money could earn much better then that over the same 15 years.
Cash is king in real estate.

On an investment property a 15 year loan is bass ackwards to making money. The payment will readily eclipse the rent and over the course of 15 years you will go thru many repairs and at least 1 renovation. I typically pay cash for houses in need of some to a lot of repairs for 40K - 60K, invest another 20 for repairs and end up with a house that appraises for say 120K, I take out a mortgage which will pay me back 75% of the appraised value so I get all of my money back plus the delta and move on to the next one. Said house will rent for $1250 against say a $450 payment. Seems like a lot of to do over creating 10K annual income but it starts to add up nicely when you have multiple units and we have really streamlined our methodology such that most are a < 30 day turnaround time. And I do own several out right.
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Old 03-06-2018, 09:13 AM
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1.5m is nothing for retirement, scary but true
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Old 03-06-2018, 09:31 AM
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Originally Posted by mystery View Post
1.5m is nothing for retirement, scary but true
Would that be a sole source of income or does it include other pensions and sources of revenue.

I know more than a few that had less than half that amount and retired but other sources of income with each not being a lot. Talking with them this past Friday several still do not draw from their 401K.
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Old 03-06-2018, 09:40 AM
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One word Joesacc---- Timing. I think you got really lucky in regards to getting into the market at the right time.
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Old 03-06-2018, 09:54 AM
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I plan to spend everything I have over the next 25 years ,,, then sponge off my kids until I stroke out ...

51 now .... Let the games begin ....
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Old 03-06-2018, 09:56 AM
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Originally Posted by finnedfanatic View Post
One word Joesacc---- Timing. I think you got really lucky in regards to getting into the market at the right time.
Timing is key . I find houses that need minor renovations . you would be amazed to find out how many people will sell you there house that isn't listed for sale .I find a property that looks distressed , I then check with the county website to find out who owns it . I then write a simple two sentence letter on yellow paper ."Hello My name is joe and I would like to buy your house in such snd such town" " I don't have a lot of money to pay you but I can pay you 55,000.00" " please call me "
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Old 03-06-2018, 10:04 AM
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Originally Posted by joesacc View Post
Timing is key . I find houses that need minor renovations . you would be amazed to find out how many people will sell you there house that isn't listed for sale .I find a property that looks distressed , I then check with the county website to find out who owns it . I then write a simple two sentence letter on yellow paper ."Hello My name is joe and I would like to buy your house in such snd such town" " I don't have a lot of money to pay you but I can pay you 55,000.00" " please call me "
Timing and being on the "inside" has been key for us - between my wife and her realtor buddies we get exposed to a bunch of properties before they hit the market.

The glory days are long past but still some money to be made flipping, however unless you're kinda low down and rolling dirty capital gains will eat you alive
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Old 03-06-2018, 10:17 AM
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Originally Posted by joesacc View Post
Timing is key . I find houses that need minor renovations . you would be amazed to find out how many people will sell you there house that isn't listed for sale .I find a property that looks distressed , I then check with the county website to find out who owns it . I then write a simple two sentence letter on yellow paper ."Hello My name is joe and I would like to buy your house in such snd such town" " I don't have a lot of money to pay you but I can pay you 55,000.00" " please call me "
I got this advice years ago from one of the largest landlords in my town. They said write letters and while you may not hear back in days, weeks, or months, you'd be surprised how many people will end up reaching out within a year or two or three and you end up with the right of first refusal. Allowed them to get some good deals in prime locations. Just make sure you are mailing the owner if its not owner occupied. I personally would leave out the "i dont have a lot of money but can pay you NN" part
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Old 03-06-2018, 10:19 AM
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Originally Posted by HTJ View Post
Timing and being on the "inside" has been key for us - between my wife and her realtor buddies we get exposed to a bunch of properties before they hit the market.

The glory days are long past but still some money to be made flipping, however unless you're kinda low down and rolling dirty capital gains will eat you alive
Have you heard of a 1031?
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Old 03-06-2018, 10:34 AM
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Originally Posted by mystery View Post
Have you heard of a 1031?
Fo sho and I nearly went down that road a couple years back but ultimately it's just a deferral and the piper must eventually be paid if you ever stop reinvesting. Certainly works for some but with gravitating towards rentals and the huge competition in the flip market it was easier just to walk away. The opportunity to turn 50K or more on a flip is a few and far between deal these days with 10k - 25K profit being the reality. Is some post hurricane opportunity here in the Houston are but I'm staying clear of that ambulance chasing blood bath..
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Old 03-06-2018, 10:44 AM
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Originally Posted by Lorne Greene View Post
What did you get right and what did you get wrong in your retirement plan?

I don't really know how to start planning. My current plan is to buy a house on the coast of NC cash, have $1.5M in cash, stock IRA, 401. I want to leave the $200K job behind between 55-60 and find something to do that I like whether it's working at a small company for $60K/yr or working at Home Depot. I am looking forward to a major reduction in lifestyle complication which I am starting on now.

What am I missing?
Not aimed at you in particular but I never got people retiring from a good paying job to take one for less money that will probably have similar issues they won't like.
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Old 03-06-2018, 10:52 AM
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Originally Posted by mikefloyd View Post
Not aimed at you in particular but I never got people retiring from a good paying job to take one for less money that will probably have similar issues they won't like.
For me it will be leaving the corporate world and the demands of a high stress position. I will probably take something at a local place like a bait shop or something where I retire that will only require me to work 20 hours or so a week and that will provide me with fishing and fun money. We plan to own our retirement house out right, I have a 401k, and wife will have teacher's pension. Don't require much cash when your bills are low.
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Old 03-06-2018, 10:52 AM
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Originally Posted by aubv View Post
I don't know what investment calculators you use, if any, however $1,100,000 with a 6% AAR and 2% inflation would allow more than $60k/ year for thirty years. That 60k would adjust for inflation and actually be ~$107k year thirty.
Plus another 15-20k from social security. If you are doing things right by retirement time you should have no major debt/mortgage. If you live in a low tax state you are even better off.
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Old 03-06-2018, 10:55 AM
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Originally Posted by richinct View Post
Plus another 15-20k from social security. If you are doing things right by retirement time you should have no major debt/mortgage. If you live in a low tax state you are even better off.
That's our plan. Paid off house, bay boat, and live in a low tax area. I don't make $200k a year now. No way in heck will I need it in retirement.
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Old 03-06-2018, 11:26 AM
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Originally Posted by cwhite6 View Post
the demands of a high stress position.
This.....for the first few years getting paid from the neck up is a great ego booster, towards the end...not so much. Give me a shovel, rake or hammer
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Old 03-06-2018, 11:27 AM
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Originally Posted by cwhite6 View Post
For me it will be leaving the corporate world and the demands of a high stress position. I will probably take something at a local place like a bait shop or something where I retire that will only require me to work 20 hours or so a week and that will provide me with fishing and fun money. We plan to own our retirement house out right, I have a 401k, and wife will have teacher's pension. Don't require much cash when your bills are low.
Same for me.
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Old 03-06-2018, 02:41 PM
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Originally Posted by mikefloyd View Post
Not aimed at you in particular but I never got people retiring from a good paying job to take one for less money that will probably have similar issues they won't like.
Not that unusual, you live a job that ranks up there with high stress and it can make a lot of sense. Some thrive for it and others do it but get worn down. I am somewhere in between.
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Old 03-06-2018, 04:50 PM
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Four more years and I will retire from the state with 30 years at age 56 at age 60 free medical for the wife and I after 28 years of USCG reserve service.
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Old 03-06-2018, 04:55 PM
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Originally Posted by richinct View Post
Plus another 15-20k from social security. If you are doing things right by retirement time you should have no major debt/mortgage. If you live in a low tax state you are even better off.
I would be very happy having a mortgage in retirement, provide the interest rate is below ~6%.
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