Perils of retirement

[California]

Lots of people out there talking about real estate. Heck even my cab driver in Orlando this summer was telling me his opinions on it. ... All the sheep......

Yep. When my MIL's hairdresser went and got a RE sales license in 2007 - it was clear the market had peaked. Today feels like a couple of years short of a similar peak then we may see 2008 all over again.

Nevertheless, if you can structure a deal so you could hang on comfortably in a downturn, wouldn't be forced to sell if you have to cut rents, then owning rentals for the long term isn't high risk. This is different from flipping houses, playing musical chairs, expecting some greater fool will overpay and make you rich.

 

[ultrarunner]

Lots of people out there talking about real estate. Heck even my cab driver in Orlando this summer was telling me his opinions on it. It is something easy to understand and it is a booming industry right now. All the sheep......

It's been 35 years for me... but I am very conservative in my outlook... positive cash flow, no serial refinancing and focus on long term stable tenants...

The last go around when the grocery store courtesy clerks were buying 3 or 4 homes within a year with stated income loans I knew it wouldn't be long.

 

[Looking4new]

Knowing what I know now I would have put my kid's RESP money into Royal Bank stocks. Would have made a killing.

BMO stock. Bought at $35/share it split at 90$ and I doubled my shares. Price plummeted like it always does after a split and I held on. Yesterday BMO was trading at $100./share. Their dividends are $0.90/share, 4 times a year. When I couldn't access the money (when I was too young) I used their DRIP. I think I made money. I live off the dividends now, but only in the winter. Summer I still work.

Way back in the '70s my Dad had a $50,000.oo inheritance (his father died). He went to his bank manager and asked about buying gold. The manager told him that gold wasn't going anywhere at $35./oz. Fast forward ten years and gold is through the roof at $1500.oo+/oz. The 50 grand is gone.
Moral of the story? Don't listen to bank managers, they know squat.

 

[flusher]

Same here. I retired from my job 20 years ago at age 55 (aerospace engineer for 32 years) and never looked back. Spend all my time visiting my kids and grandkids and working off the never ending items on my bucket list.

 

[ultrarunner]

It is great to hear the life after retirement stories on this thread...

I would hazard a guess that the typical TBN member has many things to do which is unlike some of my retired friends... they eat and watch TV and that is about it all in their small apartments.

For me... working off the clock is a huge stress reliever and I get more done because I can see a project through... it is one of the things I love about going up to Washington between tenants... getting so much done without having to answer to anyone ;-)

 

[jerrybob]

It is great to hear the life after retirement stories on this thread...

I would hazard a guess that the typical TBN member has many things to do which is unlike some of my retired friends... they eat and watch TV and that is about it all in their small apartments.

For me... working off the clock is a huge stress reliever and I get more done because I can see a project through... it is one of the things I love about going up to Washington between tenants... getting so much done without having to answer to anyone ;-)

I don't get the "sit on my butt and watch TV retirees".......just lazy folks I guess. Today.......I cut down two small trees........buried a gut pile that some stupid hunter left near the rear of my property......one of our dogs loved it........changed out a light switch in the shop and......heck......haven't even had lunch yet. I know the Washington feeling.........it's great......but for those considering moving here.......it rains ALL the time and you never see the sun.....you wouldn't like it! LOL!

 

[ultrarunner]

I don't get the "sit on my butt and watch TV retirees".......just lazy folks I guess. Today.......I cut down two small trees........buried a gut pile that some stupid hunter left near the rear of my property......one of our dogs loved it........changed out a light switch in the shop and......heck......haven't even had lunch yet. I know the Washington feeling.........it's great......but for those considering moving here.......it rains ALL the time and you never see the sun.....you wouldn't like it! LOL!

It's called the Evergreen State for a reason... at least Western WA...

Had friends up for a visit one Easter... and we had really exceptional weather... everyone decided to attend Easter Services... maybe 400 people at church for services... as far as one could see... the ONLY ones with umbrellas were my guests from California and it wasn't even raining... just Olympia drizzle...

That said... I do appreciate having a spacious living room with window wall and skylights more than I ever thought I would... it is nice to be inside and have nature be an extension of your living space... the builder was known for building light and and open spaces.

Don't know if my retirement plans will come to be... the biggest wildcard is property taxes... mine went up 80% from what I paid for the place 18 months after I bought... thousand a month is a tough nut to crack on a retirement budget... the increase happened after I-747 was tossed.

 

[Doofy]

Thought of Washington State but saw that taxes were ridiculously high. Very beautiful place though.

 

[check]

It's called the Evergreen State for a reason... at least Western WA... Had friends up for a visit one Easter... and we had really exceptional weather... everyone decided to attend Easter Services... maybe 400 people at church for services... as far as one could see... the ONLY ones with umbrellas were my guests from California and it wasn't even raining... just Olympia drizzle... That said... I do appreciate having a spacious living room with window wall and skylights more than I ever thought I would... it is nice to be inside and have nature be an extension of your living space... the builder was known for building light and and open spaces. Don't know if my retirement plans will come to be... the biggest wildcard is property taxes... mine went up 80% from what I paid for the place 18 months after I bought... thousand a month is a tough nut to crack on a retirement budget... the increase happened after I-747 was tossed.

They should have a BIG tax rebate for eveyone that's retired. You pay and pay and pay all your working life, and then when you retire they still want you to pay!

 

[Doofy]

They should have a BIG tax rebate for eveyone that's retired. You pay and pay and pay all your working life, and then when you retire they still want you to pay!

Pretty Lame. Guess they don't want retirees moving there and spending money.