Retirement Planning - Lessons Learned

[ultrarunner]

Lesson Learned...

For many... Real Estate IS the retirement plan... cash out and downsize or buy into a retirement community...

It happens to farms all the time...

Not that anyone asked but I promised an update... that 899k home I posted had multiple offers and sold in several days, closing this week at a final selling price of 1,375,000 from $899 list.

The seller told me his retirement looks much brighter now...

The last 6 area sales all took the cash and left the State...

Personally... holding Real Estate has been my plan since day one as I have never been a Wall Street investor of significance...

 

[drssg]

Diversification and bacon!

That's the Dogbert (from the Dilbert comic strip) philosophy for retirement planning.

 

[ultrarunner]

Assuming most have Social Security and Medicare the planning comes in what else do you have and is it inflation protected?

More than I can count seniors that thought they had a solid plan are coming up short because of inflation and near zero interest CD rates.

Widow I help has her husband's life insurance of 250k with instructions not to touch principal and use the then 20k interest to augment social security...

That 20k is now 3k and we all know purchasing power continues to erode...

People use to joke about the $20 loaf of bread when I was a child... the reality is I might live to see it...

 

[RickB]

There are several high quality stocks with dividends paying 3-4% and up. Regulated utilities are one place for the risk averse to take a look at.

 

[m7040]

sounds like the discussion is back on retirement

 

[MoKelly]

There are several high quality stocks with dividends paying 3-4% and up. Regulated utilities are one place for the risk averse to take a look at.

IBM is 4.6% yield.

 

[Doughknob]

Lesson Learned...

For many... Real Estate IS the retirement plan... cash out and downsize or buy into a retirement community...

Personally... holding Real Estate has been my plan since day one as I have never been a Wall Street investor of significance...

LOL! That might work in CA.

 

[California]

LOL! That might work in CA.

A major part of the California economy always has been making money off the continual appreciation of property values, holding property to sell - especially to newcomers - for a lot more than you paid. That's worked well ever since the Gold Rush / Statehood in 1850. California never has had a majority of native born, ever since. There's always an eager buyer.

You don't have an invasion of new-money Californians who cashed out, coming there? Ask Idaho or Texas! Lots of resentment when new California money arrives and bids up everything. Owning property really is the retirement plan for many.

 

[ultrarunner]

Im thinking especially Idaho and Texas but also Arizona, Nevada, Washington and Oregon.

Isn't Boise up 40% +/- in 12 months?

Austin natives are also being priced out...

Money is fluid and when it comes to retirement most are free to move about...

My only realized losses were individual stocks owned...

Co-workers retiring couldn't when the market tanked... Value drops 50% and it's your fault for not investing better...

Very interested on strategies or lesson learned when it comes to retirement and inflation..

 

[Frankenkubota]

There are several high quality stocks with dividends paying 3-4% and up. Regulated utilities are one place for the risk averse to take a look at.

i know a few people that have done quite well with duke power. i wish i'd jumped in 40 years ago!