Retirement Planning - Lessons Learned

[MoKelly]

As long as taxes can be kept in check the land can provide for generations...
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I’m afraid that is a huge assumption that looks less and less likely each day.

MoKelly

 

[JethroB]

I’m afraid that is a huge assumption that looks less and less likely each day.

MoKelly

Thankfully with Ag and timberland under conservation use the taxes are tolerable here at about $9/acre. Timber is taxed when it’s sold at capital gains rate. But then we have very few county services. No municipal water, sewer, or paid fire protection. Fine with me. We do have a good volunteer first responders group.

 

[ultrarunner]

I’m afraid that is a huge assumption that looks less and less likely each day.

MoKelly

Especially when passing from one generation to the next... there are some carve outs for family farms and land trusts...

 

[MoKelly]

Especially when passing from one generation to the next... there are some carve outs for family farms and land trusts...

Yes! I forgot about the “death” tax!!! Great point.

MoKelly

 

[goeduck]

I hope they do not get rid of step up basis at death.

What Is a Step-Up in Basis for Tax Purposes?

Step-up in basis is the readjustment of the value of an appreciated asset for tax purposes upon inheritance.

www.investopedia.com

 

[ultrarunner]

Can't have a discussion about planning for retirement without understanding tax consequences of actions taken or not taken...

The complications often arise because tried and true change over time...

 

[drssg]

Wheeling and Dealing years were in my 20’s before I became respectable...

Had 10 good years and picked up five properties and the more problems the better because I could write my terms as no bank would touch them.

Fun was stripping off 3 layers of roof, replacing the rafters and sheeting and building it back...

Labor was free because it was me... my old Plymouth Valiant and my home made 5x9 dump trailer...

The folks were getting quite worried about me... I worked my way through college and 1982 was not a time for new grad engineers to find a job anywhere so I pivoted and used my savings and sold my restored 1968 Z-28 and Model A to buy "The Shack..."

22 and a "Homeowner" and didn’t owe anyone a nickle.

Don't want to give the wrong impression... it was a flop house, burned out, leaking sink traps rotted the floor beneath to the dirt and rats scurried from room to room... could have heard a pin drop at the dinner table when I said I bought a house today...

Maybe a better way to put it is I was young, naive, had a plan and didn't know any better?

Now the fun... move in and repair after hauling out dumpsters of trash inside and out, quick coat of paint outside and repair all the broken windows to stave off city condemnation... it worked.

Then came many months of repairs with my Reader's Digest and Ortho Home Repair books and my trusty Plymouth...

One old timer approached me and said, "Boy... do you know what you got yourself into?" He said your kind don't do well here.

By the time I was done I had made many new friends with several bumps along the way like coming home and finding all my drywall gone it was at the corner Baptist Church or finding someone had taken my new aluminum window to sell the frame for scrap!

My retirement plan... build up a portfolio or rental property by taking on new fixer projects financed by taking out a new first loan on the newly renovated and rented property providing seed money for the next.

Chapter 2 is on becoming "Respectable..."

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That is an awesome story. I'm curious about the attachments, and they won't display for me.

 

[ultrarunner]

Maybe someone can chime in... I see them but maybe only I can...

They are a few Instanatic before and after pictures with even Plymouth and Dump Trailer

 

[Larry Caldwell]

Especially when passing from one generation to the next... there are some carve outs for family farms and land trusts...

You have to be pretty rich for that to be a consideration. The 2021 tax exemption is $11.7 million. It's not like your heirs are going to end up eating beans out of a can in a hobo jungle.

 

[Larry Caldwell]

Chapter 2 is on becoming "Respectable..."

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Nice range. There is one for sale right now on a local for sale group for $300, "needs some restoration." That's probably about what you paid for the house in 1968.