Retirement Planning - Lessons Learned

kenmac

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It is important to pay off those bills before you decide to retire.

well, I left the work force about 8 yrs ago and bought a farm. I really don't care if I ever pay it off. When I die, the kids can use the money I leave and pay it off. Its the only bill I have, other than power, water, food, etc,.
 

MossRoad

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Mossy=a smart fellow!
I bet Mrs. Moss is smart as well!
You did well.
Thank you. However, some question her judgement when it comes to picking me for a husband. 🙃 I, on the other hand, get reminded pretty much daily that I'm the luckiest man on the planet.😁

When we were going to get married, we had to take a "marriageability" comparison through her church. There were 6 subjects. Children. Finance. Religion. Employment. Existentialism in postmodern literature. That kind of stuff. It was over 100 questions. We filled in the little circles in separate rooms, then the priest graded them and gave us the results. He said he'd never seen anything like it. In 3 of the subjects, we were exactly 95% compatible. In the other 3 we were exactly 95% incompatible. He said half of all marriages work and half don't. We stood just as good a chance of making it work as anyone else. Let's have a wedding! 🤣
 

Larry Caldwell

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08 was an anomaly to the system and housing specifically as the financial world was mixing bad loans with good loans and pushing them off a Grade AAA investments. One can argue fraud, but because the credit rating agencies were backing the grading, it was hard to pin on anyone. You can't count on that happening again. You can count on long term economic principles holding up as I noted. A dead guy buying a place in 08 would look good today, and a lot of people that were liquid enough in cash made a lot of money.

Volcker was the one that raised interest rates, regardless of what specific year he did it in.

I don't know how the next downturn will play out. It might be a brief 10-20% drop before it goes back up again. Those expecting a massive price fall, might not ever see that come again.
I didn't predict cheap houses returning, though I think the current bubble will pop. I saw assets getting cheaper thanks to a currency crisis like the late '70s. The ghost of Volcker will come again. As soon as the Fed quits dumping money and starts raising interest rates, stock markets will puke and $trillions in 1% bonds will be heavily discounted. I remember the Dow around 800 in 1983. I wanted to buy stocks so bad I could taste it, but I was broke. I think they are whistling in a graveyard if they think inflation will go away.

Boomer retirement savings will evaporate. We will be dumping assets to raise money for living expenses. My real fear is that offshore creditors will start dumping dollar assets. If that happens, the damage will be immense. It could bring down the entire world economy.
 

ljjhouser

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well, I left the work force about 8 yrs ago and bought a farm. I really don't care if I ever pay it off. When I die, the kids can use the money I leave and pay it off. Its the only bill I have, other than power, water, food, etc,.
That is true and probably a good plan. I never thought I would be able to ever get the house paid off and never thought I would be able so retire. I don't think either of us will worry about monthly payments after we die.
 

MossRoad

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If your investments are making good returns and you know you have a reliable stream of income, there's no reason you can't buy a house in retirement.
 

kenmac

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If your investments are making good returns and you know you have a reliable stream of income, there's no reason you can't buy a house in retirement.
I'm not to sure about that reliable income. I have lost money the last two days ! 😂
 

MossRoad

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kenmac

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Yes, me as well. But I had stuffed pork chops, stuffed mushrooms, corn on the cob, steamed green beans, rice pilaf, carrots, cukes, and cherry tomatoes for dinner. :p
I should have come for supper. I had a sub sandwich 🤣
 
 
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