Retirement Planning - Lessons Learned

[beowulf]

I have a $2,500 deductible and would like it to be more if it saved me a bit of money. The reason a deductible makes sense is that I am not likely to make a claim for anything less than the deductible or even if the loss is perhaps twice the deductible because my rates would very likely increase and the insurance company would get whatever they paid out for a loss back in increased premiums. Also, another carrier canceled our insurance even without any claims being made - they said the roof needed to be replaced. That had already been scheduled and they canceled anyway. And they are canceling policies in this area or very substantially raising premiums. My premium doubled two years ago. Making small claims makes no sense therefore a deductible makes sense.

 

[kenmac]

State Farm, the same policy that we had 27 years ago when we bought the place.

Mine was changed about 10 yrs ago when I had Allstate.
I left them and haven't been with a captive agent since.
My agent says all his carriers have $1000 deductible.

Anyway, back to retirement. BOY! did the markets drop today !!!

 

[ultrarunner]

The best retirement plans still subject to "You don't know what you don't know..."

Few if any would have predicted Covid with Shelter in Place, Curfews, etc... or the current round of inflation or people desperate for a roll of toilet paper...

 

[goeduck]

Median home price here is around $147K.

That would buy shack with an outhouse here. In CA, it would net just the outhouse.

 

[California]

That would buy shack with an outhouse here. In CA, it would net just the outhouse.

No kidding. I looked on Zillow before posting this: Our first home in 1973 was a $15k duplex, 750 sq ft each side. $1,000 down, that was literally all we had. The tenant's rent paid all of our own housing cost - utilities etc - as well as the property tax, insurance, etc for the whole building. We lived rent-free, the start of our accumulating savings.

I see it sold in 2016 for $285,000.

Zillow estimates it will sell today for $515,000.

Kids starting today don't have a chance for deals like existed then.

 

[newbury]

No kidding. I looked on Zillow before posting this: Our first home in 1973 was a $15k duplex, 750 sq ft each side. $1,000 down, that was literally all we had. The tenant's rent paid all of our own housing cost - utilities etc - as well as the property tax, insurance, etc for the whole building. We lived rent-free, the start of our accumulating savings.

I see it sold in 2016 for $285,000.

Zillow estimates it will sell today for $515,000.

Kids starting today don't have a chance for deals like existed then.

How valid is Zillow? Their valuations seem to jump around like roller coasters.
One house was "valued" at $615K in Sept 2020, then $707K in May 2021, now $617.5K, Sept 2021.

 

[ultrarunner]

No kidding. I looked on Zillow before posting this: Our first home in 1973 was a $15k duplex, 750 sq ft each side. $1,000 down, that was literally all we had. The tenant's rent paid all of our own housing cost - utilities etc - as well as the property tax, insurance, etc for the whole building. We lived rent-free, the start of our accumulating savings.

I see it sold in 2016 for $285,000.

Zillow estimates it will sell today for $515,000.

Kids starting today don't have a chance for deals like existed then.

Around that time I think the nation was also in the grips of the first of two energy crisis...

big American cars not selling especially muscle cars...

Dad's friend was working Oldsmobile parts counter and nothing left the lot in over a month... parts sold 350 ci air cleaner decals.... later learned that some with 455 Olds engines were putting the 350 decals to off load...

Pintos, Vegas, Crickets were moving but Datsun and Toyota were being sought after....

Teacher sold his Indy Pace Camaro Convert for a Datsun B210

 

[Jstpssng]

Mine was changed about 10 yrs ago when I had Allstate.
I left them and haven't been with a captive agent since.
My agent says all his carriers have $1000 deductible.

Anyway, back to retirement. BOY! did the markets drop today !!!

Thank you for the warning, I won't check my balance again until somebody tells me that it's safe again!
(I'm not too worried, hopefully 8 more years before I touch it.)

 

[Bearsixty7]

Eh, just another cycle. You just have to look at the bigger picture, this is a 2 year graph. Not as bad as the March 2020 down run.

 

[MoKelly]

This is why rebalancing your portfolio is so important. During bull markets some tend to ignore rebalancing - but it’s very critical.

MoKelly