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01-16-2020, 07:57 AM #61
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01-16-2020, 07:58 AM #62
Everyone plans on being in great mental and physical health their whole life....
Do you have any idea what assisted living communitues costs? Depending on level of care easily 7-10k / month.
Hopefully you never get dementia or have inability to move freely, lest you burden your children (should you have any) with either spending their life caring for you or spending an exorbitant amount to take care of you.
A thousand other things incurring expense in retirement could happen... I listed one. 1 million is nowhere near enough if you plan to live to 80.
Knowing how many people barely plan for retirement makes me wonder how many have ever actually understood their life insurance, or how complex setting up a trust can be (and necessary) simple life planning things we should all revisit from time to time.The only 5k I will ever complete: rep power on bb.com
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01-16-2020, 08:00 AM #63
My parents had rental homes, four places, duplexes. They were a hassle and while a little profitable ... they hated having rentals and moved on to better things. It isn't bad but can be a lot more of a headache than people realize.
I want to own a paved lot with a fence where people store boats and trailers.... about as passive as it gets for real estate with cash flow ?The only 5k I will ever complete: rep power on bb.com
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01-16-2020, 08:06 AM #64
I have 2 brother in laws that swear by the retirement plan of having a bunch of paid off rental places, bringing in "passive income". The thing is, if these places were paid off the ROI after expenses is probably around 8-9% not even accounting for the headache.
I say this as someone who owns a rental property in the same city as them. It's a way, but its not the only way.
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01-16-2020, 08:16 AM #65
- Join Date: Apr 2012
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01-16-2020, 08:18 AM #66
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01-16-2020, 08:21 AM #67
- Join Date: Apr 2012
- Location: Maryland, United States
- Age: 30
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01-16-2020, 08:25 AM #68
This is what I'm thinking. Something like a parking garage. The less you have to deal with people, the better.
I wonder what the potential of this lot. It's right by Midway Airport and the price isn't too bad if you were to put down 20%. I imagine You'd need damn near a $500,000 loan to get it set up though
https://www.loopnet.com/Listing/5920...go-IL/3796759/
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01-16-2020, 08:32 AM #69
Storage facility for RV's/Boats/Trailers (Can even have a tin roof to keep sun/rain off them). And a trailer park is about as good as it gets for cash flow. Assuming you have enough land to park 24 trailers/mobile homes on it and you charge $250.00 per month for people to live there. Its an easy 6K per month. You're really only responsible for the maintenance/upkeep of the property. All of the structures are privately owned. If you have a strong lease agreement and make sure people only have new structures, skirting, maintain their lot, etc. you keep riff-raff out. Assuming you pay a property management company 1K per month its 5K completely passive per month.
Also owning a few small businesses that you pay people to run isn't a bad idea either. I was helping out an older guy awhile back and going through his financials. He owns a few pizza shops and donuts shops. As a completely passive venture now in his retirement he makes around 20-30K per month from them as he pays people to manage/run them. Ton's of other small businesses that can be started, built up, then you hire employees to handle once its stable. Most people are just too lazy to have a side venture on top of their full time job.
My goal is 150K per year passive income to retire. Sounds unachieveable to a young person but if you factor in 30 years worth of working towards that goal, investing, etc. its very do-able.
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01-16-2020, 08:37 AM #70
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01-16-2020, 08:40 AM #71
thermal engineer, deals with a lot of nasty chemicals, hangs off rafters, just dangerous stuff (in the last 6 months one guy stepped in water that had live wires and another got his legs squashed by a falling 1000 bar/pole so they retire fairly early with 90% pay from the union like how fire fighter retire by 50,
SuperHercules crew
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01-16-2020, 08:40 AM #72
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01-16-2020, 08:43 AM #73
There are so many variables you can really get lost in it. The best plan I think to work for is pay off all your debt, put 15% in a 401k, max ROTH, have 6th months salary saved and put a little extra off your mortgage if you can to pay it off as early as possible. After that enjoy life within reason. There is always going to be ways to bring in extra cash when you're older if you are in dire straits.
"If you can't buy back your youth when you're old then what's the use of silver and gold?"
Just my personal philosophy. I also plan to plop a casita on my kids residence and help raise grandchildren when I'm older so guess not everyone has the same plans for the future.hard to hate on a fellow wings fan but....
i need to cut... badly.
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01-16-2020, 08:53 AM #74
You bring up some good points. Yes there are a million things that could happen but if you try to plan for them all you may never retire.
The National Center for Assisted Living lists the average median cost of a single bedroom assisted living apartment in the US at $3700 a month and the majority of people in those facilities are 85+.
FIRECalc gives $1 million at a 4% withdrawal rate an 85% chance to last 40 years, 95% chance to last 30 years. If you actually stuck with the 4% you're likely to die with even more than you retired with.Here's to swimmin' with bow-legged women.
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01-16-2020, 09:11 AM #75
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01-16-2020, 10:59 AM #76
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01-16-2020, 11:18 AM #77
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01-16-2020, 11:19 AM #78
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01-16-2020, 11:30 AM #79
- Join Date: May 2010
- Location: New York, United States
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I maxed out my 401k the second I got one and it's been exploding, I'll easily have over a million and I'll be gunning for more.
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01-16-2020, 11:50 AM #80
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01-16-2020, 11:54 AM #81
- Join Date: Jul 2009
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Age: 37
own modest house outright
property tax is only slowly creeping up ($205/mo now)
no other debt
i feel pretty good about where I am
I've worked for this company for 14 years in april
gonna keep going until it goes under and then at the very least take 5 years off
i wouldn't mind having a part time job forever where i wasn't tied to a deskMake Europe Germany Again
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01-16-2020, 12:01 PM #82
my pops do timber land but he got it from my gramps. if you had to do it from nothin here it's only like 3 or 4% return depending on a ton of factors. the tax on 100 ac is like 500 dollars bc its agricultural. the pay is something like 1000 an acre at 25 -30 years maturity on pine trees (overgeneralizing again).
theres one or two rounds of thinning that pays too
it is not a great investment but it is actually fun bc u can camp on it, build a house if you want, hunt on it etc.
i hunt it all winter and take my boys out there to campdo not read my posts and weep, i am not there i do not sleep
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of memes and trolls in toasted breads, i am not there, i am not dead.
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01-16-2020, 12:01 PM #83
- Join Date: Apr 2012
- Location: Maryland, United States
- Age: 30
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01-16-2020, 12:02 PM #84
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01-16-2020, 12:14 PM #85
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01-16-2020, 12:31 PM #86
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01-16-2020, 12:44 PM #87
Pretty sure it's not that easy LOL, a lot can change in 40 years.
According to this calculator 1,000,000 in 1980 would have the same buying power as $3,303,007.71 today.
https://data.bls.gov/cgi-bin/cpicalc...1&year2=201912
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01-16-2020, 12:45 PM #88
- Join Date: Jul 2010
- Location: Florida, United States
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I think I'm in a good spot, taking after my parents as role models...
Dad was a mechanical engineer then moved into the business side (retired as VP of large manufacturing company but I don't think ever got above $200,000/yr), mom was a preschool teacher who never made more than $40,000/yr. Growing up I lived very modest, my parents were very frugal and my dad was very much into saving for retirement. They both retired by 60 with about $2 million in various accounts.
My wife and I have a mortgage on our house with already about $100,000 in principal (and about $340,000 left on the loan), we have automatic payments of $1,000 a month into index funds with about $50,000 total in them now, we have over $100,000 in our 401ks, and another $30,000 in savings accounts as our rainy day fund. I think we're in good shape to retire by 60 (I'm 32, she's 28). The key to our lives is not paying for stuff we don't need and not paying people to do things we can do ourself and not caring about the Jones's. We live in a nice neighborhood in South Florida and I'm pretty sure we're the only ones that don't have a landscaper, don't have a pool boy, and don't have a cleaning lady, because we do all of that shyt ourself which probably saves us a few hundred dollars a month.Never neg first but always neg back crew
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01-16-2020, 01:06 PM #89
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01-16-2020, 01:08 PM #90
- Join Date: Jan 2009
- Location: California, United States
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It's all about your expenses.
I'll pass this link on, as I originally discovered MMM through Misc a little over 5 years ago and we're probably 2 years from retirement now.
The Shockingly Simple Math Behind Early Retirement
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