I have been buying dirt for a few years cause they ani'nt maki'n no more of it! And started investing in Cracker Barrell Restaurant Stock back in 89, so's ya'll stop in and eat one whenever ya get tha chance.
Hape good pholosphy ya got there,,,,,whether it be on-line orvia the stamp method,,,,always pay on time! Helps ya realize what ya got to work wif next month!
I have a pretty good chunk in a 401K, and no doubt some SS built up , but I like the realestate investment the best. It affords you tha opportunity to gamble and not loose unless you like going broke on fixer upper's!
I think sometimes we define retirement wif the wrong phraseolgy tho! If money was the terms I could retire tommorrow,,,I think our standard of living plays a major role in retirement often overlooked. I know several rich people retired that are bored stiff!
Gaylen- Thanks. You found the info I was looking for & I downloaded the IRS doc.
I hope these examples you and I are playing with doesn't cause everyones eyes to glaze over because they need to understand this stuff or it will may cause them much anguish in later years.
It shows what I was talking about-the required age to finish withdrawl is 111 and the requirements would force most people to deplete their accounts much sooner - probably by 85 or 90 for most people. The only way to slow it down is to use the required minimum which will effectively force you to live on less each year during your retirement.
The reason for this is that using the life expectancy as a divisor is increasing the required percentage of withdrawl each year
I used table 1- single beneficiary for simplicity
At age 65 it is 4.76%
at age 70 it is 5.88%
at age 80 it is 9.80%
at age 90 it is 18.2%
at age 100 it is 34.48%
at age 111 and over it is 100%
As soon as the required minimum withdrawl
exceeds the rate of return of your IRA, your IRA begins to lose value very fast
A real good long term average return is around 6% with realitively low risk
If you wanted a steady income indefinetly you would normaly only take 5% or less (which I believe Roths allow).
This is why I say the Ira regulations force you to deplete your account.
I realize thats a lot of numbers but I hope you can see my point.
perhaps I issed something,,,ckeer...do you mean I can retire at 65 and live off 4.75% of my net worth,? Hell I ain't waiting that long, I may quit tommorrow.
I think you are looking at two different points that I made and combining them because I wasn't clear enough.
The 4.75% was the miminum you had to take from an IRA say $4,750 for each $100,000
The next year you would have to take a larger percentage of the remainder. If you had not taken all the money out before you were 110 you would have to take the rest the next year. Most people would have depleted a 500k to 1 mil retirement in 20 to 25 years A significant part of the withdrawls are going to taxes. If you had the money in an IRA today and were less than the required age like in your 40's or 50's you would be penalized for an early withdrawl on top of taxes.
If you wanted to retire today and had 500,000 invested outside of an IRA (like a mutual Fund for example) at 6% you could take 5% which is $25,000 pay taxes on it and live on the rest, then take 5% next year and take a slightly larger amount every year indefinetly because the account is growing by an effective 1%.
If you can do that go for it, I'd be happy for you. If you had that kind of money though you might want to do realestate like Galen does. It would probably have a good effective rate of return and stable income stream- It would not be as liquid and managing might make for a working retirement.
My plan for retirement is to move to southern New Mexico, live at a KOA and work at a diner washing dishes... I get free food and beautiful weather and sunsets... ahhhh... the carefree life!
Tom- there's nothing wrong with that, You might want to add a little wor at wal mart or mcdonalds because they could get you good health insurance and even long term care insurance.
“have been buying dirt for a few years cause they ani'nt maki'n no more of it!”
Good idea.
But on the other hand, sometimes dirt is just dirt.
“I think sometimes we define retirement wif the wrong phraseolgy tho! If money was the terms I could retire tommorrow,,,I think our standard of living plays a major role in retirement often overlooked. I know several rich people retired that are bored stiff!”
Yeah my mother and relatives keep saying that I am too young to be retired. In their minds it means sitting in a rocking chair whittling and chewing tobacco.
But I am way too busy for that. Fixing things in apartments when they break, maintaining the Motorhome, ‘Husbanding’ our livestock, Homeschooling some kids, trying to keep up with the rest. . . and now buying farm land in Maine. Far too busy.
Ckeer-
“It shows what I was talking about-the required age to finish withdrawl is 111 and the requirements would force most people to deplete their accounts much sooner - probably by 85 or 90 for most people. The only way to slow it down is to use the required minimum which will effectively force you to live on less each year during your retirement.”
The chart may go out to 111, but at those numbers of minimum require withdrawal, any account is going to be empty long before you get to 111.
I don’t think that IRAs were designed to be your sole source of income during ‘retirement age’. But as something the masses could do to assist with their retirements.
Those charts would have me draining an IRA account by 80 years old.
“If you can do that go for it, I'd be happy for you. If you had that kind of money though you might want to do realestate like Galen does. It would probably have a good effective rate of return and stable income stream- It would not be as liquid and managing might make for a working retirement.”
Exactly.
1- The only thing that ‘my money’ did was cover the closing costs during purchase of the properties.
2- My money that I do put against my principle (in buying down the mortgage) is effectively getting 16% when compared against the total payments needed to completely pay-off said mortgage.
3- It does provide a very steady income stream. I rent for approx 20% below the local area going rate for rentals, which keeps me full and my renters ‘love’ me. I stay out of their apartments unless they invite me. We have BBQs and invite them. My dog has proven his worth multiple times by chasing off kids sneaking in our parking lot at nights, etc. Each month; the rentals get a ‘discount’ for paying on time, each month I ask if there is anything I need to fix on the building, and if there is I ask them for their desire of what I should fix first.
4- It is a ‘working’ retirement, but hey what else is a 40 yr old supposed to be doing?
5- The building’s mortgage escrow account provides a life insurance policy against my life, so the building is paid off should I pass; thus I have no need for further life insurance policies. I don’t care how hard it is a get a job, I don’t work at one, the renters do.
6- To live in the Motorhome, or to work on the farm we are establishing in Maine; will always require that I make runs back to this property each month or so. We have done contracts with managers in the past; each time was a disaster, or near disaster. We have sold each property that we did have, with the exception of this one, and have consolidated our focus on this building.
Tom-
“My plan for retirement is to move to southern New Mexico, live at a KOA and work at a diner washing dishes... I get free food and beautiful weather and sunsets... ahhhh... the carefree life!”
Come join us in Maine. Watch sheep in a pasture, kayak up the stream, fish in the river, dodge moose on the roads, and help me pulling stumps out of the ground.
I'm debt-free, own my house and cars, have a reasonable 401k and pension, and have a LOT of valuable comic books. My only concern about the future is how fast my wife can spend! :D--> :D--> :D-->
I went through one year of the 10th Corps and then went through the entire Corps program and graduated 14th Corpse. During the fog, we lost touch and then discovered I had a brain tumor. I've had 3 surgeries for it and discovered that much like my resume during the Corps years, I had nothing to brag about when we left the ministry in 2001.
I had never considered going on SS because I hate the idea of a limited income. We have survived because of my wife working as a teacher.
Recently I discovered a work at home business that could allow me to acheive 100k a year residual income within 2 years. I'm working it like a fool, incorporating everything I learned over the years.
I expect by Christmas to have a residual income of about $2000.00 a month. At which time, I will retire from social security. What a country!
Remember to do a Schedule 'C' on them (comic books are a good business, both as a write-off and investment) and store them in plastic, protected from light, fire and water.
"I went through one year of the 10th Corps and then went through the entire Corps program and graduated 14th Corpse."
You were in both the 10th Corpse and the 14th corpse?
". . . I had a brain tumor. I've had 3 surgeries for it"
hope you are better now, and keep up on your check-ups.
". . . and discovered that much like my resume during the Corps years, I had nothing to brag about when we left the ministry in 2001."
Not following here, why would being in the corpse automatically be a bad thing for your resume?
If you traveled and held various jobs, that is not unlike ladder climbing in many corporations.
"I had never considered going on SS because I hate the idea of a limited income."
Do you have the option on 'going on SS'? Are you over 65?
a SSA check is kind of 'limited' in the context that it is a single amount (though different for each person), but kind of like my pension check. I get a deposit in an account each month as part of my pension. It is 'limited' and only goes up each January with the 'cost of living'. But that does not stop me from doing other things.
My investments pay me about $1500 each month, and that does not go up (because I dont want to raise the rent on our renters). It is a 'limited' amount, also.
I dont see the issue with 'limited' amounts. Could you explain?
"I expect by Christmas to have a residual income of about $2000.00 a month. At which time, I will retire from social security. What a country!"
Good luck, let us know how it goes.
Do you mean that you will retire ON SSA? In saying that you want to retire FROM SSA do you mean that you want to stop paying into your SSA account and cancel it? That is done with a form SA-4 I have assisted others while doing it, if you have questions.
with 116K in good condition. When you get ready to replace your old cars with new old cars, bring your motorhome on down and I'll show you where you can get similar deals out in a small town in Alabama.
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Littlehawk
I have been buying dirt for a few years cause they ani'nt maki'n no more of it! And started investing in Cracker Barrell Restaurant Stock back in 89, so's ya'll stop in and eat one whenever ya get tha chance.
Hape good pholosphy ya got there,,,,,whether it be on-line orvia the stamp method,,,,always pay on time! Helps ya realize what ya got to work wif next month!
I have a pretty good chunk in a 401K, and no doubt some SS built up , but I like the realestate investment the best. It affords you tha opportunity to gamble and not loose unless you like going broke on fixer upper's!
I think sometimes we define retirement wif the wrong phraseolgy tho! If money was the terms I could retire tommorrow,,,I think our standard of living plays a major role in retirement often overlooked. I know several rich people retired that are bored stiff!
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ckeer
Gaylen- Thanks. You found the info I was looking for & I downloaded the IRS doc.
I hope these examples you and I are playing with doesn't cause everyones eyes to glaze over because they need to understand this stuff or it will may cause them much anguish in later years.
It shows what I was talking about-the required age to finish withdrawl is 111 and the requirements would force most people to deplete their accounts much sooner - probably by 85 or 90 for most people. The only way to slow it down is to use the required minimum which will effectively force you to live on less each year during your retirement.
The reason for this is that using the life expectancy as a divisor is increasing the required percentage of withdrawl each year
I used table 1- single beneficiary for simplicity
At age 65 it is 4.76%
at age 70 it is 5.88%
at age 80 it is 9.80%
at age 90 it is 18.2%
at age 100 it is 34.48%
at age 111 and over it is 100%
As soon as the required minimum withdrawl
exceeds the rate of return of your IRA, your IRA begins to lose value very fast
A real good long term average return is around 6% with realitively low risk
If you wanted a steady income indefinetly you would normaly only take 5% or less (which I believe Roths allow).
This is why I say the Ira regulations force you to deplete your account.
I realize thats a lot of numbers but I hope you can see my point.
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Littlehawk
perhaps I issed something,,,ckeer...do you mean I can retire at 65 and live off 4.75% of my net worth,? Hell I ain't waiting that long, I may quit tommorrow.
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ckeer
Littlehawk-
I think you are looking at two different points that I made and combining them because I wasn't clear enough.
The 4.75% was the miminum you had to take from an IRA say $4,750 for each $100,000
The next year you would have to take a larger percentage of the remainder. If you had not taken all the money out before you were 110 you would have to take the rest the next year. Most people would have depleted a 500k to 1 mil retirement in 20 to 25 years A significant part of the withdrawls are going to taxes. If you had the money in an IRA today and were less than the required age like in your 40's or 50's you would be penalized for an early withdrawl on top of taxes.
If you wanted to retire today and had 500,000 invested outside of an IRA (like a mutual Fund for example) at 6% you could take 5% which is $25,000 pay taxes on it and live on the rest, then take 5% next year and take a slightly larger amount every year indefinetly because the account is growing by an effective 1%.
If you can do that go for it, I'd be happy for you. If you had that kind of money though you might want to do realestate like Galen does. It would probably have a good effective rate of return and stable income stream- It would not be as liquid and managing might make for a working retirement.
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Tom Strange
My plan for retirement is to move to southern New Mexico, live at a KOA and work at a diner washing dishes... I get free food and beautiful weather and sunsets... ahhhh... the carefree life!
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ckeer
Tom- there's nothing wrong with that, You might want to add a little wor at wal mart or mcdonalds because they could get you good health insurance and even long term care insurance.
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Tom Strange
Now that's the ticket! thanks!
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Galen
Littlehawk-
“have been buying dirt for a few years cause they ani'nt maki'n no more of it!”
Good idea.
But on the other hand, sometimes dirt is just dirt.
“I think sometimes we define retirement wif the wrong phraseolgy tho! If money was the terms I could retire tommorrow,,,I think our standard of living plays a major role in retirement often overlooked. I know several rich people retired that are bored stiff!”
Yeah my mother and relatives keep saying that I am too young to be retired. In their minds it means sitting in a rocking chair whittling and chewing tobacco.
But I am way too busy for that. Fixing things in apartments when they break, maintaining the Motorhome, ‘Husbanding’ our livestock, Homeschooling some kids, trying to keep up with the rest. . . and now buying farm land in Maine. Far too busy.
Ckeer-
“It shows what I was talking about-the required age to finish withdrawl is 111 and the requirements would force most people to deplete their accounts much sooner - probably by 85 or 90 for most people. The only way to slow it down is to use the required minimum which will effectively force you to live on less each year during your retirement.”
The chart may go out to 111, but at those numbers of minimum require withdrawal, any account is going to be empty long before you get to 111.
I don’t think that IRAs were designed to be your sole source of income during ‘retirement age’. But as something the masses could do to assist with their retirements.
Those charts would have me draining an IRA account by 80 years old.
“If you can do that go for it, I'd be happy for you. If you had that kind of money though you might want to do realestate like Galen does. It would probably have a good effective rate of return and stable income stream- It would not be as liquid and managing might make for a working retirement.”
Exactly.
1- The only thing that ‘my money’ did was cover the closing costs during purchase of the properties.
2- My money that I do put against my principle (in buying down the mortgage) is effectively getting 16% when compared against the total payments needed to completely pay-off said mortgage.
3- It does provide a very steady income stream. I rent for approx 20% below the local area going rate for rentals, which keeps me full and my renters ‘love’ me. I stay out of their apartments unless they invite me. We have BBQs and invite them. My dog has proven his worth multiple times by chasing off kids sneaking in our parking lot at nights, etc. Each month; the rentals get a ‘discount’ for paying on time, each month I ask if there is anything I need to fix on the building, and if there is I ask them for their desire of what I should fix first.
4- It is a ‘working’ retirement, but hey what else is a 40 yr old supposed to be doing?
5- The building’s mortgage escrow account provides a life insurance policy against my life, so the building is paid off should I pass; thus I have no need for further life insurance policies. I don’t care how hard it is a get a job, I don’t work at one, the renters do.
6- To live in the Motorhome, or to work on the farm we are establishing in Maine; will always require that I make runs back to this property each month or so. We have done contracts with managers in the past; each time was a disaster, or near disaster. We have sold each property that we did have, with the exception of this one, and have consolidated our focus on this building.
Tom-
“My plan for retirement is to move to southern New Mexico, live at a KOA and work at a diner washing dishes... I get free food and beautiful weather and sunsets... ahhhh... the carefree life!”
Come join us in Maine. Watch sheep in a pasture, kayak up the stream, fish in the river, dodge moose on the roads, and help me pulling stumps out of the ground.
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Tom Strange
Well Galen... that could be an option! How would my achey old bones do up there during winter?
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GeorgeStGeorge
Well,
I'm debt-free, own my house and cars, have a reasonable 401k and pension, and have a LOT of valuable comic books. My only concern about the future is how fast my wife can spend!
:D--> 
:D--> 
:D-->
George
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personalentertainr
I went through one year of the 10th Corps and then went through the entire Corps program and graduated 14th Corpse. During the fog, we lost touch and then discovered I had a brain tumor. I've had 3 surgeries for it and discovered that much like my resume during the Corps years, I had nothing to brag about when we left the ministry in 2001.
I had never considered going on SS because I hate the idea of a limited income. We have survived because of my wife working as a teacher.
Recently I discovered a work at home business that could allow me to acheive 100k a year residual income within 2 years. I'm working it like a fool, incorporating everything I learned over the years.
I expect by Christmas to have a residual income of about $2000.00 a month. At which time, I will retire from social security. What a country!
You're welcome to email me for more information.
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Galen
GeorgeStGeorge-
Very good, sir.
". . . and have a LOT of valuable comic books."
Remember to do a Schedule 'C' on them (comic books are a good business, both as a write-off and investment) and store them in plastic, protected from light, fire and water.
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Galen
personalentertainr:
"I went through one year of the 10th Corps and then went through the entire Corps program and graduated 14th Corpse."
You were in both the 10th Corpse and the 14th corpse?
". . . I had a brain tumor. I've had 3 surgeries for it"
hope you are better now, and keep up on your check-ups.
". . . and discovered that much like my resume during the Corps years, I had nothing to brag about when we left the ministry in 2001."
Not following here, why would being in the corpse automatically be a bad thing for your resume?
If you traveled and held various jobs, that is not unlike ladder climbing in many corporations.
"I had never considered going on SS because I hate the idea of a limited income."
Do you have the option on 'going on SS'? Are you over 65?
a SSA check is kind of 'limited' in the context that it is a single amount (though different for each person), but kind of like my pension check. I get a deposit in an account each month as part of my pension. It is 'limited' and only goes up each January with the 'cost of living'. But that does not stop me from doing other things.
My investments pay me about $1500 each month, and that does not go up (because I dont want to raise the rent on our renters). It is a 'limited' amount, also.
I dont see the issue with 'limited' amounts. Could you explain?
"I expect by Christmas to have a residual income of about $2000.00 a month. At which time, I will retire from social security. What a country!"
Good luck, let us know how it goes.
Do you mean that you will retire ON SSA? In saying that you want to retire FROM SSA do you mean that you want to stop paying into your SSA account and cancel it? That is done with a form SA-4 I have assisted others while doing it, if you have questions.
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ckeer
Galen- I just bought a 91 jeep cherroke for $2100
with 116K in good condition. When you get ready to replace your old cars with new old cars, bring your motorhome on down and I'll show you where you can get similar deals out in a small town in Alabama.
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