How are people going to survive retirement these days?

[DOBE]

i work with these people daily. 99% of the people i meet are in this situation and will work forever, or retire and realize their shortfall and become a greeter at wal-mart or something because they are too old to be traditionally employed and want too high a wage.

People that are 58 and have $100,000 in savings and want to know how they can retire at 62 and then look at me with disgust when i tell them how bad their scenario is, then they say "well we will go to someone else who can tell us how to draw $20,000 a year for 30 years off a $100,000 account" i'm like sure but i thought madoff was closed to new investors.

ther'es two things ya can't overcome bro, ignorance and poverty.

 

[Curt James]

View attachment 46883


Don't make Curt wash yer mouth out

^^^^ Reminds me of the "Malcolm in the Middle" mom squirting dish wash detergent in her kid's mouth.

 

[DOBE]

Damn! ya'll muthafuckas a bunch of smart niggas!

 

[Curt James]

^^^^ You bee qwiet with your week vocabulary's!

 

[secdrl]

I read earlier today that the financial experts are saying that each American needs to allot approximately 500,000.00 for retirement. Wow.

 

[DOBE]

Sorry fellas, Ah ain't neer been lernt how to read an spell an all.

 

[Curt James]

I read earlier today that the financial experts are saying that each American needs to allot approximately 500,000.00 for retirement. Wow.

Five hundred thousand what?

(looks around for billionaire old maids)

 

[NVRBDR]

Residual income via rental homes is one way to replace our "9-5er"

Its not go "lay on the beach in a tropical setting for the rest of your life retirement", but your not fighting 5oclock traffic anymore either...

 

[Big Pimpin]

Residual income via rental homes is one way to replace our "9-5er"

Its not go "lay on the beach in a tropical setting for the rest of your life retirement", but your not fighting 5oclock traffic anymore either...

I agree to some extent but at 75yo do you really want to be dealing with a backed up shitter at 2am, a dead beat who hired an attorney to drag out an eviction 6 months, new carpet and holes in the walls every time some shit bag renter moved out, replacement of $10,000 roofs and $5000 HVACs that need replacing every 10-15 years?

 

[NVRBDR]

I agree to some extent but at 75yo do you really want to be dealing with a backed up shitter at 2am, a dead beat who hired an attorney to drag out an eviction 6 months, new carpet and holes in the walls every time some shit bag renter moved out, replacement of $10,000 roofs and $5000 HVACs that need replacing every 10-15 years?

I understand your questions/concerns, however, they aren't valid or realistic, let me explain why...

1. tenants don't call for backed up shitters, they plunge them, just like a homeowner does. if the problem is serious enough for a plumber, after the tenant calls you, you call the plumber.

2. dead beats don not hire attorneys, they are broke. the eviction process actually is very simple, it takes 30 days and and costs about 80 bucks, unless you need a sheriff (additional 50-60 bucks) if you have to go the full distance. However, experience in this issue, tells the story like this,
"deadbeats move before a sheriff ever gets involved" deadbeat tenants do not want the sheriff nosing through their lives while my moving crew moves their belongings out to the curb, while they watch from the public street because they are no longer allowed on the property. the tenant will be gone before this ever happens 9 out of ten times. key to this is: check a person out, verify good employment history and check with local court house for recent evictions. These are the very effective screening methods, both are free and easy to do. requiring a matching deposits get rid of the broke guy also. Never rent to anyone, who says "can I move in today?" lol.

3. roof replacement is paid for by insurance, roofing companies pay your deductible out of the claim every time.

4. HVAC systems,have them maintenance by a A/C service company every year. they run very efficiently this way. If you need to change them, you just pay for it fro your profit, "cost of doing business" I very rarely do any work myself, case and point, I only do small projects, that my kids can do with me (daughter-8 & son-10) so they can earn some money and understand the value behind money. "you work for your cash, no allowances"

5. There are risks in everything we do, real estate is not exempt from this. I can tell you this from experience, buy your properties right, screen your potential tenants, you'll have more free time on your hands than you know what to do with.

 

[Big Pimpin]

I understand your questions/concerns, however, they aren't valid or realistic, let me explain why...

1. tenants don't call for backed up shitters, they plunge them, just like a homeowner does. if the problem is serious enough for a plumber, after the tenant calls you, you call the plumber.

2. dead beats don not hire attorneys, they are broke. the eviction process actually is very simple, it takes 30 days and and costs about 80 bucks, unless you need a sheriff (additional 50-60 bucks) if you have to go the full distance. However, experience in this issue, tells the story like this,
"deadbeats move before a sheriff ever gets involved" deadbeat tenants do not want the sheriff nosing through their lives while my moving crew moves their belongings out to the curb, while they watch from the public street because they are no longer allowed on the property. the tenant will be gone before this ever happens 9 out of ten times. key to this is: check a person out, verify good employment history and check with local court house for recent evictions. These are the very effective screening methods, both are free and easy to do. requiring a matching deposits get rid of the broke guy also. Never rent to anyone, who says "can I move in today?" lol.

The eviction process is technically simple here in GA but I asked my very sharp attorney about this just last month and he said if they hire an attorney they can literally squat rent free 6-9 months while its wrapped up in the courts. Yes, attorneys cost money, but said jackass could have a cousin who happens to be one. My attorney and his legal secretary emphatically said don't get into rental houses.

3. roof replacement is paid for by insurance, roofing companies pay your deductible out of the claim every time.

You are assuming that you're lucky enough to have hail damage.

4. HVAC systems,have them maintenance by a A/C service company every year. they run very efficiently this way. If you need to change them, you just pay for it fro your profit, "cost of doing business" I very rarely do any work myself, case and point, I only do small projects, that my kids can do with me (daughter-8 & son-10) so they can earn some money and understand the value behind money. "you work for your cash, no allowances"

5. There are risks in everything we do, real estate is not exempt from this. I can tell you this from experience, buy your properties right, screen your potential tenants, you'll have more free time on your hands than you know what to do with.

I agree, its all about sourcing the right tenant(s) and choosing the right homes in the right hoods. Good luck in your endeavors and I hope you prosper from them.

 

[NVRBDR]

I agree, its all about sourcing the right tenant(s) and choosing the right homes in the right hoods. Good luck in your endeavors and I hope you prosper from them.

i agree, there are varying opinions for all investments and or investment tools. i am not saying this is for everyone, but for us, our objective was to leave the 9-5 world, spend more time together with family rather than our co-workers and in the end, build some wealth over time (equity), pass something tangible along to our kids.

The Warren Buffett investment strategy for 2012 is to ?buy distressed single family homes and rent them for five years.? Why? Because these distressed properties have fallen in some cases by more than 50%, far below replacement costs. The result is that rental rates at these reduced home values provide attractive steady income

 

[Big Pimpin]

i agree, there are varying opinions for all investments and or investment tools. i am not saying this is for everyone, but for us, our objective was to leave the 9-5 world, spend more time together with family rather than our co-workers and in the end, build some wealth over time (equity), pass something tangible along to our kids.

The Warren Buffett investment strategy for 2012 is to ?buy distressed single family homes and rent them for five years.? Why? Because these distressed properties have fallen in some cases by more than 50%, far below replacement costs. The result is that rental rates at these reduced home values provide attractive steady income

Lets not forget he's buying them in lots of 100's if not 1000's and paying a whole lot less than the average schmuck.

That said, I noticed run of the mill nothing special 3/2 rents in the suburbs of ATL are $1100+ at the moment depending on location. That's good cash flow on a $40-60K repo when mortgages are 3-3.5%.

 

[Roaddkingg]

Googles living in honduras.

I looked into that a while back Curt. In fact I have had a few friends move there. One came back after his house was broken into and he had to fight off the intruder. He was one of the lucky ones. So many gringo's get killed there it's way out of hand.
The drug lords and gangs have a solid grip on that poor country.
Not to mention the VERY corrupt government.

 

[heavyiron]

If a tenant wants to they can delay eviction about 30-35 days maximum. Cost to evict is rarely over $400.

The key to rental success is the screening process and a solid lease agreement.

 

[ebn2002]

I read earlier today that the financial experts are saying that each American needs to allot approximately 500,000.00 for retirement. Wow.

In general, you can withdrawal up to 5% per year without much problem. So $500,000 would provide you with $25,000 per year of income, which is poverty level. My target number is more like 3 million which provides for $150,000 per year. Social Security will kick in usually $25,000 per year, so with that and $25,000 you are at 50k which is fine for most people. But social security will not be there for me, I can pretty much guarantee that.

I think it is an education problem. People with 3 million in their IRA are worried they will run out of money, and people with $100,000 think it will last forever.

 

[Arnold]

I love looking at stats but these kind of stats are scary:

Retirement Account Balances by Income: Even the Highest Earners Don't Have Enough

For people ages 50-64, of those who earn more than 52k which make up the 75-100 percentile, the median is only 52k. That means HALF have less than 52k. The whole point is to live off INTEREST of your nest egg but 4% of 52k is not very much. I have no idea how seniors are going to survive.

I think going forward most Americans will continue working until they're quite old or they die, which honestly I could not imagine being retired, what the hell would you do all day? lol
My dad is almost 70 and still works a full-time job and a part-time job, his wife also works.

 

[Curt James]

I looked into that a while back Curt. In fact I have had a few friends move there. One came back after his house was broken into and he had to fight off the intruder. He was one of the lucky ones. So many gringo's get killed there it's way out of hand.
The drug lords and gangs have a solid grip on that poor country.
Not to mention the VERY corrupt government.

Okay, Plan B then, living in a box on the Florida coast somewhere.

 

[Roaddkingg]

Good one Curt.
Living in a box could be dangerous aswell. LOL
There are other fairly safe and inexpensive places to retire but most americans wont change their way of life to do so.
As for the rental property's I have been in that business for over 10 years and trust me it has a lot of issues and generally a person doesnt make as much as others may expect.
I always have headaches and bull shit to deal with. Court cases all the time, re-modeling constantly and it's truely disheartening.
On a good note though I do own my home and one of the rentals out right and tons of equity IF things would ever sell.
My advice to anyone wanting to get in the rental business would be to look elsewhere, it's not easy.
But it's always nice to be diversified.

 

[skinnyguy180]

Good one Curt.
Living in a box could be dangerous aswell. LOL
There are other fairly safe and inexpensive places to retire but most americans wont change their way of life to do so.
As for the rental property's I have been in that business for over 10 years and trust me it has a lot of issues and generally a person doesnt make as much as others may expect.
I always have headaches and bull shit to deal with. Court cases all the time, re-modeling constantly and it's truely disheartening.
On a good note though I do own my home and one of the rentals out right and tons of equity IF things would ever sell.
My advice to anyone wanting to get in the rental business would be to look elsewhere, it's not easy.
But it's always nice to be diversified.

Yeah but to be fair making money in general is not easy these days. Doesnt matter what your doing. Im in insurane and its tough right now. Course i started my 401k at 18 and put 12% of my earnings into it. should help only time will tell.

 

[skinnyguy180]

Okay, Plan B then, living in a box on the Florida coast somewhere.

Just get a wall tent with a wood burning stove and a cot and youll be set.

 

[TonyMack]

3. roof replacement is paid for by insurance, roofing companies pay your deductible out of the claim every time.

Let me guess, you live somewhere that gets hail.

Just curious, do you make money off insurance? Meaning, do they pay you more to replace the roofs than you pay in insurance premiums over the life of the roofs?

 

[NVRBDR]

Let me guess, you live somewhere that gets hail.

Just curious, do you make money off insurance? Meaning, do they pay you more to replace the roofs than you pay in insurance premiums over the life of the roofs?

Yes, we do get hail in Texas, I've been a real estate investor for some time. I have a lot of connections, knowing who to go to for great quality at great prices, roof repair and replacement has an enormous profit margin and most companies will work with you.
But, no I have never profited one penny from a roof insurance claim.
actually, quite the contrary, I repair mostly everything, including roof repair out of pocket. Rental policies are expensive, and I do not make claims unless I absolutely have to.

 

[Braveheart82]

I work with these people daily. 99% of the people I meet are in this situation and will work forever, or retire and realize their shortfall and become a greeter at wal-mart or something because they are too old to be traditionally employed and want too high a wage.

People that are 58 and have $100,000 in savings and want to know how they can retire at 62 and then look at me with disgust when I tell them how bad their scenario is, then they say "well we will go to someone else who can tell us how to draw $20,000 a year for 30 years off a $100,000 account" I'm like sure but I thought Madoff was closed to new investors.

I don't understand how there can be people like this in real life. Seriously. I mean, it's basic math. I just hope we won't be taxed up the wazoo to pay for their ignorance. It's stories like this that make me save and invest as much as I can.

 

[Braveheart82]

I read earlier today that the financial experts are saying that each American needs to allot approximately 500,000.00 for retirement. Wow.

Add on inflation costs to that and it's even more wow

 

[Braveheart82]

Residual income via rental homes is one way to replace our "9-5er"

Its not go "lay on the beach in a tropical setting for the rest of your life retirement", but your not fighting 5oclock traffic anymore either...

Respect for doing this! Every wealthy person I know has some sort of real estate income. I know a guy who started when he was 25 and now he has 4 apartment buildings debt free. The cash flow is pure profit (aside from taxes, maintenance, insurance, and all that). His children will be well taken care of.

As for me, I'm still scraping enough to save the 20% downpayment. Will take a couple more years