Discussion in 'Non-Vegas Chat' started by makikiboy, Dec 9, 2019.
Retire - NOW!
I would assume you have paid off any loans first. Maybe if they were real low like a 3% mortgage - maybe leave that alone.
How much do you have a for a "sudden emergency"?
I'm assuming this was directed at me, since it follows my post.
All I currently have are a couple of credit cards which at most will have a low four-figure balance for a while. My current car is paid off (yeah, a new one is coming up) and I rent, so no mortgage. Empty nest and separated, so no dependents.
I justify keeping working to spike the 401K and the IRA, but the real thing is, I have NO CLUE really what I want to do or where I want to live when retired. (Translation: Somewhere other than here! And, for those who are wondering, somewhere other than Las Vegas!)
I'm currently following a few hard and fast rules:
1. Liberally spike both the 401k and the IRA.
2. DON'T TOUCH IT!
3. DON'T TOUCH IT!
4. See rules 2 and 3.
I've done the math, and I'm right at the point where, when you throw in Social Security, I could retire with more effective "take home" than I have now. One concern is that my health continues to hold up! (Knock on wood, cross fingers!)
Pay off all credit cards - yesterday.
Reminds me of a call I got from a brother once. He wanted to invest in xyz company as he thought they would do well. ( I already knew about his credit card debt) So, I told him about an investment that will 100% guarantee at least a 20% return on his money - which is to pay off the damn credit cards. As a bonus, it is not taxed like buying stock would.
Love you idea to max out IRA. Also, if you are eligible to put money into an HSA, it is even better than an IRA. Don't confuse a long term HSA with those company plans that require funds be spent each year. Between maxing out IRA and HSA - we are retired and doing okay.
The most I ever remember having was like $8900. I was in the habit of paying $200 monthly (more than minimum, and naively thinking it would pay off much quicker) until I did the math and realized that more than half was interest, as in $$$ into a black hole! I was able to increase the payments and get it down to a more sane level.
Pack a bag, go to airport, look at the departure screen, fly.
Or, what I would really love to have time to do is pack that bag, throw a camera or two in the car and DRIVE to about anywhere, something I don't have the time for now. When I retire I do want to travel. A LOT!
Just my two cents, but there is no such thing as a sane level of credit card debt.
If we’re talking about big money, Aside from what’s already proposed,I would be buying all the land for sale in Vegas. There will be a time (in the next 30 years) when there’s no more vacant land for residential use.
And the rest, depending on your tax rate, dump into a tax free bond fund, there's a few out there paying almost 5%.
You can make good money in residential real estate, but it takes a special type of idiot to do so. I know, I'm one of them. If you don't want to be 100% hands on, stay away.
Thought about the residential real estate since we own several commercial properties (3 of which we use) but it seems like a little more BS than the commercial side where you can lock in for years instead of month to month or yearly leases.
Totally different animal. Commercial leases, at least mine, leave maintanance up to the tenant, residential: "come plunge my toilet", "not only can I not pay, even if I could, I won't", "My car needed work, you'll have to wait" or my personal current favorite from a 94 year old:
Her: "I got dish network, and they wouldn't come fix it, so I canceled and got directv, then Dish took 600 out of my account for early cancel, so I can't pay you"
Me: "Have fun watching that tv in your car"
I would not be in a rush to do anything with it. Something will come up and I can think it through fully before making a decision.
Pay off the motgage.
Renovate the family house.
Get a new shed door.
Get a bigger television.
Splurge on a guided bass fishing tour in one of the southern states.
Get a new iPhone.
Get a deck.
Get a righteous BBQ grill.
Real estate is a grind and rarely a sure bet unless you are buying when nobody else is able to, say, during a recession. However, if you are in Hawaii, maybe consider operating an Airbnb vacation rental? If you have any extra space on your property you might be able to build a separate unit.
It's a lot more hands on than a long term rental but the return can be much greater. It really takes a lot of attention to detail so it's not for everyone.
But generally my financial advice is:
Don't take financial advice from anyone.
Don't give financial advice to anyone.
Especially on the internet.
Very good point.
Getting some talking points are good, but I would never invest in something based on what folks like me might post here.
After all, just about anyone here GAMBLES. LOL!
^^ This. Your age, how much you already have saved, and your current lifestyle will impact what you do with the money.
And the person who suggested do not take advice from people off the internet is also correct.
Do some research online and see what fits best for where you are in life. You can always go talk to a financial planner.
All I will say is, if you are carrying high interest debt, like CC debt-- pay that off. No need to pay off a low interest mortgage or any other low interest debt.
I don't know your situation but have you considered doing something philanthropic with part of it ?
I play this game a lot in my head. If we're talking about "money is no object" money, I would buy a house on the beach Florida Gulf coast. Then I'd sit on my deck, ponder the waves, enjoy nice stogies, and plan my travel schedule.
Separate names with a comma.