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One think to think about is when your kids have kids....Do you want that extra bedroom or two when they come in down (if they live away), or at least a playroom for when you watch them?
every expense is just magnified. Much much more expensive then residential prices. Heating and air maintenance is a biggie as is my roof. Any repair you get over there knows they can gouge you because its commercial. I have some pretty loyal guys but they still are pricey. But I have a 5 rolling 5 year lease so thats nice
Thanks.... might be closing on my first commercial next Friday. Two dentists and an insurance company. All have 3.5+ years left on 5 year leases. Roof has 5 years left, everything else looks fine...
I will say this, investigating, watching and ultimately buying real estate is addictive. Putting the 20% down is a hassle. I missed the run of the early 2000's when this wasnt necessaryETA: just read your additional replies......looks like you've got a pretty good handle on things....especially with the windfall inheritance...maybe you wait til that happens to pick up additional properties
Mr Money Mustache had some interested ideas about energy efficiency when he built is new house. Stuff like metal roof and house orientation. Worth checking out
excellent point!
yeah, I love this type of stuff. The siding and trim can now be made out of PVC material which lasts a very long time and they even have those extra long lasting paints.
absolutely. My wife and I were on the same page entirely since we first met in wanting to retire early. The earlier you want to retire the more you both need to be on the same page financially IMO.
It was 5 months from applying and getting the initial offer. Good luck, I hope things go quicker for you.
Mine didn't, but she was 22 when we got married. I just saw that she had payroll savings withdrawal at the amount we agreed - it varied over the years ...never lower than 15%.
Retirement savings calculators and retirement spending calculators are two different things. Though I also like FireCalc a lot - I use it as a benchmark for my excel program I wrote (mine does taxes, which FireCalc ignores).
Mine wants to keep working. Which is fine - being a kept man would be just fine by me. Amazing once you get near the inflection point of FU money/not-yet FU money how much even reasonably small amounts of regular income make.
Well, what I said isn't quite right, so let me partially retrace. Firecalc does do some simple cases for retirement spending, but is really based around "how much do I need to sustain $XXX for 40 years?". There are retirement spending optimizers/calculators that can help optimize taxes, spending, etc. to really stretch your dollar. I-ORP is one of those. I'm thinking of building one soon.
I don't think I'm going out on a limb to far that having aligned and transparent goals with your spouse is absolutely crucial when it comes to personal finances. I'm lucky that I've been with my wife since college, so we've gone through all of our future planning together as soon as we both had paychecks....but I can totally see how it can complicate things for those who get married later in life who are both set in their ways.
It just seems that for the most part every woman I ever hear about, EVER, is more than willing to spend needless amounts of money on things.
You taking into account SS? If I need a consistent amount from one year to the next, obviously, the year before I start collecting ss, I'm going to be drawing a much higher percentage from my retirement account.
Just into the 6 figures, I'm practically homeless by fbg standards. But we don't spend like FBGs.
Yep. Although lately she cares more about building a cabin.
Another
We discuss the vision, she trusts me to put it into action.
Next Wednesday, my vision I started 15 years ago sets us for life. And it will wind up setting up my three kids for life.Another
True, but honestly I don't add it in when I'm planning. Probably should and I think we've discussed it before but I figure if we can get by fairly well without it, we'll be able to travel more, give more to charity or whatever we want with it.
My dad had passed away then, and my sister and I spent a good chunk of change during his last ten years to help support him. I didn't want my kids to ever have that happen to them, so I started investing in RE. Wednesday we close on a refi that sets us for life. And a nice bonus is it will set up my kids for life after we are gone.FUBAR said:tell us more, tell us more, did you get very far?
I definitely factor it in, but not to be able to spend more but to retire earlier. To be conservative, instead of getting max bennies at 70, I've moved it to 72 b/c something like that is going to need to be done to keep it solvent.FUBAR said:
How is her day to day spending?
I've checked recently what estimates for public college/university are. Current estimates put it at $31k annually for tuition and room/board. I hadn't checked estimates since I started his 529 almost 7 years ago. New estimate is $186k for all four years which is ridiculous but whatever. It doesn't change the fact that he'll need it. It doesn't look like I'll be reach that target ahead of schedule after all. Booo.
No I think they all take it. What would be your reason for not taking it? I mean sure you might live until 80 and get screwed, but what if you have a heart attack and die two years after you retire? I think just like with any "benefit" you have to do the math and figure out the break even point. I'd be interested to see what you come up with, I've never really thought about it before.FUBAR said:
I can get over a million dollar life insurance, 30 year term for less than I'd pay for the SBP, invest the difference. Plus the sbp is only going to pay her roughly $1750/month (adjusted) while it costs over $200/month (adjusted). That seems like expensive insurance.
Congrats Getzlaf!
This thread might be more useful if you're looking at the investing end.Yeah, there's no doubt there is money to be made in real estate. While this thread is primarily focused on optimizing traditional investment/retirement vehicles (401k, IRA, 529, etc), there's no single say to skin the cat....and I think adding a more real estate perspective is needed. A tad selfishly, it's something I'm looking to dabble in soon....I'm in the process of reading the landlord thread and making some notes there prior to posting.
How far out are you til retirement? Is the ultimate goal to carry these rentals into retirement for additional retirement income...or perhaps sell along the way and cash out if the opportunity lends itself?
ETA: just read your additional replies......looks like you've got a pretty good handle on things....especially with the windfall inheritance...maybe you wait til that happens to pick up additional properties
I lost all my money in my Sep-IRA during the dot com bust and then started investing in RE. I'd keep contributing If I were you just for the added tax break and diversification.
FWIW, we each have ______ allocated to us each month that we can spend on anything we want. It gets tracked and that's it. WA LA.
Thx. I've perused it over the years and will take another look at it. Really enjoy reading your stuff in there
My wife and I have aligned our retirement planning goals - max the 401ks, max IRAs, HSA contributions, put $x into a joint account for bill paying and other general joint savings. After all of those are factored in, we are each left with our play money, for lack of a better term. She doesn't spend more than she has in her "play money" account and neither do I. I don't really look at what she buys and she doesn't really look at mine. I get my concert tickets, sports tickets, beer, and she buys clothes and #### on Amazon.
works for us.
The younger you are the harder this is. This is what we did.
This may sound odd for an accountant to say, but I don't have specific target retirement amounts in mind. You're 24, your wife (gf?) is 25. Unless you are an extreme retire-early FIRE person like NewlyRetired - and more power to you if you are - you probably don't need to have dollar figures in your head at this point. I am 29, my wife is 30.....I have no idea what the economy and markets will look like in 30+ years when it's time for us to retire. Will we have kids? How much will we want to put into their college? It's all very impossible to predict at this point.
One of he best pieces of advice financially I've ever received was from my dad when I got my first job out of college. He said that your so used to leaving on the cheap in college, you're not going to miss the extra money by stocking away as much as you possibly can for retirement early. Just take it out of the paycheck. Obviously your salary will grow with time, but you'll be ingrained from the beginning to live well below your means.....which is huge in the personal finance game.
As an alternative to this, I think this is why a lot of professional athletes go broke not long after their career ends. You go from nothing in college to a massive financial windfall, and then assuming you're not a superstar you drop down to virtually nothing within 3-4 years. For most people, they progressively earn more during their careers.....for a professional athlete, you hit your max earnings in your 20s and then when you're 30 you're past your earnings prime.
I'll look into this soon because I'm now very interested in the pros and cons here. So is the survivor benefit essentially set up for the financially ill-prepared or is your case different because your pension is starting while you are still in your 40s? I think it's a fantastic question.
