Retirement Again. (Page 2 of 2)
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Originally Posted By TAP: In typical ARF fashion, it's a "get both" thing for many of us. I invest as if things will continue in the model of all of the previous cycles and years- and I prep as if things will not. I think that’s a very healthy mindset. I fall into the same mindset. Lots of people in the prepper or survival movement forget to live their lives. They get so wrapped up in the latest doom that they forget to live life to the fullest. I’ve been a prepper for probably 30+ years. Even as a kid I was interested in the movement. I remember reading Joel Skousen’s survival house building book as a kid and drooling over his ideas and lists. I’ve since built two houses and incorporated prepper ideas into both builds. I learned a lot in the process. But, now that my finances are in good shape, I’m living and loving life. My wife and I are headed to an all inclusive Caribbean resort next month. Sure there are potential risks but the risks are low. I’ve planned a few things to mitigate the few risks. Im confident we will have a great time and come back in one piece. There used to be a poster around here who had amazing food storage. Like feed a small third world country level of food. Don't remember his screen name. I suspect he did his food storage more to impress fellow posters here. It was impressive. I’ve often wondered what happened to all his stored food. Did he actually eat it and replenish it? Or, was it thousands of dollars of wasted food that eventually got tossed away? Edit: I went looking for the thread and found it. The poster was fightforyourrights but he hasn’t posted here since 2014. Maybe banned? No clue. Sadly, his pics have vanished into photobucket. I’d love to know if he maintained the stockpile or gave up and tossed everything. https://www.ar15.com/forums/Outdoors/Pictures-of-your-preps/17-462416/?page=1 |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt
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If anyone thinks that standard accounting practices which factor in long term timeline effects on finance are not valid, they should probably study accounting. There are very real reasons why those numbers are part of GAAP. We all might not live another 75 years, but the debt will still be there and it is inappropriate to not run the proper calculations. The maestro was reluctant to confront asset bubbles, and his hands-off approach to the mortgage and derivatives markets helped inflate the housing bubble leading up to the financial crisis of 2008. The Financial Crisis Inquiry Commission's final report stated: "More than 30 years of deregulation and reliance on self-regulation by financial institutions, championed by former Federal Reserve Chairman Alan Greenspan and others, supported by successive administrations and Congresses, and actively pushed by the powerful financial industry at every turn, had stripped away key safeguards, which could have helped avoid catastrophe." Alan Greenspan, Longtime Fed Chair And "Maestro" Of Markets, Dies At 100 This is reality. The financial industry has created "the system" that we did not have a choice in. But at least we can understand and also financially thrive under it with that knowledge. |
per aspera ad astra
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Originally Posted By ColtRifle: I heard from a friend of a friend .when you retire you realize that your income is now basically fixed. You won't be earning more/working OT etc to fund a big purchase or expense. You have to live on what your essentially fixed income is. Sure you can withdraw more from your investment/retirement accounts to cover whatever expense you have .but those accounts have limits on them too. You can only withdraw so much before they run dry. I have a couple I'm friends with who spent hard and heavy early in retirement. While they are getting by now, they don't have much cushion. They also have lots of debt. Yes they have some pension income, SS, and 401k type accounts but they spent the 401k accounts down too fast/too early and now are having to make cuts in lifestyle. So, it's kind of true in some ways. Mindset wise at least. If you have $5mil put away but a $500k a year lifestyle at retirement, the math doesn't work and retirement will be like a period of unemployment you're gonna have to go back to work. If you have $5mil and a $100k a year lifestyle, then the math works out very well. So, I kinda agree but also know that won't be applicable to my situation. I think it's dependent on the person but could apply in some (maybe many) cases. So I'm on a fixed income. It's just a fixed income that's a lot higher than SS payments. Which btw I have no plan to ever collect. If they still exist when I'm eligible then why not but I'm not planning on it. What makes me nervous about "SS running out of money" is that the government will just raise the contribution shortly. I work overseas so most of my income is tax free but I'm technically self employed so they still hit me for FICA at freaking 15% for something I'll never be able to use or don't plan to use. |
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Originally Posted By Daggertt: I'm essentially salaried so there's already no such thing as "work OT to fund a big purchase." So I'm on a fixed income. It's just a fixed income that's a lot higher than SS payments. Which btw I have no plan to ever collect. If they still exist when I'm eligible then why not but I'm not planning on it. What makes me nervous about "SS running out of money" is that the government will just raise the contribution shortly. I work overseas so most of my income is tax free but I'm technically self employed so they still hit me for FICA at freaking 15% for something I'll never be able to use or don't plan to use. There are multiple solutions to SS funding issues and, as I mentioned in the thread, I suspect we’ll see a combo of things done to cover the short fall. I suspect tax increases are likely but I don’t think they will be too much since that will be a hard sell. SS isn’t going away. Frankly, if it did since so many people fail to plan for retirement, as a nation we would shift the burden from SS to welfare and pay for it anyway. The best thing we could do would be to create retirement accounts for people that would be conservatively invested and there be no possible way to touch the money before 62. I’d love to see that happen but it’s unlikely due to the number of people who will be screaming mad about it….even though it will be better for everyone. People are dumb as shit. A fix will be devised just like the last time. Everyone will have something to bitch about it and I bet the party in power will pay for it at the next election. But there is no other realistic option. We (as a nation) are addicted to our SS system so it’s not going away. SS tells everyone that SS shouldn’t be the only source of retirement income. Lots of people who ARE relying on SS for all their retirement income will tell you not to rely on SS alone. And yet every year people retire and live on SS alone because they failed to plan. |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt
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Originally Posted By ColtRifle: There are multiple solutions to SS funding issues and, as I mentioned in the thread, I suspect we'll see a combo of things done to cover the short fall. I suspect tax increases are likely but I don't think they will be too much since that will be a hard sell. SS isn't going away. Frankly, if it did since so many people fail to plan for retirement, as a nation we would shift the burden from SS to welfare and pay for it anyway. The best thing we could do would be to create retirement accounts for people that would be conservatively invested and there be no possible way to touch the money before 62. I'd love to see that happen but it's unlikely due to the number of people who will be screaming mad about it .even though it will be better for everyone. People are dumb as shit. A fix will be devised just like the last time. Everyone will have something to bitch about it and I bet the party in power will pay for it at the next election. But there is no other realistic option. We (as a nation) are addicted to our SS system so it's not going away. SS tells everyone that SS shouldn't be the only source of retirement income. Lots of people who ARE relying on SS for all their retirement income will tell you not to rely on SS alone. And yet every year people retire and live on SS alone because they failed to plan. |
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Originally Posted By Daggertt: I figure by the time I am ready to collect SS, they will have already seized everyone's 401ks and will be taxing unrealized gains anyway. No 401k seizures will happen. Not a chance. More taxes….well income taxes are currently much lower currently than they have been in the past so I think it’s more likely we will see higher income taxes rates in the future. If we continue spending like we are as a nation, it’s gotta be paid for somehow. I’m pretty sure we’ll see increased taxes in the future. Not a clue how much. That’s why I think Roth money may be even more valuable in the future. |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt
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Originally Posted By ColtRifle: No 401k seizures will happen. Not a chance. More taxes .well income taxes are currently much lower currently than they have been in the past so I think it's more likely we will see higher income taxes rates in the future. If we continue spending like we are as a nation, it's gotta be paid for somehow. I'm pretty sure we'll see increased taxes in the future. Not a clue how much. That's why I think Roth money may be even more valuable in the future. By then the 401ks may be the least of our worries as we own nothing at all "and like it". 
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Originally Posted By Daggertt: We will see how things look in 25-30 years. Never say never. Especially if the AOCs and Mamdanis get a solid hold on power. By then the 401ks may be the least of our worries as we own nothing at all "and like it". So what are YOU doing to prepare for whatever it is you think is coming in the retirement funding world? |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt
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Originally Posted By ColtRifle: So what are YOU doing to prepare for whatever it is you think is coming in the retirement funding world? Asset cash flow is already half my work salary and the equity has doubled on the US property and beat inflation in Morocco. Morocco is interesting because you can set up a contract with a developer to put $10k down on an apartment that hasn't started building yet and then a few grand every few months during construction (done through escrow) so that by the time it's time to take the keys over a year or so, there's either just a little left to pay, or you can set it up that you keep paying for asking couple years of they accept (seller financing basically). Also you can build with a similar setup where you just pay monthly amounts that you agree upon with the builder to cover materials etc for that month and it takes a couple years but got also finish without a mortgage. We just bought an apartment in a nice beach area frequented by a lot of people in the summer from Morocco and abroad. It's $40k for a 2 bedroom condo in a complex with a pool and you can see other units in the complex go for $300 night in the summer about about $90 in the off season on Airbnb. She knows the complex developer who is renting out their own condos. Even at 50% occupancy that pays for itself quickly. International taxes are a pita but I don't have all my eggs in one basket. Morocco is up and coming in the world and property values have doubled in the last 15 years and are going up quickly with a lot of infrastructure investment from the government and grants to encourage business. I know most of the people in this thread will think it's crazy to invest anything in north Africa but I bet most of them have never visited Morocco if they've even left the country at all. I'm in Nairobi at the moment where all of Minnesota's tax money has been invested by Somalis and it clearly working out for them. 
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Where There Are Sheep, Wolves Will Always Thrive
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...but we we focus mostly on building a residential and commercial real estate portfolio with rental properties in the US and my wife's country of origin in Morocco. Good luck, and it sounds like your Morocco niche is a solid plan. My experience differs. I fled being a landlord both in the US and Germany, with only one PA house left and the last one in Germany's sale paperwork settling now. Most jurisdictions, including our previous MD and other PA houses, are simply too stacked in favor of a deadbeat renter and against the "evil rich landlord". Hell, look at what NY is doing and ask yourself if more places are moving in that direction or moving away. One bad tenant could, and did, wipe out years of positives. Our German property became a regulatory nightmare of mandatory environmental upgrades, rate-locked pricing, etc- everything the left is dreaming of here that destroys housing opportunities for folks. So it got sold, and now those apartments don't exist any more. |
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Originally Posted By TAP: Good luck, and it sounds like your Morocco niche is a solid plan. My experience differs. I fled being a landlord both in the US and Germany, with only one PA house left and the last one in Germany's sale paperwork settling now. Most jurisdictions, including our previous MD and other PA houses, are simply too stacked in favor of a deadbeat renter and against the "evil rich landlord". Hell, look at what NY is doing and ask yourself if more places are moving in that direction or moving away. One bad tenant could, and did, wipe out years of positives. Our German property became a regulatory nightmare of mandatory environmental upgrades, rate-locked pricing, etc- everything the left is dreaming of here that destroys housing opportunities for folks. So it got sold, and now those apartments don't exist any more. I've been renting out a house in the Utah for 5 years via a property manager and they even had to kick out a lawyer tenant whose firm fell apart and he started falling behind on payments. In Morocco we also have someone helping out but I'm thinking it might be interesting to actually start a proper property management company there because a lot of Moroccans living in the US Canada and Europe buy investment properties but then leave them empty because they can't deal with renting them from a distance. I think we could actually make a killing. Maybe we've just been lucky so far, but it seems like a solid strategy. When cash flow gets high enough on a regular basis I can "quit" my current job and transition into a consulting gig where I travel around Africa for various projects but I can choose what I do it have a team that covers certain projects, etc but the cash flow income makes it so I don't need constant income. I guess it would be like retiring but not to fish, but to focus on the different businesses and consulting projects and hang out with my family or take them to fun places, which we already do tbh. So yeah not a traditional retirement plan, but it's definitely doable and I think it will work nicely. Medical insurance isn't a thing out here either. Moroccan medical care is great and cheap. But now we are bleeding into another topic about retiring abroad vs in the USA. Which we've hashed out recently here anyway |
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Originally Posted By Daggertt: I have some s&p investments, but we we focus mostly on building a residential and commercial real estate portfolio with rental properties in the US and my wife's country of origin in Morocco. And then eventually owning businesses. Asset cash flow is already half my work salary and the equity has doubled on the US property and beat inflation in Morocco. Morocco is interesting because you can set up a contract with a developer to put $10k down on an apartment that hasn't started building yet and then a few grand every few months during construction (done through escrow) so that by the time it's time to take the keys over a year or so, there's either just a little left to pay, or you can set it up that you keep paying for asking couple years of they accept (seller financing basically). Also you can build with a similar setup where you just pay monthly amounts that you agree upon with the builder to cover materials etc for that month and it takes a couple years but got also finish without a mortgage. We just bought an apartment in a nice beach area frequented by a lot of people in the summer from Morocco and abroad. It's $40k for a 2 bedroom condo in a complex with a pool and you can see other units in the complex go for $300 night in the summer about about $90 in the off season on Airbnb. She knows the complex developer who is renting out their own condos. Even at 50% occupancy that pays for itself quickly. International taxes are a pita but I don't have all my eggs in one basket. Morocco is up and coming in the world and property values have doubled in the last 15 years and are going up quickly with a lot of infrastructure investment from the government and grants to encourage business. I know most of the people in this thread will think it's crazy to invest anything in north Africa but I bet most of them have never visited Morocco if they've even left the country at all. I'm in Nairobi at the moment where all of Minnesota's tax money has been invested by Somalis and it clearly working out for them. Good to see you have a plan. Lots of people have doom and gloom as their plan or no plan at all. Always amazes me to see the people who tell you how your plan is all wrong but when you ask them what their solution or their plan is, they don’t have any plan. The statement “Failing to plan is planning to fail.” is extremely true. Some plans do fail. But having no plan always fails. Investing in real estate in a foreign country is too much risk for my tastes but that doesn’t mean I think you are wrong. If you were investing in MOST African countries I’d think you are crazy! But Morocco is probably the most stable and safest country in all of Africa. It’s hardly a free country but it is safe and stable. I was there 10 years ago and enjoyed it. Only primarily Muslim country I’ve been to where I could drive around without wearing a helmet and body armor! Very secular Muslim country. It was an odd experience walking down the boardwalk in Agadir and see a woman in a skimpy bikini near a woman in a full burka. I wouldn’t live there for the rest of my life but I’d take my wife there to visit. |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt
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Congrats on getting out and enjoying life. My dad retired last summer (should've been years sooner) and his only regret was waiting as long as he did. He's dropped 25 lbs, almost off BP meds, and he's finishing up rebuilding his front deck. When he's not working on house projects, he's watching my brother's son - finally living the life he's worked for. My brother and I are looking forward to our next fly fishing trip with him. At almost 68, our dad is getting around better than he was in his early 60s since he's exercising daily now. |
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Originally Posted By ColtRifle: Good to see you have a plan. Lots of people have doom and gloom as their plan or no plan at all. Always amazes me to see the people who tell you how your plan is all wrong but when you ask them what their solution or their plan is, they don't have any plan. The statement "Failing to plan is planning to fail." is extremely true. Some plans do fail. But having no plan always fails. Investing in real estate in a foreign country is too much risk for my tastes but that doesn't mean I think you are wrong. If you were investing in MOST African countries I'd think you are crazy! But Morocco is probably the most stable and safest country in all of Africa. It's hardly a free country but it is safe and stable. I was there 10 years ago and enjoyed it. Only primarily Muslim country I've been to where I could drive around without wearing a helmet and body armor! Very secular Muslim country. It was an odd experience walking down the boardwalk in Agadir and see a woman in a skimpy bikini near a woman in a full burka. I wouldn't live there for the rest of my life but I'd take my wife there to visit. I live in Madagascar mostly and there are some great and gorgeous opportunities there but as a complete outsider, I'd get hosed and typically I couldn't actually buy anything but rent for 99 years and in any legal dispute with a local the corrupt courts would see me as the foreign colonizer. In Morocco, we have insider access and everywhere we go to buy something they end up knowing my wife or her parents or they are actually part of her extended family, etc So we also get some great deals and I don't have to worry about the local nuances or language barriers. When my wife came to the US she remarked that she didn't feel any more free than she did in Morocco I explained that freedom isn't really necessary if everything you want to do happens to be what the rules allow you to do. Freedom is actually the ability to dissent from the majority. I'm not going to lie though, Morocco's lack of freedom for the LGBT, liberal commie wackos and salafist Muslims doesn't actually hurt my feelings. And in more comfortable with my kids growing up there where they will never see a drag queen or get pressured by kids at school to question their gender. Were you in Agadir for African lion? That's actually where I met my wife  Moroccan soldier. She has family connections in Saudi, Kuwait and Bahrain but I just can't afford anything there. Lol. Hopefully I can "retire" in about 10 years and move into my optional consulting gig in between tropical family vacations. I'll be 50 or so. |
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Originally Posted By Daggertt: Yeah I wouldn't invest anywhere I didn't have an inside track. I live in Madagascar mostly and there are some great and gorgeous opportunities there but as a complete outsider, I'd get hosed and typically I couldn't actually buy anything but rent for 99 years and in any legal dispute with a local the corrupt courts would see me as the foreign colonizer. In Morocco, we have insider access and everywhere we go to buy something they end up knowing my wife or her parents or they are actually part of her extended family, etc So we also get some great deals and I don't have to worry about the local nuances or language barriers. When my wife came to the US she remarked that she didn't feel any more free than she did in Morocco I explained that freedom isn't really necessary if everything you want to do happens to be what the rules allow you to do. Freedom is actually the ability to dissent from the majority. I'm not going to lie though, Morocco's lack of freedom for the LGBT, liberal commie wackos and salafist Muslims doesn't actually hurt my feelings. And in more comfortable with my kids growing up there where they will never see a drag queen or get pressured by kids at school to question their gender. Were you in Agadir for African lion? That's actually where I met my wife Moroccan soldier. She has family connections in Saudi, Kuwait and Bahrain but I just can't afford anything there. Lol. Hopefully I can "retire" in about 10 years and move into my optional consulting gig in between tropical family vacations. I'll be 50 or so. Morocco’s gun laws are….not freedom. Then again, maybe Muslims can’t be trusted with guns. It’s definitely a safe country. Freedom comes at a price. I think it makes sense for you, someone with insider info, to invest there. For someone like me, with no inside info, it would not be a good idea. Sounds like you have a solid plan. Yes I was there for African Lion. I noticed a lot of Europeans vacation there. |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt
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Originally Posted By ColtRifle: Morocco's gun laws are .not freedom. Then again, maybe Muslims can't be trusted with guns. It's definitely a safe country. Freedom comes at a price. I think it makes sense for you, someone with insider info, to invest there. For someone like me, with no inside info, it would not be a good idea. Sounds like you have a solid plan. Yes I was there for African Lion. I noticed a lot of Europeans vacation there. Obviously my approach is very unique and I would never recommend anyone else take that approach. I just hope that Trump can fix the voting system so we aren't doomed to a leftist-controlled unchecked government with a stacked USSC and mandate to turn us socialist. But looking back over the LAST 30 years, I have to say it looks like progressives are winning war despite us winning a few small battles (mostly recently with Trump) and the country is plodding along towards the leftist goals. |
