To go evatualy in to retirement

Quote from Jonathan Thompson

I'm 44, will be 45 in November. I didn't get married for the first time till I was 40 so I had lots of time to save all sorts of money. I always figured I'd retire at 50 even when I was a teenager. I've also been VERY lucky in my career, so that helps.

I would say retirement would be a little tough at our age. I just turned 41 and always had a goal of retiring by 45. Getting married changed that timeline. I am now looking at lat 50's since we decided to have the kiddo. I say it would be a little tough because I am someone that likes to work...sure there are times I don't like being in my seat, but the money is nice and the benefits are nice. We are now working on our 4th property as a rental. We manage them ourselves and have been lucky to not have anything major happen to them. Having the passive income is what has been really nice. It means that even if I do quit, I don't have to stress. Doesn't hurt that the wife is killing it in the real estate market...soooooo...yeah. Not sure if retirement will go as planned...but it will happen. Probably when the kiddo is out of the house.

Quote from Jonathan Thompson

We recently paid off the house, so that kinda triggered me to look at where we are financially, hence my question. I'm pretty sure the wife will retire soon (she just turned 40 this year.) I'm sure that will start costing me money.

Jonathan I agree on the rentals. I really like duplexes. The two incomes really work well especially if you can find a deal from another investor trying to flip. The up side is the income and the increase in value on the properties. We don’t have the bubbles in the market like some states so it’s a little easier in Texas. I have 2 duplexes and two houses I rent. Nets about 30k a year. Then we have a commercial property that exceeds much much more. Start with houses and go from there.

That is how I do it and I damn sure do not have a million dollars, it would be nice. As far as work after retirement, I do not want any thing that I have to do, to dictate what I have to do each day. That is why they call it retirement, other than taking care of the home place that is all of the work that I do.

Quote from lowlander

Retirement is so great! We summer in Nova Scotia and winter in Florida. Wonderful places for each of those seasons. The SS is trailered to Fl in Nov, and back to NS in May. We are not wealthy. But have a pretty good life. In my opinion, enter retirement debt free. Pay cash for stuff. But others will have different (and equally correct) opinions on both issues.

I would like a little more so that I could stay on the road more, but I do have enough to do pretty much as I want. The biggest problem with retirement for some is that they have no interest other that work and the almighty dollar. Retirement is time to step back and enjoy life and do some of the things that you have always wanted to do. I pretty much stay busy doing something every day, the SS is like a bastard child always something that I can do. I have been retired since Nov. 2005 at 58 years old and have enjoyed every day and you really learn to appreciate every day after a doctor just about kills you. Not a day goes by that I do not think about that, so you had better enjoy life while you can.The two pieces of advice that I have is to have everything paid off by the time you are 55 and contribute all that you can into a 401 or some type of savings for retirement.

Quote from Spudinator

Jonathan I agree on the rentals. I really like duplexes. The two incomes really work well especially if you can find a deal from another investor trying to flip. The up side is the income and the increase in value on the properties. We don’t have the bubbles in the market like some states so it’s a little easier in Texas. I have 2 duplexes and two houses I rent. Nets about 30k a year. Then we have a commercial property that exceeds much much more. Start with houses and go from there.

Duplexes and Quads are so hard to find here in Colorado. We have been outbid on 3 this past year. They rarely come on the market and they all need a little work. I am hoping that come this winter we can jump on one.

Best advice I have is don't focus on a "retirement" goal but a lifestyle goal instead. When I was very young I thought retirement by 40 was the goal. When I was 40 I thought another 5 years. When I hit 45 I targeted 52 which I now will be this month. Being completely debt free at 44 has placed me in a position where I could pull the trigger anytime now but the ridiculous rising costs of healthcare have me in yet another wait and see mode. I used to think $2K a month would pay for a good chunk of living expenses now it pays for a high deductible health insurance policy.

I have been fortunate in my career which now spans 32 years and most of it at Fortune 50 companies. Rather than retire completely I have decided to switch gears and do something a bit different that will afford me the lifestyle I want to maintain, all the free time I can stand and without requiring me to completely leave my profession. So far its awesome and can see myself maintaining this "lifestyle" for at least another decade, maybe more. I'm not putting anymore deadlines on myself and going to simply enjoy every minute I have left with my family and friends......

Just to throw in a touch more advice, purchase rentals strictly based on cash flow. People try to invest based on what they think the property will be worth some day. That’s the wrong approach.

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My plan which can always change is to be done at 52 which 90% of my health care will be taken care of. I want to move to Florida and work part one or full time if it’s something I like. My wife will be 65 when I’m 52 I will still probably work but not the crazy hours I work now!

While I have friends that have been successful owning rental properties I would advise anyone looking into this type of business venture to do your research carefully and proceed with caution. It's absolutely not for everyone, hence the advice already given that many will hire someone and cut a check for 8% of their gross profits to avoid having to deal with the daily headaches and stress that goes along with managing renters and property maintenance. This is a full blown business venture and not a sideline activity that simply generates income and "manages itself."

I would instead encourage anyone with enough ambition (and financial resources) to start a property rental business to look into the vast array of business opportunities available to them. It's literally endless and the most successful business owners are those that are passionate about what they do and will maintain a drive to be involved in the day to day in some capacity. Just like real estate any other type of business grows in value as you grow it.

My parents are in their late 70's and the property they own and rent affords them a pretty good lifestyle above and beyond what they receive from Social Security benefits. It just happens to be a farm they rent rather than an apartment. They only have to deal with 1 renter and they get to keep all the profits.