Thread: Retirement/Investment Planning

I will also probably never retire unless...well, if physics goes as far as it is possible to go, I will retire. Otherwise, I'll teach to the day I die just like my hero, Feynmann. That being said, I fully intend to spend my summers sailing on the Great Lakes (can't stand saltwater-bleh) and my evenings playing video games with my 100 THz 16-core processor...muahahahahahahahaha!

I will be starting to put away money on a larger scale once I have a real job. I'm already doing that on a smaller scale with my current job at the station. The only big purchases I make are for long term investments like my upcoming computer (here's hoping nothing goes wrong this time) or brewing equipment. On a related note, getting into brewing your own mead, wine, and beer only requires about $250. It'll save you money in the long run if you're like me and only buy high end brews. The last time I brewed beer (which tasted fantastic btw...I made a nice amber ale) it cost $40 for quality ingredients and netted 48 bottles of beer. On a scale of 0-100, it was about a 93 so it was well worth the investment.

Quick, does Intel offer dividends? If so, it might be good for the long term to keep that stock. Dividends are a nice source of income if you find a company that performs well.

Real estate is where the most millionaires in the US either made or keep their money, and in many cases both. If you don't want to do rent houses look at other options. My medium term goal is to buy/build a storage facility. It has all the rewards of rentals, but with a lot fewer headaches.

Originally Posted by DJ Mr. White

Quick, does Intel offer dividends? If so, it might be good for the long term to keep that stock. Dividends are a nice source of income if you find a company that performs well.

Of course they do. But no, dividends are a lower gain than the average stock or high end CD growth. It's around 4% return (21c a share per quarter * 4 quarters)

I hope to be able to live off of what I have in my pension as well as what I get from selling my stocks and other investments.

Of course things may change, but hopefully I will have enough savings and investments for early retirement. I work hard now so I can rest easier later on.

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Originally Posted by CivilWars

Real estate is where the most millionaires in the US either made or keep their money, and in many cases both. If you don't want to do rent houses look at other options. My medium term goal is to buy/build a storage facility. It has all the rewards of rentals, but with a lot fewer headaches.

The problem.with rental properties is that you need a lot of them to really bring in a good income. Still risky if you ask me.

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Originally Posted by HeavyG

The problem.with rental properties is that you need a lot of them to really bring in a good income. Still risky if you ask me.

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True, but the stock market is suddenly stable? People in both sectors saw half, or more, of their income disappear in a very short time frame. Real estate is no different than anything else, you make money when you buy, not when you rent or sell. I am not necessarily advocating avoiding the stock market and putting all of your money into real estate, although IMO that is a safer "gamble", but to just write real estate off as too risky to even consider is very short-sighted.

Let's say you buy a house for $200k. You charge rent for $1000 a month and let's assume that magically that nothing gets taken out of it, and it all goes back to you. That would take 200 months to break even at $12k a year. If you invested that money earning a very conservative 2%/quarter, you'd make $16k a year. At a still conservative 4%/quarter you're talking $32k a year. Neither of those options involves anything like house maintenance or paying someone to invest for you, but you get the picture.

Both markets are also relatively stable right now ASFAIK.

find a nice piece of desert outside vegas and open up a brothel

If you plan to buy a house for 200K, and rent it for 1K per month then I would advise you to avoid real estate all together.

IMHO to blindly take the advice of someone who is supposedly an "expert" is the biggest risk you can take, regardless of what market you are getting into. Real estate intrigues me. There are so many options available; rent houses, apartments, hotels, commercial property, RV parks, storage units...

Find something you like, and make find a way to make it make money for you.