Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 27-04-2011, 10:02   #46
Registered User

Join Date: Feb 2011
Posts: 586
Images: 3
Re: Retirement Salvage

The old adage about buying land: "They ain't makin' any more of it," holds a lot of truth. I would think that the likelihood of land prices going much lower than they are now are slim. There is no r.e. recovery on the horizon but I think we're bumping along close to the bottom. If I had a large chunk of money right now, it would either remain in cash or in land at depressed levels but I would NOT be leveraging any r.e. nor would I get into the risks of renting, although it is tempting for the income. Lorenzo's advice above about paying a pro who knows about trust investments is good. The only problem is finding someone you trust who knows what he/she is doing. Asking wealthy friends who they use is the way to go. A caveat on land investing (which I'm sure you know) is that you really have to know the local market (that "location..."thing), the history of the piece (buried tanks, etc., and the relative value. Land can remain a 0 investment for many years. Probably the best bet would be to buy a lot or two in a known subdivision there in FL that has been really pummeled in price. Then be prepared to wait. The current capital gains structure is very likely to change as well which is something I am very worried about, having seen the results during the 70s/80s.
__________________

__________________
smurphny is offline   Reply With Quote
Old 27-04-2011, 10:03   #47
Registered User
 
Ti' Punch's Avatar

Join Date: Mar 2009
Location: Hampton Roads, VA
Boat: Fountaine Pajot, Antigua 37 - Ti' Punch
Posts: 155
Re: Retirement Salvage

capngeo,

I think you are right to worry about the solvency of the state. Just think about it for a minute. The Boomer generation is retiring. There will be fewer workers supporting a greater number of retirees than ever. On top of that, thanks to improvements in health and medicine, the retirees will be living longer than ever. By your own estimate, you may potentially live more of your life in retirement than you did in working years. You are probably not an isolated case. There is no way the State/Federal governments are going to be able to keep all the promises they have made. What cannot happen, won't. There will be a default of some kind. That would eliminate option #1 in my mind.

If real estate is what you are comfortable with, I would follow the advice you have received so far and get a good lawyer that can walk you through setting up your own retirement trust so you can take option #3 without the big upfront tax hit. It will be a little more work than just getting a check every month, but to me, relying on option #1 would be crazy.
__________________

__________________
Ti' Punch is offline   Reply With Quote
Old 28-04-2011, 08:33   #48
Registered User
 
lorenzo b's Avatar

Join Date: May 2009
Location: Panama
Boat: Steel trawler 63' Eileen Farrell
Posts: 961
Re: Retirement Salvage

Jeeze, was it yesterday the Dow cracked 26.6?
It's about 3 pts from 12.7 today.
Better sell quick, who knows where it will be tomorrow.
We may all have to pay taxes.
__________________
lorenzo b is offline   Reply With Quote
Old 28-04-2011, 10:37   #49
Mooderator
 
capngeo's Avatar

Cruisers Forum Supporter

Join Date: Jul 2010
Location: Key West & Sarasota
Boat: Cal 28 "Happy Days"
Posts: 4,211
Images: 12
Send a message via Yahoo to capngeo Send a message via Skype™ to capngeo
Re: Retirement Salvage

Thanks for the replies. So far, almost every "advisor" turned out to be a salesman, and the ones that weren't were all steering me to traditional (stocks) investments... I guess I need to keep looking.

The RE I have made money off of has all been rental property. As long as the rental income vs. cost numbers make sense, it's hard to go wrong. I don't worry about maintenance, as there is NOTHING on a house I can't fix. Insurance is not too bad as I usually carry a high deductible ($10K). Taxes, well they are what they are. The key to successful rental is selecting the right tenant; I'll let a unit sit idle for 6 months before I rent to someone who I don't feel is right. Gains in property value is only a bonus.

My average income has been in the 10% area on investment... BUT with a mortgage, the interest is deducted... even so, I've been seeing a 3-5% "profit". I'd like to be my own "bank" and keep the whole 10% for me. I'll look into the trust, thanks!
__________________
Any fool with a big enough checkbook can BUY a boat; it takes a SPECIAL type of fool to build his own! -Capngeo
capngeo is offline   Reply With Quote
Old 28-04-2011, 11:03   #50
Registered User
 
muskoka's Avatar

Join Date: Jun 2006
Location: Sai Kung, Hong Kong
Boat: FP Lavezzi 40 / Hatteras 48
Posts: 775
Re: Retirement Salvage

As long as your retirement funds are essentially a promise from another entity (corporation or government) you run the risk of that promise being revisited. Annuities from a reputable company excepted, probably.

The best strategy would be to speak with a lawyer & accountant & (paid) financial advisor and try to "ring fence" your pension. I've no idea what that would entail but a few thousand bucks on professional advice might be well invested. Spend a lot of time vetting who you talk to.

I don't have a "pension" - I've run my own business and have had to plan for no old age subsidies beyond a government stipend which I plan to spend on a bottle or two of rather nice Chianti. The rest of my lifestyle is well funded by a few decades of hard graft.

I think it's a travesty that pension promises seem to be so easily repudiated. Thankfully the Chairman got his golden parachute though (he did work ever so hard after driving his first corporation into the ground)....
__________________
muskoka is offline   Reply With Quote
Old 28-04-2011, 11:09   #51
Registered User
 
lorenzo b's Avatar

Join Date: May 2009
Location: Panama
Boat: Steel trawler 63' Eileen Farrell
Posts: 961
Re: Retirement Salvage

It works very well when you can do all your own maintenance and manage the property, but that hardly sounds like retirement to me.

If you buy an old fishing boat, you'll really find out what work is.

I would still look into placing all you wealth in a retirement trust fund, just for the protection. Assets have a nasty way of being targeted by lawsuits. Top off your insurance with a huge umbrella, it's not that much more.
__________________
lorenzo b is offline   Reply With Quote
Old 28-04-2011, 11:23   #52
Mooderator
 
capngeo's Avatar

Cruisers Forum Supporter

Join Date: Jul 2010
Location: Key West & Sarasota
Boat: Cal 28 "Happy Days"
Posts: 4,211
Images: 12
Send a message via Yahoo to capngeo Send a message via Skype™ to capngeo
Re: Retirement Salvage

Quote:
Originally Posted by lorenzo b View Post
It works very well when you can do all your own maintenance and manage the property, but that hardly sounds like retirement to me.

If you buy an old fishing boat, you'll really find out what work is.

I would still look into placing all you wealth in a retirement trust fund, just for the protection. Assets have a nasty way of being targeted by lawsuits. Top off your insurance with a huge umbrella, it's not that much more.
hehe, call me daft, but I actually enjoy fixing up old houses. It is kind of the Yang to my career as a firefighter; we tear the heck out of a house when fighting fire!

BTDT with old boats BTW!
__________________
Any fool with a big enough checkbook can BUY a boat; it takes a SPECIAL type of fool to build his own! -Capngeo
capngeo is offline   Reply With Quote
Old 28-04-2011, 11:30   #53
Registered User
 
muskoka's Avatar

Join Date: Jun 2006
Location: Sai Kung, Hong Kong
Boat: FP Lavezzi 40 / Hatteras 48
Posts: 775
Re: Retirement Salvage

Quote:
Originally Posted by capngeo View Post
hehe, call me daft, but I actually enjoy fixing up old houses. It is kind of the Yang to my career as a firefighter; we tear the heck out of a house when fighting fire!

BTDT with old boats BTW!
Hell! Do what Wall Street does: Insure the hell out of them and stand back with a cigar & whisky whilst they burn, baby burn.
__________________
muskoka is offline   Reply With Quote
Old 28-04-2011, 13:21   #54
Registered User

Join Date: Feb 2006
Location: Anacortes, WA
Boat: Maine Cat 41
Posts: 325
Re: Retirement Salvage

I retired at 52 with a lump sum payout which I rolled over into a 401k for my 'new' business which hasn't made (nor lost) a penny. That lump sum has now more than doubled in just 5 years so despite not getting a great lump sum (due to early retirement) I'm probably at the same place I'd be if I retired today and took a lump sum or even better off.

I share the belief that having someone else make the promises and hold the money is risky in today's environment. Despite my belief that real estate still has a ways to fall in many areas, if you can get a positive cash flow without borrowing money, then the purchase price becomes irrelevent. Not only that, but should inflation really roar, then your rental income will roar as well. That's probably the best way to stay on top of inflation.

$0.02
__________________
cchesley is offline   Reply With Quote
Old 28-04-2011, 15:40   #55
Senior Cruiser
 
hpeer's Avatar

Cruisers Forum Supporter

Join Date: Dec 2008
Location: Philadelphia
Boat: Murray 33-Chouette & Pape Steelmaid-44-Safara-both steel cutters
Posts: 3,900
Re: Retirement Salvage

Quote:
Originally Posted by cchesley View Post
I share the belief that having someone else make the promises and hold the money is risky in today's environment. Despite my belief that real estate still has a ways to fall in many areas, if you can get a positive cash flow without borrowing money, then the purchase price becomes irrelevent. Not only that, but should inflation really roar, then your rental income will roar as well. That's probably the best way to stay on top of inflation.

$0.02
There is a lot to this post. Good for you for retiring at 52. The rental property thing can be a bit tricky. We have a property that is doing well for us, but we bought it about 17 years ago. About 12 years ago I looked into buying a second and the prices had gone up so much it no longer made sense. So this might be a strategy for someone earlier in life looking forward to a retirement rather than someone at retirement looking for an income.

I do agree with your point on inflation and rents. I hope!

The other problem with real estate is it comes in big bulky packages. It's hard to sell a wee bit in order to buy a lunch.

I do however share the pessimistic view about today's economy and our financial status. I just don't have a good counter solution.
__________________
hpeer is offline   Reply With Quote
Old 28-04-2011, 15:56   #56
Freelance Delivery Skipper..
 
boatman61's Avatar

Community Sponsor
Cruisers Forum Supporter

Join Date: Jan 2010
Location: UK/Portugal
Posts: 20,209
Images: 2
Send a message via Skype™ to boatman61
pirate Re: Retirement Salvage

After listening to you guys.... I'm so happy I'm broke...
No Ulcers... no Stress... no Worries...
boatman61 is offline   Reply With Quote
Old 28-04-2011, 17:04   #57
Registered User

Join Date: Nov 2010
Location: Erie Canal between Rochester & Buffalo
Boat: 1970 23' O'day pop-top
Posts: 471
Re: Retirement Salvage

Quote:
Originally Posted by boatman61 View Post
After listening to you guys.... I'm so happy I'm broke...
No Ulcers... no Stress... no Worries...

Yep. It's all about attitude, or, the attitude of gratitude.
Sorely and sadly missing in those that have.
You smart man boaty.
Kenny
__________________
kenny chaos is offline   Reply With Quote
Old 28-04-2011, 20:22   #58
Registered User
 
Doodles's Avatar

Join Date: Nov 2009
Location: Virginia, USA & Krabi, Thailand
Boat: Wauquiez Pretorien 35; Nordica 16
Posts: 2,810
Images: 1
Re: Retirement Salvage

Quote:
Originally Posted by kenny chaos View Post
Yep. It's all about attitude, or, the attitude of gratitude.
Sorely and sadly missing in those that have.
You smart man boaty.
Kenny
O.K., just give me all your money and you can be as happy and carefree as boatman.
__________________
Mundis Ex Igne Factus Est
Doodles is offline   Reply With Quote
Old 28-04-2011, 20:32   #59
Freelance Delivery Skipper..
 
boatman61's Avatar

Community Sponsor
Cruisers Forum Supporter

Join Date: Jan 2010
Location: UK/Portugal
Posts: 20,209
Images: 2
Send a message via Skype™ to boatman61
pirate Re: Retirement Salvage

Quote:
Originally Posted by Doodles View Post
O.K., just give me all your money and you can be as happy and carefree as boatman.
3mths to late mate.... he's spent it all on a really sweet boat..... lmao
Which reminds me....
Kenny... have you collected it yet or is it still iced up...
boatman61 is offline   Reply With Quote
Old 28-04-2011, 20:43   #60
Registered User

Join Date: Nov 2010
Location: Erie Canal between Rochester & Buffalo
Boat: 1970 23' O'day pop-top
Posts: 471
Re: Retirement Salvage

Quote:
Originally Posted by boatman61 View Post
3mths to late mate.... he's spent it all on a really sweet boat..... lmao
Which reminds me....
Kenny... have you collected it yet or is it still iced up...

I'm sorry. I can't afford to answer that.
__________________

__________________
kenny chaos is offline   Reply With Quote
Reply

Tags
salvage

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Salvage Lein Matt sachs Dollars & Cents 23 01-09-2010 12:22
Insurance/Salvage ksmith General Sailing Forum 5 26-08-2008 09:07
salvage rights swami maximus Off Topic Forum 6 23-01-2007 02:48
salvage rights sluissa Off Topic Forum 11 22-01-2007 12:50
tow or salvage? tauras Dollars & Cents 0 07-09-2004 17:09



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 20:18.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.