Retirement plan?

kemco

LawnSite Fanatic
Location
Memphis TN
To piggyback @Derwood the cost of full time day care here, kinda in the middle to upper middle range, ran me $9k a year and the last year of that was 4 years ago so no telling what the price is today. I had an overlap year where I had 2 kids in daycare, yep that sucked knowing we had to bring in almost $25k that year just to have someone else watch my two kids. But wife and I both work full time. I've got no clue how that compares to elsewhere in the US. I would assume we are on the lower end.
 

Observador

LawnSite Senior Member
Location
Lawnsite1210
Don't give up on real estate.

Yes, sometimes there are headaches but if you pick good tenants it's not that bad. In 20 years income property would be almost 2/3 paid and rents higher.

I wouldn't buy anything now because I personally think we are in for a correction but with cash in hand you might get a good deal in a couple years.
 

walkinonwater27

LawnSite Senior Member
Location
ct
I am wondering what everyone does, if anything, for retirement planning?

I am 33 with no kids and a wife, own 500k home in Canada with 100k equity

I considered getting into real estate but don’t want to hassle of being a landlord or giving my profit to a property management company. Real estate is more inflated than the stock market right now.

i have considered stocks, index funds

as it stands, I have 50k invested and can put aside 50k per year very easily while still investing a similar amount in the business each year.

if our income doesn’t decrease, we could retire at 50-57 years old safely assuming the markets don’t go stagnant for 20 years…. That’s not including potential sale of business

I know I have told everyone here I do 100 hour weeks the last 4 years, but when I put in these hours I’m saving about 15k a month after tax with my wife’s income. So I don’t need to sustain these hours to achieve this.

I also plan and expect to get to a point where we do have reliable employees and I can earn a similar income working only 40-50 hour weeks.

wondering what everyone else is doing?

Dive into the market head first. Manage your own money, firms don’t give two licks about you and won’t make you any real money. Research companies , watch the market movement and day trade. One or two , two families in your town couldn’t hurt. Stocktwits , MarketWatch. All the tools you need to make money.
 
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Derwood

LawnSite Silver Member
Location
SE Wisconsin
Dive into the market head first. Manage your own money, firms don’t give two licks about you and won’t make you any real money. Research companies , watch the market movement and day trade. One or two , two families in your town couldn’t hurt. Stocktwits , MarketWatch. All the tools you need to make money.

Hey if you can make retirement kind of money for free, more power to you! When I started my deferred Comp back in the 90's, we didn't do it like that. My son trades all the time. But he's not doing anything for retirement as a student. My thinkingat this time in my life is; my wealth management guy could take a small percentage of a lot more money that he helped me make, than no percentage of a lot less that I make on my own. Do whatever you feel comfortable doing.

If you get a guy who is a fiduciary, you have NOTHING to worry about. Zero .......
 

Tn Turf

LawnSite Senior Member
Location
Spring Hill, TN
Lots of good advice in this thread. I invest in real estate and rental properties. I buy one to two houses every 3 years. I look for wedge deals.

If I don't pay cash for the property, I'll take out a mortgage and have them paid off in about 3 years.

I only mow grass and shut down before Thanksgiving and start back up in March. I'll take a 3 to 4 week vacation. Then I'll work on house shopping. I stay 100% debt free. I don't like paying interest. I keep my money making me more money.
 
OP
M

Mitty87

LawnSite Gold Member
I moved to my city 6 years ago. The house I bought for 460k in 2018 would have been 300k in 2015. Now It is probably 575k. I could buy a rental property right now, but I can't get anything that doesn't need a bunch of work for under 600k. My house I am currently spending 100k on Renos right now and living in the basement which the work is being done.

I have done the research and math, based on historic numbers, owning property should do better than the markets if I rent it out. But, I deal with property management companies and they all seem to do a horrible job here. So I pay 10-20% to have it managed or do it myself. Then I am on call anytime something goes wrong, risk of major repairs, tenants not paying etc. It is impossible to evict someone anymore.

Have also tried trading stocks and lost quite a lot of money admittedly on risky stocks and options. If I put it in the mutual funds with low expense fees (.20% or whatever) it is hard to mess with (takes 2 days for a buy or sell to go through) and I can just worry about work and making money.
 

walkinonwater27

LawnSite Senior Member
Location
ct
Both are good winter jobs if you have 1, I know a landscaper who buys a house in the winter and fixes it up for 3 months, subs out what he can’t do and rents them out. I do all my stock research in the winter and trade the same stocks I find to be low to no risk for that year. No options , penny stocks or junk companies. No debt, making money, products to sell. Market goes down buy, market goes up sell, rinse and repeat. You can do it all from your phone now a days.
 

blake101

LawnSite Senior Member
Location
Columbus,MS
What do most people call enough to retire, 500,000 1,000,000 1,500,000 just curious what people think they need to have?
 

Derwood

LawnSite Silver Member
Location
SE Wisconsin
Just starting to hunt that number myself. We are figuring it "per year" in our situation. You have to know what your expense will be (roughly). Will you need two vehicles when you're retired? Are you gonna snow bird and have a second hiuse? There are all sorts of tax laws that say you need to start taking money out of your retirement at a certain age. I am envious of those who can do all of that on their own.
 

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