Money in, money out (rental income)...

[SAtoUS]

All the income coming in from out rentals covers ALL of our monthly expenses. All of it, every cent and then some. The extra, not a lot, we use for travel, good food, good wine just leave it in da Bank or for when a property sits empty.

We are not using ANY of our principal whatsoever and at age 48 (both of us), of course, no SS just yet.

All the rentals have an escalation of 4% (on average) so that should take care of inflation.

I'm not that concerned bout the market or running numbers with FIRE Calc... why? I don't need any or use any of our principal.

Anyone else in the same boat?

 

[nun]

Anyone else in the same boat?

A similar boat, but I have a DB pension to complement the rental income. The two cover my expenses and I like that the rental is just a single unit and not much trouble.......but I do have to buy a new washing machine for it today.

 

[SheitlQueen]

I don't touch my principal either. Survivors SS benefits and rental income cover more than my monthly expenses. I still ran Firecalc anyway and it was nothing but good news

 

[SAtoUS]

A similar boat, but I have a DB pension to complement the rental income. The two cover my expenses and I like that the rental is just a single unit and not much trouble.......but I do have to buy a new washing machine for it today.

That's what? $400

 

[SAtoUS]

I don't touch my principal either. Survivors SS benefits and rental income cover more than my monthly expenses. I still ran Firecalc anyway and it was nothing but good news

I have to say, I play around sometimes too with FIRE Cal, just to feel good. Nothing but good news is a great feeling!!

 

[marko]

Anyone else in the same boat?

Does being the beneficiary of a trust fund count?

 

[SAtoUS]

Does being the beneficiary of a trust fund count?

Wow, even better, that's nice!!

 

[CaliKid]

Does being the beneficiary of a trust fund count?

If it's vested in you yes that's good... and assuming you have some regular distributions and don't have to rely on a third party trustee. On the other hand, if it's just a future interest then it's not as good in my opinion.

 

[Fedup]

I don't understand this thread. We are dancing over $400, Is this correct?

 

[Joylush]

All the income coming in from out rentals covers ALL of our monthly expenses. All of it, every cent and then some. The extra, not a lot, we use for travel, good food, good wine just leave it in da Bank or for when a property sits empty.

We are not using ANY of our principal whatsoever and at age 48 (both of us), of course, no SS just yet.

All the rentals have an escalation of 4% (on average) so that should take care of inflation.

I'm not that concerned bout the market or running numbers with FIRE Calc... why? I don't need any or use any of our principal.

Anyone else in the same boat?

Yes. I live off my rental income and still have a lot left over to save. I'm lucky in that I'll likely never run out of money. I still worry. I guess it's my nature. I worry about being sued. I worry about the taxes my estate will have to pay. I worry about my heirs blowing it all. But I'd rather have those kind of worries than worry about paying bills or losing my job.

 

[marko]

If it's vested in you yes that's good... and assuming you have some regular distributions and don't have to rely on a third party trustee. On the other hand, if it's just a future interest then it's not as good in my opinion.

Multi generational family trust. Been paying beneficiaries since the 1930's.

 

[rodi]

I don't understand this thread. We are dancing over $400, Is this correct?

No - the OP is dancing over the fact that the rental income stream (net) covers their expenses with a little left over.... so no need to touch the principal.

 

[SAtoUS]

Don't worry, it's not worth it, you will be just fine.

You are soooo right, rather worrying about thinks like that, than paying bills or losing your job.

 

[Sunset]

Yes. I live off my rental income and still have a lot left over to save. I'm lucky in that I'll likely never run out of money. I still worry. I guess it's my nature. I worry about being sued. I worry about the taxes my estate will have to pay. I worry about my heirs blowing it all. But I'd rather have those kind of worries than worry about paying bills or losing my job.

I can add to the worries:
How about hurricanes or tornadoes wiping out your properties, or large forest/brush fires burning them down.

 

[rodi]

I can add to the worries:
How about hurricanes or tornadoes wiping out your properties, or large forest/brush fires burning them down.

And most importantly - don't forget meteors!!!

 

[SAtoUS]

I can add to the worries:
How about hurricanes or tornadoes wiping out your properties, or large forest/brush fires burning them down.

What takes care of those worries, is called insurance.

Worries that I have but there's no insurance for that, 1600 Pennsylvania Ave

 

[SAtoUS]

And most importantly - don't forget meteors!!!

lol... and all the monsters under my bed at night too.

 

[VFK57]

We only partially rely on rental income, other sources are dividend paying stocks, CDs, bonds. In regard to the rentals income I think every asset could face ups and downs. For example housing rental demand depends a lot on economy, jobs in an area, schools rating, safety of neighborhood etc. Look at Detroit area. Once it was car making capital with a lot of jobs, high rent (at least in some neighborhoods) and plenty of renters competing for housing and we are all aware of what it looks like now. Same applies to stocks, bonds and even CDs. Ten - fifteen years ago you could easily get 4 to 5% interest from CD while currently 5years CD is only 2.25% at best. I think it is better to have diversification.

 

[Just_Steve]

Worries that I have but there's no insurance for that, 1600 Pennsylvania Ave

 

[Fedup]

No - the OP is dancing over the fact that the rental income stream (net) covers their expenses with a little left over.... so no need to touch the principal.

Oh that's nice. Good reason to dance.

 

[Fedup]

I worry about earthquakes. I'm in California.

 

[steadystate]

Good Lord, would you people stop with the bragging. What's the point besides stoking your egos? "Multi generational family trust" ... give me a break!!!

 

[SAtoUS]

Good Lord, would you people stop with the bragging. What's the point besides stoking your egos? "Multi generational family trust" ... give me a break!!!

I kinda know what you mean, I was just sitting here on my private yacht, with 8 personal servants, eating caviar, overlooking the French Riviera thinking... why do people have to be like that? Braggadocio

 

[marko]

Good Lord, would you people stop with the bragging. What's the point besides stoking your egos? "Multi generational family trust" ... give me a break!!!

I kinda know what you mean, I was just sitting here on my private yacht, with 8 personal servants, eating caviar, overlooking the French Riviera thinking... why do people have to be like that? Braggadocio

Sorry. I wasn't clear. I wasn't talking about myself. Long time posters know me better.

The question was 'what kind of trust fund'? That's what they're called and that was what I was referencing.

In my neck of the woods they're not that uncommon. Almost half my classmates had their "F.U. Money" (you can't tell me what to do anymore) coming their way and several of my current neighbors are in that category.

It could range from a few thousand bucks a year to a goodly amount. They also often come with strings attached: you must remain gainfully employed; not get arrested; do some public service, etc.

 

[Joylush]

Good Lord, would you people stop with the bragging. What's the point besides stoking your egos? "Multi generational family trust" ... give me a break!!!

It didn't sound like bragging to me. More like just answering a question. I thought this was a place where folks could actually be honest about their financial situation without being shamed. Not really many venues where you can feel free to discuss your over abundance concerns without being unfairly judged.