Financial Dancer
Confused about dryer sheets
- Joined
- Oct 17, 2007
- Messages
- 6
My mom is 64 and wondering if she should keep a 3-unit apartment in Los Angeles as her primary form of investment or if she should sell and diversify. Her main goal is to maintain financial independence without going back to work and she would like to pass on as large an inheritance as possible. Here are her details: Her Assets: 3-unit Property: Worth $1.3 million and if she sells she’ll have around $700,000 after taxes, fees and loan payoff. This property brings in around $15,000 in net profits per year. Assuming a 3% inflation, her equity is increasing by $39,000 per year. During the past 2 years, home prices have been dropping slightly. $110,000 in Stock $40,000 in Bonds and CD's $30,000/yr Pension Tax filing: Single If she retires at 66 she'll get $800/mo in Social Security, $1100 if she waits to 70. Should she sell the property and diversify into Stocks, REIT's, Bonds and commodities? She doesn't care so much about whether she owns or rents.