Are you referring to nominal or real returns of 8+% ?It is not at all hard to average 8+% if capital gains are included, but one cannot withdraw 7% from this account. Don't forget volatility. It is really a high wire act without a net.
Are you referring to nominal or real returns of 8+% ?It is not at all hard to average 8+% if capital gains are included, but one cannot withdraw 7% from this account. Don't forget volatility. It is really a high wire act without a net.
Right. Thanks, and I agree with your point.Nominal
I'm 61 also and retired. I thought we were being fairly conservative living on 60000 yr with 2.4 M portfolio but compared to you we look down right irresponsible. I'm hoping you are being more conservative than is really necessary to maintain your level of spending. Maybe you want to leave more assets to your heirs?
It is not at all hard to average 8+% if capital gains are included, but one cannot withdraw 7% from this account. Don't forget volatility. It is really a high wire act without a net.
If someone needs, for example, 3% from a portfolio, he should save until he has enough invested assets to make 3% from conservative dividend paying and dividend growing stocks and or TIPS. Then stay out of principle, including inflationary gains to the principle. For me, I want the corpus to grow a bit in real terms, as I like a slowly increasing standard of living, not a slow death of the portfolio, and not a lot of hoping and nail biting.
But hey, it might be a terrible method, it's only worked for 25 years so far.
Ha
I agree with an earlier post-consider rental property, esp. single family homes. I have never earned less than 10-12% on paid off properties, (less if you pay for management help-however, the tax benefits of deductions should offset those costs and then some).
Many real estate people are noting the change in attitudes about home ownership, esp. with the young. Many are afraid to make the investment plunge and will become long term renters. Good long term investment with prices so low and people always needing a roof over their heads.
No doubt about that. The large majority of people do it differently.It works for you and it works for me but it may not be the only way to do things.
And compared to yours, our heirs will probably have a lot less to console them when we're gone.No doubt about that. The large majority of people do it differently.
And compared to yours, our heirs will probably have a lot less to console them when we're gone.
Somehow I don't think this is a compliment. But remember, I am a cantakerous old man, and we are famously conservative. I've heard some of these newfangled whippersnapper ideas, and I don't like 'em!And compared to yours, our heirs will probably have a lot less to console them when we're gone.
Can I quote you on that?But remember, I am a cantakerous old man...
Ha
Tell us a bit about the area you operate in? How many units/per building do you like? Do you manage, as well as do maintenace and apartment turnovers yourself or hire it all out? If you have time, please tell us what a building might cost, and what your gross expenses on this building might be.Such a great thread! Just wanted to jump in recommend rental property as a viable option for getting the kind of returns you want. You can borrow up to 75% of the value of an apartment building at roughly 4% right now. As long as you make sure not to really over-pay, you should be looking at pre-tax returns of 8-10%. And, if you pick a gentrifying area, I'd expect that yield to rise over time.
Silver Lake's been on the up and up for years now hasn't it? Then Echo Park was supposed to be the new Silver Lake. Now I'm hearing that the hipsters are invading Highland Park.I'm in a gentrifying area of LA called Silver Lake.
How about Boyle Heights? For me, gay men are the major gentrifiers and markers of an improving neighborhood, not those nasty hipsters with their cigarettes and skinny jeans and pasty complexionsSilver Lake's been on the up and up for years now hasn't it? Then Echo Park was supposed to be the new Silver Lake. Now I'm hearing that the hipsters are invading Highland Park.
How much further east are they going to go?
Please Pm me the link. Who knows what "they" will do.By the way: Do they not allow you to post links here? I put one in a previous post and it's supposedly "under review"... any idea why?
By the way: Do they not allow you to post links here? I put one in a previous post and it's supposedly "under review"... any idea why?
In my usual fashion, I remember something funny that someone said, but don't remember who it was. It could have been someone I know, or could have been someone on this board.For me, gay men are the major gentrifiers and markers of an improving neighborhood, not those nasty hipsters with their cigarettes and skinny jeans and pasty complexions
There is an automatic "spam-catcher" program for new members. It quarantines posts with links until they are reviewed and approved by the moderators. We'll take a look at your post and the link and approve it if warranted.