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Post by Reagan on Feb 28, 2017 5:55:13 GMT -6
Shit, right now, about the only safe place for health insurance is to work for a company that is self insured. I was blown away when my company announced no-increase in health insurance premiums this year. Compared to what's happened to many others, I considered that a huge raise. My company isn't self insured but they have hit us with only 1 increase on my high deductible in the 6 years I've been here. I'm pleased with that.
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jselsor
Full Member
Posts: 136
Likes: 79
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Post by jselsor on Feb 28, 2017 6:12:20 GMT -6
On a benefits committee at work and exploring this currently. Many public service districts an municipalities are going to self insurance and then carrying a major medical policy with really high deductible. Seems to be the way to go. Y'all have it together! I'm impressed! Don't know that I will ever have millions in a retirement account. This thread makes me feel like I should be doing more! currently have pension which is 2% of annual salary per yr of service based off highest 3 yrs pay. Roth IRA traditional IRA 5% of annual salary goes towards post retirement health care (my employer makes this contribution. No match required) my wife has pension which is .5% per yr of service of annual salary 403b with 2% match
-plan to select log 287 acres as I can in the next 20-30 yrs. -hope to buy more income producing property as I can. -built my home in growth area that I hope to sell for a profit in my retirement yrs. -keep exspences to a minimum which is tough these days. I don't have cable or internet at home (other than phone). Only miss on rainy days. Have unlimited web access at work.
I struggle back and forth with contributing more to my ira's. I hate to nickel dime my cash flow which helps me keep my debt to a minimum. Like to have cash on hand for a hot deal here an there whether it be a tractor or a gun etc..
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Post by badbrad on Feb 28, 2017 7:08:53 GMT -6
One thing I'm really going to look into is trying to get into the rental property area to try and supplement my income. I guess it depends how the market is doing at that time.
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Post by MoBuckChaser on Feb 28, 2017 7:16:39 GMT -6
One thing I'm really going to look into is trying to get into the rental property area to try and supplement my income. I guess it depends how the market is doing at that time. I have had homes that we rented out at one time. Never again! There is not a damage deposit big enough to repair some of the crap that was wrecked! Good luck!
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Post by badbrad on Feb 28, 2017 7:17:49 GMT -6
One thing I'm really going to look into is trying to get into the rental property area to try and supplement my income. I guess it depends how the market is doing at that time. I have had homes that we rented out at one time. Never again! There is not a damage deposit big enough to repair some of the crap that was wrecked! Good luck!
That certainly is a big concern Mo! Got to find the right renters I guess and I guess that can be hard.
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Post by MoBuckChaser on Feb 28, 2017 7:29:34 GMT -6
I had a beautiful 5 bedroom split entry home in Ramsey MN we rented to what was I thought a great family with good references. I came by the house one Sunday morning to see a 4wheel drive truck stuck in the yard up to the frame, in the middle of the septic runs. They got drunk and thought they would use that wet spot in the yard to hold a mud bog rally! Took me forever to get them evicted. I had just remodeled that place before they moved in with new everything. After a year of them scum bags in there, I remodeled it again. Also cost me $7,000 for new septic lines in a different part of the lawn.
Never fucking again!
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Post by smsmith on Feb 28, 2017 7:35:16 GMT -6
I was lucky as a landlord, never had terrible tenants. That said, there's no way in hell I'll ever be a landlord again.
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jrs1986
New Member
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Likes: 3
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Post by jrs1986 on Feb 28, 2017 8:17:01 GMT -6
Well I've been following this place for awhile since the HT blowup and this thread finally got me to dive in.
Here's my thoughts. Wife and I are 28 and 30 respectively, and no kids. I'm damn lucky and blessed as my wife has a good job and is very smart about money and thinks about the future. We both max Roth IRAs, she puts 5% into a Roth 401k with a 3% employer match, we nearly max an HSA that is not provided by an employer(more on that in a second), and we try to put about 10% into a brokerage acct for general investment. Along with that we try to keep a liquid fund with a year or so worth of expenses on hand at all times, cuz shit always seems to be happening. That keeps us from ever thinking of dipping into to any investments.
Only debts we have are our primary mortgage and a small business loan. Mortgage is 15 yr @ 3.125% that we are doing bi-weekly and making extra payments. Should be done 5 about years early.
The land I hunt and manage is in the family so no cost to me there, although I would like to try to pick something up and maybe see if I could still be debt free by 45 or maybe 50.
I've kicked around the idea of retiring at 50 or so and with returns of 7% (and I know damn well that rate could end up being a pipe dream)it may be possible as long as we keep investing at the same rate. But on the other hand I'm not sure what I'd do at that point, lots of time to think about it either way I guess. I'mean self employed so I may just wanna scale back, what I do isn'the terrible by any means. No matter what I wanna be active in retirement, sitting around ain't my thing.
Being admittedly young and totally stupid, my only advice to people would be to open an HSA if you are eligible as I see most people are concerned about future health costs. I think the only major requirement is having a health plan that is considered high deductible. I opened mine about 5 years ago and manage it myself by just letting the money ride in vanguard index funds and etfs, never taken a distribution from it and Lord willing we won't until we are retired. The tax benefits of it are stupid, it's basically tax free on all fronts initial investment, growth, and distribution as long as it's used toward medical expenses. There is no timetable when you have to spend a dime or risk losing it. Also on the off chance that you saved too much (which seems pretty fricken unlikely to me) you can take regular distributions from it after age 59 just like a Trad IRA, taxes are the only thing you're on the hook for, no penalties.
So that's my 2 cents take it with a total grain of salt...
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Post by MoBuckChaser on Feb 28, 2017 8:29:05 GMT -6
Welcome JRS!
Your program is Great if all the laws stay the same for the next 50 years! Ok course they won't, but it's good to see a plan in place that you can adapt as the country goes broke! Lots of younger people have no plan.
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Post by Reagan on Feb 28, 2017 8:59:12 GMT -6
I have had homes that we rented out at one time. Never again! There is not a damage deposit big enough to repair some of the crap that was wrecked! Good luck!
That certainly is a big concern Mo! Got to find the right renters I guess and I guess that can be hard.
I have had some conversations on this subject with financial people who know more than I. One said that with the low rates and low housing prices in the last several years, most people with any sense have purchased a home. That leaves a small pool of responsible people to rent or just the derelicts. No way I'm getting into the home rental business.
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Post by Foggy on Feb 28, 2017 9:06:08 GMT -6
One thing many young guys don't know.......is that today's retired folks didnt START saving for retirement until many of them were 35 to 40 years old. Why? Because there were no IRA or 401K or tax advantaged plans until then. I don't remember the years for certain......but there was not much money saved until the past 30 years or so. ......and MANY of the depression babies and wwII vets were scared of the stock markets or banks. (maybe still should be?) Then too.....their were unscrupulous mutual funds that would skim 10% off your investements with loads. Lots of bad actors running the investment games back then. I sold mutual funds for a while......and some of the limited partnerships were super fraudulent. Made me sick. I think with the good retirement plans folks are putting together here..... that part will work out. The health care costs are the biggie. When I was thirty.......people that turned 70 were in the old folks home or dead. Today they have an active lifestyle and are being patched up and living far longer and better than before. I suppose we could go back to early deaths and untreated debilitating deaths? Nah.......I don't think so.
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Post by badbrad on Feb 28, 2017 9:12:40 GMT -6
One thing many young guys don't know.......is that today's retired folks didnt START saving for retirement until many of them were 35 to 40 years old. Why? Because there were no IRA or 401K or tax advantaged plans until then. I don't remember the years for certain......but there was not much money saved until the past 30 years or so. ......and MANY of the depression babies and wwII vets were scared of the stock markets or banks. (maybe still should be?) Then too.....their were unscrupulous mutual funds that would skim 10% off your investements with loads. Lots of bad actors running the investment games back then. I sold mutual funds for a while......and some of the limited partnerships were super fraudulent. Made me sick. I think with the good retirement plans folks are putting together here..... that part will work out. The health care costs are the biggie. When I was thirty.......people that turned 70 were in the old folks home or dead. Today they have an active lifestyle and are being patched up and living far longer and better than before. I suppose we could go back to early deaths and untreated debilitating deaths? Nah.......I don't think so.
You forgot the "FORE".
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Post by smsmith on Feb 28, 2017 9:13:53 GMT -6
I suppose we could go back to early deaths and untreated debilitating deaths? Nah.......I don't think so. If something doesn't change, this is exactly what will happen for the "unwashed masses"...already is happening to that group somewhat. The quality of health care here doesn't approach the quality of care near my old place. Why? Because what Dr. in their right mind wants to live/work in L.P.? My Dr. changes at least annually because none of them stick around. That's what it's like here, imagine what it's like in truly rural areas. Access to quality health care will become something only the 1%ers get in the future. I believe the current generation is the first with a lower life expectancy than their parents. That isn't entirely due to health care obviously, but without major changes I don't see the average person's life expectancy continuing to go up.
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Post by Foggy on Feb 28, 2017 9:15:19 GMT -6
^ .....OH......and the taxes? At one time......up into the 70's the higher income folks were paying up to 80% of their top earnings in income tax. 80% So......many of those folks would buy stupid investments that had some kind of chance of making money and write it off. Like oil and gas drilling stocks that never worked out. Art prints like Picasso's and such......and they turned to zilch in value. IT was all a big joke. We've come a long way......but we still got more to do. Count on this......things WILL Change. FORE!!
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Post by badbrad on Feb 28, 2017 9:16:39 GMT -6
That certainly is a big concern Mo! Got to find the right renters I guess and I guess that can be hard.
I have had some conversations on this subject with financial people who know more than I. One said that with the low rates and low housing prices in the last several years, most people with any sense have purchased a home. That leaves a small pool of responsible people to rent or just the derelicts. No way I'm getting into the home rental business.
While that is true with older folks (+35) I disagree with the younger people. Those Millennials do not want to own a home. They don't want yard work. They don't want to be tied down. They want to be able to get up and move when they want. They don't want kids and they don't want to get married. That is the lifestyle of the young people as a whole which should present a boom in two things. Rental properties. Storage Garages with all those apartments.
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