Chama Grande
Well-known member
Some jabroni in CA won the powerball yesterday too, so it's back to the drawing board we go
Retirement: When would you like to retire? Do you have a plan to get there?
- Thread starter Southern Elk
- Start date
in all seriousness, a big plan of mine right now that i'm working hard on in our budget is to try to make our current house a rental in the next 5 years.
at 3.5% it's practically free cash. it's the right size for a rental at just under 2,000 square feet. i can't for the life of me imagine selling it if we can help it. we know we will likely be looking to upgrade size as we grow our family and maybe even move closer to our parents and the little cousins.
as long as it can cash flow well enough to cover insurance, mortgage, and maintenance i see it as a no brainer for long term planning.
it ain't gonna be easy, but trying hard to save dilligently to have the cash to be able to buy again without selling.
maybe it's not as good of an idea as i think, if anyone has experience there go ahead and @ me
at 3.5% it's practically free cash. it's the right size for a rental at just under 2,000 square feet. i can't for the life of me imagine selling it if we can help it. we know we will likely be looking to upgrade size as we grow our family and maybe even move closer to our parents and the little cousins.
as long as it can cash flow well enough to cover insurance, mortgage, and maintenance i see it as a no brainer for long term planning.
it ain't gonna be easy, but trying hard to save dilligently to have the cash to be able to buy again without selling.
maybe it's not as good of an idea as i think, if anyone has experience there go ahead and @ me
Irrelevant
Well-known member
so i went with the counter point. I don't have enough time right now. A rental will only take more of my time away. We sold ours. It too was the perfect rental, and while there are times I regret it, generally I appreciate not having it.
best counter point around if you ask me. my wife is leery of the time aspect too.
it just seems like one thing to do, of many options, that can have a huge positive impact on retirement if done right.
we're also thinking about instead using spare cash to buy second place in wyoming to use as a STR and vacation getaway. both big time sucks, yes.
RobG
Well-known member
There can be big tax consequences with turning your residence into a rental. Check with one of those non retired cpas.
wolfpup
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- Joined
- Jul 14, 2015
- Messages
- 454
True that... better be serious about keeping it as a rental long term. Consult with your current CPA about sale of principal residence and the 2 years of 5 rule before your sure about turning it into a rental. Better run some numbers and see if it actually makes sense, or just sell and run. Capital Gains / Depreciation recapture is going to cut your benefits of renting, but you gotta run the numbers.
westbranch
Well-known member
I have had lots of accountants. I even used H&R Blockheads for one year. Another I left after they said they were outsourcing the preparation of my return to India. Even my current one is mediocre. Half our conversations involve me explaining more stuff to them than they do to me. It is a little unsettling.
On the positive side, looks like the labor shortage is being handled on some fronts. Pilots might be able to fly for a couple more years.
Congress considers raising pilot mandatory retirement age
Members of Congress are also considering other FAA policies, including regulating the size of airline seats.www.ksby.com
Virtually all of the big national firms have used overseas outsourcing for years and there is more and more pressure for smaller firms to use it. Hard to see anything improving anytime soon. Higher fees and more extended tax returns will continue for the foreseeable future.
SAJ-99
Well-known member
Pretty sure it will be done via AI in about 3 years.
David Gough
Well-known member
We extend most of our returns and our clients would fire us is we outsourced their PII for data enty.
David Gough
Well-known member
Depreciation recapture is a bitch, but a 1031 is always an option.
David Gough
Well-known member
Look at the rental/vacation home tax rules. Most clients pick one or the other due to timeframe limitations (14 days each way).
RobG
Well-known member
For those of us that grew up with the old meaning of "AI" this seems fitting.
brownbear932008
Well-known member
Flatbrimmer
Well-known member
Nick87
Well-known member
As far as the long term health care planning. I have no plan. But I watched my late grandma of 90 some years old spent the last 5 or so years of her life in one of those places after close to 70 years on the farm in a house her and my grandpa built. Not sure what I'd do but I can tell you I'm not going out like that, ain't no way.
Nick87
Well-known member
Means you need to find a better job?What does this mean?????
Flatbrimmer
Well-known member
FlatlandHunter
Active member
I am on the fence of retiring next year at 48. My wife and I meet with our financial advisor tonight to go over numbers. I can get on her healthcare as long as I am not offered healthcare at any encore career. Only thing we owe on is our house and it will be done within 5 years. 48 is too young for me not to work so I will be doing something if I go. I don’t hate my job or the people I work with just thinking a change would be nice.
trackerbacker
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- Joined
- Jun 30, 2023
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- 453
See if maybe a sabbatical or something can be done, furloughed or something, to "try out retirement"
Your spending increases for a short time but simply out of idle hands and all. See if that's factored in?
FlatlandHunter
Active member
Only furlough would be to use up vacation. I do believe spending would increase just because I would want to take off with the camper more often, using more fuel and campground fees. Most of my close buddies have retired or are retiring in the next few months. Several of them are already back to work FT too. We have a good savings built up but probably not enough.
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