Advice from those 60 yo and up!

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
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frugalhen
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Advice from those 60 yo and up!

Post by frugalhen » Wed Jan 12, 2011 5:58 am

I am in my early 40's and would like to hear some advice from those over 60 regarding 3 areas: investing, housing, and career (jobs):

Specifically, what are the greatest lessons you learned or what things do you know now that you wish you knew earlier regarding:

Investing

Housing/real estate

Career/jobs

caaaad
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Post by caaaad » Wed Jan 12, 2011 7:00 am

You can choose to listen to cnbc and the wall street people, but when you are ready to act, act on the information you receive here. I'm too embarrassed to share what this lesson cost me learn. Don't be afraid to low ball an offer on a home purchase. You can always go up. I ran a business for years and noticed some of my employees did not care to run a business and were perfectly happy. Find what works for you. I always had a life plan of friends and family first but the truth is everything is needed.Balance is the place you want to be. Read the book by Scott Peck" The road less traveled". Don't be afraid or think it is weak to examine your emotional makeup. It is empowering. Become more childlike to become closer to God. Give and receive. Be objective and treat your investments as though you are a money manager

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frugalhen
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Post by frugalhen » Wed Jan 12, 2011 8:02 am

thanks, keep it coming, I love that advice and think it is right on the money (so to speak) :lol:

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frugalhen
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Post by frugalhen » Wed Jan 12, 2011 8:03 am

I forgot to mention, "the Road Less Traveled " is the best non fiction book I ever read! I have advised others to read it as well!!!

caaaad
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Post by caaaad » Wed Jan 12, 2011 8:25 am

I also forgot to mention a saying I love. " The straightest line between two hearts is a sense of humor". In my world humor trumps everything. lol. Its all over too quick. haha not funny

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LonePrairie
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Don't panic

Post by LonePrairie » Wed Jan 12, 2011 8:37 am

The Hitchhiker's Guide's cover advice worked well for me: "Don't panic." By that I mean keep saving and investing according to your asset allocation. Don't go crazy and sell everything when the market dips.

RadAudit
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Post by RadAudit » Wed Jan 12, 2011 10:38 am

I started to get serious about investing when I was in my early 40's. So, it's as a good as time as any to start. And thanks for asking the 60+ for an opinion. But, like all opinions ...

Unless you are in business for yourself, investing is fairly simple. Usual Boglehead stuff - Low cost index funds that cover the markets. Asset allocations you can live with. Live below your means. Contribute regularly. What gets you with investing is life events. Divorce - marry a women you want to stay married to. Do what you should to make sure you have a good chance to stay married, after that it's beyond your control. Kids - Invest your time with them, they'll choose the nursing home you go to. Make sure they are educated to the point they can take care of themselves - it's cheaper than feeding, clothing, housing and bailing them out for the rest of their lives.

Housing - Don't buy the biggest home in the neighborhood. Don't make the equity in your home the biggest part of your portfolio.

Career / jobs - Find something you like to do, you'll be doing it for a long time. Don't stay with a job you hate. There's not enough money to compensate for ulcers.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

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frugalhen
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Post by frugalhen » Wed Jan 12, 2011 10:49 am

Great stuff! Keep it comIng!

hidesert
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Post by hidesert » Wed Jan 12, 2011 12:49 pm

Investing: Just learn from this site and stay the course. Don't panic. Don't sell after everything goes down and don't buy after everything goes up. Start early and save consistently.

Housing: First of all, choose a place to live where you like the people of the area. Second, don't buy the biggest, fanciest place you can afford. If you are married buy a place you can support on one income. Don't believe anything a real estate agent tells you. You have to look out for your own interests in a real estate transaction. Everyone in the industry is just out for their own.

Career: Do something you like and do it well. But don't neglect your family in the process. Life is short. Kids grow up too fast. Be proud of what you do. Always behave like someone will review your work and hold you accountable because someday they will.

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Post by btenny » Wed Jan 12, 2011 1:58 pm

This is how my wife and I did it. Your approach may be different.

Investing: In order to retire comfortably and relatively worry free I think you need multiple sources of income or be very lucky and inherit a big pile of money. We both draw social security, we both draw small pensions from previous jobs we stayed at a long time, we both have 401K/IRAs that we invested in for years, and we have other taxable savings that we also invested. We also did some rental real estate investing. So net net we have several pots of money that can be used as incomes each not so much but added up make a nice retirement.

Use sweat equity to start a small business or to improve rental properties you buy. Do this work after hours from your day job. Do this investing when you are young and have the energy and use the miracle of compounding to make small money grow to large money over time. When you are old you may decide to sell out rental properties and not work so hard or just use the cash flow as nice adders to your other investments and SS...

Houses: We bought several over the years and downsized when we retired to save money and increase our nest egg. We bought big when we had kids at home and made equity by staying 20 years. We never had the biggest house or the worst house but we did live in nice neighborhoods. We shopped very carefully. Do not destress about the current market too much. We once paid 14-16% interest on our home loan. We used sweat equity to improve the homes we owned over the years.

Lifestyle/career: We lived beneath our means all our lives. We lived in low cost areas but worked good jobs. We both liked out work but it was still a four letter word. We stayed at the same jobs for a very long time because it was a better lifestyle than the higher pay and bigger job and higher cost area somewhere else. I was the career guy, my wife worked part time when we had kids. We selected homes that minimized commutes. We saved a lot and worked hard but took care of family and kids and so forth. We had fun at home but took some vacations, mostly by car with the kids. We were lucky and picked the right person to marry the first time and stayed married to the same person.

This was our way, hope it provides some guidance.
Bill

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frugalhen
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Post by frugalhen » Wed Jan 12, 2011 4:31 pm

btenny:

Thanks so much, that is great info, especially about rental income. I have given that some thought, especially in todays distressed markets but I have heard being a landlord can be a nightmare. Unless you mean reit's or something else.

Very helpful, keep it coming!!!

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rcshouldis
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Post by rcshouldis » Wed Jan 12, 2011 8:47 pm

Investing - Start when your YOUNG. Develop a habit from youth to ALWAYS save a portion of your paycheck before anything else. Study investing and learn about risk before you put a dime in the market.

Real estate - Before you buy a home make sure you understand and save for ongoing maintenance costs such as Roofing, carpeting, windows/doors , insulation, heating/AC, etc. Don't get so excited about owning a home and overlook these long term costs.

Jobs - Don't focus too narrowly on a career. Will that job/career be around in 5 , 10 or 15 years from now? If you find your unhappy with a job don't be afraid to take action to find another job or career whether that includes training or not.

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frugalhen
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Post by frugalhen » Wed Jan 12, 2011 8:58 pm

rcshouldis wrote:Investing - Start when your YOUNG. Develop a habit from youth to ALWAYS save a portion of your paycheck before anything else. Study investing and learn about risk before you put a dime in the market.

Real estate - Before you buy a home make sure you understand and save for ongoing maintenance costs such as Roofing, carpeting, windows/doors , insulation, heating/AC, etc. Don't get so excited about owning a home and overlook these long term costs.

Jobs - Don't focus too narrowly on a career. Will that job/career be around in 5 , 10 or 15 years from now? If you find your unhappy with a job don't be afraid to take action to find another job or career whether that includes training or not.
thanks so much! I wish I had the career advice 15 years ago because I could have used that! Now i'm low 40's and need to find a different industry!

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robolove
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Post by robolove » Wed Jan 12, 2011 9:37 pm

If you were 30 years younger...

What kind of business would you start and run?

gd
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Post by gd » Thu Jan 13, 2011 8:26 am

I did not rush to upscale my college student lifestyle and mindset as I got older, until I had so much saved as a result that I was starting to feel stupid about it. I have no regrets about not indulging myself, in fact I often miss the lifestyle; it was clean, simple and focused. Disclaimer: when I was a college student, they lived according to their financial resources. Lived in hovels, rarely had cars, never ate in restaurants, never had credit cards, minimal appliances, no spring break in warm party towns. I hear it's different nowadays.

dadipetrillo
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Post by dadipetrillo » Thu Jan 13, 2011 11:29 am

I'm really enjoying this thread as well. I'm in my mid-20's and reading these responses gives me some great advice as I move forward in my career. I hope this thread can really grow into a great reference point.

Dandy
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Post by Dandy » Thu Jan 13, 2011 12:04 pm

Investng - broad based index funds, even 5% of company stock was too much, don't be afraid to take profits even if it means taxes, I know there was a real estate bubble but didn't think it would blow away my non related job.

Real Estate - Didn't follow others and trade up awhile ago since my mortgage was paid. House paid off well before retirement.

Careers - Nothing is secure. Worked for two large blue chip companies in the mutual fund servicing business. Had excellent relationships with Senior Executives and was well compensated. I felt I was in a very secure position, well liked in a subsidiary with a hot product. In a flash the rug was pulled out of me and a lot of others iln both companies due to outsourcing, bubbles bursting and significant changes/problems in the other parts of these companies.

btenny
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Post by btenny » Thu Jan 13, 2011 12:26 pm

Yes rental real estate is a big hassle but when you are young you can sleep 5-6 hours a night and do fine. That way you can spend say 1-3 hours a night (if needed after work) working sweat equity putting tile in a bathroom or refinishing cabinets or painting a room. The key is to buy cheap and then fix them up and rent them out. Yes it takes time to find rentals and time to rent them out. And yes some renters will trash the units but you do some screening and do the best you can. The key is after a while you learn to see OK renters from bad renters. And you learn that over time you make good money for your time invested.

I owned 5 rentals at one time but sold when I got older and put the money in the market. I have one lady friend who with her husband committed to buying one rental per year when they were young. Both have high school educations. They both worked day jobs and worked their butts off taking care of all this stuff. She still works hard managing this stuff but makes a bundle. Last count I think she has over 30 rentals most paid for and all generating cash flow. She also owns a few businesses that take care of her rentals and others as well. So she does very well. Well into 8 figures. Two other friends did similar things but now own bigger buildings. Same results.

Bill

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frugalhen
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Post by frugalhen » Thu Jan 13, 2011 2:14 pm

btenny wrote:Yes rental real estate is a big hassle but when you are young you can sleep 5-6 hours a night and do fine. That way you can spend say 1-3 hours a night (if needed after work) working sweat equity putting tile in a bathroom or refinishing cabinets or painting a room. The key is to buy cheap and then fix them up and rent them out. Yes it takes time to find rentals and time to rent them out. And yes some renters will trash the units but you do some screening and do the best you can. The key is after a while you learn to see OK renters from bad renters. And you learn that over time you make good money for your time invested.

I owned 5 rentals at one time but sold when I got older and put the money in the market. I have one lady friend who with her husband committed to buying one rental per year when they were young. Both have high school educations. They both worked day jobs and worked their butts off taking care of all this stuff. She still works hard managing this stuff but makes a bundle. Last count I think she has over 30 rentals most paid for and all generating cash flow. She also owns a few businesses that take care of her rentals and others as well. So she does very well. Well into 8 figures. Two other friends did similar things but now own bigger buildings. Same results.

Bill

Thanks! you have given me something to research! I also like that you think I am young in my ealry 40's!

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