Passive income retirement plan

Discussion in '401k, IRA and Retirement' started by remnant, Apr 23, 2016.

  1. puru rama

    puru rama Active Member

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    According to me 401K is better than IRA.
     
  2. Alexis John

    Alexis John Member

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  3. puru rama

    puru rama Active Member

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    Passive income retirement plan:

    1. Rent out your property
    2. Purchase dividend stocks
    3. Create a side business
    4. Investing in Real Estate
     
  4. ciao

    ciao Senior Investor

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    my thoughts
    1) No thanks
    2) got some (so far so good but I get a better interest % by scalping lol)
    3) I wont to sell mine (olive oil)
    4) all my property are on sale (here I pay a lot taxes) I agree with you if it is a long view (20/30 years) yes today one can buy in bargain ... here every other property-land are on sale ..

    btw Puru rama do you trade any stocks or just forex?
    I am afraid I am useless in forex :(:(
     
  5. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Before putting $ into rental properties, one should do some thinking about it.

    When you buy real estate, you tie money up for a time. Not a big deal if you have more $ than you know what to do with, and can easily meet your own living expenses plus any and all rental property expenses. But for most people, they need to be aware of liquidity risk.

    Plus you need to be aware of any and all maintenance, repairs, property insurance and taxes, any mortgages, utilities, etc.

    And there is also the risk of possible vacancies, bad tenants who may tear things up and not pay you well, etc... It's not easy to evict someone in my state - it's costly and time consuming.

    Not saying that this can't be a very good way to invest one's $ - it certainly can be. But it carries risk and can be a pain in the ass. Like many things, it will probably work better the more $ you have and the more properties you can buy, the more $ you can afford to spend on third parties to do your dirty work, etc.

    I dabbled in rental properties many years ago, and found I was not particularly suited for it - I'm more suited for "paper" investments... I sold my rental properties for a nice profit many years ago - well before the crash, and have since stuck to paper - stocks, bonds, REITs, commodites ETFs, etc.
     
  6. longtermbull

    longtermbull Administrator Staff Member

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    Renting properties out offers much smaller margins than many people realise. The greatest benefit is still from long term capital gain.
     

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