If you are retired and taking out money to live on, the possibility of depleting your investment account accelerates during long recovery periods.
These are the two longest recovery periods on record: 17 & 26 years.
Posted on 08/11/2020 7:39:43 AM PDT by SeekAndFind
Do you live in a Republican or Democrat run state?
"On average, bear markets have lasted 14 months in the period since World War II...The longest was a 61-month bear market that ended in March 1942 and cut the index by 60%."
https://apnews.com/84ee301c404539d8731da34128330752
How would this work during hyper inflation?
Any other suggestions for hyper inflation?
Real estate is a solid business for experts.
It is a high risk disaster for everyone else.
RE: Any other suggestions for hyper inflation?
Anybody notice how precious metals like Gold and Silver have been on a tear the last 3 months?
It is because of EXPECTATIONS OF INFLATION with Government spending and spending and the Fed printing money because of this pandemic. There’s your answer right there.
Hyper inflation tips.
Stock up on durable goods—i.e., hoard as much as you can store.
Learn a skill that the world can’t do without, so you can barter if necessary. That would include most blue collar trades and health care skills.
I prefer to own quality REITs with decent yields.
When we were younger we invested in BOTH stocks and RE. The RE did a lot better than the stocks because we could put sweat equity into it. We did all the maintenance, management, selection, market surveys, etc. And upgrades, we did a lot of upgrades.
Go ahead, tell me how you do that with a REIT. Do you head over to their apartment and offer to cut the grass? How about change out the dishwashers?
Now that we have to hire those things done for us -- both age and number of properties have increased, returns are about the same as REITs, but that big early boost to returns was a huge benefit.
These days stock portfolio is about equal to RE portfolio, but there is great wisdom in investing in BOTH.
If you are retired and taking out money to live on, the possibility of depleting your investment account accelerates during long recovery periods.
These are the two longest recovery periods on record: 17 & 26 years.
Match your investment strategy to your skills.
Being a property manager is a skill. You can pay someone else, if doing so leaves the net income where you want it.
If you have never been an active investor making your own investments at time of early retirement, it could be too late to acquire those skills for yourself. Instead, shop for a good investment house that is not going to rob you in fees and transaction churning costs. Be sure they clearly understand your goals, stated as degree of maintaining or growing capital and level of annual income desired. Make them explain clearly how the options they pick, or change to, will do that. When economic conditions are changing, discuss with them what if anything they are doing in response to that. Don’t be a totally silent investor. The more questions you ask, the more you will understand what they are doing. Be satisfied or change investment houses.
Rental property... yeah, right... this reminds me of those "learn how to trade options" ads. Bigger Fool ping.
I have 20 residential rental properties, all rented and all tenants paying. Keys are, of course, location and renting only to good tenants.
Red state and the area I live in is 80% Trump.
RE: I have 20 residential rental properties, all rented and all tenants paying. Keys are, of course, location and renting only to good tenants.
Well, if your rentals are all paid for ( i.e. no mortgage ), you’re all set financially then.
Screening potentially good tenants is the challenge. You must be a very good judge of character....
That’s why you can be a landlord.
Here in NY the renter is King.
“Keys are, of course, location and renting only to good tenants.”
I do anal background and credit checks. Weeds out 95% of losers. I am amazed at how many landlords do neither.
“ I do anal background and credit checks.
Sounds intensive!
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