Unusual retirement income strategy
Hi Terry….Thanks for your WGN time, wish I would have discovered you years ago. In a nutshell I am 60 y.o. have no 401K. what I have is a $2,700 pension $3,200 rental income per month. My $400,000 home is paid off.A home equity $250,000 safety net for emergency only no balance. If I cashed out on the rentals properties, I estimate $500,000 net.I have no debt except aproxiomaty $125,000 on each of the four rentals with interest rate in the 4% range. My 2021 Truck and Airstream trailer are paid for. See where this is going! I have a Teamster driving job and will be able to continue my insurance for $400.00 per mo. I make $65,000 per yr. at that job. My plan is to quit and not work for a year. After that I will pick up part time work and attempt to earn the approximate $30,000 I’ll be loosing from the job. I will do my best to wait until 70 to collect social security. I spoke with a non-fiduciary. I was told If I sold off the buildings and put the proceeds in the market the market could not create the same income that has been consistently created from the property. Your thoughts please. Thank you! Rich
Terry Says
I agree with that advisor. The real estate should provide continued steady income, that can rise to keep up with inflation. The stock market can provide RISK! Stick with your plan. And keep working as long as you can. Remember your SS benefit is calculated using your highest earning years, so every year you add more earnings, the oldest from 35 years ago, and surely much lower, drops out of the formula!