Quote:
Originally Posted by manaboutown
A recently evolving huge factor to consider is the incredible rate of inflation we are now facing. The cost of housing is just one component of it. The prices of homes have risen 20 - 40% in the last year or so in many communities.
One retiring today needs to evaluate whether he has enough to deal with inflation. I will be 80 next month and thankfully still own some commercial rental properties. The rents from the month to month leases on them are up 33% from a year ago. The stock market has been on a what, twelve year bull run, but that can end any day or continue. No one really knows. Interest rates have been held at historic lows for many years and they will likely soon be raised. Savings accounts currently pay next to nothing. There is a lot to consider for one retiring today.
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An old expression from Mom, Man plans and god laughs. Endless articles on what you need to retire. They make me laugh. All you need to know is when you will die, what will kill you, the rate of inflation till you pass, the return on your investments, will social security continue to pay with what inflation adjust and what means test, if you have a pension the same questions may apply. Hum, if, you know all of them it is easy to calculate, exactly what you need to retire. Most of us, perhaps, all of us make a lot of assumptions.
We all know or think we know the stock market only goes up, real estate only goes up.
We tend to forget-EXCEPT WHEN THEY DON'T.