Retirement Planning - Lessons Learned

[goeduck]

My understanding is that you can roll from an IRA or 401k into a self directed IRA without it being a taxable event. Then real estate can be bought under the IRA and the income dispersed. I believe (not sure yet) that you have to use a property manager to make it more of a hands off operation. I use a property manager on my other rental anyway.

 

[MoKelly]

My understanding is that you can roll from an IRA or 401k into a self directed IRA without it being a taxable event. Then real estate can be bought under the IRA and the income dispersed. I believe (not sure yet) that you have to use a property manager to make it more of a hands off operation. I use a property manager on my other rental anyway.

You are correct. The SDIRA cannot pay you or any of your relatives for managing the property or making repairs or any activity at all. You cannot live in the property nor can any relatives.

You must hire independent folks to do all work.

MoKelly

 

[goeduck]

You are correct. The SDIRA cannot pay you or any of your relatives for managing the property or making repairs or any activity at all. You cannot live in the property nor can any relatives.

You must hire independent folks to do all work.

MoKelly

Can you do the repair labor and not pay yourself or does that have to be contracted? Repair parts I understand have to be paid for by the SD-IRA.

 

[MoKelly]

Can you do the repair labor and not pay yourself or does that have to be contracted? Repair parts I understand have to be paid for by the SD-IRA.

I believe if you do work it’s like contributing to the IRA. It’s complicated.

The Custodian would have to let you know that answer.

MoKelly

 

[Larry Caldwell]

Moving after retirement would be a total PITA. My wife and I bought our retirement home on 90 acres in 1994 and retired the mortgage in 2008. In the intervening 26 years we have completely remodeled the house and built a great shop. I may spruce up the barn a bit with a paint job and batten boards, it looks a little shabby now. It's our dream home. We couldn't see any reason to wait until we were old to enjoy it. I'm glad I was younger when I did some of the upgrades. They'll take us out of here toes up. The master bath has been remodeled to be wheelchair accessible. If we need home care, we have the savings to pay for it.

If you want to live somewhere else, don't waste your time. Move, while you are still young enough to build a new life there. If you want acreage, it won't take care of itself. You will need a tractor, implements, tools, and infrastructure. You will need to bury water lines, repair the water system, run power to outbuildings do erosion and flood control, repair septic systems, and a host of other chores that will be very difficult if you wait until you are old.

 

[ultrarunner]

Moving after retirement would be a total PITA. My wife and I bought our retirement home on 90 acres in 1994 and retired the mortgage in 2008. In the intervening 26 years we have completely remodeled the house and built a great shop. I may spruce up the barn a bit with a paint job and batten boards, it looks a little shabby now. It's our dream home. We couldn't see any reason to wait until we were old to enjoy it. I'm glad I was younger when I did some of the upgrades. They'll take us out of here toes up. The master bath has been remodeled to be wheelchair accessible. If we need home care, we have the savings to pay for it.

If you want to live somewhere else, don't waste your time. Move, while you are still young enough to build a new life there. If you want acreage, it won't take care of itself. You will need a tractor, implements, tools, and infrastructure. You will need to bury water lines, repair the water system, run power to outbuildings do erosion and flood control, repair septic systems, and a host of other chores that will be very difficult if you wait until you are old.

Good advice but maybe too late...

 

[Larry Caldwell]

Good advice but maybe too late...

Maybe not for those who are planning for retirement.

 

[goeduck]

They will be taking me out of this place toes up as well. Single level, wide doorways, wide hallways, one small step up to the front door, small 1/4 step up from the garage floor, hardwood throughout except kitchen which has tile.

 

[MossRoad]

It's never too late! My dad's parents sold their rental houses, their lake cottage and their barber shop and built their first new house when my grandpa was 89 and my grandma was 82. They kept their trailer in Florida. The next fall I found my grandpa, age 90, up on the roof leaning over cleaning leaves out of the gutters. Grandpa, get down from there! I finished it for him. He passed away the following year. Grandma lived there (and Florida in winter) for 14 more years, passing away at age 98.

 

[ultrarunner]

It's never too late! My dad's parents sold their rental houses, their lake cottage and their barber shop and built their first new house when my grandpa was 89 and my grandma was 82. They kept their trailer in Florida. The next fall I found my grandpa, age 90, up on the roof leaning over cleaning leaves out of the gutters. Grandpa, get down from there! I finished it for him. He passed away the following year. Grandma lived there (and Florida in winter) for 14 more years, passing away at age 98.

Good to know...

I've always been a planner but life has a way of changing even the best of plans...