Retirement Planning - Lessons Learned

[DieselBound]

You can refi for way under the inflation rate. It's free money. Let your 401k ride; if the market crashes it will recover. You should be able to get a 15 year fixed for under 2%.

I wouldn't be so certain that if the market crashes that it will recover. NOTHING lasts forever. That 401k money can evaporate in an instant: Petro-dollar collapse might do it [kick the legs out from under the USD as world's reserve currency and all of a sudden the endless money printing stops, and inflation shoots sky high]. Absolutes have a way of turning around and biting one. Not that it's "one sided." Case in point, a guy in Utah(?) took out all kinds of loans expecting for everything to crash (no one left to collect, right?) and, well, crickets (no crashing sounds came)... they rounded him up.

Hedge your bets! Name of our "farm" is "Scattered Eggs Farm," not because of the obvious (anyone familiar with chickens and other free-ranging fowl understand this), but more along the lines of "NOT all eggs in one basket." I had an extreme wake up at one point in which I had my entire "future" charted out, how I was going to use money for retirement and use the sale of my house for late-in-life needs. Major economic upheaval upended my plans. I got a bit wiser from that and am now a bit more resilient. I decided that I would never "retire," and that my 401k, social security and whatnot wouldn't be there, and this mentality allows for me to adjust should I have to- I figure that as long as I am able I will be working, whether that work will provide sufficient "revenue" is the question. No matter, it's about controlling one's expenses.

If one refinances one should "invest" the "savings." Back when I was playing with banks and doing refinancing (I now have no mortgage) I would be looking more to reduce the term than having a lower payment (though I always got a lower payment rate). I see a lot of volatility ahead, and most everything is a total crapshoot; what is certain, however, is that the future won't be what it used to be!

 

[MossRoad]

In today’s market I thought all houses were worth over 100K.

Welcome to South Bend, Indiana!

 

[grsthegreat]

Holy cow. Even a dump of a house in coeur d Alene is bringing in $350,000

 

[kenmac]

Heck yes. Insurance should be for expensive disasters, and for a representative to defend you from liability. Not for an expense on the level of a blown-down fence etc.

Self insured...

Our current house is valued at just a tad over $100K. The replacement cost is estimated to be over $250K. Our home owner's insurance is currently around $1K per year. I don't think self-insuring would save me much on premiums.

I'm sure other people it works out numbers-wise though. Just not for us.

This one is around 500 K. I asked the insurance company If I could self insure for 250K with a $5000.00 deductible . They agreed, my insurance cost currently at $1,350.00 per yr. I can't remember what the cost would be if I have them insure the full amount as that was 4 yrs. ago. taxes run around $1,250 per yr

 

[kenmac]

I wouldn't be so certain that if the market crashes that it will recover. NOTHING lasts forever. That 401k money can evaporate in an instant: Petro-dollar collapse might do it [kick the legs out from under the USD as world's reserve currency and all of a sudden the endless money printing stops, and inflation shoots sky high]. Absolutes have a way of turning around and biting one. Not that it's "one sided." Case in point, a guy in Utah(?) took out all kinds of loans expecting for everything to crash (no one left to collect, right?) and, well, crickets (no crashing sounds came)... they rounded him up.

Hedge your bets! Name of our "farm" is "Scattered Eggs Farm," not because of the obvious (anyone familiar with chickens and other free-ranging fowl understand this), but more along the lines of "NOT all eggs in one basket." I had an extreme wake up at one point in which I had my entire "future" charted out, how I was going to use money for retirement and use the sale of my house for late-in-life needs. Major economic upheaval upended my plans. I got a bit wiser from that and am now a bit more resilient. I decided that I would never "retire," and that my 401k, social security and whatnot wouldn't be there, and this mentality allows for me to adjust should I have to- I figure that as long as I am able I will be working, whether that work will provide sufficient "revenue" is the question. No matter, it's about controlling one's expenses.

If one refinances one should "invest" the "savings." Back when I was playing with banks and doing refinancing (I now have no mortgage) I would be looking more to reduce the term than having a lower payment (though I always got a lower payment rate). I see a lot of volatility ahead, and most everything is a total crapshoot; what is certain, however, is that the future won't be what it used to be!

Mine isn't all in the stock market. I have my ''eggs'' scattered about. Some in cash, some in private equities, etc.
Plus if I need to, I can go back to work ! LOL

 

[California]

Oh man don't get me started on insurance.

I got notice this was my final renewal on the farmhouse due to knob&tube wiring, foundation is posts on piers in earthquake country, and the huge major California fire that was finally halted less than 10 miles upwind from me in 2019.

By next spring I need to find an alternative. Likely limited coverage at far more cost.

 

[kenmac]

They love sending out Amendments to my policy every yr.
sadly, in most cases, they aren't in my favor.

 

[goeduck]

Holy cow. Even a dump of a house in coeur d Alene is bringing in $350,000

That is cheap, BUY IT .

 

[DieselBound]

I'd had a neighbor's house go up for sale a few years back. Some folks who were the most wonderful people I've known were renters there: they did all sorts of work there to make it a better place to live). I was a bit late to thinking it up, but I came to the thought of buying it and renting it to them so they could stay there. That thought pretty much instantaneously evaporated when I saw what the listing price was! Fast forward to today and the new owners found a place that they'd been dreaming of and decided to put this place up for sale. I'm thinking that inflation is happening, as it's just insane. Tax assessors love it!

NOTE: I once had property taxes go DOWN! Everyone said it wasn't possible. I know of one way in which it could most certainly happen, but I'll refrain from going off on THAT tangent! Oh, and I also had property taxes go UP because there was a revenue loss (look up "Oso slide"): I have to shell out more for less service?

 

[Larry Caldwell]

Heck yes. Insurance should be for expensive disasters, and for a representative to defend you from liability. Not for an expense on the level of a blown-down fence etc.

Oddly enough, the last time I updated my homeowner's insurance, going from $500 to a $5,000 deductible would only save me about $5/month. If I assume the actuaries know their business, small claims must be rare.