All Forum Posts by: Vernon Henry

Thank you all for your wonderful advice. You have given me a lot to ponder/investigate. I should point out that I am extremely "challenged" when it comes to intricate investment/financial knowledge.

Steve Vaughn said: "At Dow 26,000 I'd be dollar cost averaging out of equities honestly. Where do we think it's going to go? Stay out of bonds in a rising rate environment, but get chunks out of mutual funds/equities for sure."

I'm sorry but I have no clue what most of that means. I'll look it up. I'm going to check out the Roth conversion ladder option also and look for an adviser who's not going to try  to sell me something--just give me clean advice.

Aaron Wade asks:"Do you have any heirs?" Yes, I have a wife and grown daughter. They are already taken care of.

Travis Weitthoff said:"...One example and there are many, would be a private money lender with a first lien position." Another thing I'm not too clear on and will need to investigate.

Thanks again to all for your responses. They are much appreciated.

Vern Henry

I am a retired 64-year-old with about $490k in a 401k. It seems like all the information, tips, strategies, etc. that I find on the subject are directed at folks for whom retirement is years (if not decades) away. In any case, the advice seems to always be geared toward future growth and planning. Well the future is here now for me. I'm there already and want to start using and enjoying some of this money. I am fortunately blessed with a generous pension which I live on and a bit more is on the way whenever I decide to start taking SS. We've sold some properties in the last couple of years and thus have a good amount of cash. In other words, I do no need the 401k money to live on. 

It's not that it's burning a hole in my pocket or that I want to just blow it all in a crazy shopping spree. But what's the point of growing money if you never spend any of it? I've been thinking about perhaps using some of it to pay cash for a house somewhere away from the People's Republic of California or, who knows, maybe spring for a new Tesla. Why not? Also, I'm afraid of what may happen when this record bull market finally "corrects". What will I be left with if the market tanks?

My questions: What's the best strategy for withdrawing some (or all) of this money while minimizing the tax hit? Also, what would be the best way to protect it from market swings?

Hey @John Chapman. When I read you post at first I thought "what planet is this guy from"? Then you mentioned Texas. *Sigh* I guess there must still be some sanity left there. Here in Cali it's getting harder and harder to evict... and they know it! So the rent is often not their first priority in a financial pinch.

@Bryan -- Yeah, that's what I'm thinking.

There's a lot that's kind of hinky about this deal that I'm not going into here (which is why i'm backing out). She (the broker) stands to lose $8700 so she might try to bully at least some of it out of me. But i wouldn't think it's a large enough amount to pursue legally.

Offer was signed and dated June 25. I sent verbal and physical (fax) acceptance on Friday around 7:00 and 8:00pm respectively.

This is a carry back deal for an investor dealing directly with my (seller) RE broker.
Facts:
- My acceptance was sent AFTER the 5:00pm 3-day offer expiration which was Friday so *technically* it could be considered void I would think.
- I have not yet received buyer acceptance confirmation.
- NO contracts outlining terms of the carry back have been signed or agreed to.
- Escrow and govt. offices are closed so I don't believe anything could have gotten started yet in that regard.

My thinking is that I shouldn't be liable for broker commission at this point if I send a document stating I no longer wish to proceed.

I am a seller who last night faxed my acceptance of an offer which involved my carrying the loan for 3 years. I've had second thoughts and now want to back out.Can I still do so without any penalty(like the broker wanting to be paid)?

If you default on a loan for a property owned by your LLC, would your personal credit be harmed?

Thanks Tim, for you perspective. Besides my personal residence, I have two other properties -- houses in much nicer areas which cash flow.

I want to get rid of that one because I don't see that neighborhood turning around anytime soon if ever. It's a high-turnover, high maintenance situation that's a complete pain in the ***.

Perhaps taking some cash out of one of the other properties to pay down the principle on this one might be the way to go.

No, I have not spoken to my lender yet. I'm still in the idea gathering stage.

Bill --
Could you elaborate on the quit claim suggestion and the deficiency judgement?