All Forum Posts by: Account Closed

 This is human nature.

When I was starting out in my career, I believed that engaging in commercial enterprise was vulgar and best left to company management. At middle age, I realized that when the company lost money, I was the one receiving the layoff notice and not the company managers.

It was at this point that I realized if I could figure out how to get my hard-earned money to work for me, the day would come when I wouldn't have to work any longer for my money. The quest for the best wealth-building horse for me to ride was underway. I chose systematic investing in the stock market through brokerage and retirement accounts. But I was surprised to discover that when I shared my new-found enthusiasm with my colleagues, I got the cold shoulder.

A decade after I started, which spanned the dot-com bubble and subsequent bust, I had just enough financial assets to consider retiring early based on the 4% safe withdrawal rate (I didn't mention this fact to my colleagues). But I chose instead to continue working at a reduced level of stress to further my financial sustainability, which got me through the financial crisis of 2008 with only minor scratches.

Now I have the high-class problem of figuring out what to do with all the free time I have. I'm not the type who wants to spend all day at the beach (too boring and there are safer ways to get my vitamin D). I don't even own a TV set because there isn't anything on worth watching (in my opinion). But there is an endless supply of educational videos on Youtube and BiggerPockets on how to build wealth and manage money, which I watch all the time.

I don't know how to lead a horse to water and get it to drink. My goal is only to make sure I have the wherewithal to support myself financially during my senior years.

I'm financially free because my investment income covers my living expenses. I'm retired at the moment, but when I first became financially free, my day job became a profitable hobby. I continued working because I wanted to, but I cut back on my hours to reduce my stress. Continuing to work allowed me to cover my living expenses so that I didn't have to draw on my investment assets. It also allowed me to add more money to my 401K and IRA accounts to increase my margin of safety in case we ever have another financial crisis.

My path to financial freedom followed the one described in the book "The Automatic Millionaire" by David Bach: get a good education, get a good job, live below your means, and save and invest the rest. In terms of real estate experience, I've owned my own home in the past and have invested in publicly-traded REITs.

My CORE portfolio investments now are in the stock market in brokerage and retirement accounts. I used managed accounts for years (which are expensive in terms of fees) until I switched over to a robo-advisor service that is low in cost (the investment technique is asset allocation, where the different asset classes are rebalanced periodically to maintain their desired ratios). I also invest in dividend growth stocks (mostly Dividend Aristocrats) in a Roth IRA. I currently "DRIP" these dividends because I don't need them yet to cover living expenses.

My EXPLORE portfolio consists of crowdfund finance and options trading. I'm on BiggerPockets to learn about direct real estate investing from those who are doing it so that I can make an informed decision about whether it might be right for me to pursue. I'm leaning towards note investing rather than landlording because I'm better at managing money than I am with managing properties.

I agree about focusing on the game and not the score.

One such instance where a million-dollar net-worth score (exclusive of the value of one's primary residence) becomes a factor is qualifying as an accredited investor. Some deals are available only to investors who are accredited and these deals can be a good way to diversify one's portfolio.

I have this same concern, but in the other direction.

I've done well in the stock market (with asset allocation and dividend growth investing) and am toe-dipping in options trading and crowdfund real estate to diversify my income sources. I want to explore direct buy-and-hold real estate for additional diversification (at least learn enough about the subject to make an informed go/no-go decision about it).

I owned my home in Silicon Valley for 33 years and sold it three years ago to retire to a part of the country where the cost of living is much lower. The small studio I'm renting here in Northwest Florida would cost me three times as much if I had remained in San Jose and four times as much if I had moved to San Francisco. Moving to a lower cost region is one possible strategy for retirement.

When I lived in Silicon Valley, my stock broker there told me his wealthy clients would sell their private companies and real estate investments at retirement and deploy the money in the stock and bond markets (which he and other investment advisors would manage for them).

Would anyone like to share their views on what they have done or plan to do when they retire so that i can understand my realistic alternatives? Stay invested in real estate? Invest in a different asset class? Invest in a combination of asset classes?