401k and other retirement plans: have you raided yours yet?

[Admiral Yi]

You for one. 

What are you bitching about now, if not the fickle nature of Big Brother's affections?

[Malthus]

You for one. 

What are you bitching about now, if not the fickle nature of Big Brother's affections?

People saving for retirement are screwed seemingly no matter what (we) do.

Rely on government? Why, they will just raid the pensions kitty when they run out of cash - which is always. By the time you come to retire, there won't be enough left to feed your cat, let alone you. Even if you choose to eat cat food.

Put money in a savings account? Well, with rates as they are, might as well put cash under your matress.

Rely on investing in equities? Stock market crashes and takes all your money with it.

Rely on professional investment advisors? They will rob you blind with fees, *then* the stock market will crash and take all your money with it. 

[Phillip V]

You for one. 

What are you bitching about now, if not the fickle nature of Big Brother's affections?

People saving for retirement are screwed seemingly no matter what (we) do.

Rely on government? Why, they will just raid the pensions kitty when they run out of cash - which is always. By the time you come to retire, there won't be enough left to feed your cat, let alone you. Even if you choose to eat cat food.

Put money in a savings account? Well, with rates as they are, might as well put cash under your matress.

Rely on investing in equities? Stock market crashes and takes all your money with it.

Rely on professional investment advisors? They will rob you blind with fees, *then* the stock market will crash and take all your money with it. 

Become a politician or high-level government bureaucrat. Security achieved.

[Valmy]

The old people around here are having to invest in rental properties and start small businesses to fund their retirement.  The low interest rates are killing them and basically blew up their retirement plans.

[merithyn]

The old people around here are having to invest in rental properties and start small businesses to fund their retirement.  The low interest rates are killing them and basically blew up their retirement plans.

I'm planning to do the rental properties thing, myself. Meri the Slum Lady has a nice ring to it, doesn't it?

[Barrister]

The old people around here are having to invest in rental properties and start small businesses to fund their retirement.  The low interest rates are killing them and basically blew up their retirement plans.

I'm planning to do the rental properties thing, myself. Meri the Slum Lady has a nice ring to it, doesn't it?

I've heard of tons of people saying they want to own rental properties.  It's the financial trend du jour.

Which makes me think it's now a bad idea, in particular in Canada where we have declining real estate prices.

[Admiral Yi]

Rely on investing in equities? Stock market crashes and takes all your money with it.

Then you wait a year and all your money comes back.

[Phillip V]

Rely on investing in equities? Stock market crashes and takes all your money with it.

Then you wait a year and all your money comes back.

Only if there is a Bernanke II.

[merithyn]

I've heard of tons of people saying they want to own rental properties.  It's the financial trend du jour.

Which makes me think it's now a bad idea, in particular in Canada where we have declining real estate prices.

That's actually what makes buying and renting properties smart now. Buy the houses while they're cheap, rent them out, and keep the house for 15-20 years. The real estate prices are going to bounce back from where they are now. Will they go as high as they were before? Oh, I hope not. However, if you're smart about how you set your rents and take care of your properties, the houses will appreciate and you'll get a monthly income. It's not free money - there's work involved - but it's a smart way to earn extra money.

[Malthus]

The old people around here are having to invest in rental properties and start small businesses to fund their retirement.  The low interest rates are killing them and basically blew up their retirement plans.

I'm planning to do the rental properties thing, myself. Meri the Slum Lady has a nice ring to it, doesn't it?

I've heard of tons of people saying they want to own rental properties.  It's the financial trend du jour.

Which makes me think it's now a bad idea, in particular in Canada where we have declining real estate prices.

From what I've seen, renting properties is a risky way for the average person to make money. You are at the mercy of your tenants, and should they choose to wreck your place and/or not pay rent, they can very effectively get away with it for a long time and cost you much money to get rid of them. There is a reason slum lords have goons as enforcers. 

That's true no matter what real-estate prices do.

[Gups]

You can get round this by requiring decent size deposits and (possibly) guarantors.

Renting property in London has been very popular for many years now and still produces very good yields as well as capital growth. It's getting the finance that is the hard bit.

[Neil]

Retirement saving is pointless anyways.  If you're involved in the stock market, your money will be stolen from you, as that's the whole point of the stock market.

My plan is to suffer a massive stroke no later than my mid-50s and die.

[Malthus]

You can get round this by requiring decent size deposits and (possibly) guarantors.

Renting property in London has been very popular for many years now and still produces very good yields as well as capital growth. It's getting the finance that is the hard bit.

Depends on the market. If there is a shortage of rental units available, it is a lot easier to demand sizable conditions like big deposits and guarantors. If many retirees are getting in the business, one's bargaining power to require such demands as conditions is perforce more limited.

I'm just going by the horror stories I've heard from people trying out this method of making money here in Canada.

[merithyn]

Depends on the market. If there is a shortage of rental units available, it is a lot easier to demand sizable conditions like big deposits and guarantors. If many retirees are getting in the business, one's bargaining power to require such demands as conditions is perforce more limited.

I'm just going by the horror stories I've heard from people trying out this method of making money here in Canada.

That's why where you own the property is as important as what property you own. It's a business, and as such has risks. There are ways to minimize the risks - and Gups has given some - and ways to improve the situation based on how you handle the initial outlay of cash.

[Neil]

I'm just going by the horror stories I've heard from people trying out this method of making money here in Canada.

Yeah, a guy I used to work with had rental properties.  He always had to take days off to go to court to get people evicted, and it was a long, painful process.